The Australian
By: Nick Tabakoff
News Corporation chairman and chief executive Rupert Murdoch has issued a blunt warning that Australia "simply is not prepared for the challenges ahead'' -- including the current global financial crisis -- in an era of growing internationalisation.
But he has also expressed hope that the nation would ultimately overcome its shortcomings by rediscovering its "frontier country'' mentality.
Mr Murdoch's warning was made before a who's who of the Australian business and cultural elite at the Sydney Opera House yesterday, with those present including ABC chairman Maurice Newman, Sydney Opera House chief executive Richard Evans, Australian Industry Group chief executive Heather Ridout and ex-Woolworths boss Roger Corbett.
The head of News Corporation -- which owns The Australian -- said "many Australians'' would question his right, as a US citizen since 1985, to judge the country. "My answer is that people can call me whatever they like, and believe me when I tell you, they do,'' he said. ``But the main reason I agreed to come to Australia to deliver these lectures is that the country I see before me simply is not prepared for the challenges ahead.''
The current crisis in international markets presented the most immediate threat to a complacent Australia: "As I speak, the Australian economy is coming up against one of these challenges: a financial crisis whose origins are overseas,'' Mr Murdoch said.
"And I fear that many Australians will learn the hard way what it means to be unprepared for the challenges that a global economy can bring.''
The Australian dollar had in recent weeks fluctuated "as wildly as a whirling dervish'', he said, and the impact of this wasnow being felt in the real economy.
"There is no use bemoaning the problem. In this new century, Australia is wedded to the world, mostly for richer, very occasionally for poorer.''
In the first of a lecture series titled The Golden Age of Freedom, he said that by "most measures'' -- including the rule of law, economic performance and quality of life -- Australians lived in an "ideal'' society.
This was confirmed by the prominence of the country's cities in "most liveable city'' polls. But such rankings obscured a "larger'' truth.
"Australia will not succeed in the future if it aims to be just a bit better than average,'' he said. "I believe that we need to revive the sense of Australia as a frontier country and to cultivate Australia as a great centre of excellence.''
New generations needed to succeed beyond the realms of past barometers of achievement: "Unlike our parents and grandparents, this new frontier has little to do with the bush or the outback. Today the frontier that needs sorting is the wider world, and complacency is our chief enemy.''
The rapid progress made by Asia's two powerhouse economies, China and India, were examples to follow.
"These are people who have known deprivation ... who are intent on developing their skills, improving their lives and showing the world what they can do.
"And they live right in Australia's neighbourhood.''
Mr Murdoch dismissed suggestions Australia could not compete with China and India. "That is rubbish,'' he said. "We have great resources as a civil society with a tradition of generosity and support.''
A central plank of Mr Murdoch's argument that Australia was unprepared for challenges ahead concerned the need for "radical reform''. He said measures to "reduce dependency on government, to reform our education system, to reconcile with Australia's Aboriginal population, and to maintain a liberal immigration system'' were needed.
He was scathing of the country's schooling system, saying it was an "absolute scandal'' that governments were spending more and getting less in return.
This was hitting Australia's global competitiveness: "We have a 21st century economy with a 19th century education system, and it is leaving too many children behind.
"That is an injustice to these citizens and their future burden on Australian society.''
He feared "tens of thousands of Australians'' would be denied opportunities "if we continue to tolerate a public education system that effectively writes off whole segments of Australians''.
He also criticised what he saw as growing government dependency, citing figures suggesting 20per cent of working-aged people receive income support, compared with 15 per cent two decades ago, despite real income rises.
"While a safety net is warranted for those in genuine need, we must avoid institutionalising idleness,'' he said. "The bludger should not be our national icon.''
In keeping with his theme of openness to the world, he strongly advocated maintaining immigration levels. "Australia will remain strong only if it is open to others, to immigration,'' he said. "In my view, Australians should not worry because other people want to come to our country. The day to worry is when immigrants are no longer attracted to our shores.''
The North Atlantic Treaty Organisation -- the key European/North American military alliance -- should be expanded to include countries such as Australia, he said. "That way, NATO will become a community based less on geography and more on common values. That is the only way NATO will be effective.''
Mr Murdoch supported moves for Australia to "lead rather than follow'' on climate change, although he added: "The ultimate solution is not to punish the Australian economy by imposing standards that the rest of the world will never meet. It's to take the lead in developing real alternatives to solve the problem by offering clean, cheap energy to meet the growing demand.''
He also broadly supported moves towards Australia becoming a republic, although there was "no need to rush''. "We are no longer a dependency and we should be independent. In this young century, we should assert our personality.''
Mr Murdoch's address was the first of his six Boyer Lectures to be broadcast nationally on ABC radio over the next five weeks. They are named after a former ABC chairman, the late Richard Boyer. Past speakers include former prime minister Bob Hawke and historian Geoffrey Blainey.