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In a new diversity podcast series, economist Stephen Koukoulas has outlined the importance of economic, as well as cultural, diversity to reduce risk.
The heavy reliance on one country for strong economic performance could leave Australia vulnerable during a downturn, as evidenced during the coronavirus pandemic, Market Economics managing director and economist Stephen Koukoulas has warned.
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In an episode of a podcast series launched by aggregator FAST that focuses on diversity in the workplace, “Adjust the Contrast”, Mr Koukoulas said the economic downturn that Australia is experiencing due to the coronavirus pandemic lockdown demonstrates the country’s heavy concentration of international trade flows with China.
Speaking to the host, Australian lawyer and television presenter Adam Liaw, Mr Koukoulas said: “More than a third of our international trade [is] with China. It’s a heavy proportion.”
“Then, when China has an economic problem, [like we’re witnessing] right now, we have an economic problem because of the lack of diversity in our export base.”
In terms of the industries that has fuelled economic growth in Australia, Mr Koukoulas said Australia has relied on mining and tourism, while diversifying slightly over the last decade in education, with the growth of international students a strong source of income for the country.
Mr Koukoulas also observed that Australia has not made sufficient progress with moving into the 21st century with technological change.
“We’ve got to embrace it to be part of the modern global economy, and if the Chinese economy is growing very strongly, we just ride on the coattails,” he said.
“We almost can’t make a mistake internally in our own policy settings.”
As well as looking at economic diversity, the new series also looks at the need for gender and cultural diversity in the workplace.
Commenting on the launch of the podcast series, FAST CEO Brendan Wright said: “In the face of growing business challenges, the case for diversity has never been stronger as many business leaders, owners and professionals are adapting their business models or approaches.”
“Creating a culture that enables diverse thinking, knowledge and capability across the team can really help differentiate businesses so they stand out, particularly in a service-led industry.”
[Related: Should surplus trump domestic growth?]
