Essay about Structural Change and Australian Economy

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Structural Change and Australian Economy

Structural change is the change in the pattern of production in an economy as certain products, processes of production and industries disappear and are replaced by others. The past century has seen the relative decline of agricultural and manufacturing industries, and the rise of services and new technology sectors. Structural change can be caused by a wide range of economic influences including changes in the pattern of consumer demand and technological change. The speed of structural change depends on the ability of an economy or industry to adjust quickly. People's natural resistance to change and government regulation often impedes the process of
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Deregulation of industries has been an important part of the microeconomic reform policies for the Australian economy. For example in the agricultural sector, marketing boards which were often the only buyer and seller of farm output have been dismantled. In the wheat, egg and dairy industries deregulation has allowed a market economy, free of excessive central control, improve efficiencies and competitiveness by forcing inefficient operators out of the markets and the remaining operators to adopt technological change in order to survive. Deregulation has also been introduced in the financial sector, the transport industry and in the telecommunications industry. In the case of the telecommunications industry which was once dominated by one monopoly provider, telecom (Telstra) the market was opened up to Optus and Vodafone before being opened up to full competition. This competition helped reduce telecommunication costs dramatically, benefiting many other industries and the overall competitiveness of the Australian market.

The improvement of competition across the whole economy was the main objective of the governments National Competition Policy. This policy included the Corporatisation and Privatisation of Public Trading Enterprises such as Australia Post and Telstra, competition reform in the professions, the opening up of access