Trade and industrial policy in developing countries : what scope for interfaces between agent-based models and computable-general equilibrium models

How best to assess trade and industrial policy in developing countries is a controversial question that unlocks a host of modelling complexities. Large computable general-equilibrium (CGE) models dominate many economic policy debates, but recent developments in the field have demonstrated that it is by no means clear that they give reliable results to questions of how trade reforms affect the poor. Over the last decade or so, a new approach to modelling complex systems has emerged using agent-based models (ABMs). This paper explores the question of whether ABMs are useful for economic policy-makers seeking to quantitatively model the effects of trade and industrial policies and whether constructive interfaces could be developed between CGE models and ABMs. The paper argues that in developing economic policy, ABMs can and should be used in conjunction with CGE models and that there is much to be gained from a greater understanding of the strengths and weaknesses of different modelling approaches, and what domains are most appropriate for their use. It concludes with some reflections on the reasons for the success of CGE approaches and ways in which ABMs could be made more widely understood and used among economists.

Biopharmaceutical innovation and industrial developments in South Korea, Singapore and Taiwan

South Korea, Singapore and Taiwan are well known as export-oriented developmental states which for decades employed industrial policy to target particular industries for government support. In the past fifteen years, these three countries all identified the biopharmaceutical industry as a strategic sector. This article explores, through economic analysis, the rationale for this decision and the strategies chosen for linking into the global bio-economy with the objective of catching up in biopharmaceuticals. The paper identifies three comparative advantages enjoyed by these countries in the biopharma sector: (1) public investments in basic research; (2) private investments in phase 1 clinical trials; and (3) a potentially significant contract research industry managing latter-stage clinical trials. Governments employ a range of industrial policies, consistent with these comparative advantages, to promote the biopharmaceutical industry, including public investment in biomedical hubs, research funding and research and development (R&D) tax credits. We argue that the most important feature of the biopharmaceutical industry in these countries is the dominant role of the public sector. That these countries have made progress in innovative capabilities is illustrated by input measures such as R&D expenditure as share of gross domestic product, number of patents granted and clinical trials, and volume of foreign direct investment. In contrast, output indicators such as approval of new chemical entities suggest that the process of catching up has only just commenced. Pharmaceutical innovation is at the stage of mainly generating inputs to integrated processes controlled by the globally incumbent firms.

Neoliberalism, the developmental state and civil society in Korea

Following the Asian economic crisis of the late 1990s, some scholars predicted that the introduction of neoliberal ideas and policies would result in the definitive passing of the Korean developmental state. Despite these predictions, Korean state elites have retained their influential position as economic managers by, for instance, practicing a revised form of industrial policy. Neoliberal reform has, however, had significant social implications. Rather than neoliberalism acting as a democratising force that curtails the power of the state, this article illustrates that the Korean state has used the reform agenda to justify an expansion of its powers. The state presented itself as an agent capable of resolving long-standing economic problems, and of defending law and order. By doing so, the state reduced the political space available to non-state actors. The article concludes that for some states, neoliberalism is a means of retaining economic and political influence, and that former developmental states may be particularly adept at co-opting elements of civil society into governing alliances.

Industrial relations and catholic social doctrine

This paper reviews the key principles of Catholic Social thought as they pertain to relations between labour and capital. It is argued that such principles are foundational for the conduct of ethical relations and the exercise of moral values in the workplace, and are recognisable in the right of workers to employment and just compensation for their labours, in the duty of employers to provide safe and engaging work for those in their charge, and in the obligation of the state to dispense wise governance in a manner that guarantees the welfare and security of all its citizens. It is argued that these principles have had de facto airing in Australian political and economic history, and that they might be usefully drawn upon again to protect the rights of workers under the current ascendency of neo-liberal policy solutions.

Behind WorkChoices : how one company changed Australia's industrial relations

Never has a form of legislation created such contentious and wide-reaching emotional debate in Australia. It has divided the community and has resulted in extensive media activity. To the forefront are Australian academics who have often been the resource of expert comment and their reports have been prolific. In this book, academics have taken to opportunity to write their own perception of the impact of Work Choices in the workplace.

The global biopharma industry and the rise of Indian drug multinationals: implication for Australian generics policy

This article provides a synopsis of the new dynamics of the global biopharma industry. The emergence of global generics companies with capabilities approximating those of 'big pharma' has accelerated the blurring of boundaries between the innovator and generics sectors. Biotechnology-based products form a large and growing segment of prescription drug markets and regulatory pathways for biogenerics are imminent. Indian biopharma multinationals with large-scale efficient manufacturing plants and growing R&D capabilities are now major suppliers of Active Pharmaceutical Ingredients (APIs) and generic drugs across both developed and developing countries. In response to generic competition, innovator companies employ a range of life cycle management techniques, including the launch of 'authorised generics'. The generics segment in Australia will see high growth rates in coming years but the prospect for local manufacturing is bleak. The availability of cheap generics in international markets has put pressure on Pharmaceutical Benefits Scheme (PBS) pricing arrangements, and a new policy direction was announced in November 2006. Lower generics prices will have a negative impact on some incumbent suppliers but industrial renewal policies for the medicines industry in Australia are better focused on higher value R&D activities and niche manufacturing of sophisticated products.

Catholic social thought and labouring ideals in Australia's new industrial context

This article sets out the principles of Catholic social doctrine as they pertain to the rights of employees, the duties of the employers and the obligations of the state. It relates these to the historical development of industrial work and employment in Australia, noting the close proximity of the principles to the social and political arrangements that emerged over the period of the Australian Settlement. It goes on to identify the more recent demise of Catholic activism, which, in combination with the pursuit of neo-liberal policy solutions and market reforms, has purged previous arrangements of their former notions of `fairness' and equity. It concludes that those opposing such solutions and reforms should think beyond simply framing arguments in terms of the economic or the instrumental, and might usefully draw on the labouring ideals set out in Catholic social doctrine to develop a more thorough set of moral and ethical principles to support their cause.

Entrepreneurship : industry policy priorities and entrepreneurial education in Australia

Four fields of national policy - general economic policy, industry policy, education policy and specific research and development policy - are strongly interrelated. Unfortunately, in Australia, policy makers in the four fields have not recognized that the discipline of Entrepreneurship - with its emphasis on managing the innovation process - holds the key to effective co-ordination between the four vital policy areas. The paper argues that innovation strategy, not cost reduction or research expenditure, is the key to developing successful, export-oriented products and world competitiveness. Viable innovation strategy depends on the relationship between government, capital availability, development capital and industrial developers. In turn, this relationship requires a cadre of entrepreneurial business managers educated not in the 'traditional' MBA mainstream but in the discipline of Entrepreneurship, specifically focused on learning the practical skills involved in venture evaluation and management of the innovation process. The paper concludes by describing the philosophy and performance of Swinburne University of Technology's School of Innovation and Enterprise, a school at the forefront of entrepreneurial education in Australia and thus a school with important implications for the nation's industry policy priorities.

The Australian Broadcasting Corporation’s multiplatform projects : industrial logics of children’s content provision in the digital television era

This paper traces the development of children’s multiplatform commissioning at the Australian Broadcasting Corporation (ABC) in the context of the digitalisation of Australian television. Whilst recent scholarship has focussed on ‘post-broadcast’ or ‘second-shift’ industrial practices, designed to engage view(s)ers with proprietary media brands, less attention has been focussed on children’s and young adults’ television in a public service context. Further, although multiplatform projects in the United States and Britain have been the subject of considerable analysis, less work has attempted to contextualise cultural production in smaller media markets. The paper explores two recent multiplatform projects through textual analysis, empirical research (consisting of interviews with key industry personnel) and an investigation of recent policy documents. The authors argue that the ABC’s mixed diet of children’s programming, featuring an educative or social developmental agenda, is complemented by its appeals to audience ‘participation’, with the Corporation maintaining public service values alongside the need to expand audience reach and the legitimacy of its brand. It finds that the ABC’s historical platform infrastructure, across radio, television and online, have allowed it to move beyond a market failure model to exploit multiplatform synergies competitively in the distribution of Australian children’s content to audiences on-demand.

Pandemic (H1N1) Influenza 2009 and Australian emergency departments : implications for policy, practice and pandemic preparedness

Objective: To describe the reported impact of Pandemic (H1N1) 2009 on EDs, so as to inform future pandemic policy, planning and response management.

Methods: This study comprised an issue and theme analysis of publicly accessible literature, data from jurisdictional health departments, and data obtained from two electronic surveys of ED directors and ED staff. The issues identified formed the basis of policy analysis and evaluation.

Results: Pandemic (H1N1) 2009 had a significant impact on EDs with presentation for patients with ‘influenza-like illness’ up to three times that of the same time in previous years. Staff reported a range of issues, including poor awareness of pandemic plans, patient and family aggression, chaotic information flow to themselves and the public, heightened stress related to increased workloads and lower levels of staffing due to illness, family care duties and redeployment of staff to flu clinics. Staff identified considerable discomfort associated with prolonged times wearing personal protective equipment. Staff believed that the care of non-flu patients was compromised during the pandemic as a result of overwork, distraction from core business and the difficulties associated with accommodating infectious patients in an environment that was not conducive.

Conclusions: This paper describes the breadth of the impact of pandemics on ED operations. It identifies a need to address a range of industrial, management and procedural issues. In particular, there is a need for a single authoritative source of information, the re-engineering of EDs to accommodate infectious patients and organizational changes to enable rapid deployment of alternative sources of care.

Stakeholder perceptions of job stress in an industrialized country: implications for policy and practice

We used a secondary, qualitative analysis of stakeholder perceptions of work stress in Australia to characterize the context for policy and practice intervention. Themes included: Individual versus contextual descriptions of stress; perceived ‘gender’ differences in manifesting and reporting of stress; the work/home interface; and perceived sectoral and occupational differences in compensation claim rates. We found that people often still perceive stress as an individual rather than organizational problem and view work stress as a stereotypically feminine weakness that affects only certain people. Organizations downplay and overlook risks, increasing worker reluctance to report stressors, creating barriers to job stress interventions. Our study may be relevant to other industrial countries where researchers currently study job stress interventions to improve their effectiveness. Comprehensive approaches can increase knowledge and decrease stigma about job stress and mental illness, and target both work- and non-work-related influences on mental health.

The state of legislation and policy protecting Australia's mangrove and salt marsh and their ecosystem services

Saline coastal wetlands, such as mangrove and coastal salt marsh, provide many ecosystem services. In Australia, large areas have been lost since European colonization, particularly as a result of drainage, infilling and flood-mitigation works, often starting in the mid-19th century and aimed primarily towards converting land to agricultural, urban or industrial uses. These threats remain ongoing, and will be exacerbated by rapid population growth and climate change in the 21st century. Establishing the effect of wetland loss on the delivery of ecosystem services is confounded by the absence of a nationally consistent approach to mapping wetlands and defining the boundaries of different types of coastal wetland. In addition, climate change and its projected effect on mangrove and salt marsh distribution and ecosystem services is poorly, if at all, acknowledged in existing legislation and policy. Intensifying climate change means that there is little time to be complacent; indeed, there is an urgent need for proper valuation of ecosystem services and explicit recognition of ecosystem services within policy and legislation. Seven actions are identified that could improve protection of coastal wetlands and the ecosystem services they provide, including benchmarking and improving coastal wetland extent and health, reducing complexity and inconsistency in governance arrangements, and facilitating wetland adaptation and ecosystem service delivery using a range of relevant mechanisms. Actions that build upon the momentum to mitigate climate change by sequestering carbon – ‘blue carbon’ – could achieve multiple desirable objectives, including climate-change mitigation and adaptation, floodplain rehabilitation and habitat protection.