Fed: Globalisation is good, Int chamber of commerce president
By Mike Hedge
MELBOURNE, Feb 13 AAP - Australia risked becoming an island of "good enough" in a worldof "better" if it did not commit fully to economic globalisation, according to InternationalChamber of Commerce president Richard McCormick.
Despite the strength of the Australian economy, Mr McCormick said the country neededto catch up to the leading exporting nations if it was to prosper.
In an address today to the Australian Institute of Company Directors, Mr McCormick- who is also on the board of United Airlines, Wells Fargo and United Technologies Corp- identified a "new globalisation" that didn't rely on slave labour or irresponsible useof resources.
"This is a new globalisation of removing trade barriers, reducing regulation and encouragingdirect foreign investment," Mr McCormick said.
He said that, as opposed to "old globalisation", the new brand recognised that suchbasics as food, shelter and clothing could no longer be seen as luxuries in developingcountries.
"We now recognise that poverty, hunger and despair are the breeding ground for terrorism,"
he said.
Mr McCormick also challenged the perception that globalisation had a negative effecton developing countries, a notion he placed alongside the "great myths" that the worldwas ruled by a few big companies.
"The truth is the oil industry is less concentrated today than 50 years ago," he said.
"General Motors, Ford and Toyota control less of the world's car market today thanGeneral Motors alone controlled in 1950.
"From 1988 to 1998 the top five companies in computers, software and long-distancetelephony saw their market share actually decline by 25 per cent."
Among the specifics Australia had to concentrate on in order to maintain its placein the world economy, Mr McCormick said, were the continued liberalisation of bankingand tax laws, the reduction of red tape for foreign investors and greater investment innew technologies.
AAP mh/gfr/jmd/sb
KEYWORD: GLOBALISATION
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