stoeckl - gallant knight or spanish galleon 30 sept 2013 · gallant knight or spanish galleon?...

13
3/10/2013 1 Northern Development: Gallant Knight or Spanish Galleon? Natalie Stoeckl School of Business & The Cairns Institute Coalition’s 2030 vision for developing Northern Australia, p 30 Some possible underlying premises 1. Tourism, Agriculture, Mining and Defence are key ‘Northern’ industries

Upload: others

Post on 27-May-2020

9 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Stoeckl - Gallant Knight or Spanish Galleon 30 Sept 2013 · Gallant Knight or Spanish Galleon? Natalie Stoeckl ... Economics 101, lecture 1 – GDP is not a good measure of well‐being

3/10/2013

1

Northern Development: Gallant Knight or Spanish Galleon?

Natalie StoecklSchool of Business & The Cairns Institute

Coalition’s 2030 vision for developing Northern Australia, p 30

Some possible underlying premises

1. Tourism, Agriculture, Mining and Defence are key ‘Northern’ industries

Page 2: Stoeckl - Gallant Knight or Spanish Galleon 30 Sept 2013 · Gallant Knight or Spanish Galleon? Natalie Stoeckl ... Economics 101, lecture 1 – GDP is not a good measure of well‐being

3/10/2013

2

Key Industries in Queensland

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000QLD

, GVA Chain Volume m

easure

Agriculture, forestry & fishing

Mining

Manufacturing

Electricity, gas, water & wasteservicesConstruction

Wholesale trade

Retail trade

Accommodation & food services

Transport, postal & warehousing

Information, media &telecommunicationsFinance & insurance services

Rental, hiring & real estateservices

Data source: dXtime, ABS State Accounts, Table a522o‐25 Industry Gross Value Added: QLD ‐Chain Volume Measures

Which industries are most important in Australia’s north? 

The Government Admin & Defence; Health; and Education sectors provide the 

largest share or employment (on average 25 percent of persons)

Agriculture employs 11.5 percent of people

Mining, retail and construction, employ around 4 percent

Significant differences across space

Tourism is concentrated in a few ‘urban’ centres

So too is defence

Intensive agriculture concentrated near water, good soil and

(normally) close to markets or transport

Mining and manufacturing concentrated near minerals

Larson, S. and Aleaxndridis, K., 2009. Socio‐economic profiling of tropical rivers. Townsville: CSIRO Sustainable Ecosystems.

Page 3: Stoeckl - Gallant Knight or Spanish Galleon 30 Sept 2013 · Gallant Knight or Spanish Galleon? Natalie Stoeckl ... Economics 101, lecture 1 – GDP is not a good measure of well‐being

3/10/2013

3

Stoeckl, N and Stanley, O, (2007), “Key Industries in Australia’s Tropical Savanna”, Australasian Journal of Regional Studies, 13(3): 255 ‐ 286

Largest sector of employment in the TS region – by postcodeData Source: ABS CDATA 2001

Coalition’s 2030 vision for developing Northern Australia, p 30

2. Growth is the primary goal (more is better)

Some possible underlying premises

1. Tourism, Agriculture, Mining and Defence are key ‘Northern’ industries in some regions

Page 4: Stoeckl - Gallant Knight or Spanish Galleon 30 Sept 2013 · Gallant Knight or Spanish Galleon? Natalie Stoeckl ... Economics 101, lecture 1 – GDP is not a good measure of well‐being

3/10/2013

4

More is better ….?

– There is no such thing as a free lunch 

(to get rich, you must give something up – leisure, clean air ?)

Economics 101, lecture 1

– GDP is not a good measure of well‐being

GDP may have risen steadily for the last 50 years, but what of ‘genuine’ progress?

Kubiszewski, I., Costanza, R., Franco, C., Lawn, P., Talberth, J., Jackson, T., Aylmer, C., (2013), “Beyond GDP: Measuring and achieving global genuine progress”, Ecological Economics,  93:57‐68

Page 5: Stoeckl - Gallant Knight or Spanish Galleon 30 Sept 2013 · Gallant Knight or Spanish Galleon? Natalie Stoeckl ... Economics 101, lecture 1 – GDP is not a good measure of well‐being

3/10/2013

5

So … there is a difference between economic and Uneconomic growth1

• Whether or not development is deemed to be ‘economic’ 

depends upon what people are (or are not) willing to give 

up for …

… i.e. it depends upon people’s priorities or ‘values’.

• What do we know of the priorities of Northern Australian 

Residents? 

1  After Daly HE and Farley J (2004): Ecological economics: Principles and applications. Island Press, Washington, p231

The importance of the social and cultural (tropical river) values compared to other values 

(e.g. using rivers for commercial purposes or to support human life)

Larson, S., Stoeckl, N., Welters, R., and Neil, B, (2013) “Using resident perceptions of values associated with the Australian Tropical Rivers to identify policy and management priorities”, Ecological Economics, 94:8‐19

Relative importance of different ‘values’ associated with Australia’s 

Tropical Rivers

Page 6: Stoeckl - Gallant Knight or Spanish Galleon 30 Sept 2013 · Gallant Knight or Spanish Galleon? Natalie Stoeckl ... Economics 101, lecture 1 – GDP is not a good measure of well‐being

3/10/2013

6

Bragging rights

Cheap shipping

Commercial Fishing industry

Mining and Agricultural industries

Indigenous Culture

Tourism industry

Fishing and crabbing

Boating

Undeveloped and uncrowded beaches

Time on beaches

Eating seafood

Preserving the GBRWHA

Clear oceans

Mangroves and wetlands

Iconic marine species

Healthy coral reefs

Healthy reef fish

No visible rubbish

Unimportant                                      Neutral                                                          Important  Very Important

Residents of the GBR catchment areaHow important are each of the following to your 

overall quality of life? (N=1001)Percen

t of responden

ts

0%

20%

40%

60%

80%

100%

Twice as manyoil spills,

groundings andwaste spills

Twice as muchrubbish on thebeaches and

islands

Ocean changedfrom clear to

murky

Half as muchlive coral

Half as manyfish and less

variety of fish tolook at

Local prices riseby 20%

compared toother places in

Australia

Half as muchchance of

catching fish

Twice as manytourists

Much more satisfied

More satisfied

No affect

Less satisfied

Much less satisfied

Residents of the GBR catchment areaHow would each of the following affect your 

overall quality of life ….. ?

Page 7: Stoeckl - Gallant Knight or Spanish Galleon 30 Sept 2013 · Gallant Knight or Spanish Galleon? Natalie Stoeckl ... Economics 101, lecture 1 – GDP is not a good measure of well‐being

3/10/2013

7

Coalition’s 2030 vision for developing Northern Australia, p 30

2. Growth should not always be the primary goal (more is not always better)

3. Growth is inseparable from issues associated with equity and the environment

Some possible underlying premises

1. Tourism, Agriculture, Mining and Defence are key ‘Northern’ industries in 

some regions

In Australia’s north, there are significant differences between rich and poor

Larson, S. and Aleaxndridis, K., 2009. Socio‐economic profiling of tropical rivers. Townsville: CSIRO Sustainable Ecosystems.

Page 8: Stoeckl - Gallant Knight or Spanish Galleon 30 Sept 2013 · Gallant Knight or Spanish Galleon? Natalie Stoeckl ... Economics 101, lecture 1 – GDP is not a good measure of well‐being

3/10/2013

8

So how do different businesses interact with Indigenous and non‐Indigenous households in 

Northern Australia? 

• Collected data over several years (and projects) ……..

– Business and household expenditure

• Built an Input‐Output model  

• Used the model to see what happens to Indigenous and Non‐Indigenous income 

and employment under different development ‘scenarios’

Some insights …

A regional business makes an extra $100 of sales

The business earns an extra $100

The business saves some of that 

money

The business pays taxes

The business spends some money on imported goods and services

The business spends some money ‘locally’

$41 re‐spent locally:

Net impact = 141 or 1.41 times the original increase(i.e. the ‘multiplier’ is at least 1.4)

Stoeckl, N., (2010), “Bridging the great divide: Background to and strategies for bridging the divide between Indigenous and Non‐Indigenous economies in Northern Australia”, in Gerritsen (editor), Northern Australia Political Economy, CDU Press.

Page 9: Stoeckl - Gallant Knight or Spanish Galleon 30 Sept 2013 · Gallant Knight or Spanish Galleon? Natalie Stoeckl ... Economics 101, lecture 1 – GDP is not a good measure of well‐being

3/10/2013

9

More insights …Small towns and/or remote areas tend to have small multipliers

Stoeckl, N, (2007), “Using Surveys of Business Expenditure to Draw Inferences about the size of Regional Multipliers: A Case‐study of Tourism in Northern Australia”, Regional Studies, 41(7): 917‐931

Some more insights …

A regional business makes an extra $100 of sales

The business earns an extra $100

The business saves some of that 

money

The business pays taxes

The business spends some money on imported goods and services

The business spends some money ‘locally’

$41 re‐spent locally:

Approx: 

$15.30 to Non‐Indigenous Households

$1.70 to Indigenous Households

households earn $17; $8 goes to stores; the rest to 

other businesses

Page 10: Stoeckl - Gallant Knight or Spanish Galleon 30 Sept 2013 · Gallant Knight or Spanish Galleon? Natalie Stoeckl ... Economics 101, lecture 1 – GDP is not a good measure of well‐being

3/10/2013

10

Businesses

Households

Businesses

Households

Businesses, 

Government & 

Households 

outside the region

It is as if there are two, asymmetrically connected, economic systems in the North

Stoeckl, N., Esparon, M., Stanley, O., Farr, M., Delisle, A., and Altai, Z. (2013) “The great asymmetric divide: An empirical investigation of the link between Indigenous and non‐Indigenous economic systems in Northern Australia”, Papers in Regional Science. doi:10.1111/pirs.12028

With existing economic structures, Indigenous people benefit much less from ‘development’ than non‐Indigenous people.  As such, ‘development’ may widen, 

rather than close the gap.

That said, different industries have different ‘flow‐on’ effects …

Stoeckl, N., Esparon, M., Stanley, O., Farr, M., Delisle, A., and Altai, Z. (2013) “The great asymmetric divide: An empirical investigation of the link between Indigenous and non‐Indigenous economic systems in Northern Australia”, Papers in Regional Science. doi:10.1111/pirs.12028

0 5 10 15 20 25 30 35

Electricity

Mining

Finance

Trade

Agriculture

Construction

Transport

Government

Culture

Accommodation

Indigenous jobs per $1m expansion of sector

Non‐Indigenous jobs per $1m expansion ofsector

Page 11: Stoeckl - Gallant Knight or Spanish Galleon 30 Sept 2013 · Gallant Knight or Spanish Galleon? Natalie Stoeckl ... Economics 101, lecture 1 – GDP is not a good measure of well‐being

3/10/2013

11

An additional complication:Water is a potentially contentious issue in the North

Stoeckl, N., Stanley, O., Jackson, S., Straton, A, and Brown, V., (2006), An assessment of social and economic values associated with Australia’s Tropical Rivers, Final Report submitted to Land and Water Australia, 173pp. available at: http://www.lwa.gov.au/Programmes/Current_Programmes/Australias_Tropical_Rivers/Final_reports_and_publications/index.aspx

And water may be in most demand, 

where it is least available …

Stoeckl, N., Stanley, O., Jackson, S., Straton, A, and Brown, V., (2006), An assessment of social and economic values associated with Australia’s Tropical Rivers, Final Report submitted to Land and Water Australia, 173pp. available at: http://www.lwa.gov.au/Programmes/Current_Programmes/Australias_Tropical_Rivers/Final_reports_and_publications/index.aspx

Page 12: Stoeckl - Gallant Knight or Spanish Galleon 30 Sept 2013 · Gallant Knight or Spanish Galleon? Natalie Stoeckl ... Economics 101, lecture 1 – GDP is not a good measure of well‐being

3/10/2013

12

How does the water‐issue complicate things? 

Added water use data to our IO model

Also added hydrological and ecological models, and data from anthropologists

Found that high water‐use industries, put significant strain on monsoonal rivers

– could reduce (or stop) stream flows during dry season

– thus damaging aquatic habitats

– putting Indigenous food sources at risk

– adversely impacting on social /cultural activities and values 

(particularly Indigenous people; but also non‐Indigenous)

The ‘cost’ of those side‐effects could, on occasion, outweigh the gains.

Moreover, if costs and benefits are not evenly distributed, the side‐effects of rising 

inequality may impose further costs  on all.

Stoeckl, N., Jackson, S., Pantus, F., Finn, M., Kennard, M. and Pusey, B.  (2013)  “An integrated assessment of some of the financial, hydrological, ecological and social impacts of ‘development’ on Indigenous and non‐Indigenous people in northern Australia.” Biological Conservation, 159: 214‐221

If we copy past ‘developments’ we may copy failure 

– Development is about more than GDP and money; we should aim for genuine progress

– Social and environmental issues matter (they affect and are affected by ‘development’)

We should ask why the need/desire to develop 

• For more business profit?

• For more tax revenue?

• For more jobs (and perhaps less government expenditure on welfare)?

• To improve quality of life?  …… of whom? 

We could aim to be get ‘better’ instead of just bigger, e.g. 

– Starting downstream businesses in tourism

– Looking for efficiencies in meat inspection/processing systems.

– Looking for economies of scope (instead of only scale), e.g.

• Macro‐algae, biofuels and bio‐products project

What of the gallant knight? 

Page 13: Stoeckl - Gallant Knight or Spanish Galleon 30 Sept 2013 · Gallant Knight or Spanish Galleon? Natalie Stoeckl ... Economics 101, lecture 1 – GDP is not a good measure of well‐being

3/10/2013

13

From:  Dr. Nicholas Paul Principal Research Fellow, Macroalgal Biofuels & BioproductsSchool of Marine & Tropical Biology, James Cook University

, vitamins, food

Acknowledgements

The community of Kowanyama, particularly: Viv Sinnamon, Michael Yam, Anzac Frank, Ravin Greenwool, 

Phillip Mango and Stanley Budby

The Daly River Aboriginal Reference Group (ARG), particularly: Mona Liddy and  Valemina White

The Mitchell River Traditional Custodian Advisory Group, particularly Ruth Link, and Gerry Turpin

The people of Western Gugu Yalanji, Kuku Juungan, Mbabaram and Wokomin.

Ron Archer – Kuku Djungan TO

The TO’s who worked with us when collecting data

Agnes Page

Kathleen Perry

Bridget Kikitin

Lizzie Sullivan

Darren Birchley ‐ Kowanyama Aboriginal Ranger and Kokoberra TO

Sharon Brady, Western Gugu Yalanji TO

John Grainer, Kuku Djungan TO

Eddie Turpin,Mbabaram TO

Eddie Thomas, Wokomin TO

Estelle Waio – Kuku Djungan TO

All the colleagues (including students past and present) who have contributed directly and indirectly to the thoughts 

presented here: the good ideas are theirs; the mistakes are mine.

The funding agencies and institutions who have supported this work. Including

JCU – especially the SOB and the CI;  TSCRC, DK CRC, TRaCK, MTSRF, NERP (NAH and TE),  LWA, NAWFA