One of the strongest arguments for the federal government being involved in regional development policy is ‘coordination failure’. This is economic jargon for the failure of initiatives because of the inability of different stakeholders to coordinate their actions for their mutual benefit.
This is a BIG problem, and the strongest argument why Australia must have an ongoing regional development policy. Coordination failure arguably stems from four factors:
- the sheer size of our continent combined with modest population
- the confrontational nature of the Westminster system, which works against getting agreement on most things
- the competitiveness of most federal and state programs
- the lack of collaborative minded people, despite our belief that we’re easy going and matey.
The last point is the most important, and the hardest to explain. The Cockatoo Network exists to connect the dots and find pathways for regional development projects. In our experience the ingredients of a collaborative minded person is someone who:
- is naturally inclined to work through a problem, and who has the confidence and ability to share information
- is willing to take risks because of a belief that the proposal is a worthy one
- can see the light at the end the tunnel, and know it’s not a locomotive
- has loads of patience and perseverance.
These were once key attributes for jobs in the federal arena because of the belief that a national perspective could help in addressing coordination failure. But sadly this is no longer the case. And in any case, federal officials now seem consumed by process, rather than product.
This was proved this month when we tried to get any one of four agencies – the Departments of RDA, Innovation and Agriculture plus the Murray Darling Basin Authority – to assume a leadership position on food value adding agendas across the Murray Darling Basin and beyond. Each agency said that while the agendas we had highlighted (regional branding, labelling, supply chains etc.) were very interesting, it wasn’t their role to lead or coordinate issues in this space. This is arrant nonsense, but until there is a change, there is a marvellous opportunity for groups of councils and regional development boards to step into this space.
Regional Funding
Successful applicants in the second round of the Regional Development Australia Fund are due to be announced any day. The hot goss is that the various ministers are touring electorates and telling mayors to head to the RDA Fund if they are looking for federal funding support. This is bad advice because the RDA Fund is very competitive and is not a huge amount in the context of regional Australia. Such advice also ignores the 50 plus other federal programs that could be tapped. These ministers are advised to get their staff involved in the coordination failure (as above).
Local councils as integrators of Lighthouse Projects?
Professor Mike Enright (Hong Kong University), the key researcher on Porter’s seminal ‘Competitiveness of Nations’ tome, was in Canberra recently.
So the Cockatoo Network convened a dinner to get an update on competitiveness, clusters, China, etc. It was a stimulating session given Professor Enright’s international perspective. He observed that although Australia lacks the scale to be a world player in certain things (excepting resources and agriculture), we have sufficient ‘complexity of systems’ to translate into projects of global scope. Indeed one advantage Australia has in the Asia Pacific region is our ability to generate ideas and to solve problems – linked to a relatively well educated workforce and inclusive/sharing social norms and work practices.
Mike went on to suggest that Australians are generally very good ‘integrators’. He instanced our senior managers working in Asia, where they are valued for their skill in managing the integration of people and resources from across different nations and cultures, and basically getting things done.
My dinner guests mused over how we might capture more opportunities from this apparent capability. The consensus was that we should investigate the scope for Lighthouse Projects, marshalling the talents of the public and private sector, to showcase our skills. Part of the reasoning was that Australian agencies took the lead in funding and building the Mekong River Bridge project in the early 1990s, but such mega projects have since been scarce. We figure that local councils could play an excellent integrator role in such projects because they are well practised at interfacing between the public and private sector, and have the hands on experience that federal and state agencies lack.
How might local councils investigate this?
1. identify the developing country priorities that match your skills set – perhaps water storage and treatment, community health, urban design, parks and leisure, exhibition centres etc.
2. talk to architects, builders and engineers familiar with aid projects. Some of them might join a consortium with your council and others. They are surely in your midst
3. float your ideas with embassy or high commission staff in Canberra – we can assist. They will in turn raise it with HQ. If there is a light bulb moment, you take it from there.
People in glass houses …
The sudden concern by sundry MPs about upholding parliamentary respect is a bit rich. Smears and innuendo have been the hallmark of this parliament, and it’s essentially been the Greens and two independents – Oakeshott and Windsor – who have kept things on an even keel.
A strong tip: if things get any uglier, someone will surely start spilling the beans about the startling infidelities of two righteous Liberal powerbrokers not currently in the spotlight.
Rod Brown is a Canberra-based consultant specialising in industry/regional development, investment attraction, clusters and accessing Federal grants. He also runs the Cockatoo Network. He can be contacted at apdcockatoo@iprimus.com.au or phone (02) 6231 7261.
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