From our vantage point on this continent, we cannot be an island
"Advertising trends have always been able to predict where we're going," says our oraculo infallibili Charlie.
But it is only moderate and this is a warning sign to Joe Hockey and the PM. Marketing people aren't entirely convinced the promised growth is around the corner.
But we think that with the right policy settings Australia could be heading for an extraordinary century.
Many times we return to the theme of the importance of Asia, soon to be 50 per cent of the world's economy and, more importantly, 50 per cent of the world's middle class. China has now lifted a staggering 500 million of its citizens out of poverty in short order and China's middle class is in the process of changing the world. There are more than 300 million middle class consumers in China, equal to almost the entire population of the US. By 2030 China is expected to have 1.4 billion middle class consumers. To put this into perspective, it is forecast that the middle class of the US and Europe combined will be about half that number.
It is critically important that we understand the strength of Asia. And as I can't do much to push advertising dollars up between now and Christmas, this week found me in Kuala Lumpur giving a speech to a group inspired by the UN Secretary-General, Ban Ki-moon, to pursue nothing less than the future of the planet and the well-being of its global citizens.
Why were we there? It's a great story for Australia that the UN has given Melbourne's Monash University a lead role in pulling together a regional view to influence global outcomes. Leaders of no fewer than eight Asian nations were attending.
Our region is important because it is the most populous region on earth and it has achieved a lot recently under the Millennium Development Goals.
Poverty levels have fallen from 52 per cent to 18 per cent and the percentage of people without safe drinking water has fallen from 28 per cent to 9 per cent. But other indicators show widening differences between rich and poor that threaten social cohesion and disturbing environmental degradation that could make areas of the region unproductive, even uninhabitable.
There is much more to be done if we want a stable, prosperous and sustainable neighbourhood. And why are business people interested in a sustainable world? Because business leaders want certainty and a sustainable world is one of the fundamentals of that need and aspiration.
Australia can't be an island, even though our geography can trick us into thinking like that. So it's very good news for Australia that Monash University has taken up this appointment that is earning us real regional respect.
Some may think that we are already doing enough to help others, but the report produced by the group that I'm addressing shows that we're slipping behind in important areas.
The wealthiest 20 per cent of Australians hold 62 per cent of total household wealth, while the poorest 20 per cent have just 1 per cent. And since 2004, the wealth of the first group has grown by 36 per cent and the latter just 10 per cent. The rich are getting richer, the poor are getting poorer, and the middle class is getting squeezed.
Doesn't sound like the type of Australia any of us want, and in many parts of the wider region the problem is worse.
We all know that life is so much better for our family when we have good neighbours and a great neighbourhood. What's true for our family, home and street is also true for our nation.
Frequently Asked Questions about this Article…
Asia's economic growth is crucial because it is projected to become 50% of the world's economy and middle class. This growth presents significant investment opportunities, especially with China's expanding middle class, which is expected to reach 1.4 billion by 2030.
Asia's economic growth is crucial because it is set to become 50% of the world's economy and middle class. This growth presents significant investment opportunities, especially with China's expanding middle class, which is expected to reach 1.4 billion by 2030.
Current advertising trends indicate moderate growth expectations, which can serve as a warning sign for investors. It suggests that while there is potential for growth, it may not be as immediate or robust as some might hope, impacting investment strategies.
Australia's involvement in regional initiatives, like Monash University's role in influencing global outcomes, enhances its regional respect and stability. This can lead to a more prosperous and sustainable investment environment, benefiting investors.
Australia plays a significant role in the global economy by engaging with regional partners and contributing to global outcomes. Initiatives like Monash University's involvement in regional leadership highlight Australia's commitment to influencing positive global change.
The growing wealth gap in Australia, where the wealthiest 20% hold 62% of total household wealth, indicates economic inequality. This can affect social cohesion and economic stability, which are important factors for investors to consider.
Sustainable development is crucial for business leaders because it provides certainty and stability, which are fundamental for long-term business success. A sustainable world ensures a stable environment for businesses to thrive.
Environmental degradation in Asia poses risks to economic productivity and habitability. Investors should be aware of these issues as they can impact the long-term sustainability and profitability of investments in the region.
Despite economic growth, the Asia-Pacific region faces challenges such as widening income inequality and environmental degradation. These issues threaten social cohesion and could make parts of the region unproductive or uninhabitable.
Advertising trends can provide insights into economic directions and consumer behavior. For investors, this information can help predict market movements and identify potential investment opportunities.
China's middle class has significantly impacted the global economy by increasing consumer demand and driving economic growth. With over 300 million middle-class consumers, China's market size rivals that of the entire US population.
The middle class is a key driver of global economic growth due to its consumption power. As the middle class expands, particularly in Asia, it creates new markets and opportunities for businesses and investors.
Wealth inequality in Australia has led to a concentration of wealth among the richest 20%, while the poorest 20% hold only 1% of total household wealth. This growing disparity can affect social stability and economic growth.
A sustainable world provides certainty and stability, which are essential for long-term business planning and investment. Business leaders and investors prioritize sustainability to ensure continued growth and profitability.
Regional cooperation is vital for Australia's future as it ensures a stable and prosperous neighborhood. Engaging with regional partners helps address shared challenges and promotes sustainable development, benefiting both Australia and its neighbors.
Despite being geographically isolated, Australia cannot afford to be an economic island. Engaging with Asia and other regions is crucial for its economic strategy, providing access to growing markets and investment opportunities.
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