Back to the future - manage prosperity

Comments on Glenn Stevens “Prosperity isn’t easy”, 6/11/2009, http://www.theaustralian.com.au/news/opinion/prosperity-isnt-easy/story-e6frg6zo-1225794833992

Glenn Stevens is the governor of the Reserve Bank of Australia. He starts with:
“THE issue before us is not how to get on to the road to recovery; we are already on it. The question, rather, is how to make sure that the road to recovery will connect to the road to prosperity.
Unless we are prepared to accept it has all been an incredible coincidence, we have to ask why things turned out that way.
It wasn't just that China returned quickly to growth. Equally important were other factors, including the relative strength of the financial sector, the economy's flexibility and the willingness and scope to change macro-economic policy.
Those things were not accidents. Financial resilience resulted from sensible management by financial institutions and careful regulation on the part of the prudential supervisor.”

This is by far the most objective and balanced economic analysis that I have seen in Australian "officials" and economic advisors.

I agree totally with Stevens' analysis.

The only thing that I would like to add is that beyond the normal macroeconomic policies needed to manage the next boom in our prosperity, Australia needs to pay attention to how to channel the proceeds from the prosperity to further enhance productivity and economic returns in other sectors beyond mining as well.

Only in that way, the boom in prosperity associated with mining will be long lasting and sustainable into the future.

By the way, what Stevens' first paragraph says just makes a mockery of the organisers of the meeting in Melbourne called "The road to recovery" where Stevens delivered his speech.

It is silly to think in terms of the road to recovery now in Australia. It simply ignores the reality.

Guess what? The Federal Treasurer also gave a speech at that meeting!

What a contrast!

Another high profile speaker is the chairman of the Productivity Commission. I might read his speech and might provide some comments on that too.