The boom and all-too-predictable bust in the resource sector is the most consequential manifestation of this possibility.
There is now a growing – if somewhat belated – consensus that the undoubted potential benefits of being a reliable and convenient resource exporter were not captured and very unevenly realised.
Because the vast majority of “Australia’s” resource sector is actually foreign-owned, any government would have had difficulty influencing its behaviour or reining in the manic investment splurge that has contributed to the collapse in resource prices.
Although much of the profits of the boom disappeared overseas, state governments in particular did enjoy a major boost to revenues.
However, little thought was given to the long-term strategic use of the economic windfall the boom created.
Equally significantly, Chinese investment in real estate is also beginning to alarm policymakers and the general electorate alike.
China’s new rich are increasingly looking for a safe place to stash their cash in the event that the Chinese economy or – even more worryingly – the Chinese political system implodes.
Even more problematically, much of this new wealth has questionable origins. It is no coincidence that capital flight from China is gathering pace at precisely the same time that Chinese authorities are involved in a seemingly genuine attempt to crack down on corruption.
One direct consequence of China’s domestic policy initiatives has been to encourage those who fear being exposed as corrupt to shift their ill-gotten gains offshore.
At a time when voters everywhere are increasingly cynical about politics, the dangers of not acting in the endlessly invoked “national interest” are becoming increasingly clear.
I can't see an easy fix to this problem for any government. The Great Australia Sell-Off has been going on for too long while our governments have been asleep at the wheel.
