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For years now, the commentariat has lamented the dearth of good public policy reform in Australia, comparing the current generation of politicians with greater figures from the 1980s and 1990s — Hawke and Keating, and John Howard in his first two terms. It’s been much more rare for that lamentation to actually result in a serious analysis of why governments, both at the federal and state levels, are no longer as reformist as they used to be.
John Daley, one of Australia’s best public policy thinkers, has done exactly that in his final report for the Grattan Institute, which examines what failed and successful reforms of the last ten years have had in common — and what that tells us about impediments to reform in Australia.
It’s a cracker of a report that should be bookmarked by every senior public servant, staffer, journalist and minister, even if they won’t necessarily like his conclusions.
Daley has examined the fate of the 73 reforms recommended by the Grattan Institute since it kicked off in 2009, which have covered around 75% of government activities. His findings about the reasons why some were implemented but many — 50 of them — were not contain some surprises.
- Fifteen reforms were electorally unpopular — and they all failed.
- Ten were contrary to the shibboleths of the party in power — seemingly innate partisan beliefs that are unrelated to evidence (think climate denialism in the Coalition; industry protectionism in Labor). All failed — three of them were also unpopular.
- Six failed because they were opposed by powerful vested interests influencing the policy process
- Three failed reforms had no evidence beyond Grattan’s report.
- Five came with big budget outlays (the only reform with a big price tag that succeeded was the government’s recent, partial extension of childcare support.
But contrary to claims circulated during the Abbott government, upper houses uncontrolled by governments did not play a major role in stymieing reforms.
Daley identifies the important role of independent evidence in getting reforms over the line: vested interests have a more difficult time stopping reforms if there is a strong evidence base for them, which makes the job of the responsible minister in refuting self-interested claims easier. Party shibboleths tend to be fact-resistant, however, and governments make their job harder for themselves when they simply announce reforms rather than consulting on the problem to be solved and ways of doing that.
But Daley casts a wider net for impediments. Growing numbers of political staffers, most without any policy background, are a problem, with “little experience beyond student politics, and aspirations either for pre-selection or a career in various forms of government advocacy”. They “tend to be focused on winning the immediate war of public opinion in a culture of continuous campaigning” and “are more likely to gain their next step on the career ladder – often as a more senior adviser, preselection for parliament, or in government relations – if they are seen to have minimised political damage to their minister.”
A similar logic applies to ministers themselves — why pursue reform that may come with a political cost to the government if you’re looking for a promotion? And political party structures, which aim to suppress and hide genuine policy debate for electoral benefit, don’t help.
The media also plays a role: the shrinking numbers of journalists and the loss of specialist rounds means poorer coverage of policy issues by less knowledgeable journalists, who are easier prey for vested interests. Australia’s highly concentrated media sector makes discussion of valuable but unpopular reforms more difficult.
“The Murdoch media – closely connected to both mining industry and right-wing parties – generally adopted an anti-climate change stance, and reinforced opposition to climate change within the Coalition in Australia and the Republican Party in the US.”
And hyperpartisan media “sets an agenda, as programs on Sky News after dark are discussed in mainstream media. It can particularly influence how the stable of News Corp publications approaches an issue. And it may also be important in shaping and reinforcing partisan shibboleths…”
The public service also has its failings — externally imposed, via politicisation, outsourcing and a political preference that public servants do not contribute to public debate, rarely advise, and concentrate on implementing what governments decide, and internally generated, such as the decline in program evaluation, which reduces the available evidence base.
It’s hard to recall a more comprehensive and coherent summation of the current flaws in the public policy process in Australia — whether you agree with every Grattan report recommendation or not. Those complaining about the lack of reform, in politics, or the media, or in think tanks themselves, have no excuse not to read it and consider whether they themselves can start trying to reverse a failure decades in the making.
Let’s look at the core problem.
Australia. Large NewsCorp presence. Polity comprehensively munted.
United Kingdom. Large NewsCorp presence. Polity comprehensively munted.
United States. Large NewsCorp presence. Polity comprehensively munted.
Canada. No NewsCorp presence. Functioning liberal democracy.
New Zealand. No NewsCorp prsesnce. Functioning liberal democracy.
Mindful of the warning in another article in this issue about jumping to conclusions with only a few data points I will refrain from blaming NewsCorp. Hell no, I will. For once KRudd is right on something.
on NZ, I found Laura Tingle’s Quarterly Essay on what is to be learnt rather good. But am fantastically ignorant of NZ, so others with better info may disagree.
One of the most important topics currently on the agenda, Bernard. Daley’s analysis is timely but unfortunately demonstrates how Grattan’s world view is a part of the problem. What claims to be a paper on policy reform quickly and silently narrows down to a paper about just economic reform and rational utlitarianism. Not a single mention of native title. No mention of marriage equality. Nothing on Howard’s $10bn Water Plan – hatched in 4 weeks over Christmas without reference to Treasury and arguably his single biggest reform, overcoming 100 years of fragmented State mismanagement of water under the constitution. It’s reduced to a line item in the appendix described as ‘tradeable water rights’ despite its massive implications for the environment and the continued existence of rural society. The dismal dead hand of Grattan economics reframes what were once called values and principles as irrational beliefs that can become dangerous shibboleths. Anyone watching the LNP resist any meaningful progress on emissions reductions for the last 15 years knows that shibboleths exist. But equally, don’t tell me that slavery was abolished not because of an expanding sense of humanity but because the evidence showed it to be a better use of economic resources. Or that the best argument for the 1948 UN Declaration on Human Rights was the boost for global free trade. If you continually analyse every problem in terms of its rational resource efficency you just keep turning all policy thought into a contest between those whose interests win and those who lose. Which is exactly what you get every day on the front page of The Australian.
Grattan’s analysis of superannuation policy a few years ago showed the crazy ‘efficiency’ spiral this takes us into. It chided the large number of self-funded retirees who died with a healthy super balance as wasteful. It then used that as one of its arguments for abandoning the legislated super increase to 12%, which is mainly a benefit to low income earners who don’t have access to the plush corporate, academic or Commonwealth government schemes. So, having established a retirement income system based on rational self-interest, where the longevity risk of outliving your savings passes from the government to the individual, Grattan complains that people are behaving self-interestedly and recommends pruning the system. You might as well argue that everyone in Australia whose house didn’t burn down last year wasted their fire insurance premiums, and that fire insurance should be cut back.
I’ve worked extensively in the government policy arena and I agree with Daley that it’s become demoralising over the last 30 years. But don’t offload the blame on to ministerial staffers and campaign financing without recognising the role of economic evaluation in all of this. Every time we make the case for a policy reform based primarily on its economic outcomes we hammer another nail into the coffin of improvement because we invite the winner/loser argument. Weird isn’t it, how the Australian community embraced the self-sacrifice of Covid lockdowns so well, based on some disinterested health experts telling us this was what was needed? Without a business case in sight. There is still hope.
Interesting and agree especially on superannuation (in the interests of major banks) presenting a binary of either an increase to 12% SCG super contribution guarantee or a pay rise, but not both (also assuming attractive tax breaks will remain as an increasing budget cost).
Further, to then go on and claim that super is not really needed in future and pension would suffice, based upon a beefed up population pyramid with artificially low dependency ratios using the younger and far more significant raw population (inc. non citizens e.g. students etc.) inflated by the NOM vs. the actual working age population with full employment rights which is smaller and declining i.e. dependency ratios are increasing (due to ageing permanent) population, hence, impacting budget sustainability.
Similar was presented by some business journalists with assistance (manipulation?) of libertarian economic researchers using the inflated raw population (and clearly having a history of antipathy towards ‘immigration’) to argue against superannuation, immigration and via the latte,r environmental/carbon measures; too cute.
The strange thing about valuing everything in terms of economics is that if done honestly ,taking into account quality of life for all living things and replacement value it would be a reasonable measure.
The people paying for the economic advise use it primarily for their own vested interests, a foregone conclusion, I was surprised Daley even mentioned vested interests and its main information outlets, media, wow. A good article and thanks BrianD ,I didn’t know Howard attempted useful reform in anything except gun laws.
Agree Stuart, I can hardly count water rights reform as something successful, however based on BrianD’s summary, perhaps it removed a few road blocks towards it becoming useful. Currently it is just another rort jar for National Party agrarian socialists. Apart from gun laws and the GST, the Howard years were wasted, and many of Costello’s economic ‘reforms’ were beyond the pale and will need to be unpicked over the next 25 years.
Nice response Brian. My pet hate is when a politician gets up in parliament to ask “can the PM guarantee there will be no losers out of …” whatever reform is being suggested. There are always winners and losers, no matter what is being suggested, and doing nothing makes losers out of all of us. The concept of the ‘common wealth’ has been lost, as has community in a general sense, and the social contract is getting very tatty indeed. Environmental loss for commercial gain is often portrayed as a win because the economists only count the money. The quality of debate is generally appalling.
When everything is assessed on the basis of dollars and cents there is no room for amenity, social good, beauty. The ineffable is effed!
the commentariat has lamented the dearth of good public policy reform in Australia, comparing the current generation of politicians with greater figures from the 1980s and 1990s — Hawke and Keating, and John Howard in his first two terms.
All these are lightweights compared to the reforms Gough Whitlam introduced for ALL Australians. Whitlam’s government was the first and last one that was not beholden to the corporate world.
Some of the nation building achievements of Gough Whitlam
1 Ended Conscription,
2. withdrew Australian troops from Vietnam,
3. Implemented Equal Pay for Women,
4. Launched an Inquiry into Education and the Funding of Government and Non-government Schools on a Needs Basis,
5. Established a separate ministry responsible for Aboriginal Affairs,
6. Established the single Department of Defence,
7. Withdrew support for apartheid–South Africa,
8. Granted independence to Papua New Guinea,
9. Abolished Tertiary Education Fees,
10. Established the Tertiary Education Assistance Scheme (TEAS),
11. Increased pensions,
12. Established Medibank,
13. Established controls on Foreign Ownership of Australian resources,
14. Passed the Family Law Act establishing No-Fault Divorce,
15. Passed a series of laws banning Racial and Sexual Discrimination,
16. Extended Maternity Leave and Benefits for Single Mothers,
17. Introduced One-Vote-One-Value to democratize the electoral system,
18. Implemented wide-ranging reforms of the ALP’s organization,
19. Initiated Australia’s first Federal Legislation on Human Rights, the Environment and Heritage,
20. Established the Legal Aid Office,
21. Established the National Film and Television School,
22. Launched construction of National Gallery of Australia,
23. Established the Australian Development Assistance Agency,
24. Reopened the Australian Embassy in Peking after 24 years,
25. Established the Prices Justification Tribunal,
26. Revalued the Australian Dollar,
27. Cut tariffs across the board,
28. Established the Trade Practices Commission,
29. Established the Australian National Parks and Wildlife Service,
30. Established the Law Reform Commission,
31. Established the Australian Film Commission,
32. Established the Australia Council,
33. Established the Australian Heritage Commission,
34. Established the Consumer Affairs Commission,
35. Established the Technical and Further Education Commission,
36. Implemented a national employment and training program,
37. Created Telecom and Australia Post to replace the Postmaster-General’s Department,
38. Devised the Order of Australia Honors System to replace the British Honors system,
39. Abolished appeals to the Privy Council,
40. Changed the National Anthem to ‘Advance Australia Fair’,
41. Instituted Aboriginal Land Rights, and
42. Sewered most of Sydney.
Source the aimn
And all done in three years. No wonder reactionary forces combined to bring him down.
So true Allan.
However with 13. Established controls on Foreign Ownership of Australian Resources – was intended to occur with, and centered around, the establishment of the Petroleum and Minerals Authority as a vital source of wealth generation.
This was the vision of Rex Connor with Sir Lennox Hewitt to head the new Department of Minerals and Energy.
The PMA was intended to act in partnership with companies to develop our natural resources with Australian participation, ownership and control. In other words to value add!
As we know this never eventuated, due to not only the bloody minded obstruction of the LNP controlled Senate, but also by the stonewalling by Head of Treasury, Sir Frederick Wheeler and the Public Service Board’s failure to agree to a $4,000 million loan to get started. Out of frustration Connor turned to Tirath Khemlani and as they say, the rest is history.
The above is referenced from – “Illusions of power – The fate of a reform government by Michael Sexton, Chapter 5 – An equation in hydrocarbon Rex Connor.
I weep for the country we could have been!
How easily we forget.
Compare the collapse of the Opposition yesterday on 3rd stage tax boon for the wealthy and dumping of the abolition of negative gearing – “we don’t want to be divisive” said spokesbot Charmless on RN last night.
Thanks Bernard, I look forward to reading Daley’s report.
However, why spoil your piece with your unsubstantiated comment? Comment without context is meaningless!
“For years now the commentariat has lamented the dearth of good public policy reform in Australia, comparing the current generation of politicians with greater figures from the 1980s & 1990s – Hawke and Keating, and John Howard in his first two terms”.
It was Hawke and Keating who set us up for this neo-liberal/ privatisation rot we find ourselves in today, Howard and others continuing the process of flogging off our crown jewels. How is selling off public assets, good public policy?
Take for example CSL, which Keating privatised in 1994. Where would we be today with our own company employing our best and brightest producing and supplying vaccines, for not only our own consumption, but export? – You own it, you control it!
Here we find the Morrison government forking out $1billion over 12 years to a subsidiary of CSL, $800million of which is to build new production facilities at Tullamarine, all this to a company with a market capitalisation of $1.4billion!
Not to mention the $3.2million already outlayed in securing overseas supplies of vaccines.
It takes to a new level and gives new meaning to the capitalist mantra – Capitalise you gains, Socialise your losses!
I particularly look forward to what Daley says about “good public policy reform”, relative to my above example.
https://theconversation.com/morrison-government-commits-1-billion-over-12-years-for-new-vaccine-manufacturing-supply-150144
Apologies!
Market capitalisation of CSL should read $140billion.
And again – $3.2billion not million!!! How embarrassing !
Think there maybe some wishful thinking re. keeping CSL in government ownership or QUANGO. By becoming a public company it has access to capital, global markets, innovation and economies of scale, hence, more flexible.
Further, if CSL remained in government hands there would be no plausible reason to think that it would be a solution for a native Covid vaccine in Australia; a choice of vaccine(s) is needed.
If you’re saying that government for the last 4o years has focused on cutting funding to important innovation and health in general if it is publicly owned I agree. To suggest that privatisation is more efficient is the sort of thing the Gratten institute was built on.
Thanks Bernard, I will read the report with interest. Does it talk in any detail about what is to be done – how to bell the cat? It’s all very well writing jeremiads, nostalgic for the good old days of social democracy. It’s much harder to imagine which constellation(s) of actors could bring about some of the longer-term, inter-class thinking and doing (because a great policy needs greater implementation).
I also don’t know about the report, but here’s something (with a hat tip to Jackson Harding below):
https://murdochfreeworld.com.au