Truism of the day

Posted By Davide Berretta Thursday, May 11, 2006 - 2:51 PM Share

In the debate over how to gear up industrialized societies for globalized markets, Europeans wince at American levels of inequality, while Americans disapprovingly shake their heads at the overbearance of the state in generous Europe, the former being cruel and unjust, the latter being inefficient and doomed to fail. But as the FT reports (subscription required), there is an country that is quietly and unassumingly proving that it's not either/or:

It is a developed country that enjoyed faster economic growth than the US over the past decade. Yet it also offers universal healthcare and other social welfare benefits that the US does not. Unemployment is similar to America’s, but without the glaring income disparities that characterize US growth. It is a country that seems to have achieved a sweet spot, combining the vigor of American capitalism with the humanity of European welfare, yet suffering the drawbacks of neither. And it manages this while keeping a consistent budget surplus. That country, rolling into its 16th year of uninterrupted growth, is Australia.

Sure enough, part of Australia’s performance can be attributed to the booming of the region and the wealth that a rising China has been funneling into the Pacific markets. But results like these:

The federal government has run a surplus in nine of the past 10 years. Last month it paid off all outstanding federal debt – the federal government is debt-free for the first time since the 1970s.

do not come alone. Just like in Liberia, good governance is key, along with a bipartisan willingness to reform and economic policies tailored specifically to the country. The future looks good too.

EXPLORE:EAST ASIA, SOUTH ASIA, ECONOMICS

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