Self-sufficiency

Terrigal this morning

I find one of the less-attractive political aspects of the COVID-19 pandemic is the call it has generated for Australia to become more economically independent.  It gives currency to some commentators, lobby groups and politicians who see the extent of Australia's interdependence on the global economy as a national threat.  They want Australia to become more independent with respect to medical supplies, strategic materials, fuel and defence equipment.  It sounds like a good idea, but I think the matter deserves deeper analysis.

Terrigal this morning

Firstly, it has to be a matter of degree.  Australia cannot become completely self-sufficient in everything it needs to meet every major challenge.  For instance, I think you could argue, that despite the angst about shortages of Personal Protective Equipment (PPE), ventilators, hand sanitiser, etc., Australia did manage to source sufficient supplies to deal with the pandemic threat.  Future pandemics might take different forms and require different medical supplies.  We cannot cater for every possibility.  Likewise with fuel and defence supplies.  There has to be a balanced judgment about how much independence we need, based on the probability of the threats and consequent requirements.

Looking towards Wamberal this morning

Secondly, economic and military independence, comes at a cost.  It requires government intervention in the market, either through mandates, taxation and/or subsidy.  Inevitably, this affects the allocation of scarce resources, meaning that people end up paying higher prices and/or more in taxation.

Thirdly, I believe globalisation and economic interdependence is a good thing.  It provides goods and services at lower prices both to Australians and the people of other countries, raising incomes and living standards across the world.  It creates a better understanding of other cultures making it less likely we will see them as "other", and a threat.  And, the very fact that we are interdependent means that we are less likely to resort to hostilities to resolve differences.  The challenges that face everybody in the world -- climate change, pandemics, etc. -- will be far better met through participation in global forums and bodies, than by each country retreating into isolation and economic independence.

Terrigal Haven this morning

There should be a review of how the Australian people can be better prepared for future pandemics and other threats, but it needs to be a balanced assessment.

A desire for self-sufficiency may also be a problem in dealing with running injuries, especially for me.  Rather than consulting with physiotherapists and doctors (and thereby raising their incomes and living standards), I believe, given time, that my body will either repair itself or adapt to some new structural deficiency.  That's certainly my current approach, encouraged by my wish to avoid creating medical records detailing yet another pre-existing condition of interest to a future travel insurer.