New beginnings: Rethinking business and trade in an era of strategic clarity and rolling disruption

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This special report considers the relationship between our business and trade positioning in the context of the impacts of Covid, natural disasters and the actions of coercive trading partners.

Global economic integration has enabled the spread of ideas, products, people and investment at never before seen speed. International free trade has been a goal of policy-makers and academics for generations, allowing and fostering innovation and growth. We saw the mechanism shudder in 2008 when the movement of money faltered; the disruption brought about by COVID-19 has seen a much more multi-dimensional failure of the systems by which we share and move. The unstoppable conveyor belt of our global supply chain has ground to a halt. This time, what will we learn?

ASPI’s latest research identifies factors that have led to the erosion of Australia’s policy and planning capacity, while detailing the strengths of our national responses to recent crises. The authors recommend an overhaul of our current business and trade policy settings, with a view to building an ‘agenda that invests in what we’re good at and what we need, values what we have and builds the future we want.’

The authors examine the vulnerabilities in Australia’s national security, resilience and sovereignty in relation to supply chains and the intersection of the corporate sector and government. To protect Australia’s business interests and national sovereignty, the report highlights recent paradigm shifts in geopolitics, whereby economic and trade priorities are increasingly relevant to the national security discussion.

Chinese-controlled Port of Darwin ‘Australia’s most strategic northern port’ | The Australian

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Australian Strategic Policy Institute’s Dr John Coyne says the Port of Darwin is Australia’s “most strategic northern port” and ownership of the Port is vitally important to Australia’s defence future. Dr Coyne, who is head of the Northern Australia Strategic Policy Centre at ASPI, told Sky News that Australia hasn’t had a unified strategy around the port “since Federation”. “Everyone agrees – Northern Territory, Northern Australia is strategically important to the country,” Dr Coyne said. “We just can’t articulate that into practice.” Dr Coyne told Sky News host Peta Credlin if we left the Port of Darwin as is, “we leave investment in our northern port in the hands of a Chinese owned company”. “They will make the decisions.”

Dr Teagan Westendorf Appears on ABC radio; Mornings

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Dr Teagan Westendorf Appears on ABC radio; Mornings with Adam Steer.

The relevant segment is between 29:40 and 36:30, listen here.

‘Lead me to the harbour!’: Plotting Darwin Harbour’s future course

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In this report, authors Dr John Coyne and Dr Teagan Westendorf seek to move Australia’s public policy discourse on the future of Darwin Port beyond a binary choice. In doing so, they consider the Harbour’s history, the nature of its strategic importance to Australia and our allies, and opportunities for its future development.

The report explores four potential options for the future development of the Port and Harbour. Rather than providing a specific policy treatment on the current leasing arrangements, this work focuses on promoting policy discourse on a unifying vision for the future of Darwin Harbour.

A key insight from this analysis is that this moment is an opportunity for the federal government to work with the Northern Territory Government to harness the existing plans for the Port’s future, including those proposed by Defence, the US and the NT Government, and embed those plans within the broader strategic vision for Australia moving forward. While each of these worthy plans undoubtedly has merit, the question is whether, by carefully harnessing them together, they could produce a greater economic and national security whole.

Collaborative nation building: Port of Townsville case study

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The theme for this report is nation building, not the kinds of one-off investment ‘announceables’ we’re familiar with that connect cities with roads. Instead, this is the kind of nation building that’s big picture and courageous, and reminiscent of the past—the kinds of initiatives that build the infrastructure from which economic, social and national security opportunities grow.

The Port of Townsville has embarked on a forward-leaning journey that started a decade ago with a vision, planning and initial environmental approvals, and that’s now being pursued through collaborative engagement of a type not common in the ports sector. While the sector does take a long-term view on management and expansion, it’s still very unusual for individual ports to actively engage with trading partners in a strategic way and beyond the boundaries of specific projects.

This special report looks at what’s happening today in the Townsville region, using the Port of Townsville as an example of what’s possible, and looks at what others at the regional, state and national levels can pursue beyond one-off investments to drive nation building that fosters economic, social and environmental prosperity.

A collaborative approach to nation building isn’t new. It’s more that we haven’t engaged in this way for several decades now and as a nation, and we’re out of practice.

Nation building in Australia must move beyond investment in major highways between large cities and investment in inner urban infrastructure. It must be underpinned by a framework that drives economic, social and environmental prosperity and that’s pursued collaboratively with persistence and courage. It must also move beyond a focus on short-term energetic infrastructure construction and economic ‘sugar hits’.

The Port of Townsville provides a case example of how that’s being done today.

North of 26 degrees south and the security of Australia: Views from The Strategist Volume 3

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The Northern Australia Strategic Policy Centre’s latest report, North of 26° South and the Security of Australia Volume 3’, is an all-new series of articles by a range of authors exploring the continued importance of Northern Australia to national security and defence strategy.

This Volume’s contributions were written over a year in which increased strategic uncertainty and an unprecedented global pandemic have collectively generated an interest in revisiting old policy assumptions. Right from the start, it was clear that we need to think of the north as the middle of the region, rather than the edge of Australia, and reflect that critical role in Australia’s political, military and economic strategies moving forward.

The economic, social and geopolitical effects of Covid-19 have presented opportunities for a radical a rethinking of nation-building in the north, and collaboration between the public and private sectors to support it. The rise of Chinese influence in the region and globally has changed Australia’s role in the Indo-Pacific and the strategic significance of Australia’s defence capabilities and alliances to the broader international community.

The pandemic response and geopolitical tensions have highlighted supply-chain resilience as a key area of capability uplift for Australia, making the north significant both as the key trade hub with region and a source of natural resource exports.

The report builds on the previous Volumes of North of 26° South by broadening the breadth and depth of its contributions northern Australia strategic policy.

This report provides much needed contemporary analysis and the criticality of the North to Australia’s national security and defence.

Stronger Together: US force posture in Australia’s north—a US perspective on Australia’s strategic geography

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Stronger together: US force posture in Australia’s north—a US perspective on Australia’s strategic geography

This report argues why, and analyses how, Australia’s defence force capabilities and strategic geography can enable US force posture initiatives in the Indo-Pacific to promote greater regional cooperation in ways that advance US and Australian national interests.

Lieutenant Colonel Hanks writes that there are ‘practical and tangible areas for US-Australia cooperation and growth which include: 1) expanding the Australian defence industrial base while securing and hardening supply chains; 2) increasing US Army force posture in northern Australia; 3) increasing multinational training opportunities; and 4) in conjunction with Australia, expanding the defence partnership with Indonesia.’ ‘The US now relies on increased cooperation from partners and allies to regain the initiative from the PRC in the Indo-Pacific. Australia’s defence strategy and policies are better aligned with US defence strategy and policies today, than ever before.’

The report argues that military modernization alone will not effectively expand the competitive space and disrupt PRC grey-zone decision cycles. Thinking asymmetrically, Australia can use its strategic geography and defence capabilities to enable US force posture initiatives in the Indo-Pacific to promote greater regional cooperation and, through greater deterrent posture and capability, reduce the risk of conflict.

North of 26 degrees south and the security of Australia: views from The Strategist

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North of 26° south and the security of Australia’, a new report by ASPI’s The North and Australia’s Security Program, presents a series of articles by a range of trusted and up and coming authors exploring the continued importance of Northern Australia to national security and defence strategy.

The last time real attention was paid to what our regional environment means for defence in the north of Australia was in Paul Dibb’s 1986 Review of Defence Capabilities and the 1987 Defence White Paper. Following that work, the Australian government invested billions of dollars in bases and bare base infrastructure in the north, with a real focus on the Northern Territory.

The strategic environment since then has changed dramatically.

First, regional nations continue to get richer and more capable, including in their ability to project military power within and beyond their own territories—meaning that near-region partners like Indonesia, Malaysia and Singapore are becoming more important in Australia’s security and diplomacy.

Second, great-power competition and potential conflict have returned to the forefront of world affairs. China and the US are now actively engaged in deep strategic competition and arm-wrestling over political, economic and strategic relationships and technological dominance across our Indo-Pacific region.

There are credible prospects of a major military conflict between these great powers over the next couple of decades, which, if it happens, will most likely spill beyond a bilateral conflict into a wider regional war.

Northern Australia’s dispersed critical infrastructure and primary resources remain vulnerable to traditional and non-traditional national security threats. Modern weapon systems put these resources within striking distance of conventional weapons, and they’re also susceptible to hybrid warfare strategies like that used by Russia in Ukraine.

While Australia has a long-term defence capability plan, we need to continue to test our assumptions about the defence of northern Australia and the north’s significance to national security. On paper, government has made a strong declaratory commitment to northern Australia. But there is evidence of a widening gap between declaratory policy and Defence’s activities in the North.

This report provides much needed contemporary analysis of the criticality of the North to Australia’s national security and defence.