Why Australia Prospered

Why Australia Prospered. The Shifting Sources of Economic Growth by Ian McLean is the first economic history of Australia in 40 years. It covers 200 years of Australian history and is very relevant to current debates such as the role of the resources sector versus manufacturing. Generallyit concludes that Australia’s natural resource abundance has been a blessing rather than a curse. However he emphasises the shifting sources of growth, wth manufacturing being particularly important in the 1950s and 60s until Australia lost its competitive advantage to Asia. He also emphasises the interrelationships between differnt factors, particularly the interplay of institutions with the resource endowment. The early establishment of democratic government and the breaking-up of large pastoral leases in the nineteenth century were particulary important. Highly recommended.