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What sort of Defence policy do we need for the ‘new world’?

Australian Army and Indonesian National Armed Forces soldiers, supported by an Australian Army M1A1 Abrams tank, conduct a combined joint force entry operation as part of Exercise Keris Woomera at Banongan Beach, Indonesia. Source: Defence Image Library

With the world becoming a more dangerous place, seemingly by the day, it is becoming clear that even our most recent defence policy developments leave a lot to be desired. With this in mind, what sort of defence policy does Australia need to face this new world?

With the world becoming a more dangerous place, seemingly by the day, it is becoming clear that even our most recent defence policy developments leave a lot to be desired. With this in mind, what sort of defence policy does Australia need to face this new world?

Australia’s defence policy has undergone a remarkable evolution since Federation in 1901 – a journey that mirrors the nation’s shifting strategic imperatives and global realities. In the early decades following Federation, Australia’s security outlook was deeply influenced by its colonial ties to the British Empire. Relying heavily on the Royal Navy, the young nation entrusted its defence to an imperial guardian whose reach extended far beyond Australian shores.

However, as global conflicts erupted in the early 20th century, particularly during the two World Wars, the limitations of such dependence became starkly apparent. The devastation and geopolitical upheavals of these conflicts catalysed a transition from passive reliance to a more self-reliant and proactive security posture.

The post-war period, marked by the advent of the Cold War, further accelerated Australia’s transformation. Aligning itself with Western allies, most notably through the ANZUS Treaty, Australia began to invest in building a credible and autonomous military capability.

This period saw a delicate balancing act: on one hand, the nation sought to maintain strong ties with established allies, and on the other, it recognised the imperative to develop its own capacity for power projection and rapid response. Over time, as traditional state-centric threats were gradually supplemented – and at times supplanted – by non-traditional security challenges such as terrorism, cyber warfare and regional instability, Australia’s defence strategy adapted accordingly.

Entering the 21st century, Australia finds itself at a strategic crossroads. The Indo-Pacific region, with its dynamic mix of economic interdependence and emerging rivalries, has assumed unprecedented significance. In an era defined by multipolar competition and technological revolution, Australia’s future defence policy must reconcile the twin imperatives of safeguarding national interests and contributing to regional stability.

Against this backdrop, three distinct, yet “clear” policy paradigms have emerged as candidates for shaping Australia’s security architecture over the coming decades: an assertive forward-leaning policy, stepping into an apparent vacuum left by an increasingly isolationist United States, a continuation of the status quo and a pseudo-isolationist approach.

Each alternative reflects a different interpretation of Australia’s strategic role and offers a unique blend of opportunities and risks.

An assertive forward-leaning policy

The assertive forward-leaning approach envisions Australia actively projecting its military capabilities and engaging proactively with the broader Indo-Pacific region. This strategy is premised on the belief that deterrence is best maintained not merely through defensive posturing but by a willingness to shape the security environment beyond one’s immediate borders. Proponents argue that a robust, outward-facing defence posture would enhance Australia’s credibility as a partner and a power broker, capable of influencing regional outcomes in a manner consistent with its national interests.

Central to this policy is the idea of power projection. By deploying advanced platforms, establishing forward operating bases, and enhancing interoperability with key allies like the United States, Japan and India, Australia would signal its commitment to a stable regional order. Such a stance would serve as both a deterrent to potential adversaries and a reassurance to allies, fostering a sense of collective security.

Historical lessons – where underestimating external threats led to strategic vulnerabilities – lent credence to the argument for proactive engagement. Moreover, an assertive policy would facilitate the early identification and containment of emerging security challenges, particularly in an era marked by rapid technological change and unconventional warfare.

However, the benefits of a forward-leaning approach come with considerable costs. The financial burden of maintaining an active military presence abroad is substantial. Investment in advanced technology, expeditionary forces and infrastructure capable of supporting overseas operations could place significant strains on the national budget. Furthermore, there is an inherent risk of overextension. Engaging in multiple regional commitments might stretch Australia’s defence capabilities thin, potentially compromising operational effectiveness.

Additionally, a more aggressive stance may be perceived by neighbouring states as provocative, potentially triggering an arms’ race or escalating regional tensions. In essence, while the assertive forward-leaning policy offers the promise of enhanced deterrence and strategic influence, it also entails risks that could have far-reaching implications for both national security and regional stability.

A continuation of the status quo

The status quo policy represents a more measured approach, one that prioritises the consolidation of existing defence structures over ambitious expansion or aggressive repositioning. This paradigm focuses primarily on reinforcing Australia’s core security capabilities – particularly its ability to safeguard the homeland – while maintaining a degree of regional engagement that is both predictable and sustainable.

Advocates of this approach contend that the current defence posture has evolved to meet Australia’s strategic needs without the inherent risks associated with a more interventionist stance.

Maintaining the status quo offers several pragmatic advantages. Budgetary predictability is a key benefit, as steady and incremental investments in defence infrastructure allow for long-term planning and resource allocation. This financial stability is crucial, especially when juxtaposed against the backdrop of domestic priorities such as healthcare, education and infrastructure development.

By avoiding dramatic shifts in military spending, Australia can ensure that its defence investments do not jeopardise other vital sectors of the national economy. Moreover, a conservative approach minimises the likelihood of inadvertently provoking regional adversaries. In an era where the balance of power is delicately maintained, a measured posture helps mitigate the risks of escalation and avoids entanglement in conflicts that lie beyond Australia’s immediate strategic interests.

Nevertheless, there are concerns that a status quo policy may be insufficient in addressing the rapidly evolving nature of global security threats. Critics argue that a failure to adapt to emerging challenges could result in an erosion of deterrence.

As adversaries modernise and new forms of warfare – such as cyber attacks and hybrid operations – become more prevalent, the limitations of a static defence posture may become increasingly apparent. Furthermore, limited engagement in regional security initiatives could diminish Australia’s influence in shaping the strategic environment of the Indo-Pacific.

Allies and partners might perceive Australia’s reluctance to adopt a more assertive stance as a signal of waning commitment, thereby undermining the collective security arrangements that have long underpinned the region’s stability. In this context, the status quo policy, while offering continuity and fiscal prudence, may risk leaving Australia less equipped to counter the multifaceted challenges of the 21st century.

A pseudo-isolationist approach

The pseudo-isolationist policy is perhaps the most radical of the three strategic options. This approach advocates for a significant retrenchment from international military engagements, with an almost exclusive focus on homeland defence.

Proponents argue that by reducing its involvement in complex international alliances and security commitments, Australia could redirect substantial resources towards addressing domestic priorities. In a time of intense fiscal scrutiny and competing national demands, such a strategy offers the allure of enhanced sovereignty and economic reallocation.

At the heart of the pseudo-isolationist policy is the emphasis on national self-reliance. By concentrating efforts on protecting its own borders and internal infrastructure, Australia could ostensibly minimise the risks associated with becoming entangled in distant conflicts. The potential savings from reduced defence spending might then be invested in critical areas such as social programs, economic development and technological innovation.

Moreover, this inward-looking stance is seen by some as a means to reinforce national identity and independence in an increasingly interconnected world. The logic follows that by disengaging from the global power plays that often define international politics, Australia can better safeguard its interests without the burden of external obligations.

However, the risks associated with pseudo-isolationism are significant. A marked retreat from international engagement could lead to a diminished deterrence posture, as adversaries might interpret Australia’s reduced global footprint as a sign of vulnerability.

This, in turn, could embolden potential aggressors, undermining the very security that the policy seeks to protect. Furthermore, disengaging from established alliances would not only reduce Australia’s diplomatic influence but also weaken the network of strategic partnerships that have historically underpinned regional stability.

Economic implications are equally concerning. In today’s globalised world, trade and security are deeply intertwined; isolationist policies might disrupt vital economic ties, resulting in adverse consequences for both national prosperity and regional interdependence.

The pseudo-isolationist approach, while promising a reallocation of resources and a focus on domestic development, risks leaving Australia increasingly isolated in a dynamic and often volatile international landscape. In an era marked by rapid technological advances and shifting power balances, withdrawing from the arena of global security could inadvertently reduce Australia’s capacity to shape its destiny and safeguard its interests over the long term.

Balancing ambition, stability and sovereignty

The choice among these three policy approaches – assertive forward-leaning, status quo and pseudo-isolationist – presents a classic strategic dilemma. On one hand, there is the lure of ambition: the prospect of actively shaping a regional order that is conducive to Australia’s long-term security interests. An assertive posture, with its emphasis on power projection and proactive engagement, offers the promise of a robust deterrence framework and enhanced international stature.

Yet this path demands considerable resources and carries the inherent risk of overextension in an environment where miscalculations can have severe repercussions.

Conversely, the status quo approach offers the comfort of continuity and fiscal stability. By maintaining a measured, predictable defence posture, Australia can continue to address its immediate security needs while avoiding the potential pitfalls of aggressive expansion. However, in a rapidly evolving security landscape, complacency may prove costly.

A failure to adapt to new threats or to assert a leadership role in the Indo-Pacific could leave Australia at a strategic disadvantage, eroding the influence it has cultivated over decades of alliance-building.

The pseudo-isolationist option, with its focus on domestic priorities and self-reliance, taps into a growing sentiment among some policymakers and segments of the public who view global entanglements as a drain on national resources. Yet in an interconnected world, isolation carries its own perils. Reduced international engagement can compromise not only military deterrence but also the economic and diplomatic partnerships that are vital to Australia’s prosperity and security.

In a region as dynamic as the Indo-Pacific, where security and commerce are inextricably linked, a retreat from the global stage could leave Australia increasingly vulnerable to external pressures.

Final thoughts

Australia’s defence policy has evolved from a reliance on imperial guardianship to a sophisticated, multidimensional strategy that must now navigate the complex realities of a multipolar world. Each of the three policy approaches explored – an assertive forward-leaning strategy, a continuation of the status quo and a pseudo-isolationist stance – carries its own set of advantages and inherent risks.

An assertive approach promises enhanced deterrence and regional influence but requires significant financial investment and a willingness to shoulder the burdens of active engagement.

The status quo offers stability and predictability, enabling focused resource allocation to domestic priorities, yet it risks underpreparing the nation for emerging and unconventional threats. Meanwhile, the pseudo-isolationist policy, while appealing in its promise of resource reallocation and reinforced sovereignty, may inadvertently undermine Australia’s strategic partnerships and diminish its deterrence capabilities in an increasingly volatile regional environment.

In choosing a path forward, Australian policymakers must carefully balance the imperatives of ambition, stability and sovereignty. The historical evolution of the nation’s defence strategy underscores the necessity of adaptability in the face of shifting global dynamics.

As the Indo-Pacific becomes ever more contested, the decision over which policy framework to adopt will have lasting implications – not only for Australia’s security but also for the broader stability of the region. Ultimately, a nuanced approach that judiciously blends elements of assertive engagement with prudent resource management may offer the best route to preserving Australia’s long-term security and influence in a rapidly changing world.

Get involved with the discussion and let us know your thoughts on Australia’s future role and position in the Indo-Pacific region and what you would like to see from Australia’s political leaders in terms of partisan and bipartisan agenda setting in the comments section below, or get in touch at This email address is being protected from spambots. You need JavaScript enabled to view it. or at This email address is being protected from spambots. You need JavaScript enabled to view it..

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