A smaller Australia won’t be a stronger one

Underinvestment, not migration, is squeezing housing and services – shrinking the intake will only cost Australia more.

Jenny Bloomfield

16 October 20264 min read

Australia is engaged in a strange political contest, with parties competing to show who can make the country smaller. The debate should instead be about how to make Australia stronger.

Political debate and party policies now cast international students and migrants as the cause of pressure on housing, infrastructure, public services and the cost of living, rather than confronting years of poor policy choices and inadequate investment. But reducing immigration will not solve these problems. It will only deprive Australia of skills, ideas, investment and valuable connections with the world.

For most of its modern history, Australia understood that its prosperity, security and influence depended on engagement with the world, particularly with its own region.

In 1950, External Affairs Minister Percy Spender observed (Opens in new window) that Australia’s destiny was “irrevocably conditioned by what takes place in Asia”. That insight helped inspire the Colombo Plan, which brought about 40,000 young people from the region to study in Australia over the following three decades.

The value of the program extended well beyond education. As then Foreign Minister Julie Bishop noted (Opens in new window) in 2013, former Colombo Plan scholars went on to become prime ministers, presidents, ministers and business and community leaders. Their understanding of Australia was shaped by the years they spent living and studying here. Bishop’s New Colombo Plan sought to deepen those ties in the other direction by sending young Australians to study and work across the Indo-Pacific.

For generations, people have chosen to make this country their home, bringing talent, ambition and new perspectives that have helped Australia prosper.

When future leaders spend their formative years in Australia, they build lifelong friendships, develop a lasting affinity for the country and gain an instinctive understanding of its institutions. That is an extraordinary strategic asset. Australia should be seeking more of this influence, not less.

International education is much more than an export industry. It is one of Australia’s most powerful diplomatic assets, connecting us with ambitious young people who will become leaders and decision-makers across our region in the decades ahead.

Australia is a nation built by immigrants. For generations, people have chosen to make this country their home, bringing talent, ambition and new perspectives that have helped Australia prosper. Australia can enhance that legacy by attracting the world’s best talent and giving them every reason to build their lives here and contribute to its future.

Jeremy Huang/Unsplash

My memoir, Australian Ambassador (Opens in new window), is my own version of that larger Australian story. I arrived from Greece as a 12-year-old schoolgirl and returned three decades later as Australia’s ambassador. My journey shows what is possible when people are given the chance to belong and contribute.

In his first speech to parliament in 2011 (Opens in new window), Arthur Sinodinos, later a minister and Australia’s ambassador to the United States, called for a “bigger and more sustainable Australia”, with the people and capacity to expand economic opportunity, strengthen national security and meet the challenges ahead. At a time when the political debate is focused on making Australia smaller, his argument deserves renewed attention.

Immigration and an open, diverse society are central to Australia’s character and national strength. People moving to the country bring skills, expand productive capacity, strengthen global networks and support a larger, more dynamic domestic market. But population growth is not an end in itself. It must be sustainable and supported by adequate investment in housing, infrastructure and public services.

Reducing immigration because investment has failed to keep pace would treat the symptom rather than the cause. Cutting international student numbers would similarly weaken a major export industry and a valuable source of talent, skills and influence. The better course is to maintain rigorous visa standards while building the capacity for sustainable growth. Governments and industry must work together to expand housing supply and ensure infrastructure keeps pace.

Australia must also lift productivity to sustain living standards and real income growth. That requires policies that create, rather than merely redistribute, wealth; reduce unnecessary regulation, compliance costs and poorly targeted subsidies; improve workplace flexibility; and guarantee that the immigration program delivers the skills and productivity the country needs. Reform is difficult, but governments must build the evidence, make the case, earn public support and see it through.

In an uncertain and contested world, Australia’s stable democracy, strong institutions, highly liveable society and strategic position at the heart of the Indo-Pacific are real advantages. We should use these strengths to build greater prosperity, security and influence.

This is more than an economic choice; it is a choice about the kind of country Australia aspires to be. We can turn inward, or remain open to the talent, investment and enterprise that will create opportunity and strengthen Australia. A confident Australia should choose growth.

About the author

Jenny Bloomfield

Jenny Bloomfield was a career officer with the Australian Department of Foreign Affairs and Trade (DFAT) for 29 years, and was most recently Australia’s Representative at the Australian Office in Taiwan. Her memoir, Australian Ambassador, is published by Black Inc. jennybloomfield.com.au (Opens in new window)

Topics

Migration & refugees Australia Soft power Economy