Backbencher

Lecture five, Economics: Empire and Dependency, centered largely around Donald Denoon's application (or adaptation) of dependency theory to the histories of Australia and New Zealand. Dependency theory involves colonies shaping their economies around the needs of a dominant country. Both colonial economies were established to send products back to England. As a result, both countries were still heavily involved in markets that suited Britain's needs until the 1970s and, especially, the 1980s. Clearly, the cultures and national identities of the countries today can be traced back to a century and a half of dependency. During this ''British Century,'' both countries were very successful. The nature of dependent markets, however, ensured that neither country had diversified production or the ability to serve domestic markets, which was potentially devastating to both at the end of the twentieth century, when the countries were on their own for the first time.

In colonial times, Australians and New Zealanders both made a living off ''the sheep's back,'' literally as sheep shearers and producers of commodities that were shipped to Britain (wool, wheat, and later meats, with the advent of refrigeration). Both economies were born out of a colonial, commonwealth framework. The combination of a planned economy in New Zealand, with an unusual level of government welfare instilled a unique belief that the government has a large role to play in the maintenance of social justice. This provided New Zealand with a special foundation for economic development, centering on an equitable distribution of wealth. This all changed in the wake of the 1980s crisis, and New Zealand became the laboratory of free markets and privatization (as envisaged by Roger Douglas), as a state economy was no longer viable in a liberal global economy. Although hugely unpopular, New Zealand's economic, governmental, and cultural revolutions have been able to stall a huge economic downturn. Much larger, and therefore more abundant in resources and workers, colonial Australia featured similar occupations and products as New Zealand. Also in contrast, Australians have a continued hope in the development of their country, seeing new frontiers to be conquered.

Today, New Zealand produces high-end products, and the republic generally focuses on horticulture, viticulture, and hydroelectric development. New Zealand's economy in general emphasizes exports. The renaming and introduction of the kiwifruit (previously the ''Chinese Gooseberry'') is symbolic of New Zealand's new role in the global economy. Largely lacking raw materials, NZ markets have been dependent on the creation and distribution of specialized products that are fairly expensive, but small and easy to transport to a global economy. Australia today is dominated by agriculture and the pursuit of resources. Agricultural enterprise is diverse, and people participate in horticulture, livestock farming, mixed farming (wheat and sheep), and pastoralism. Because of the global scarcity of natural resources, Dr. Isern predicted that Australia's economy will soon eclipse the New Zealand economy, because of the abundance of raw materials in Australia.

Personally, I thought it was very interesting that Australia considered Asian success to be a great threat to their economy, but today are seeking them as trade allies over the European Union. I always assumed that they still looked to Europe as major trading allies, which is perhaps the result of Eurocentric thinking. Looking closer, geographically, is clearly the best idea for both export-centered countries, especially in this age of global markets and competition.