Figure C19 Bibliography10 Compare and contrast the Australian and Indonesian economies in terms of economic growth, economic development and the role played by the government. As Australia’s closest geographical neighbour, Indonesia and Australia have contrasting economies in regards to a number of different indicators. Economic growth, the increases in real GDP of an economy over a period of years, is an indicator which determines the size of an economy[1]. Along with economic development, these factors decide the classification of an economy either as an advanced economy, or a developing economy.
Economic development is changes in an economy which result in a change in economic growth and human development[2]. The final indicator which is used to distinguish between the two economies is the economic role played by the government. This includes government expenditure as well as the impact that political decisions have on the economy. Despite receiving a milder downturn as a result of the GFC than Australia, Indonesia is characterized by these three indicators as a developing economy whereas Australia is an advanced economy on all facets of its growth and development.
The Essay on Economic Development During Renaissance
Economic Development During Renaissance The Renaissance is an era about which there is much disagreement among historians. Some portray it as a significant era of triumph in human development, while others claim that the term is nearly meaningless and the whole concept should be abandoned. However all agree that Renaissance was the era, during which the cultural, economic, social, and humanistic ...
Economic growth is a useful indicator in the comparison of Australia’s and Indonesia’s economies. Measured in GDP, this statistic determines the size of a country’s economy[3]. With reference to table A1, Australia’s GDP ($US) in 2011 reached $US1. 5 trillion[4] making Australia the 13th largest economy in the world. Despite a 0. 8%4 decrease in the average rate of GDP growth from 2010 to 2011, Australia recovered strongly from the Global Financial Crisis (GFC) and is classified as an industrialized and developed economy.
In contrast, Indonesia’s GDP ($US) in 2011 peaked at around $US0. 8 trillion3 ranking Indonesia as 18th in terms of economic size. Compared to Australia, Indonesia’s economic size in relation to their population is characteristic of a developing economy. However, Indonesia’s average annual rate of GDP growth remained strong during and after the GFC as seen in Fig. A14. This is because the Indonesian government used a substantial US$6. 2b fiscal package consisting of tax cuts and infrastructure investments to increase domestic demand.
Being the largest market economy in South East Asia, Indonesia has sustained a high rate of economic growth and has seen developments in their standard of living. These traits illustrate that Indonesia will soon become a Newly Industrialized Economy (NIE) [5] . Economic development provides a significant insight when contrasting the Australian and Indonesian economy. The Human Development Index (HDI) measured Australia as 2nd highest in the world in terms of “human development” in 2011. As evident in Fig. B1[6], Australia measured in at 0. 93 with an outstanding GNI PPP per capita of $US 38,600 in 20115.
This is because Australia has exceptional community and welfare services, levels of sanitation and a provision of law and order. In comparison, Indonesia’s HDI in 2011 was recorded as 0. 625, with a ranking of 108 out of 169 countries. However, from 1980 – 2011, Indonesia’s HDI rose from 0. 39 to 0. 62 which illustrates the tremendous development of the country’s living standard4. As another indicator for economic development, the unemployment rate shows the percentage of the workforce which is currently jobless. As seen in Fig. B2[7], Australia saw a consistent rise in their unemployment rate from 2009-11 following the GFC.
The Essay on Australian Economy Economic Growth Year
With reference to economic indicators describe the economic conditions prevailing in the Australian economy over the past five years. Over the past five years the Australian economy has gone through many changes experiencing both the peaks and troughs associated with business cycle. Five years ago, in the middle of 1997 Australia's economic growth had begun to upturn after a period of recession ...
Despite this, Australia’s unemployment rate was relatively low for a developed economy as a result of 17 years of sustainable economic growth leading to an increase in full-time jobs. Conversely, Indonesia’s unemployment rate has seen a steady decrease from 8. 4% – 7. 9%6 during the 2009-11 period. This is the result of a strong economic recovery from both the Asian Crisis in 1997 and the GFC. Despite this, the World Bank Group still regards over 50% of the Indonesian population as under the international poverty line of $US2 a day4. Urbanization is the percentage of the total population of a country which lives in urban areas6.
