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…