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You can find the current article at its original source at https://www.theguardian.com/australia-news/2017/sep/27/a-fairer-society-can-help-australia-stave-off-populist-backlash-labor-minister-says
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| A fairer Australia can help stave off populist backlash, Labor frontbencher says | A fairer Australia can help stave off populist backlash, Labor frontbencher says |
| (21 days later) | |
| The government should combat backlash against globalisation by increasing redistribution and investing more in social programs in areas with new migrants, the shadow assistant treasurer, Andrew Leigh, has argued in a new paper. | The government should combat backlash against globalisation by increasing redistribution and investing more in social programs in areas with new migrants, the shadow assistant treasurer, Andrew Leigh, has argued in a new paper. |
| In Choosing Openness, a Lowy Institute paper released on Wednesday, Leigh argued that Australia should resist a global trend to put up barriers to foreign investment, trade and immigration. | In Choosing Openness, a Lowy Institute paper released on Wednesday, Leigh argued that Australia should resist a global trend to put up barriers to foreign investment, trade and immigration. |
| Leigh said closed societies, such as Australia under the White Australia policy and before trade liberalisation started in the 1970s, were “poorer and less dynamic” than open societies. | Leigh said closed societies, such as Australia under the White Australia policy and before trade liberalisation started in the 1970s, were “poorer and less dynamic” than open societies. |
| Leigh acknowledged that globalisation “raises average living standards, but some people can be hurt”. | Leigh acknowledged that globalisation “raises average living standards, but some people can be hurt”. |
| “Redistributing part of the gains from openness from the winners to the losers is not just a matter of fairness. It is essential if the beneficiaries want to avoid a populist backlash,” he said. | “Redistributing part of the gains from openness from the winners to the losers is not just a matter of fairness. It is essential if the beneficiaries want to avoid a populist backlash,” he said. |
| Citing the election of Donald Trump, Britain’s decision to exit the European Union and the rise of rightwing parties in Europe, Leigh warned that “rightwing populists thrive on conflict and exploit our basic human instinct to hunker down in the face of difference”. | Citing the election of Donald Trump, Britain’s decision to exit the European Union and the rise of rightwing parties in Europe, Leigh warned that “rightwing populists thrive on conflict and exploit our basic human instinct to hunker down in the face of difference”. |
| “These populists reject the idea of challenging choices and tricky trade-offs. Their promise is that once the corrupt elites have been overthrown, the virtuous voters can have everything they want.” | “These populists reject the idea of challenging choices and tricky trade-offs. Their promise is that once the corrupt elites have been overthrown, the virtuous voters can have everything they want.” |
| Leigh said although increasing trade with countries with lower wages had contributed to the decline of manufacturing, factory jobs were disappearing worldwide because of automation. | Leigh said although increasing trade with countries with lower wages had contributed to the decline of manufacturing, factory jobs were disappearing worldwide because of automation. |
| He said house prices had risen from two-and-a-half times average household income in the 1990s to a “record high” of 5.1 today. But he accused Dick Smith of perpetuating a “myth” that 95% of the rise in house prices had been caused by immigration. | He said house prices had risen from two-and-a-half times average household income in the 1990s to a “record high” of 5.1 today. But he accused Dick Smith of perpetuating a “myth” that 95% of the rise in house prices had been caused by immigration. |
| Leigh blamed lagging rates of home construction and a rise in investors purchasing property at the expense of first-home buyers. | Leigh blamed lagging rates of home construction and a rise in investors purchasing property at the expense of first-home buyers. |
| He namechecks Australian anti-immigration populist Pauline Hanson just once in the paper, noting he is a “raceless, placeless cosmopolitan” of the sort she has derided. | He namechecks Australian anti-immigration populist Pauline Hanson just once in the paper, noting he is a “raceless, placeless cosmopolitan” of the sort she has derided. |
| In her inaugural Senate speech in September 2016 Hanson called for a halt on immigration, claiming Muslim migrants had failed to assimilate. | In her inaugural Senate speech in September 2016 Hanson called for a halt on immigration, claiming Muslim migrants had failed to assimilate. |
| The former prime minister Tony Abbot has also called for a “big slowdown” in immigration to “take the downward pressure off wages and the upward pressure off house prices”. | The former prime minister Tony Abbot has also called for a “big slowdown” in immigration to “take the downward pressure off wages and the upward pressure off house prices”. |
| Leigh said studies had found diverse groups performed better in problem-solving, showing the benefits of immigration, but conceded “one concern about immigration does seem to be well-founded”. | Leigh said studies had found diverse groups performed better in problem-solving, showing the benefits of immigration, but conceded “one concern about immigration does seem to be well-founded”. |
| “At least in the short term, migration appears to reduce the strength of community,” he said, citing his own research as an academic a decade ago which found in neighbourhoods where more languages were spoken, people were less likely to trust one another. | “At least in the short term, migration appears to reduce the strength of community,” he said, citing his own research as an academic a decade ago which found in neighbourhoods where more languages were spoken, people were less likely to trust one another. |
| Leigh said “that hunkering down in the face of diversity is a short-term response, not a long-term one”. Over time, successive groups of migrants were first distrusted but now accepted. | Leigh said “that hunkering down in the face of diversity is a short-term response, not a long-term one”. Over time, successive groups of migrants were first distrusted but now accepted. |
| “The melting pot works, but perhaps at a slow simmer rather than a quick boil,” he said. | “The melting pot works, but perhaps at a slow simmer rather than a quick boil,” he said. |
| The government should “help the melting pot boil faster” by encouraging volunteering and focusing grants for community groups on areas with the most migrants, Leigh said. | The government should “help the melting pot boil faster” by encouraging volunteering and focusing grants for community groups on areas with the most migrants, Leigh said. |
| Australia should be wary of working holiday-maker agreements with countries where there is an “imbalance” of people wanting to come to Australia because the programs will become a source of “cheap labour” rather than a genuine reciprocal arrangement, he said. | Australia should be wary of working holiday-maker agreements with countries where there is an “imbalance” of people wanting to come to Australia because the programs will become a source of “cheap labour” rather than a genuine reciprocal arrangement, he said. |
| “Reports of underpayment and abuse suggest a need for more spot checks on employers, and improved channels for temporary migrants to report wrongdoing without jeopardising their visa extension.” | “Reports of underpayment and abuse suggest a need for more spot checks on employers, and improved channels for temporary migrants to report wrongdoing without jeopardising their visa extension.” |
| Instead, Leigh suggested expanding the seasonal worker program for Pacific migrants which he said has “significantly lower reports of worker exploitation”. | Instead, Leigh suggested expanding the seasonal worker program for Pacific migrants which he said has “significantly lower reports of worker exploitation”. |
| Leigh said foreign investment was “about as popular as cane toads and fire ants” but warned, without it, Australia would “either have one-ninth less investment or domestic savings would need to rise dramatically”. | Leigh said foreign investment was “about as popular as cane toads and fire ants” but warned, without it, Australia would “either have one-ninth less investment or domestic savings would need to rise dramatically”. |
| He warned against glamourising local ownership, arguing that barring foreign investors could contribute to market concentration. “Indeed, a fresh overseas owner who doesn’t have other interests in Australia is less likely to abuse their market power than a mogul who already has investments throughout the economy.” | He warned against glamourising local ownership, arguing that barring foreign investors could contribute to market concentration. “Indeed, a fresh overseas owner who doesn’t have other interests in Australia is less likely to abuse their market power than a mogul who already has investments throughout the economy.” |
| With respect to the Foreign Investment Review Board process, Leigh suggested Australia “reduce or eliminate the current discrimination” between the source of funds, citing the example of a Canadian investor requiring approval for a $300m investment, where a US investor would not. | With respect to the Foreign Investment Review Board process, Leigh suggested Australia “reduce or eliminate the current discrimination” between the source of funds, citing the example of a Canadian investor requiring approval for a $300m investment, where a US investor would not. |
| He said Treasury should set out reasons for its decisions to accept or reject foreign investments that went through the FIRB process. | He said Treasury should set out reasons for its decisions to accept or reject foreign investments that went through the FIRB process. |
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