Environmental Engineering Reference
In-Depth Information
present approach is running down the capital. We must improve our scien-
tific knowledge so we know sustainable use levels. In the case of Australia's
major inland river system, the Murray-Darling, present water usage is
unsustainable. Governments must agree on firm targets for environmental
flows based on scientific understanding of the needs of the river system. We
may move to a system of tradable water rights, as this is an economically effi-
cient way to use a fixed amount of water. That approach is morally justifiable
only if we know that the overall extraction rate is ecologically sustainable;
otherwise we are producing short-term economic benefits at the expense of
future generations.
Economic issues
Two hundred years ago, the economic trend was acquiring global empires
from which to obtain cheap resources and open up markets. A hundred
years ago, the fashion was protection within each nation. Fifty years ago, it
was public funding of infrastructure projects by government. Today's fad is a
return to 18th century economic empires, once again allowing free rein to
global movement of capital.
In local terms, Australia is already what Barry Jones called a 'post-indus-
trial economy'. The traditional sectors of agriculture, mining and manufac-
turing now account for less than a quarter of the economy and fewer than 20
per cent of jobs. Today most of us work in the 'services' sector. It is increas-
ingly hard for Australia to compete in global markets as politicians reduce
protection for local produce. Our relatively high wages and salaries make
our production costs high in labour-intensive fields like textiles, clothing
and footwear. Our low level of investment in research and innovation makes
us uncompetitive in value-added manufactures. With few import restric-
tions, we consume overseas-produced goods at an ever-increasing rate, so we
have to keep expanding the production of low-value commodities from our
rural land. The only economic bright spots are our attractiveness as a tourist
destination and the demand for coastal housing, driven by an increasing
population, an ageing society and an increasing leisure preference. The pro-
posed 'free' trade agreement with the USA has serious costs; it appears likely
to accelerate the decline of Australian value-added manufactures and serv-
ices, as well as undermining our cultural institutions.
A sustainable economic future must be based on reward structures that
direct our limited resources into areas in which we have some prospect of
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