Ep. 130: Economic security, made in Australia

Recent events in economic security (or, geoeconomics) have been dizzying, but exciting for Darren given this is his primary academic field. In Australia, the new budget delivered by the government plans over $20b of industry policy funding for a “Future Made in Australia”. Meanwhile in the US, the Biden Administration has sharply increased tariffs on Chinese goods focused on green energy. The US wants to cultivate domestic manufacturing, in part because it sees PRC dominance of green technology as a national security risk.

This means there is a lot to discuss! In this episode Darren talks with Hayley Channer. who is the Director of the Economic Security Program with the United States Studies Centre at the University of Sydney. Hayley has a diverse background having worked as an Australian Government official, Ministerial adviser, think tank analyst, and represented global non-profit organisations. Prior to her current role, Hayley was a Senior Policy Fellow with the Perth USAsia Centre and, amongst other accolades, was awarded a Fulbright Scholarship in 2022.

This lengthy discussion covers the goals of economic security policy and the inherent trade-offs in this domain, particularly in the context of both Australia’s and the US’ emerging industrial policy efforts, as well as the problem of responding to economic coercion.

Australia in the World is written, hosted, and produced by Darren Lim, with research and editing this episode by Walter Colnaghi and theme music composed by Rory Stenning.

Relevant links

Hayley Channer (bio): https://www.ussc.edu.au/hayley-channer

Anthony Albanese, “A future made in Australia”, Speech, 11 April 2024: https://www.pm.gov.au/media/future-made-australia

Jim Chalmers, “Economic security and the Australian opportunity in a world of churn and change”, Speech at Lowy Institute, 1 May 2024: https://ministers.treasury.gov.au/ministers/jim-chalmers-2022/speeches/address-lowy-institute-sydney

Hayley Channer and Georgia Edmonstone, “What does ‘economic security’ mean to Australia in 2024?”, US Studies Centre Brief, 30 January 2024: https://www.ussc.edu.au/what-does-economic-security-mean-to-australia-in-2024

Lim, D. (2019). Economic statecraft and the revenge of the state. East Asia Forum Quarterly, 11(4), 31–32: https://eastasiaforum.org/2019/12/04/economic-statecraft-and-the-revenge-of-the-state/

Ferguson, Victor A., Darren J. Lim, and Benjamin Herscovitch. “Between Market and State: The Evolution of Australia’s Economic Statecraft.” The Pacific Review 36, no. 5 (September 3, 2023): 1148–80. https://doi.org/10.1080/09512748.2023.2200026

Victor A. Ferguson, Scott Waldron and Darren J. Lim (2022), “Market Adjustments to Import Sanctions: Lessons from Chinese Restrictions on Australian Trade, 2020-21”, Review of International Political Economy”, http://doi.org/10.1080/09692290.2022.2090019

Darren J. Lim, Benjamin Herscovitch, and Victor A. Ferguson, “Australia’s Reassessment of Economic Interdependence with China”, in Strategic Asia (2023): https://www.nbr.org/publication/australias-reassessment-of-economic-interdependence-with-china/

Leading (podcast), “Speaking Truth to Trump | Former Head of Trump’s Communications, Anthony Scaramucci”, 21 February 2024: https://www.youtube.com/watch?v=juvfEZsZqUY&list=PL_6zDbB-zRef_M7eXuSLUlGnt7qk66hJq&index=9

Abhijit V. Banerjee, Esther Duflo, Good economics for hard times: Better answers to our biggest problems (2019): https://www.goodreads.com/book/show/51014619-good-economics-for-hard-times (Goodreads page)

Dani Rodrik, “Don’t Fret About Green Subsidies”, Project Syndicate, 10 May 2024: https://www.project-syndicate.org/commentary/green-subsidies-justified-on-economic-environmental-and-moral-grounds-by-dani-rodrik-2024-05