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National Productivity: A Case of Missing Incentives
The policy settings for productivity growth in Australia are out of
whack. Fred Hilmer, one of the architects of the reforms that helped set
up Australia's outstanding productivity boom that began in the
mid-1990s, says current microeconomic policy has a critical missing
piece – competition. To reverse the nation's recent productivity slump,
more incentives for competition are needed, along with further
reductions in company and marginal taxes, insists Hilmer, president and
vice-chancellor of the University of New South Wales. But, don't hold
your breath. Rapid economic reform is highly unlikely due to budgetary
constraints and political risk in the post-election environment, he
tells Knowledge@Australian School of Business.
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The policy settings for productivity growth in Australia are out of
whack. Fred Hilmer, one of the architects of the reforms that helped set
up Australia's outstanding productivity boom that began in the
mid-1990s, says current microeconomic policy has a critical missing
piece – competition. To reverse the nation's recent productivity slump,
more incentives for competition are needed, along with further
reductions in company and marginal taxes, insists Hilmer, president and
vice-chancellor of the University of New South Wales. But, don't hold
your breath. Rapid economic reform is highly unlikely due to budgetary
constraints and political risk in the post-election environment, he
tells Knowledge@Australian School of Business.
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