Eight Things I Learned From My Aussie Policy Series
May 11, 2025
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Join Sam Roggevin, an expert in international security, Richard Holden, an economics professor, and Peter Chulip, a chief economist, as they dive into Australian policy insights. They tackle the surprising connection between gender pay discrimination and educational declines, explore how Australia's governance outperforms the U.S., and discuss the implications of immigration on aging populations and housing challenges. Their lively discussion is packed with anecdotes and cultural insights that will keep you engaged!
The decline in Australia's high school math and literacy scores is partly attributed to gender pay discrimination impacting teaching quality.
Australia's immigration policy mainly aims to alleviate population aging by attracting skilled migrants and international students for economic stability.
Deep dives
Declining Educational Standards
Australia has witnessed a concerning decline in high school math and literacy scores, an issue often overlooked outside of educational discussions. A key insight shared by Andrew Lee suggests that this downturn may be linked to historical gender pay discrimination, which once funneled talented women into teaching due to better opportunities elsewhere. As gender pay disparities have narrowed, teaching wages have not kept pace, leading to a drop in the academic caliber of new teachers. This decline is quantitatively significant, with contemporary year nine students performing at a level comparable to those in year eight from two decades prior.
US-China Relations and Public Perception
The US is unlikely to engage in any significant military confrontation with China due to a lack of genuine interest from American intellectual and cultural leaders, as highlighted by Sam Roggevin. He points out that since China's rise, no US president has presented a compelling national narrative around addressing this challenge, reflecting a stark contrast to the anti-Soviet sentiment during the Cold War. This absence of a united national effort raises concerns about America's readiness for the geopolitical contest that China poses, highlighting a gap in public discourse and engagement. The disparity in the intellectual environment further complicates this dynamic, as broader cultural discussions about China's influence are largely absent.
Australia's Strong State Capacity
Australia is characterized by a high level of state capacity, defined as the government's ability to achieve policy goals effectively. Insights from economists Richard Holden and Stephen Hamilton suggest that Australia's success in governance stems from high expectations for service delivery, a cohesive political system, and an egalitarian culture that encourages public engagement. The conversation reveals that the administrative state is perceived as functioning seamlessly, akin to a reliable consumer product, creating a robust accountability framework. Moreover, unlike in the United States, where wealthier individuals often opt out of public services, Australia's inclusive culture ensures widespread interest in maintaining a competent bureaucratic state.
Immigration Policy and Population Aging
A pivotal motivation behind Australia's immigration policy has been to mitigate the challenges of population aging, as emphasized by former Deputy Secretary of the Department of Immigration Abel Rizvi. He revealed that demographic concerns constituted approximately 80% of the rationale for significant changes to immigration policy in the early 2000s, particularly targeting skilled migrants and international students. While addressing skill shortages and diversifying the population were also benefits, the overarching goal was to maintain a manageable aging process compared to countries like Japan and South Korea. This strategy of bolstering the workforce through immigration serves as a crucial mechanism for addressing emerging socio-economic challenges related to an aging population.
