Economic reforms, a legacy of the Howard era

Dubai: Named after Winston Churchill and being the youngest of four boys, John Winston Howard was Australia’s second longest serving Prime Minister. The economic reformer was one of the main reasons why Australia suffered relatively few consequences from the global financial crisis.

In an interview with Bloomberg in 2012, Howard said: “Australia wasn’t as badly affected as many other countries, and one reason for this is that my government left with no net debt, a budget surplus, and a lot of money in a future fund to meet pension liabilities of military personnel and public servants. We had a very strong public balance sheet, and that was very different from many other Western countries. The other great advantage Australia had, of course, was its resources trade with Asia.”

To confirm his words, the Howard era was characterised by a long period of economic prosperity and a succession of economic reforms such as the goods and services tax (GST). His government achieved the lowest unemployment rate in 33 years, produced 10 budget surpluses, and paid off $96 billion (Dh352.6 billion) of Labor Government debt.

Due to the careful management of public finances and a strengthened banking system, Australia was rated as one of the most resilient economies in the OECD (Organisation for Economic Cooperation and Development). Howard also delayed retirement to 65, and in 2012, criticised French President Francois Hollande’s decision not to raise the retirement age from 60 to 62 as Europe’s “economic backwardness”.

Under Howard’s rule, China became Australia’s largest trade partner and export destination, which aided Australia’s economic growth in that timeframe.

Restoring optimism

In Howard’s own words, his government aimed to “restore to Australian families a sense of confidence and optimism about their country’s future; to bring within the reach of more families the prospect of good jobs, home ownership and rising living standards; and, to open up new avenues of choice for families, especially those on modest incomes”.

He continues to honour Australia even after leaving office. In his first year out of office, Howard travelled widely overseas. In March 2008, he received the Irving Kristol Award for conservative leadership from the American Enterprise Institute in Washington, DC. In January 2012, Queen Elizabeth II appointed Howard to the Order of Merit.

In a recent poll by Galaxy, Howard was voted by 35 per cent of just over 1,000 people as Australia’s best leader of a generation.

During a graduation ceremony in Macquarie University in 2012, Howard received an honorary doctorate. At the age of 72, he was immensely hopeful. “It is impossible to be other than optimist about the future of our country, Australia is blessed in so many ways,” he said.

— The writer is an intern at Gulf News.