2004GIR

Week 2: (xem workshop de hieu them)

Political institutions? Why it is important in GBR?
Institution is defined in two parts. Firstly, it seen as the norms (rules) that shape our behaviour
along with compliance. For example, driving on left in Australia, Marriage and so on. Secondly,
this is organisations particularly in political institutions that form a government, all sorts of
ministries agencies.
It is important because it is stick together. Once it is established, they are hard to change. One
of the important parts of the institution in GBR is who govern and rules.
Constitution? Why is it important in GBR?
Constitution is a legal framework that establish for organising government. According to
Heywood (2013, 332), defined as a list of written and unwritten norms that strive to define the
roles, powers, and responsibilities of the different government institutions along with control
their interactions. In other words, Constitution is established to define the relationship between
the state and the person. Constitution can help to define the values, ideals and beliefs held by
nation in the society.
It is important to the GBR because it impact to an overall framework in both government and
society operation. It also provides and organise power for government. Besides, constitution is
also protecting individual and their property rights, hence it shape they way that government
and business operate.
Relationship/ compare between 2 of them?
Week 3
What is interest group? Interest group is help various interests to access the government and
policy process. Based on the scope of interests they represent, there are 2 types of interest
groups: promotional and sectional groups.

 Promotional groups looking after more general and public interests. Ex animal rights
 Sectional groups focus on specific and private interests.
There are several ways they used to influence policy process. Persuasion or lobbying by
generating or fostering pressure on the government, such as running mass media campaigns to
against some certain policies. If their needs are not meet, they could take the government to
the court. Hence, Litigation is also another way to influence the policy process.
Open member ship -> less resource (promotional is not effect because not enough money )
Economic issues that government care (sectional is more effective)
Week 4
What is Neoliberalism? How and why, it is important? And how it impact to GBR?
Neoliberalism shares ideological similar to classical liberalism, but its scope is global and much
wider. It is about kept the government out of the way of business, which means minimising
government intervention and free market such as tax reduction, reducing welfare state,
deregulation et al. In order words, business will be allowed to give a free hand for doing their
own business and government only provide the basic rules and regulations etc. This is
important because it emphasises on individualism, self interest, freedom of choice,
entrepreneur spirit, economic growth, technical progress etc. In contrast, if the government
influence too much, it may stop entrepreneurship (startup), because there is too much tax,
procedures to do, so that reluctant to start up new business, or expanding. Hence, the economy
negatively affected. The government was too involved in instead of allowing private sector
doing it. It is impact to the Government Business Relation because this will allow job growth
because the private sector will have space to expand.
Globalisation is about the interconnectedness and interdependence. In order words,
globalisation is the interaction and integration of people, companies, governments,
information, ideas, culture, etc. Hence, the cross-border interaction and integration have taken
place in many areas and on multiple levels. For example, international trade market, where
everyone from different countries trading different types of goods or services. Internet is also a
good case in this situation.
The relationship between Globalisaion and Neoliberalism:
Neoliberalism will promote free trade policies as well as minimum barrier to the flow of goods
and services and capital across national border. Some journal state that process of globalisation
help to create ideal environment for Neoliberalism to thrive and spread across the world. For
example technological advancements made the movement of capital, information and trade
across the world. It also allowing for maximum economic growth and help to reducing the gap
between poor and rich. For example, Ronal Reagan the former president of U.S promoted the
‘trickle down’ theory. In contrast, some others ill fear that if the globalisation of financial
market means that the economic crisis will arise out of policies because the interdependent of
global market.
Week 5
What is regulation? Why it is needed? And which forms of regulation are better?

Week 6

GBR models:
  Adversarial: When gov, business and labours are enemy. Based on the ideology to Neo. Gov
keep distance to business in order to drive economy. Although business had lots of power
however they wont have all they want. Because gov still set some basic regulations. This is an
arm-length relationship, which means parties act for their own interest (between gov, business
and labour (trade union). For example, used in U.S and Australia.
 Cooperative model: it is all about cooperation, consensus, compromise, bringing people from
different parties (gov, business and workforce) together. Different from adversarial these 3
parties will cooperate. When there is a problem, these parties will consult together. This model
is idealistic, however in reality it is hard to extend. Promote mixed economies (free and
regulated) and welfare state. Government more active than Adversarial. Respect private
ownership and free enterprise but with consultant and compromising.
 Developmental: seen as guiding model. Which means government is there to guide business
and direct. Government in the driver seat to drive and direct the business. Business and Gov
quite cooperative but not as much in Cooperative model.

GBR in Australia: 1/ development in the early settlement and colonial era: need gov to be very active
and help establish infrastructure and protect domestic emerging industries. Gov in the driver seat and
actively guide direction of market and economic. Aus was a colony which established from scratch:

 Huge demand for basic infrastructure (road, bridges, railway, ports) (which been built for 100s
years in other countries) -> we needed to done in short time to serve rising population and
emerging economy
 Bc building infrastructure not a profitable business for privates sector, -> leave for gov do it
 Aus has small population but big land => cost buiding super high but per capita benefit super
low (build big infrastructure but to serve very little amont of ppl => think its not worth it)

2nd reason: Protect emerging industries: pastoralism and agriculture WOOL AND WHEAT (from 1800s to
1960s) + GOLD MINING => vulnerable, ez affected by climate and fluctuation in global commodities
market => farmers neeed strong gov to protect against the uncertainties and their exchanges with
industrialisers in world market

AT FIRST GLOBALISATION, DEBATE OVER LIBERALISM FREE TRADE VS PROTECTIONISM GOVERNMENT =>
INTERVENTION AND PROTECTION WON

 VERY HIGH PROTECT: HIGH TARRIFF, FIXED WAGES, trade unions strong and powerful in
collective bargaining and living wage
 Limited fdi bc of high wages nad high control -> outsiders fdont wanna get in
 But however the gov does not dictate biz decision (colonial socialism vs direct ownership and
control in soviet style socialism)

Eg: holden – manufactured by aus => gov protect by high tariff on imported car, import bans of car
bodies and chassis (khung xe) until World War 2, limit license on importing cars -> less foreign made car
allowed in domestic

But in 1960s-> gov change track: encourage foreign direct investment in domestic car industry by local
content quotas (imp cars satisfy minimum local content would qualify for low tariff and other preferal
treatment) => increase local car parts industry

 By 1970s: highly protected car industry in aus

 By 1978, import tariff for cars were as high as 57.5%, VS international average of 20%.
  The import quota system ensured that imported cars only accounted for 20% in domestic
market,

PROTECTIONISM TOO MUCH -> NOT GOOD

- No domestic compete -> lack efficiency -> aus car higher cost and price for consumer -> reduce
incentive on quality and innovation => domestic firms uncompetitive

Aus developmental (+white Australia immigration policy): labour has employment and wage security,
and capital enjoys trade protection under a regulated market.

 1980s: cooperative under hawk-Keating labor government. Gov sat down w business and trade
unions in coordinating labor price and industrial relation.
 Late 1990s, in Howard government, GBR in aus was influenced by neoli ideology and
globalisation process => gov hans off approach in dealing w market, private sector, econ reform
(reform in industrial relation) -> result in adversarial

Week 7