Assignment 2:
Public Submission for Australia’s Foreign Policy White Paper
Building economic potential and regional engagement in the Asia Pacific
Words: 2, 302
Public submission:
Building economic potential and regional engagement in the Asia Pacific
Executive summary:
Australia is at a fork in the road. Today Australia needs to incorporate its foreign
policy with its economic potential and foster greater regional engagement in the Asia
Pacific region. In this paper, I propose putting the Asia-Pacific region at the centre of
Australia’s foreign policy, by planning a Regional Economic Development (RED) Plan
that establishes five key economic business centres and an incubator in the region.
This Plan takes the current aims of the Department of Foreign Affairs and Trade
(DFAT) and moves it to the next level, to one not only supporting Australian
businesses abroad but to where it proactively creates business opportunities for
Australia. Working from six strategic locations, the Centres will work towards lifting
the business outcomes for Australia and the associated state. The centres will focus
on achieving business goals such as increased trade, business development and
over time assist with soft power goals, like developing stability, fostering engagement
and building ties with the local communities. To be implemented over the next 10 25 years, it is anticipated the centres will grow their own community of successful
local businesses, strengthen engagement and deepen the regional relationship
Australia has with each of the five Asia-Pacific countries.
Recommendations:
It is recommended the Australian government undertake the implementation of the
RED Plan, broken down into five key points:
1) Develop the RED Plan: formulate a RED Plan outlining the conception of
five business centres and an incubator. This plan, would inform the strategic
goals and aims for the centres, in the long and short term, and contain a
regional partnership plan, financial plan, educational plan, etc.
2) Plan the creation of five centres and incubator: The RED plan identifies
the need to shortlist locations for the five Centres and Incubator. The creation
and establishment of the centres and incubator could be incorporated to
DFAT’s Economic Diplomacy and contribute directly to its four pillars: trade,
growth, investment and business.
3) Identify government agencies that can assist to Centre development:
Identify government resources that can assist with the establishment of the
Centres, particularly knowledge of locations, contacts in tertiary organisations,
businesses, individuals, etc.
4) Create Centres with strong business directive: each centre will be created
with the intent that it will be paid back to government in the first 10 years and
become fully self-funded thereafter. The five centres and incubator will have
result-oriented Centre Directors who will have regional knowledge of their
centres and who will work closely with key government departments, like
DFAT, Business Australia, Productivity Commission, ASIC, etc.
5) Integrate tertiary organisations into the planning of centres and
incubators: Each Centre will have a partner university to assist with the
achievement of its business, regional and local goals. The university will assist in
the development of the centre, providing research, training and business
acumen needed to develop it. Tertiary organisations with specific industry
knowledge or established presence in a country will be invited to participate.
Submission’s response to White Paper’s key issues:
1) Australia’s foreign policy needs to be grounded in a clear-eyed
assessment of our national interests
Today Australia’s national interest is one best located in a foreign policy geared
towards developing its economic potential and fostering greater regional engagement
with the Asia-Pacific region first, and rest of the world thereafter.
2) Australia has diverse interests that span the globe
Due to budgetary constraints, Australia must prioritise and focus on improving and
augmenting the economic prospects of specific Asia-Pacific countries in our region,
and creating Centres that build economic links between both countries for years to
come. These centres will enable Australia to nurture offshore business interests as
well as deepen and solidify our ‘soft power’ diplomacy in key areas. In this way,
Australia will be able to create momentum for our own economy and attract hard to
find, specialised talent to Australia. The development of these business centres
should be in key cities associated with new technologies, manufacturing or renewal
energy technology. Australia’s business development abroad should also not be
compromised by groups that refuse to address climate change, environmental
degradation and global trends like renewable energy. Australia must now,
demonstrate a level of state ‘maturity’ by identifying a national interest that is both
scientifically solid (research-based) and socially equitable for both Australians and
our Asia-Pacific counterparts alike.
3) Australia is an influential player in regional and international organisations
Australia must recognise that it’s in our national interest to see the wider Asia-Pacific
region prosper. Australia’s ‘soft-power’ potential can only be enhanced by the
creation of these centres, which will enable for dialogue and improved economic
prospects in problem areas in nearby countries. However Australia will need to
recognise its regional commitments and alliances, introduce new levels of
transparency and accountability within its organisations, and build some international
infrastructure to assist with the centres. Australia should signal its interest to join
ASEAN (Dobell, 6 Oct 2015, ASPI) and as a national priority work to regulate and
stabilise its economic and banking sectors (2016,Parliament of the CoA) so as to
ensure business ventures from the region work in fair, competitive markets.
Additionally Australia should ‘embrace’ its previous identity as a good global citizen,
recognise and adhere to its international obligations with the United Nations and
once the centres are established, consider entering into Free Trade Agreements with
the five countries where these centres are located. In this way maximising the impact
and economic potential of its Centres.
4) Australia needs to be ambitious in grasping economic opportunities
This submission specifically addresses Australia’s need to put its economic
opportunities at the centre of its foreign policy. This submission’s central premise is
that Australia must create a RED Plan that establishes five key economic business
centres and an incubator in the Asia-Pacific region.
5) Australia confronts a range of strategic, security and transnational
challenges
Australia can best deal with instability in the region by addressing it and working with
other nations to find regional solutions, rather than taking an isolationist approach to
the issues. Australia must also improve at dealing with the instability within its own
domestic quarters, and managing the extreme factions of domestic politics, which
could have a destabilising effect on the nation. The Australian government should
start promoting the inclusive ‘fair-go’ attitude and clarify that racism and xenophobia
are unacceptable and identify multiculturalism as a pillar of Australian society. Today
it is central the deepening of extremism in Western countries doesn’t affect our
multicultural society. Intolerant community groups of any sort should not be
condoned, particularly if the government wants to maintain an image of a fair and
balanced society, open to new commerce.
6) Australia uses a range of assets and capabilities to pursue our international
interests
Australia’s intellectual assets will be key in establishing and developing the business
centres and in attracting talented workers and new businesses to Australia. The
government should encourage our own domestic businesses to expand into these
emerging markets and create mutual benefit between these countries.
Central threats:

Lack of regional willingness to participate
For this economic plan to succeed, Australia must promote this economic plan both
in the short and long term. Commitment to make the plan’s goals achievable will
require substantial business engagement with the regional and local communities
involved. The Australia government will need to assume some broader (financial,
cultural, etc.) responsibility for the local community in order for each centre to gain
genuine local support. This will be one of the most challenging and important goals of
the economic plan.

Lack of solid financial backing
While the Australia government will initially have to pay for the Centres’
establishment costs, with good management, it could expect a return on investment
within the first 10 years or so. If possible, a partnership or economic outcomes
document should be developed for the five local regions and if possible, the local
community should be involved in the centre’s development, thus not separating itself
from the community it is located in. Funding for the centres will initially come from
DFAT, but it is anticipated once centres are running, future funding might be found
from appropriate industry sector businesses.

-Poor business outcomes
Comprehensive business planning of the economic Centres will be key to making
them sustainable and profitable. Likely to be established with numerous business
interests, each Centre will require specialists in their fields, and resources and
infrastructure to advance their specific area. Identifying the necessary business
resources and human capital are essential to build sustainable and best practice
models of business able to last the life of the centres. The need to generate
contingency (and risk) plans, prior to the creation of the centres is key, as is
identifying the need to diversify each centre’s aims and sources of income.
Background:
1) Creating the economic development plan:
The planning stages of the RED plan will be the most crucial, as this is where the
long-term goals for the five centres will be delineated. Creating this long-term plan
will require a broad assessment of Australia’s economic potential and an evaluation
of our industries and their capacity to grow in the long-term future via the five
centres. Regional projects like China’s One Belt One Road project is expected to
deliver significant movement of trade and commerce throughout parts of Asia
(Leung, South China Morning Post, 5 May 2016)
The long-term vision of this plan, should include: long-term projections of regional
growth (5-25 years), location of centres and incubator, timelines for centre
establishment, broader aims of centres and incubator, regional engagement plans
(for each centre), centre progression plans, etc. This regional plan will require the
setting of goals that are realistic and achievable. A researched and comprehensive
forecasting exercise should be conducted to inform the initial plan. From this
document, an accompanying Financial Plan for the whole RED plan and individual
centre plans should be created.
2) Plan the establishment of five centres:
Populating a regional strategy like the RED Plan will rely on the already established
resources the DFAT in the Asia-Pacific region has. Formulating an effective business
plan will require the identification of areas of business that Australia can contribute
to. Australia’s selling point in the region will be it’s ‘Australian’ knowledge and pledge
to provide a high level of product or service. In addition, each centre will work
towards assisting and lifting the level of economic and cultural development in the
local community.
Possible locations for regional centres include:
- Samarinda Port, Indonesia; shipping, logistics, forestry
- Dhaka, Bangladesh: trade, shipping and logistics -One Belt One Road (OBOR)
partner
- Legazpi city, Philippines: education, tourism, commerce (Entrepreneur, 2016)
- Ulaanbaatar, Mongolia: mining, trade, logistics -OBOR partner
- Mandalay, Myanmar: trading, production and logistics - OBOR partner(HKTDC
Research, 2016).
3) Identify relevant government resources for centre development: DFAT’s
government resources will be essential in the establishment of the five Centres. Key
to this is the providing of resources (buildings, technology, etc.) but also the
gathering of intellectual capital (policy and research resources) and organisational
knowledge. The establishment of more difficult resources like local business
contacts, and profile in the community, will require long-term commitment.
Depending on the resourcing of the centres, some mentoring and networking
capacity could be offered to local businesses as part of the Centre’s role. Each
Centre’s plan will identify the key business aims (and appropriate contacts needed)
on the ground at the five locations.
In addition, the centres will be encouraged to make use of established DFAT
programs, such as the Seasonal Worker Program and Australian Volunteers for
International Development (AVID) to attract Australians to the Centres.
4) Create Centres with strong business directive: the establishment of the RED
Plan will outline the business directives of each of the centres. Financially, each
centre will be expected to payback the initial investment provided to each centre,
becoming fully self-funded within the first 10 years. It is anticipated each centre will
generate income by providing some level of human resource skills, like mentoring,
networking, and business advice to the local business community. The providing of
mentoring and resources will work on a user-pays system (for the first three years)
with an exception to local community groups. The centres will also offer additional
information and resources providing limited access to Australian business agencies,
like Business Australia, Productivity Commission, DFAT, ASIC etc.
5) Integrate tertiary organisations into the planning of centres and incubators:
Each Centre will have a partner university/tertiary organisation to assist in the
development of it. Standard Memorandum of Understandings (MoUs) will be
formulated to enhance and develop each centre. Each university will be invited to
assist and develop research, training and business acumen around each centre and
the local community. Universities or tertiary organisations with relevant or specific
industry or regional knowledge will be invited to participate. The Regional Plan will
also outline the unique role of the Incubator, which will act as an effective launching
pad for emerging Australian businesses into the region. Ideally the government
should seek a partnership arrangement with a high-performing tertiary incubator to
establish an outpost of that incubator in the Asia-Pacific region.
Conclusion:
In this paper, we have seen how the RED Plan could be implemented. While like any
Plan, it has a level of risk involved, this risk can be mitigated by the careful
implementation of the plan over the next few years. While the RED plan is likely to be
a significant long-term investment, it would be a calculated risk, one that would, with
strategic planning, delivers good business outcomes in the Asia-Pacific for years to
come. Whether we seek to expand on the region’s economic potential or merely
improve our soft-power diplomacy, our opportunity for business development in the
region is now in its prime and should be maximised as much as possible. Indeed, as
outlined earlier, Australia’s own identification with the region and economic potential
depend upon it.
Bibliography:
Beeson, M. (2011) “Can Australia save the world? The limits and possibilities of
middle power diplomacy” Australian Journal of International Affairs. Vol 65, No. 5,
p.563- 577.
Department of Foreign Affairs and Trade (2012). Australia in the Asian Century White
Paper. Link:
http://pandora.nla.gov.au/pan/133850/201309140122/asiancentury.dpmc.gov.au/whit
e-paper.html
Dobell, G. (2015) “Why Australia should join ASEAN?” Australian Strategic Policy
Institute. 6 October. Link: https://www.aspistrategist.org.au/why-australia-should-joinasean/
Entrepreneur Philippines (2016) “Bicol takes lead as fastest growing regional
economy”. 1 August. Link: http://www.entrepreneur.com.ph/news-and-events/bicoltakes-lead-as-fastest-growing-regional-economy-a36-20160801
HKTDC Research (2016) “Myanmar Rising: the Mandalay opportunity”. 14 July. Link:
http://economists-pick-research.hktdc.com/business-news/article/ResearchArticles/Myanmar-Rising-The-MandalayOpportunity/rp/en/1/1X000000/1X0A6RN4.htm
House of Representatives Standing Committee on Economics (2016) “Review of the
Four Major Banks: First Report” Parliament of the Commonwealth of Australia. Link:
http://www.aph.gov.au/Parliamentary_Business/Committees/House/Economics/Four
_Major_Banks_Review
Jensen, F & Gloystein, H. (2017) “Chaos at Indonesian ports disrupts coal shipping”
Reuters. 8 February. Link: http://www.reuters.com/article/us-coal-indonesia-exportsidUSKBN15N0R3
Leung, A. (2016) “Huge potential gains of China’s ‘One Belt, One Road’ are worth
the risks”. South China Morning Post, 5 May. Link:
http://www.scmp.com/comment/insight-opinion/article/1941104/huge-potential-gainschinas-one-belt-one-road-are-worth
Sherrell, H. (2017) “The Seasonal Worker Program: who is coming to Australia?”
DevPolicyBlog. 25 January. Link: http://devpolicy.org/seasonal-worker-programcoming-australia-20170125/
South China Morning Post (2016) “Infographic: How One Belt One Road will give
China’s developing neighbours easier access to Chinese-made products” 19 May.
Link: http://www.scmp.com/infographics/article/1874865/infographic-one-belt-oneroad
Trood, R. (2013) “A lengthy list: Australia’s future foreign policy challenges”
Australian Strategic Policy Institute. 15 August. Link:
https://www.aspistrategist.org.au/a-long-list-australias-future-foreign-policychallenges/
Wesley, M. (2010) “Taking Asia Seriously” Australian Journal of Political Science. Vol
45, No. 1, March 2010, pp. 13-28.