Economic Rationalism - the Key to National Competitive Advantage, Restructuring and Employment Growth?

Economic Rationalism - the Key to National Competitive Advantage, Restructuring and Employment Growth?
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By:"Sam Rosevear"

Published on 1999 by

This thesis examines whether economic rationalist policies, as implemented by Labor governments in Australia in the 1983-1996 period, are the key to achieving national competitive advantage, restructuring and employment growth.

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This thesis examines whether economic rationalist policies, as implemented by Labor governments in Australia in the 1983-1996 period, are the key to achieving national competitive advantage, restructuring and employment growth. It is argued that, whilst the policies made some progress in this regard, more could have been achieved through the use of strategic industry policies. It is argued that the key weakness of the rationalist policies of the period is that of an uncritical faith in market forces to produce economic prosperity. Markets fail to produce competence in a range of crucial activities such as research and development, technology diffusion, work organisation, management, education and training, finance and export marketing. This thesis argues that strategic industry policies can foster national excellence in such capabilities, and so bring improvements in national competitive advantage, restructuring and employment growth, beyond that achievable by markets alone.

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