PM identifies ‘our interest’ in speech to Lowy Institute

Australia has enjoyed a record setting three decades of uninterrupted economic growth buoyed by the voracious appetite of a growing China, however all good things come to end as the political, economic and strategic competition between the US and China enters a new phase placing both the global and Australian economies in a precarious position. 

Further compounding these emerging challenges is the growing period of economic and strategic competition between Japan and South Korea, equally important US and Australia allies, which have long-standing, robust links to Australia's economic security.

As this vortex of competition continues to devolve into a game of economic brinkmanship, resulting in trade tariffs and hindered supply chain access, many within Australia's political, economic and strategic policy communities have sought to redouble the nation's exposure to volatile and slowing economies. 

Australia's earliest economic and strategic relationship with the British Empire established a foundation of dependence that would characterise all of the nation's future economic, defence and national security relationships both in the Indo-Pacific and the wider world.

As British power slowly declined following the First World War and the US emerged as the pre-eminent economic, political and strategic power during the Second World War – Australia became dependent on 'Pax Americana' or the American Peace.

The end of the Second World War and the creation of the post-war economic and strategic order, including the establishment of the Bretton Woods Conference, the International Monetary Fund and the United Nations, paved the way towards economic liberalisation and laid the foundation for the late-20th and early-21st century phenomenon of globalisation.

While the collapse of the Soviet Union and the end of the Cold War cemented America's position as the pre-eminent world power. This period was relatively short lived as costly engagements in Afghanistan and Iraq, peace-keeping interventions in southern Europe and enduring global security responsibilities have drained American 'blood' and 'treasure' – eroding the domestic political, economic and strategic resolve and capacity of the US to unilaterally counter the rise of totalitarian regimes and peer competitors in both China and Russia.

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Recognising these emerging challenges and the need to clearly identify and articulate Australia's interests at a time of increasing geo-strategic, political and economic competition, Prime Minister Scott Morrison has used an address to the Lowy Institute to do so. 

The Prime Minister's "In our interest" speech sought to unite and guide the nation during this period, by drawing on and articulating the concept of Australia's national interests. 

A period of disruption 

One of the Prime Minister's primary focuses was the period of immense disruption sweeping throughout the region and the broader globe, ranging from technological disruption, through to emerging political, economic and strategic competition in an increasingly 'multi-polar' world. 

"Australia cannot be an indifferent bystander to these events that impact our livelihoods, our safety and our sovereignty. We must, as we have done previously, cultivate, marshal and bring our influence to bear to protect and promote our national interests," Prime Minister Morrison said. 

"Tonight I would like to talk about the new and challenging world that Australia faces. And how my government is responding to these challenges. Ladies and gentlemen, we are living in a world in transition that former US Treasury Secretary, Hank Paulson, has described as 'an unusually delicate moment in time'.

"A new economic and political order is still taking shape. We have entered a new era of strategic competition – a not unnatural result of shifting power dynamics, in our modern, more multi-polar world and globalised economy.

"It is a time of technological disruption, some of which is welcomed, some resented and feared. A time when global supply chains have become integrated to an unprecedented degree, and more of our economies are dependent on global trade than at any other time, including the major economic powers of the US, China, Japan and Europe."

Your thoughts

Indo-Pacific Asia's rise means the ‘tyranny of distance’ has been replaced by a ‘predicament of proximity’. China, India, Indonesia, Thailand, Japan and several other regional nations are reshaping the economic and strategic paradigms with an unprecedented period of economic, political and arms build-up, competing interests and rising animosity towards the post-World War II order of which Australia is a pivotal part.

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, a nation defined by its relationship with traditionally larger, yet economically weaker regional neighbours, 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'.

In the second part of this series, Defence Connect will take a closer look at the Prime Minister's commentary about the growing economic and strategic competition and the government's response as articulated by the PM. 

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 resetting the nation's economic debate as it relates to long-term national security 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..