Journal & Proceedings of the Royal Society of , vol. 150, part 1, 2017, pp. 110–117. ISSN 0035-9173/17/010110-08

Asian Diaspora Advantage in the changing Australian economy

Fazal Rizvi

The University of , Australia1 Email address: [email protected]

hat the Australian economy is now inex- deal of evidence now exists to show how Ttricably tied to is a fact that can no -Australian business communities are longer be contested. Our economic future helping to expand ’s relations of clearly lies within the Asian region. Over trade, investment and collaborations with the past four decades, a number of reports, Asia. Lacking, however, is an understanding dating back to the Fitzgerald Report (1978) of how this contribution might be better and the Garnaut Report (1989), have shown recognized, supported and expanded. This how this is so. These reports have not only is the subject of a report that I recently co- provided many examples of the growing wrote with Professor Kam Louie and Dr Julia links in trade and investment between Aus- Evans for the Australian Council of Learned tralia and Asia but have also pointed to their Academies (ACOLA) for the Securing Aus- considerable potentialities. In 2012, the tralia’s Future (SAF) Project, commissioned Henry White Paper, Australia in the Asian by the Australian Chief Scientists Office and Century, described the growing footprint of the Commonwealth Science Council. In this Australian businesses, investors and entrepre- talk, I want to discuss briefly some of our neurs across the region, and explored how key findings. Australia might further take advantage of the The report, Australia’s Diaspora Advan- opportunities associated with the so-called tage (2016), was commissioned to investi- ‘Asian century’. The current Government has gate how Australia might take advantage of similarly spoken of the importance of deep- the language skills, cultural understanding ening our economic, political and cultural and transnational networks that the Asian- ties with Asia, and has established several Australian business communities clearly initiatives to enhance these ties, including have. To fail to fully appreciate and utilize free trade treaties and the New Colombo the multiple and diverse resources that these Plan. communities possess, it was assumed, was to Every section of the Australian community risk throwing away a major advantage that has been encouraged to better understand Australia enjoys. We were asked therefore not and develop its links with Asia. What is now only to provide an account that was helpful beginning to be also widely recognized is in understanding the nature and scope of that Australia’s growing Asian communities the Asian-Australian business contribution are uniquely placed to play a leading role but also suggest policy settings for boosting in strengthening Asia-Australia relations. A it. To do this work, our research was steered

1 This short article is based on a report produced by Fazal Rizvi, Kam Louie and Julia Evans, Australia’s Diaspora Advantage, (ACOLA 2016). (http://acola.org.au/wp/PDF/SAF11/SAF11%20full%20report.pdf)

110 Journal & Proceedings of the Royal Society of New South Wales Rizvi — Asian Diaspora Advantage and supported by an Expert Working Group to the lives of Asian- of the second (EWG) representing each of Australia’s and subsequent generations, permanent resi- learned academies. dents, work visa holders, and those of mixed cultural backgrounds, who nonetheless view Diaspora Perspective themselves as having an Asian background, The Expert Working Group began its task by and who believe that they therefore have first attempting to locate relevant statistical a contribution to make in strengthening data, but almost immediately faced the chal- Asia-Australia relations. So, when statistical lenge of determining how to define the cat- data are collected simply around the narrow egory of ‘Asian-Australians’. It soon realized categories of place of birth, migration and that, traditionally, much of the discussion migrant settlement, it is necessarily incom- relating to Australians of Asian backgrounds plete, and is unable to provide a more thor- had been couched in terms of either ethnicity ough demographic account of the Australian or migration; and that neither of these was society. In popular imagination, moreover, entirely appropriate in exploring relations of the idea of migration continues to be associ- international trade. Theethnicity perspective, ated with deficit notions of marginalization for example, focuses on issues of identity and and disadvantage. It pays little attention to cultural traditions that Australians born in the more economically productive aspects an Asian country continue to cherish. On of Australia’s cultural diversity. the other hand, the migration perspective cen- Nor do the traditional sociological anal- tres on the issues of settlement upon their yses centred on the notion of migration arrival in Australia. It encourages analyses adequately capture the nature and growing of the challenges that Asian-Australians face significance of the transnational experiences in attempts to ‘integrate’ into the Austral- and networks that many Asian-Australians ian society. From a policy perspective, the are now able to access. It is clear that migrant migration perspective seeks to identify ways experiences are not what they used to be, in in which settlement might be better assisted a number of significant ways. For example, by public policies and programs. immigration no longer necessarily involves The main problem with both of these an expectation of permanent detachment perspectives is that they assume a spatial from an immigrant’s country of origin. logic that is based on a fundamental binary Dual and even multiple citizenships have between an Asia that is ‘there’ and an Aus- now become available to many Austral- tralia that is ‘here’. In an era of globalization, ians. Furthermore, an increasing propor- in particular, such a binary does not work, tion of immigrants to Australia from Asia for it fails to account for the continuing are highly skilled, often at a very high level. cultural, political and economic links that Many come to Australia not only with intel- are now possible to be maintained across lectual but also financial resources, prepared vast geographical distances. To overlook the to invest in both local and global enterprises. importance of transnational experiences is And, of course, the path from international to render an understanding of the contem- education to migration has now become porary Asian-Australian experiences that is a well-trodden one. The decision of many at best limited. Furthermore, the migration Asians to migrate to Australia is also now perspective does not pay adequate attention

111 Journal & Proceedings of the Royal Society of New South Wales Rizvi — Asian Diaspora Advantage much better informed than ever before, as conditions. The modern use of diaspora, indeed is the ability of immigrants to remain however, is much broader and more inclu- connected with friends and family at home sive. It is widely applied to a whole range and elsewhere, using new communication of communities, focusing not so much on and transport technologies. Many Chinese- displacement and assimilation, but on tran- Australians, for example, spend an average snational connectivities and relationships of two to three hours each day on WeChat that can now be maintained across vast or Weibo. This enables them to keep up with differences, facilitated greatly by the new social trends and remain in touch with eco- information and communication technolo- nomic and political developments in . gies and enhanced greatly by social media. Their familiarity with the shifting attitudes Contemporary diasporas are characterised and customs at ‘home’ is thus much greater as groups of people belonging to a commu- now than ever before. nity who are dispersed across the globe, but These transformations demand a new way remain connected to each other. They self- of looking at the Asian-Australian commu- identify as being a member of the diaspora nities and their contribution to Australia. and choose to maintain ongoing links to a In our report, we refer to this new way of common place of shared family origin. Their looking as the diaspora perspective. In our leaving or arriving is never complete, but view, the term ‘diaspora’ better captures the involves continuing processes of identity transnational experiences of the people of construction and reconstruction based on Asian origins living and working in Australia, shifting historical, political and economic who are nonetheless able to remain in touch conditions. with their ‘home’ communities in a whole If this is so, then the focus of sociological range of new ways, often in a manner that analysis must necessarily shift from issues of is organic and on an on-going basis, and in ethnicity and migration to transnational net- real time. For them, mobility across national works, the ability of people to have a sense boundaries does not mean abandoning of belonging to more than one place, and cultural traditions and links. Their under- to regard their ethnic networks as having standing of cultural and economic trends in the potential to be politically and economi- their home country is no longer necessarily cally useful and productive. In this way, the framed through ethnic nostalgia but through diaspora perspective encourages an examina- regular engagement. They are often active tion of the diversity, dynamism and mobility participants in the formation of these trends, of Asian-Australian communities in ways even while they live in Australia. They are that do not overlook their capacity to be also able to access the global diaspora net- ‘embedded’ simultaneously within Australia, works. In this way, their life experiences and their country of origin and across the globe. aspirations are often located in transnational Our research attempted to understand the spaces. nature and scope of this ‘embeddedness’, in The term ‘diaspora’ is of course quite order to examine how the transnational net- old — at least 2,000 years — and was once works that Australia’s Asian business diaspo- used to refer to the Jewish communities ras enjoy might have the potential to be a living in exile, often under brutally harsh rich source of innovation, enterprise and

112 Journal & Proceedings of the Royal Society of New South Wales Rizvi — Asian Diaspora Advantage entrepreneurialism. It sought to provide an intensive service-orientated industries. Each account of Australia’s Asian business com- possesses strengths and expertise in the areas munities, the ways in which they utilized of professional service and in fields that are their transnational networks, enterprise and greatly assisting Australia’s transition from innovation, the opportunities they had, and an economy based on resources to a more the challenges they faced. diversified economy. In a whole range of ways, both communities are helping to stim- Diaspora Advantage ulate economic growth in most areas of the To develop a deeper understanding of Australian economy. Significantly, they are Asian-Australian business communities, our driving new developments in international research focused on Australia’s Chinese and education, tourism, professional and techni- Indian communities as case studies. We rec- cal services, the creative industries, and the ognized, of course, that China and are retail trade of cultural goods. complex and contested constructs. Neither is While most Chinese- and Indian-Austral- a homogenous nation. Both encompass vast ians work in enterprises that are local, all our cultural, linguistic and regional differences. interviewees indicated that they had given a Just the same, they denote entities that are great deal of thought to the potential of their meaningful to both the broader Australian transnational networks, and how these might community and to the Chinese- and Indian- be harnessed to develop enterprise and inno- Australians themselves. We chose China and vation. Many had already established ini- India as case studies because they are now the tiatives to drive export activities. Almost all largest Asian communities in Australia, with interviewees believed that the contribution numbers that are growing rapidly. China is of the Asian business diaspora communities now Australia’s largest trading partner and to the Australian economy could be greatly India’s commercial significance to Australia boosted through greater use of their cultural is also growing. Our case studies involved knowledge and skills and their ethnic net- analysis of the available data and commen- works across the globe. They regarded their taries, as well as interviews with over 100 networks to be a kind of ‘diaspora advantage’. Chinese- and Indian-Australians engaged in For them, the idea of ‘diaspora advantage’ various business enterprises. We used these suggests that the linguistic skills, cultural data not only to map the contribution of the knowledge, transnational networks and the Asian-Australian business communities to diversity of perspectives that they bring to Australia but also to identify the challenges Australia constitute an advantage that not they confront. only benefits them personally but also has The Diversity Council of Australia esti- the potential to help Australia more broadly, mates that Australia’s Asian communities to maximise its attempt to extend its innova- now constitute over 17 % of its population, tion and economic links with Asia. and are growing rapidly. Chinese and Indian When it comes to doing business between are the largest Asian-Australian communi- Australia and Asia, the value of this advan- ties. The Chinese community in Australia is tage is immense. It has the potential both to nearly 1.2 million people, while the Indian assist Australia’s attempts to become better diaspora is over 650,000. Each of these com- integrated into the region’s economy, and munities is well represented in knowledge-

113 Journal & Proceedings of the Royal Society of New South Wales Rizvi — Asian Diaspora Advantage to help its transition from its reliance on supported by the rising educational aspira- resources to knowledge-based industries. tions throughout Asia and the preparedness Many of Australia’s Asian diasporas are of many governments in Asia to invest heav- already engaged in business and trading ily in education, training and research, and activities across Australia and Asia. Many innovation and entrepreneurialism. With are involved in key knowledge-based service Asia becoming an engine of the world econ- industries as creators of knowledge, products omy, the flow of ideas, capital and people and services and as consumers of them. They will accelerate and result in new modes of are playing an increasingly significant role as investment, production, distribution and investors, creators, mediators and consum- consumption. These transformations are ers. With mobile phones, the Internet and likely to produce new trade opportunities the likes of Skype and Facebook speeding for Australia, signalling a shift from an eco- up the flow of information and ideas, Asian nomic reliance on resources, such as min- business diasporas have been able to occupy erals and energy, towards a global demand the space here, there and everywhere more for culturally-modulated knowledge-based easily, and have been enabled to acceler- products and services, many involving sound ate the establishment of trusted people-to- and reliable cultural relationships. people links and obtain knowledge of the With the emerging Asian middle class local culture, emerging markets and busi- demanding new cultural goods and services, ness opportunities. Through their transna- Australia will clearly have further opportuni- tional ‘embeddedness’, the business diaspo- ties, but will only be able to realise them if it ras have capabilities to establish links both relies upon all of its human resources, espe- more quickly and efficiently. They are not cially those people who have deeper under- constrained by having to organise relation- standing of the region and the dynamic ships through hierarchical models of social changes that are transforming most parts of and economic organisation allowing for the Asia. For Australian services to become more transformation of relationships, resources cost-efficient and productive, intercultural and business activities in a highly responsive skills will become increasingly important way, where and when needed. because with such capabilities come greater As the world’s most populous region, business agility, adaptability and creativity. Asia is expected to become the world’s larg- This underlines the importance of people est economic zone for both production and who are locally embedded in Australia but consumption. Indeed, Asia already has the globally stretched and adept at negotiat- largest middle class, with its consumption ing the transnational economic space. The patterns increasingly shaping the world diaspora advantage is linked to these factors, economy. While global problems such as and has already proved helpful in driving rising income disparities, social instability trade and entrepreneurialism. and environmental risks will clearly also affect their political and economic institu- Innovation and Enterprise tions in most Asian countries, they appear A demographic analysis of the contempo- relatively stable, enabling rising long-term rary Chinese and Indian communities in income trends to continue. These trends are Australia indicates that they are generally highly motivated, with a great proportion

114 Journal & Proceedings of the Royal Society of New South Wales Rizvi — Asian Diaspora Advantage possessing a university degree and engaged their entrepreneurial energy are best illus- in high-skills industries that often require a trated in their ability to establish start-ups, predisposition towards innovation, entre- often emerging from opportunities provided preneurialism and the commercialisation of through their networks. They also benefit knowledge. Their business activities include from the mentoring provided by experienced employment in the corporate sector, net- entrepreneurs within their own community worked business activity (such as franchising who have often overseen the development of and licensing models), representing overseas their own business operations. Chinese and business interests, and business ownership Indian business diasporas are also involved and investment. Also evident over the last in investing in transnational companies, and decade are marked increases in business in holding board directorships. ownership and investment visa applications The interviews also indicate how diaspora in Australia by Chinese and Indian diasporas. networks are helpful in establishing new In 2011, an estimated 45,500 business were businesses in fields as diverse as science owned and operated by Australia’s China- and technology, retail, tourism and inter- and India-born populations. Between 2006 national education. For example, in the and 2011, businesses owned by Australia’s field of cultural consumption, Australians China-born population rose 40 per cent of Chinese background, based in , and 72 per cent by those born in India are developing Chinese tastes in and mar- (mostly small to medium enterprises, SMEs). kets for Australian wine, while many Indian Between 2012 and 2015, China was the larg- Australians have been enormously successful est source country for the Business Innovation in positioning Australia as a major site of and Investment Visa program, accounting for Bollywood films, whose audiences number around 90 per cent of applications, nearly in the hundreds of millions. In the areas of all being granted. healthcare and social assistance, Indian- and What these quantitative data reveal is that Chinese-Australians are also active, creating the Chinese and Indian business diasporas new modes of production of goods, such as have now become highly active in the business hybridized forms of medicine and services, space in Australia. The qualitative interviews, including aged care. These examples show however, indicate a more nuanced picture, of how transnational economic space is a site how many of their businesses are in fact in for much creativity and innovation, not least areas that involve either a joint transnational because it involves new conditions of cul- operation or a service provided to other tural exchange and transformations. members of the diaspora within Australia. Furthermore, through their networks, They are deeply conscious of their diaspora Australia’s Asian diasporas make it possible advantage. They believe that their language for other Australian enterprises to become and cultural capabilities, along with their informed of the vibrancy and multifaceted transnational connectivities, equip them to growth that characterise a changing Asia. seize new opportunities in the transnational Australia stands to benefit from the diaspo- economic space. As a result, simultaneous ras’ transnational stimuli and productivity involvement in multiple businesses is often in fields as varied as business, research com- common within the business. Examples of mercialisation, education, and the cultural

115 Journal & Proceedings of the Royal Society of New South Wales Rizvi — Asian Diaspora Advantage and creative industries. While there are some Realising the Diaspora Advantage major differences between the ways Austral- Australia is, of course, not the only coun- ia’s Chinese and Indian diasporas take advan- try that has recognized the importance of tage of the fast-emerging transnational eco- its diaspora advantage in the fast-changing nomic space, there is a growing recognition transnational economic space. Other coun- among these communities of the opportu- tries too have begun to address the challenge nities inherent in this space. Both diasporas of recognising and utilising the resources are continuing to explore its potential, with of their own diasporas. The Chinese and every indication that economic exchange Indian governments are deeply conscious through their networks will increase in the of their global diasporas and have a desire to future. Much will depend on a prevailing continue to utilise the knowledge and skills economic climate that is supportive, and of their emigrants who have now settled the extent to which rules and regulations elsewhere. In recent years they have begun govern business collaboration and exchange. to explore ways of using the resources that Free trade policies will clearly help, but also their diasporas abroad represent in forging necessary is a commitment to overcome the and sustaining links for economic devel- more informal cultural and political barriers opment and increased knowledge transfer faced by the business diasporas. and innovation collaboration. Chinese and These barriers are multiple and arise at Indian governments are therefore working various levels, and in various ways. Within on strategies to ensure that long-standing Australia, of key concern is the underrepre- legal, political and administrative barriers to sentation of Australia’s Chinese and Indian the participation of their diasporas abroad business diasporas across government, for the benefit of the Chinese and Indian institutions and industry in an era that not economies respectively are overcome. only demands the creation and diffusion The policies of Canada, Germany and of technical knowledge and research, but have also recognized the value also cultural knowledge. Also important of skilled diasporas. These nations have is the greater recognition and celebration developed programs to attract highly skilled of the leadership roles that Australians of migrants and investors who have extensive Asian origin can play in driving more effec- business networks in Asia. However, much tive engagement with Asia. The Asian busi- of the data that these national governments ness diasporas also face issues in their own collect are inevitably based on the tradi- countries of origin, where their citizenship tional categories of inbound and outbound status is often ambiguous, and where they migrants. As a result, these nations appear are frequently subjected to regulations that to be slow to develop a systematic evidence- are unexpected and arbitrary, even if the based approach to engaging their Asian government policies in China and India are diasporas that contribute simultaneously to broadly supportive of the commercial activi- their own national interests but also assist ties of their diasporas abroad. the economies of the diasporas’ countries of origin.

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In looking at both China’s and India’s strat- they represent. This suggests a step forward egies, and policy programs of key advanced from previous notions of migration towards economies from around the world, it is diaspora as a more apt concept with which clear that opportunities exist for Australia to make sense of the ways in which people to lead the world in developing business of Asian origins live and work in Australia. diaspora initiatives, and to suggest a road What is needed is a vision for Australia in map for maximising the economic potential Asia, which recognises the complexities of for diasporas, namely, mobilising wealth via Asia and seeks a deeper understanding of capital markets, facilitating diaspora invest- its regionality and diverse interests. In doing ments, and transfering human capital. Ele- so, fertile conditions for fluid engagement ments of this road map align with aspects of between people, policy and place will better the National Innovation and Science Agenda position Australia to anticipate, and swiftly and similar initiatives, and we highlight the respond to, opportunities in Asia in a highly potential role of the Australian Asian busi- nuanced, Asia-capable way. ness diasporas’ involvement in them. But a piecemeal approach is not sufficient. What is References required is a coordinated national approach Australian Government, National Innovation and Science Agenda, https://www.innovation. to diaspora policy. gov.au/ Such a policy might consider ways in Fitzgerald, S. (1978) ‘The Asian Studies Crisis: which the increased representation of Aus- ASSA, Government and People’ Asian Studies tralia’s Asian business diasporas could support Association of Australian Review, 2, pp. 1-13. national business programs and research col- Garnaut, R. (1989, Australia and the Northeast laborations and assist with advancing Asian Asian ascendancy: report to the Prime Minister and Minister for Foreign Affairs and Trade, capabilities within agencies and organisa- Australian Government Publishing Service, tions that provide advice on doing business . in Asia. Ways in which we can groom Asian [The Henry White Paper] (2012) Australia capabilities in Australian students and early in the Asian Century, Commonwealth of career professionals, as well as pathways for Australia, Canberra. http://www.defence.gov. au/whitepaper/2013/docs/australia_in_the_ attracting talent, might also be considered. asian_century_white_paper.pdf Also requiring attention are ways in which Rizvi, F., Louie, K., Evans, J. (2016) Australia’s trade delegations might be able to improve Diaspora Advantage: Realising the potential their relevance and return on investment. for building transnational business networks Such a response might consider the con- with Asia, Australian Council of Learned ditions for Australia’s Asian diasporas and Academies (ACOLA), Melbourne. http://acola.org.au/wp/PDF/SAF11/ the social, economic and political condi- SAF11%20full%20report.pdf tions that can further realise the advantage

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