Story by Amy Wilson-Chapman
Australia is not immune from the eurozone crisis, but Trinidad and Tobago says the Commonwealth should “link arms” and work together.
As the world’s eyes are glued firmly on what happens at tomorrow’s (Wednesday) second European leaders’ summit the ongoing eurozone turmoil was not far from the first day of the Commonwealth Business Forum in Perth.
During their speeches, Foreign Affairs Minister Kevin Rudd and Prime Minister Julia Gillard both highlighted the possibility of the eurozone crisis spreading to Australia and across the world.
However, speaking to delegates from across the globe, Mr Rudd also took the opportunity to speak of how well Australia pulled through the last global financial crisis and its glowing future.
“In a sea of global economic difficulties, over the last three years Australia’s economy performed well,” he told the delegates.
“The resilience is based on three factors: strong fundamentals, an agile fiscal response to the 2008-09 crisis, and deep integration with the economies of Asia,” he said.
Showing slides highlighting Australia’s “diversified” economy, which is strengthened by its services and financial sector, the former-Prime Minister said the country was well positioned to move into Asia in more than just the resources sector.
He pointed to the “strong and productive agriculture sector”, the “robust financial services industry” and “strong service sector” for proof that Australia was more than just a quarry.
But, despite all that Australia’s rosy economic report card – with low debt and unemployment levels - could not save it from the ongoing eurozone debt crisis.
“The European sovereign debt crisis is at a critical stage and contagion could have major global repercussions, from which few economies would be immune,” Mr Rudd said.
“What Europe does now affects not just its 27 member states. It affects all 193 member states of the global economy.”
That was a sentiment shared by Prime Minister Julia Gillard, who opened the forum this morning (Tuesday), and said the potential for the Europe-based problems to affect the entire world needed to be recognised
“It's time for Europe to respond,” she said.
“European leaders will need to stabilise the situation by resolving sovereign debt issues and ensure there are adequate safeguards to avoid contagion. Europe also needs to ensure that its private banks are adequately capitalised to ensure stability and growth,” the Prime Minister said.
One leader, who offered some hand-holding solutions, was Trinidad and Tobago Prime Minister Kamla Persad-Bissessar who suggested the Commonwealth needed to “link arms” and go forward together.
Ms Persad-Bissessar said the Commonwealth needed to build partnerships between nations – developing and developed, small and big – in the future.
“If we are to move forward together as a Commonwealth family then no sibling must be left behind or left to feed from scraps that fall from another table. We must link arms and hold fast in our resolve to treat with and over come the global challenges facing us as a Commonwealth family.
“Remember we can either sink alone, or swim together,” she said.
Together, she said, the Commonwealth was a “force to be reckoned with” and it was time it had a larger voice on the international stage.
Despite being just a small country, she highlighted – to applause – the big role Trinidad and Tobago has in the liquefied natural gas industry, as well as having more than 100 years of experience in the oil indsutry.
That, she said, was proof that all Commonwealth countries, no matter what size or stage of development, “learn from each other”.
An optimistic start to the two-day forum the Trindad and Tobago Prime Minister said it was crucial that partnerships – between countries and the private/public sector – become a habit of mind for Commonwealth leaders and business leaders.
To encourage more partnerships between the private and public sector, she said it was important that governments were enabling, responsive and less bureaucratic.
During their speeches, Foreign Affairs Minister Kevin Rudd and Prime Minister Julia Gillard both highlighted the possibility of the eurozone crisis spreading to Australia and across the world.
However, speaking to delegates from across the globe, Mr Rudd also took the opportunity to speak of how well Australia pulled through the last global financial crisis and its glowing future.
“In a sea of global economic difficulties, over the last three years Australia’s economy performed well,” he told the delegates.
“The resilience is based on three factors: strong fundamentals, an agile fiscal response to the 2008-09 crisis, and deep integration with the economies of Asia,” he said.
Showing slides highlighting Australia’s “diversified” economy, which is strengthened by its services and financial sector, the former-Prime Minister said the country was well positioned to move into Asia in more than just the resources sector.
He pointed to the “strong and productive agriculture sector”, the “robust financial services industry” and “strong service sector” for proof that Australia was more than just a quarry.
But, despite all that Australia’s rosy economic report card – with low debt and unemployment levels - could not save it from the ongoing eurozone debt crisis.
“The European sovereign debt crisis is at a critical stage and contagion could have major global repercussions, from which few economies would be immune,” Mr Rudd said.
“What Europe does now affects not just its 27 member states. It affects all 193 member states of the global economy.”
That was a sentiment shared by Prime Minister Julia Gillard, who opened the forum this morning (Tuesday), and said the potential for the Europe-based problems to affect the entire world needed to be recognised
“It's time for Europe to respond,” she said.
“European leaders will need to stabilise the situation by resolving sovereign debt issues and ensure there are adequate safeguards to avoid contagion. Europe also needs to ensure that its private banks are adequately capitalised to ensure stability and growth,” the Prime Minister said.
One leader, who offered some hand-holding solutions, was Trinidad and Tobago Prime Minister Kamla Persad-Bissessar who suggested the Commonwealth needed to “link arms” and go forward together.
Ms Persad-Bissessar said the Commonwealth needed to build partnerships between nations – developing and developed, small and big – in the future.
“If we are to move forward together as a Commonwealth family then no sibling must be left behind or left to feed from scraps that fall from another table. We must link arms and hold fast in our resolve to treat with and over come the global challenges facing us as a Commonwealth family.
“Remember we can either sink alone, or swim together,” she said.
Together, she said, the Commonwealth was a “force to be reckoned with” and it was time it had a larger voice on the international stage.
Despite being just a small country, she highlighted – to applause – the big role Trinidad and Tobago has in the liquefied natural gas industry, as well as having more than 100 years of experience in the oil indsutry.
That, she said, was proof that all Commonwealth countries, no matter what size or stage of development, “learn from each other”.
An optimistic start to the two-day forum the Trindad and Tobago Prime Minister said it was crucial that partnerships – between countries and the private/public sector – become a habit of mind for Commonwealth leaders and business leaders.
To encourage more partnerships between the private and public sector, she said it was important that governments were enabling, responsive and less bureaucratic.
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