Enhancing Australia’s key regional strategic partnerships

Australia emerged from the Second World War as a middle power, essential to maintaining the post-war economic, political and strategic power paradigm established and led by the US – this relationship, established as a result of the direct threat to Australia, replaced Australia's strategic relationship of dependence on the British Empire and continues to serve as the basis of the nation's strategic, economic and diplomatic policy direction and planning.

However, as a nation Australia has often walked the line, balancing traditional middle power and minor power characteristics, which have served to exacerbate the partisan nature of the nation's strategic and defence policy making.

In particular, Australia has historically been dependent upon the benevolence of the broader international community, at both an economic and strategic level. This is most evident in two specific arenas – the nation's continued economic dependence on China and strategic dependence on the US.

The emergence of economic, political and military superpowers like China and India continue to develop as the powers at the core of Indo-Pacific Asia. Additionally, Australia has also witnessed the development of the region’s periphery powers including Indonesia, Vietnam and Thailand, each with competing priorities and objectives, combined with the rise of complex asymmetric challenges to national security serving to challenge the established geo-political, economic and strategic security and prosperity of the region.

Importantly, as Australia's traditional strategic benefactors continue to face decline and comparatively capable peer competitors – the nation's economic, political and strategic capability are intrinsically linked to the enduring security, stability and prosperity in an increasingly unpredictable region.

This approach fails to recognise the precarious position Australia now finds itself in, however it does identify key areas for the nation's political and strategic leaders to focus on if Australia is to establish a truly independent strategic capacity – this focuses largely on:

• Australia's continuing economic prosperity and stability and the role the economy plays in supporting defence capability;
• The economic, political and strategic intentions of Australia's Indo-Pacific neighbours; and
• The rapidly evolving technology-heavy nature of contemporary warfare.

Recognising this, the Australian government, spearheaded by Prime Minister Scott Morrison and flanked by Foreign Minister Marise Payne and Defence Minister Linda Reynolds, has sought to expand the nation's relationships with key emerging regional great powers, like Indonesia, Thailand and Vietnam, to support Australia's long-term engagement with the region. 

VIEW ALL

But what does expanded Australian engagement with these powers look like? Particularly in this period of unravelling relationships, seemingly fickle, transactionally focused strategic partners, economic slow downs and direct economic confrontation between allies all position Australia as a stable, reliable and responsible nation committed to the economic, political and strategic stability of the Indo-Pacific.

Forging closer links 

Australia has long looked to larger powers as the guarantors of its economic, political and strategic security, however as the global dynamics evolve, the nation's enduring stability and prosperity will be increasingly dependent upon the strength, resilience and integration of its key relationships. This has been increasingly recognised by the Australian government and is forming the next stage of Australia's evolving 'middle power' diplomacy. 

Indonesia has long been a key consideration for Australian policy makers. The immense population, economic and strategic potential of the archipelagic nation, which straddles both the strategic and economically vital choke points of Malacca and Sunda and the South China Sea, presents equal challenges and opportunity for Australia to support and lead the development and expansion of critical, high-level dialogues.     

This is something recognised by Minister Reynolds, who stated: "Both our countries sit at the fulcrum of the Indo-Pacific. We both have a stake in managing growing strategic competition between great powers in the Indo-Pacific. We are seeing a resurgence of terrorism and violent extremism, and sovereign interests are being increasingly undermined as non-state actors use the cyber domain to extend their reach. Grey-zone tactics or hybrid warfare – activities which remain below the threshold of traditional armed conflict – are being used by some actors to pursue their strategic ends.

"It is up to us to work together – as close partners, and with ASEAN – so that we can shape our region, and ensure our shared security and prosperity is strengthened, not undermined. And we must build each other’s capability as part of addressing the challenges we face – challenges neither of us can address alone."

Indonesia's future capability is projected to be supported by an economy among the world's largest by 2030-31, with a nominal GDP of between US$8.9 and US$10.1 trillion according to long-term economic forecasts by the International Monetary Fund (IMF), Standard Chartered and Bloomberg, while Australia in comparison will be dwarfed by its nearest neighbour, lingering behind with a nominal GDP of approximately US$2.36 trillion, according to the IMF. 

Looking deeper into the Indo-Pacific, both Thailand and Vietnam serve as powerful potential economic, political and strategic partners within the confines of developing a significantly expanded strategic, economic and political partnership within the region – both these developing nations and emerging Indo-Pacific powers serve as critical markets for Australian economic integration. 

Thailand is projected by the IMF to have a GDP of approximately US$2.65 trillion by 2030-31, while Vietnam is projected to have a GDP of approximately US$2.03 trillion for the same period. Recognising this, the Australian government has initiated a renewal of the nation's 'middle power' diplomacy, with the Prime Minister recently visiting Vietnam to enhance ties.

"We share a vision for an open, inclusive and prosperous Indo-Pacific neighbourhood; an Indo-Pacific where we respect each other’s sovereignty and independence. And we share a deep interest in the stability and prosperity of our region. It’s more important than ever before that we remain open and connected and maintain a regional focus with a global perspective. We know that in south-east Asia we need security and peace to maintain our prosperity,” the Prime Minister said during his recent trip. 

Your thoughts

As a nation, Australia is at a precipice and both the Australian public and the nation's political and strategic leaders need to decide what they want the nation to be – do they want the nation to become an economic, political and strategic backwater caught between two competing great empires and a growing cluster of periphery great powers? Or does Australia "have a crack" and actively establish itself as a regional great power with all the benefits that entails? Because the window of opportunity is closing. 

The nation is defined by its relationship with the region, with access to the growing economies and to strategic sea-lines-of-communication supporting over 90 per cent of global trade, a result of the cost effective and reliable nature of sea transport. Indo-Pacific Asia is at the epicentre of the global maritime trade, with about US$5 trillion worth of trade flowing through the South China Sea and the strategic waterways and choke points of south-east Asia annually.

For Australia, the growing economic prosperity of the region and corresponding arms build up, combined with ancient and more recent enmities, competing geo-political, economic and strategic interests, places the nation at the centre of the 21st century's 'great game'.

Get involved with the discussion and let us know your thoughts on Australia's future role and position in the Indo-Pacific and what you would like to see from Australia's political leaders in terms of expanding the nation's key economic, political and strategic relationships with nations like Indonesia, Thailand and Vietnam in the comments section below, or get in touch with 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..