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Yarra River and city center seen from Birrarung Marr Park. In the EIU’s 2012 global liveability ranking released in August, Melbourne retains its position as the most liveable location among 140 cities surveyed across the world Image Credit: Corbis

Australians have known it for ages, with Paul ‘Crocodile Dundee’ Hogan declaring in a series of tourism ads as far back as 1984 that Australia was the best part of the world. Now, the Economist Intelligence Unit (EIU) has confirmed it.

In the EIU’s 2012 global liveability ranking released in August, Melbourne retains its position as the most liveable location among 140 cities surveyed across the world. Four other Australian cities — Adelaide (fifth), Sydney (seventh), Perth (ninth) and Brisbane (20th) — also feature in the ranking, which is based on stability, health care, culture and environment, education, and infrastructure.

Apart from the obvious draw of the sun, the sand and the laid-back lifestyle, the country must be doing something right to have five state capitals — which are broadly representative — in the top 20. “Cities that do well tend to be mid-sized cities in developed countries with low population densities,” Jon Copestake, author of the report, tells GN Focus. “This is because they develop good infrastructure, but do not have the problems that high populations can cause, such as higher crime rates and congestion. They also have plenty of things to see and do.”

Focus on infrastructure

With a population of 22 million and a density of 2.88 people per square kilometre, Australia has been able to focus on building world-class infrastructure.

“One of the most impressive infrastructure developments in recent years was the 70km-long Mandurah railway line in Western Australia, which links the Perth central business district with the rapidly growing suburbs to the south,” says Peter Mares, Cities Fellow at Grattan Institute, a public policy think tank based in Melbourne.

The development gained momentum in 2008, with Infrastructure Australia, a statutory body, conducting a national audit to develop a priority list. The federal government then earmarked A$36 billion (Dh135.16 billion) for transportation projects from 2008-14 under the Nation Building Programme. Major projects, including the Kempsey Bypass in New South Wales and Noarlunga to Seaford rail extension in South Australia, are now under construction.

This emphasis has pushed Adelaide up to the fifth position in the ranking from ninth last year and also given Melbourne, the best place to live in the world, an infrastructure rating of 100, which is the ideal score.

But Mares isn’t convinced. “Many Melbourne residents would be surprised to learn that their city is rated the most liveable in the world, particularly those who spend a long time stuck in traffic or squeezed into crowded public transport on their daily trips to and from work,” he says.

Fortunately, preconstruction planning is under way for the Melbourne Metro 1 project that explores the possibility of an eight-kilometre rail tunnel, which is expected to ease congestion.

However, the city falls short of the ideal score in two categories: stability, and culture and environment. “Melbourne has low crime rates when put in an international context, but petty crime is present in a large proportion of cities, so a slight risk needs to be factored in,” says Copestake, explaining the city’s tolerable rating for the prevalence of petty crime, a subcategory under stability. With a murder rate of 2.7 per 100,000 of the population for 2010-11, Melbourne’s figure compares favourably with the New York City average of 6.4 per 100,000 for 2010.

As for culture, despite its lively sports and arts scene, both Sydney and Brisbane outscore Melbourne.

Good show in education

All the rated cities fare well in health care and education, except for Brisbane. The Queensland capital falls behind with a score of 92 — which isn’t too bad — and a tolerable rating for availability of private education. Andrew Norton, Higher Education Programme Director, Grattan Institute, says, “I would not regard Brisbane as lacking in the higher education area, with several good universities and Australia’s best private university, Bond University, not far away on the Gold Coast.”

Apurv Gupta, an Indian expatriate who did his Master of Business (Advanced) at the University of Queensland, also vouches for the city’s educational credentials. “Accessibility and the method of teaching encourage students to be proactive and engage with businesses and the community rather than focus on theoretical aspects,” he says.

Gemma Oldfield, a journalism student at the Curtin University in Perth, shares a similar sentiment. “I do believe that we are blessed in terms of health care and educational facilities. The standard of higher education is great because it gives every child, no matter their background, a chance to get into university or a job.”

Health care may not be a major concern for Australians, as the government-run Medicare system provides free or subsidised treatment to citizens. However, the indigenous population still lack proper access to primary health care, according to Oxfam Australia. >

“It is true that in comparison to many other countries Australia has high-quality health and education systems,” says Mares. “But we also have problems of long hospital waiting lists for non-urgent surgery; there is also an ongoing debate about school performance not being good enough. So, despite the ranking, there is a lot of room for improvement.”

Elephant in the room

That brings us to the elephant in the room — Australia has been in the news for racial violence in recent years. Does the problem run deep and wide in the country or has it been a case of isolated incidences hogging the limelight?

“As with any country, there are people who are culturally intolerant,” says Gupta. “But I have not faced it myself, neither has anyone I know faced any issues of racial discrimination or prejudice. Then again, I have made a conscious effort to learn about Australia, its customs and appreciate the little differences that exist. That is probably why I love living here and have adjusted so well.”

Jasman Kaesler, a care worker for the aged, believes her city, Adelaide, is culturally tolerant. “I am fortunate enough to work with a huge variety of new immigrants from Africa and Asia, and I haven’t noticed any ethnic tension at all,” says Kaesler.

Does that mean racial violence is not big enough a factor to influence liveability? Copestake advocates casting a critical eye.

“Racial violence is a serious issue, which would form part of the violent crime subcategory,” he says. “But this did not appear significant in Australian cities, especially Melbourne and Sydney, which are both fairly multicultural cities.

“Context is important here, and Australia does not have a reputation for widespread racially motivated violence, as some 
cities might.”

All in all, Australia is extremely liveable, says Shane Oliver, Chief Economist and Head of Investment Strategy, AMP Capital, an investment house in Sydney.

“Though the economy has issues, it is pretty stable with low unemployment, just above 5 per cent, and low inflation — around 
2 per cent. >

“The public infrastructure is of good quality and highly efficient, community services and facilities are of a high standard, the cultural backdrop is multinational and reasonably tolerant, and political and social differences are relatively minor. Support for new immigrants is generally high. Inequality — while rising — is low compared to other countries. Most Australians seem to be focused on sport, family, jobs, and the like, rather than on social, religious or cultural differences,” says Oliver.

So is it smooth sailing for the country? “The mining boom has put pressure on the non-mining parts of the economy, particularly via the high Australian dollar, raising questions as to what happens when it ends,” Oliver says. “Job insecurity has grown in recent years, and household debt levels are relatively high. Furthermore, low-income households have been struggling, as the cost of necessities such as electricity and insurance have gone up.”

It seems Australia has a few problems to sort out. The liveability rating, originally developed to calculate hardship allowances for expatriate relocation packages, indicates that global executives with high salaries can lead a pleasant life in the country. But the true test for Australia lies in it being able to provide better living conditions to all its people, including the poor and the disadvantaged.