Friday, 9 March 2012

The Dutch Disease

Speaking with Gijs Kok over Lunch one Day I discussed the innovation and entrepreneur curve in the Australian Economy. It provides far more security to find a career in Mining than to create/ develop/ initiate new commerce. The return to the National GDP is significantly reduced if the population is labour supply driven instead of creating exponential commerce in business.  Entrepreneurs can be created as demonstrated in Holland through their education platforms, Australia is creating workers with the Mining sector dictating wealth.
Professor Gijs Kok relayed a phenomenon called the Dutch Disease. This is where the population became skilled in the Gas Extraction to the North of the Country, due to its profitability the associated personnel became blinkered in their attitudes to outside influence they created infrastructure to support the industry and avoided triggers of emerging competitive markets. Once the Northern Gas collapsed the societal problems became compounded by lack of skill, lack of innovation and lack of motivation. Potentially that labour force could have been a generation of wealth creators for their country, however they were then forced to become laborious in other industries and un motivated due to reduced income

No comments:

Post a Comment