Stuck in Traffic A new Institute study shows that the average Australian worker is spending three and three quarter hours travelling to work each week, more if they work full-time. Off to work: Commuting in , by Michael Flood and Claire Barbato, clearly struck a nerve with Australia’s harried commuters and attracted widespread media attention. Claire Barbato explains why. No. 43 June 2005 Most research on the journey to work has their children. For this group the average focused on the implications for city commuting time is more than eight planning and transport. The Institute’s hours a week, compared to less than Stuck in Traffic new study is based on data from the four hours spent with their children. Claire Barbato HILDA survey and had wellbeing as its These people also tend to work long Government stymies advocacy by starting point. hours when they reach the office with green NGOs half of them working more than 50 Off to Work investigates the effect of hours a week. commuting times on personal Of full-time working fathers in Wellbeing Manifesto launch relationships and community life. Commuting exacerbates the negative Melbourne, 30 per cent face a similar predicament. Across Australia, one out Howard’s Children impacts of long hours and work stress on people’s family lives and relationships. of five men who work full-time commutes for more hours than he The ‘Left’ and the Iraq War The strain of journeys that are not only spends with his children. Clive Hamilton long but unpredictable, congested or Commuting creeps into time for polluted take a toll. Many commuters Taxpayers Soaked socialising as well. The more time come home late, grumpy and worn-out, people spend commuting, the less Andrew Macintosh with little physical or emotional energy frequently they socialise with friends and for family life, friendships or other relatives. Is the Bracks Government Serious community activities. about Climate Change? Full-time workers who commute on ZPG for the ACT? Perhaps the most striking conclusion of average for four or more hours each Claire Barbato the research was that 35 per cent of week are also less likely to be active Sydney fathers in full-time work spend members of sporting groups or more time commuting than they do with community organisations. Gross National Happiness Simeon Michaels Weekly commuting hours in selected cities Institute notes

ACT Adelaide

Perth Brisbane Melbourne

Sydney

2.0 2.5 3.0 3.5 4.0 4.5 5.0

Unsurprisingly the more that people Weekly commuting hours by annual income commute, the less likely they are to report high levels of satisfaction with the amounts of free time they have. 6 The study confirmed that people living in big cities spend substantially more 5 time travelling to work than commuters in smaller cities or in non-metropolitan 4 areas. Residents of Sydney, for example, spend one third longer travelling to 3 work each day than residents of 2 Adelaide and over 56 per cent longer than the average Tasmanian commuter. 1

0 Thirty five per cent of $20-30000 $40-50000 $60-70000 $80-90000 $100- Sydney fathers in full- 150000 time work spend more time commuting than While some people may be able to In short, Australia’s major cities need to reduce the time they spend commuting be re-engineered to make them more they do with their by rethinking where they live, where they liveable, a process that will require decades. children. work, or how they travel, for most But few governments appear willing to people the only hope for reduced travel take the bold steps needed to begin the times is changed local, state and process. If ‘time is money’ commuting is costing national transport policies. Australians dearly. If employees were In the meantime the effects of to be paid for their commuting time at As long as transport and land use commuting need to be factored into our their usual hourly rate, they would policies are developed in isolation from discussions of work and family balance receive, on average, an extra $84 per week each other, people’s commuting while workers, particularly in big cities, journeys will continue to be lengthy and grapple with multiple demands on their or $4 015 per year. Among all people in paid employment in Australia, the frustrating and their transport choices time. n wage-equivalent time costs of constrained and unduly car-focused. commuting represent over $454 million per week or over $21 billion per year. Commuting reform requires systematic changes in patterns of transport, land Contrary to expectations, high-income use and employment, including workers tend to spend more time reducing the car dependence that has commuting than people on lower long characterised Australian transport incomes. Tradespeople (especially in the policy and improving the availability, building industry) and managers endure efficiency and reliability of public the longest average commuting times. transport.

Downshifting Conference

On 23rd July 2005 a conference will be held in the Square House at the University of NSW in Sydney to enable downshifters and those who are thinking about changing course to meet and share experiences, difficulties and advantages. Several distinguished and informed speakers will be present, including Institute Executive Director Clive Hamilton. The cost of attending is $105, discounted to $95 if tickets are purchased before 11th July 2005.

For more details please consult the website www..net.au.

2 THE AUSTRALIA INSTITUTE

Government stymies advocacy by green NGOs Clive Hamilton …. Foremost, each organisation’s encourage or fund any illegal activities’ principle [sic] purpose must be the could be removed from the Register. So It is now clear that the Howard protection and enhancement of the Greenpeace could be sounding its own Government is engaged in a systematic natural environment (or a death knell if it sends its activists to campaign to silence its critics in civil significant aspect of it); or the install a solar water heater on the roof society. Two Institute reports published provision of information and of Kirribilli House, climb the flagpole last year, Silencing Dissent and Taming the education, or the carrying out of of Parliament House to fly a banner or Panda, analysed how this objective is research, about the natural paddle in front of a nuclear warship. being pursued. environment or a significant aspect of it. It is mandatory that any tax- These are not idle threats by the deductible donations be spent only Government. They are consistent with The Howard Government in support of this purpose. That the anti-NGO campaigning of the is engaged in a systematic is, the funds should only be Institute for Public Affairs, the right- campaign to silence its expended on the conservation of wing think tank commissioned by the critics in civil society. the natural environment and not Government to ‘audit’ the lobbying for any other purpose, such as activities of NGOs. The determination political activity. of the Government to silence its critics The following are selections from a letter was also illustrated by Treasurer sent in February by Federal Environment The last four words are the key to Costello’s draft Charities Bill Minister Senator Ian Campbell to the Campbell’s letter. They mean that any (subsequently withdrawn) to tighten up 317 environment groups on the Register election commentary by environment the conditions under which charities of Environmental Organisations. groups, including the usual comparison attained tax deductible status and the Listing on this Register makes donations of the campaign commitments by the defunding in April of the conservation to these groups tax deductible. Their tax parties, could ‘and in fact probably will’ councils. status is crucial to their survival. see an organisation removed from the Register. Most groups would die a quick As Glenn Milne wrote in The Australian: I am reminding all organisations on death if that happened. ‘Behind the scenes this Government is the Register that there are important moving ruthlessly to lock in its political rules that they must follow in Minister Campbell also stressed that ascendancy, even at the cost of free expending their tax deductible gifts. any organisations that ‘engage in, speech.’ n The Wellbeing Manifesto Melbourne launch

The Institute has prepared a new manifesto for the future of Australia. The Wellbeing Manifesto takes as its starting point the belief that governments should be devoted to improving our individual and social wellbeing. It outlines a new political philosophy and nine areas in which a government could and should enact policies to improve national wellbeing.

The Manifesto was prepared with the assistance of Richard Eckersley and has already been personally endorsed by more than two thousand Australians. A number of well-known individuals have also added their support including Tim Costello, Carmen Lawrence, Hugh Mackay, Natasha Stott Despoja, Professor Fiona Stanley and Phillip Adams. You can see who the supporters are and give the Manifesto your own endorsement by visiting www.wellbeingmanifesto.net

The Manifesto is being officially launched in Melbourne on Tuesday 14th June. Speakers include Carmen Lawrence, Tim Costello and Clive Hamilton.

The venue is the BMW Edge Theatre, Federation Square. The launch will begin at 5.30 pm and end at 7.00 pm followed by drinks. Entry is free. Bring a friend.

3 THE AUSTRALIA INSTITUTE Howard’s Children? A new Institute webpaper, The Attitudes of Young People to the Environment, shows that young Australians are the least likely group to identify themselves as environmentalists. Richard Denniss explains.

In announcing the Federal ‘I am an environmentalist at heart’, proportions Government’s latest attempt to who agree by age reconcile the interests of loggers and the environment in Tasmania, Prime Minister Howard declared that these 80 days everyone is an environmentalist. 70 Having criticised the notion that and environment groups had a 60 monopoly on environmental concern, he stated that he was ‘sick of that point 50 of view’. 40 Many Australians may be surprised to 30 learn that the Prime Minister is an environmentalist, but most people of 20 his generation are eager to claim this distinction for themselves. 10 0 Only 40 per cent of 14-17 18-24 25-34 35-49 50-64 65 and Total 14-17 year-olds agree over with the statement ‘at ‘environmentalists at heart’ is very similar average to spend money on things they heart I am an environ- to that of respondents who agree with never use, as well as being less likely than mentalist’. the statement that ‘I try to recycle average to feel guilty about doing so. everything I can’. But while identifying as an environmentalist and participating A new analysis of data from Roy in recycling both increase with age, this is Young Australians are Morgan Research conducted by the not the case in relation to perceptions of among the most likely Institute shows that more than 70 per the need for immediate action to cent of people aged over 65 agree with ameliorate environmental harm. to believe that threats the statement ‘at heart I am an to the environment environmentalist’. The proportion of respondents who are exaggerated. agree with the statement ‘if we don’t act While it is perhaps reassuring to now we’ll never control our discover that the majority of environmental problems’ peaks among Among young people, 38 per cent admit Australians consider themselves to be those aged 25-49, and then declines to wasting more than $30 on fresh food ‘environmentalists at heart’, there is among older Australians. per fortnight, compared with only seven little evidence to support any claim that per cent of people aged 65 and over who environmentalism is particularly In addition to younger and older admit to such levels of waste. The attractive to younger Australians. Australians being less likely to agree that situation is similar with respect to we need to act now to protect the clothing, with 26 per cent of younger Surprisingly, the data show that only environment, these same groups both people admitting to buying more than 40 per cent of 14-17 year-olds agreed share a higher degree of scepticism about $100 worth of clothes per year that they with the statement ‘at heart I am an some environmental claims. Those aged rarely or never use while only six per cent environmentalist’ – (see figure). over 65 and those aged between 14-17 of people over 65 claim that they do Respondents aged 18-24 reported the are more likely to agree that threats to this. second lowest level of identification the environment are exaggerated. with environmentalism, while those The proportion of respondents who aged 50-64 reported the highest. Recent research by The Australia Institute feel guilty about buying things that they on wasteful consumption (Discussion do not use rises steadily with age; only The age distribution of respondents Paper No. 77) showed that young 33 per cent of young people say they who identify themselves as Australians are also more likely than feel guilty while 53 per cent of people

4 THE AUSTRALIA INSTITUTE

“Threats to the environment are exaggerated”, proportions aged 65 and over say that they do. This who agree by age situation potentially augurs badly for levels of waste in the future. 35 However, it may be that concern about 30 the environment takes time to develop in individuals, in which case many 25 Australians aged 14-24 who are currently little concerned with the need 20 to protect the natural environment may 15 change their views. Alternatively, it may also be the case that nine years of 10 Federal Government policy and rhetoric, in which environmental 5 concerns have been considered of secondary importance, are changing the 0 views of Australia’s youth. n 14-17 18-24 25-34 35-49 50-64 65 and Total over New book from the Institute

On June 3 2005 Allen & Unwin published a new book titled Affluenza by Clive Hamilton and Richard Denniss. The book draws on a range of research published by the Institute over the last three years as well as a wealth of new material.

Affluenza argues that Australians are spending themselves sick. Strong economic growth, rising real wages and low unemployment have not enhanced national wellbeing. On the contrary, material abundance has meant more stress, weaker family and community bonds, an outbreak of lifestyle diseases, serious environmental degradation and a resurgence of greed and envy.

Affluenza explores the links between the big social and economic problems of our times. Overwork, , advertising to children, the rise in obesity, and the throw-away society are described as symptoms of the same underlying problem. Affluenza provides both a thorough diagnosis and a comprehensive prescription for reform.

The RRP is $24.95 but Institute members may buy the book for $20 including GST and postage. Second and further copies will cost members $17 each including GST and postage.

5 THE AUSTRALIA INSTITUTE The ‘Left’ and the Iraq War Clive Hamilton left to accept than the right, because human rights throughout the world historically the democratic left in the (The Australian, April 15, 2005). The left has been snookered by the US West has been a much more staunch invasion of Iraq. It is deeply opposed defender of democracy and human It is more regrettable that some on the to the war yet supports the spread of rights. And it has been at the forefront left should support an invasion by a democracy and civil freedoms. It is in of legitimate means to put pressure on belligerent Administration that the interests of the world that dictatorial regimes by supporting trampled over the United Nations and democracy should succeed in Iraq but domestic dissidents and pro-democracy then used appeals to democracy as a post that the US has its nose bloodied in the movements. hoc rationalisation to cover up its own process. lies. Trade sanctions and sporting boycotts President Bush and his allies, including against the apartheid regime in South Unscrambling the egg John Howard, had little interest in Africa were supported by the left long promoting democracy in Iraq until it before the conservatives felt the need to While the intervention in Iraq was based became expedient, when the weapons respond to public pressure. Some on on misrepresentations and hypocrisy, of mass destruction proved chimerical. the right, such as Margaret Thatcher and the fact is that withdrawal now would, Neo-conservative support for our own petty tyrant Joh Bjelke- in all likelihood, lead to catastrophic civil democracy is contingent on whether its Petersen, resolutely refused to support war. This is why the left is snookered: it promotion is in the financial and the international opposition to the wants peace and democratic government strategic interest of the US. white regime. in Iraq, but it understands that an outcome that allowed the neocons to For anyone with an appreciation of the Western powers could have intervened claim a victory would have grave history of US foreign policy, Bush’s militarily to overthrow the minority consequences for the world. dewy-eyed homilies in praise of government. But none of the anti- democracy in the Middle East are apartheid activists, within South Africa While the human cost is appalling, the nauseating. If he were serious he would and outside, ever advocated such a fact that the US and its allies quickly act against regimes in those countries move. Imagine if majority rule in South became bogged down in a costly and that could most easily be converted to Africa had not been won by the struggle uncontrollable insurgency in Iraq is not democracy – those where autocrats rule of black and coloured South Africans without its long-term benefits. For if only by dint of US support. He could but had been delivered by a foreign the adventurism of Bush and his hawks begin with the US client regime in Saudi victor. had been vindicated, it would have Arabia. entrenched the USA under George Bush as an aggressive and arrogant power The decision to go to war in Iraq was prepared to impose its will anywhere. wrong, not because Saddam was not a Neo-conservative sup- monstrous tyrant, but because it port for democracy is Only those ignorant of history, or violated the first principle of contingent on whether blinded by a faith in American international relations, respect for its promotion is in the exceptionalism, believe that the US’s sovereignty. Without respect for financial and strategic global intentions are everywhere benign. sovereignty, international relations are Just as the hawks have been willing to reduced to the will of the powerful. interests of the US. promote democracy when it has suited US interests, they have shamelessly The only exception arises when a destroyed democracy when it has stood regime’s activities directly threaten one’s Similarly, the revolutions in Eastern Europe were so inspiring and successful in their way. There is no better own security. Thus Vietnam was within illustration than the US-led destruction its rights to invade Cambodia to because they were people’s revolutions. Governments created by US or NATO of the Allende Government in 1973, overthrow the Pol Pot regime, which events that ushered in a vicious US- had launched a series of military occupying forces could never enjoy the same degree of legitimacy and stability. backed tyranny that traumatised Chile incursions across their common border. for decades. Although most of the world breathed a sigh of relief to see such an odious It is regrettable therefore that some, such So a rapid victory in Iraq would have regime fall, even then some countries, as Michael Costello, former adviser to been good for the Iraqis but not for the such as Singapore, were alarmed that a Labor leaders and one who identifies future of peace, stability and self- nation’s sovereignty had been violated with the left, should give unalloyed determination elsewhere. The bloody by a powerful neighbour. support to the Iraq invasion and criticise nose that the US has received in Iraq has sceptics on the left by repeating the severely dented the confidence of the The principle of non-intervention is arguments of people with abysmal neocons and that can only be good for one that has been much harder for the records of support for democracy and the world. n

6 THE AUSTRALIA INSTITUTE Taxpayers Soaked Drought and public subsidies seem to go hand in hand. But, asks Andrew Macintosh, how much longer should taxpayers prop up unsustainable farming? The effects of drought are devastating, has ignored regulatory approaches to demand more value for their money. both for rural communities and the solving environmental issues and One means of doing this is to make environment. Farm incomes plummet, focused its attention on ‘beneficiaries improved environmental outcomes a families become strained due to financial pays’ programs. The largest of these are condition of drought assistance. pressures, livestock dies, topsoil blows the Natural Heritage Trust (NHT) and away, and weeds and pests spread across the National Action Plan for Salinity and the landscape. Nobody wishes this Water Quality (NAP). The idea of tying upon farmers and everybody is The NHT alone is expected to cost drought payments to sympathetic to their plight. But taxpayers around $3 billion by the time government policy is only making things environmental out- it concludes in 2008. Not content with worse by propping up an industry that comes makes eco- this, the National Party and farm lobby has been crying out for structural reform nomic sense. groups now want governments to roll- for almost half a century. back native vegetation and biodiversity The Federal Government’s latest laws and give farmers a statutory right drought assistance package will cost to compensation when restrictions are This proposal aligns well with the taxpayers $250 million, which raises the placed on their ability to use their land Federal Government’s mutual total in drought aid over the past four and water resources. obligation rhetoric. If Indigenous years to in excess of $1.2 billion. To this communities are required to give But why must taxpayers provide endless must be added the hundreds of millions undertakings to improve social subsidies to farmers to save them from of dollars that are associated with conditions before receiving welfare, it the effects of drought and promote programs such as the Diesel Fuel Rebate hardly seems radical to suggest that rural industries, and then be asked to Scheme, Roads to Recovery Program, farmers should be required to improve give them more whenever there is a need Sugar Industry Reform Package and the their environmental performance as a to impose restrictions on their property now infamous Regional Partnerships condition of receiving drought rights in order to improve Program. assistance. environmental outcomes? The idea of tying drought payments to Data prepared by the Productivity Why must taxpayers environmental outcomes also makes Commission suggests the agricultural economic sense. The Federal provide endless subsidies sector is the most highly subsidised in Government is currently paying farmers to farmers and then be Australia. If the Australian taxpayer to improve their management practices asked to give more when provides millions, possibly billions of under the NHT and NAP. Why are we there is a need to impose dollars to farmers every year, it seems also providing drought assistance that restrictions on property only fair that they should be obliged to often goes to farmers who have failed provide something back to the to set aside adequate reserves for dry rights in order to improve community. environmental times? In doing so, the Government is often merely rewarding poor outcomes? The preferred policy option is that government subsidies to agriculture are management. A more cost-effective progressively withdrawn, as they have solution is to merge environmental and drought assistance programs so that Despite the Australian taxpayer footing been in most other industries. The winding back of subsidies should be there is a single subsidy that relieves the the bill for this seemingly endless stream financial hardship caused by drought of agricultural subsidies, the National coupled with a process of structural reform to help remove farmers from and includes incentives to improve Party and farm lobby groups continue environmental outcomes. to resist attempts to impose restrictions drought-prone areas and areas of low on the capacity of farmers to clear land productivity. This will not work in all cases. Not all and extract water to protect the In the current political climate, the areas are drought-affected and, even in environment. Their argument is that chances of this occurring are slim. Both drought-affected areas, there will be they should not be forced to carry the the Coalition and the ALP are desperate circumstances where additional measures burden of providing public for rural votes and see rural assistance will be needed to achieve the desired environmental benefits that are programs as an acceptable form of pork- environmental outcomes. But it will primarily demanded by urban residents. barrelling. If neither of the major parties make a fairer, more cost-effective Persuaded by this argument and the lure will confront the need to restructure the drought assistance system and help raise of rural votes, the Federal Government agricultural sector, taxpayers should agricultural standards in the process. n

7 THE AUSTRALIA INSTITUTE Is the Bracks Government Serious about Climate Change? On 27 April 2005, The Age reported that running costs, but also in response to an independent panel had government exhortations to reduce recommended that the Victorian emissions. In this regard, the Victorian Government approve the release of State Government has been among the brown coal resources to allow most vocal. Hazelwood power station, which is due for retirement in 2009, to operate until There are many alternatives to 2031. extending the life of Hazelwood. Most of the practical alternatives still involve Due to its age, technology and the low- the use of fossil fuels, but in ways that grade brown coal it uses, Hazelwood produce far less greenhouse gases. has the distinction of being Australia’s Renewable energy and energy efficiency largest single source of greenhouse gas can also help, but at their present stage emissions, even though, at 1600 MW, it of development will not be the whole

is only the sixth-largest power station. answer. $38-$67 per tonne CO2-e saved. In natural gas areas, the cost is $275-$475

According to the inquiry panel Even without considering renewables per tonne CO2-e, i.e. between ten and appointed by the Minister for Planning, and energy efficiency, emissions could 100 times as great as the alternatives to the proposed extension of Hazelwood be reduced by between 39 per cent and extending Hazelwood. would see the emission of 340 million 71 per cent through using brown coal

tonnes of CO2 over the extended life with a new generation technology, black In its first paper on greenhouse, of the station. It would thus lock in a coal (probably in other states, and published a decade ago, The Australia huge volume of greenhouse gas importing the energy via the national Institute concluded that the first element emissions for decades to come. grid) or natural gas. in a ‘moderate but effective national greenhouse strategy’ was ‘a commitment The cost of generation from the to build no further coal-fired power The decision to allow alternatives would be higher than from stations’. This is still the touchstone of Hazelwood to keep Hazelwood, ranging from an extra cost whether Australian governments are of $4-$13 per tonne CO -e for serious about greenhouse gas reduction. operating would totally 2 advanced brown coal technology, $11- It is a test facing other states as well, negate the patient efforts $19 per tonne for natural gas plant, and notably the imminent decision on new of millions of Australians about $24 per tonne for wind. coal-fired power plants in NSW. But the to reduce greenhouse gas issue could hardly be as urgent or as emissions. The Victorian Government would be sharply defined as it is for Victoria, which hard put to argue against imposing has the most greenhouse-intensive emissions abatement costs such as these power stations in the country. on the Victorian community by On the very day The Age reported the refusing Hazelwood’s extension of The Victorian Government’s rhetoric has Hazelwood story, the Business Council operation, because it has already been exemplary. Earlier this year it for Sustainable Energy conference was mandated far less effective and far more declared that ‘A reduction in greenhouse told that the expected greenhouse gas expensive measures to reduce gas emissions is already urgent, emission savings from Australians greenhouse gas emissions. particularly at a time when energy purchasing more efficient appliances, demand and greenhouse gas emissions due to energy labelling and minimum From July 2004 it has been mandatory are increasing’. energy standards, would total about 204 for every new dwelling constructed in million tonnes between 2005 and 2020. Victoria to have either a rainwater tank If the Bracks Government is serious or a solar water heater. In areas where about this, then it must act to prevent In other words, the decision to allow natural gas is available, the solar water the extension of the operation of Hazelwood to keep operating would heater must be boosted by natural gas; Hazelwood power station beyond 2009. totally negate the patient efforts of where it is not available, the alternatives Measures such as ‘tree planting offsets’ millions of Australians to reduce are boosting by electricity or LPG. or a five per cent increase in the efficiency greenhouse gas emissions. They are of Hazelwood would only be window- doing so largely because they are saving In non-gas areas, mandating solar water dressing, given the sheer magnitude of themselves money through lower heating reduces emissions at a cost of emissions at stake. Continued on page 12

8 THE AUSTRALIA INSTITUTE ZPG for the ACT? Claire Barbato Several weeks ago there was a flurry of Exposing Arguments against ZPG media attention in devoted to the fact that the local population had The Institute’s survey shows that the majority of Canberrans barely grown. The cry was ‘something value the liveability and of the city. But what are must be done’ by government, business some of the arguments commonly put for population growth? and anyone else with the welfare of the ACT at heart. 1. The ageing population The Australia Institute, not convinced The ageing population is a concern for governments right around that Canberrans universally favoured Australia. Any population that stops growing will inevitably living in a frenzied metropolis, experience an ageing in its structure so unless the population of commissioned a survey on the city’s Canberra is to continue to grow forever optimal population. – obviously an impossibility – the ‘problem’ of ageing must be The resulting report How Big Should managed at some point. Why not manage the transition now Canberra Be? was launched by the ACT instead of waiting for environmental, planning and social Chief Minister, Jon Stanhope, at the problems to force the city to curtail its growth? end of May. Liberal Senator Gary Humphries also spoke at the launch. 2. Economic growth depends on population growth The survey revealed that almost three- One of the most common mistakes of the growth argument is quarters (72 per cent) of Canberrans that economic expansion is in itself beneficial. Others believe that believe that the city’s population should there are scale economies to be had from a larger population. In be no bigger than it is now. Of those, fact, the ACT economy, with its extraordinarily high concentrations 64 per cent believe the current of intellect-based, creative and educational industries is perhaps population of around 320,000 is about the local economy least dependent on economies of scale in right while eight per cent believe it Australia. There are no vehicle factories in the ACT. should be smaller. One of the few valid economic arguments in favour of growth A minority of 28 per cent say that is the claim that a slowing growth rate would mean reductions in Canberra is not big enough. When these respondents were asked how big demand for housing and other construction. There is no doubt Canberra’s population should be, a little that the building industry benefits when it can cover more paddocks more than half (52 per cent) said it with roads, houses and shopping centres. On the other hand, a should be less than 500,000. city with a stable population would continue to support a building industry; it would just be smaller and focused on enriching the The majority (59 per cent) believe that existing built environment rather than increasing the sprawl. the quality of life would be harmed if Canberra’s population reached 500,000 3. Growth is good or more, as advocated by some business groups. The most commonly given The growth debate in Canberra is replete with meaningless reasons were ‘environmental problems, assertions that go unchallenged. The Canberra Business Council like water shortages and pollution’ (78 has said ‘It’s about being competitive in a competitive market and per cent) and ‘traffic congestion’ (53 per not waiting for things to happen’. This sort of empty rhetoric cent). Around one third (32 per cent) gains currency by repetition but adds little to debates about optimal believe that a larger population would city size. result in more social problems such as crime, but only 28 per cent are worried 4. Canberra should be more cosmopolitan about additional pressure for inappropriate development. This is an old argument about Canberran identity. It is also an opinion about how people in Canberra should live expressed by The debate about population in people who live elsewhere. For example, demographer Bernard Canberra is bound to continue. The Salt (from Melbourne) said Canberra needed to ‘sex itself up’ to challenge posed by this survey is, as Clive Hamilton said, ‘whether the attract younger people to the city and increase its population. It is future of the city is to reflect the wishes plain this view does not represent the preferences of younger of the citizens of Canberra or the residents; our survey reveals that 63 per cent of 18-34 year-olds financial interests of the development believe that Canberra’s population is about right or too big already. lobby’. n 9 THE AUSTRALIA INSTITUTE Gross National Happiness in Bhutan ‘Gross National Happiness is more important that Gross Domestic Product’, said His Majesty Jigme Singye Wangchuck upon his ascension to the throne of Bhutan, a tiny Himalayan nation nestled between India and Chinese Tibet. Simeon Michaels recently visited Bhutan to investigate.

Hydro Power With high annual rainfall and rivers plunging from the Himalaya almost to sea level, Bhutan has the capacity to generate over 30,000 MW of hydro- electricity. However, to realise this potential fully would require the damming of rivers, relocation of villages and loss of agricultural land, China’s three dams project being a case in point.

In balancing the GNH equation, Bhutan came down on the side of developing its hydro resources, but with an eco- compromise – employing run-of-river technology. Without storage capacity, run-of-river power stations suffer reduced output during the dry season. Power outages are staved off by demand Research on human happiness shows fulfilment. According to a central tenet management initiatives such as that past a certain point, more wealth of Mahayana Buddhism known as the subsidizing energy-efficient light bulbs, does not equal more happiness. We in Middle Path, those conditions are a but are still a regular occurrence. This the developed world, while experiencing balance of spiritual and material well may not be acceptable in Australia, but levels of wealth unprecedented in being, and a life of spiritual devotion for Bhutan, the short term human history, are simultaneously in close harmony with the community ‘unhappiness’ caused by a power outage experiencing unprecedented rates of and the environment. is outweighed by the long term benefits. suicide, depression and loss of community. Commencing in 1972, one of the key achievements of the architects of GNH In that context, Bhutan’s focus on has been the adaptation of this ancient What would an Austra- Gross National Happiness (GNH) Buddhist wisdom to modern political lian version of GNH look shows a rare willingness to re-think the realities. The result is a modernized, like, and how would it operationalised, deliverable framework paradigm of economic growth change our lives? advocated, and often imposed, by the known as ‘The Four Pillars of GNH’: governments and institutions of the · Economic self-sufficiency; global north. · Environmental preservation and In the wet season, Bhutan’s large enhancement; electricity surplus is sold to India, If more wealth does not lead to more providing Bhutan with 37 per cent of happiness, then what does? In the · Cultural promotion; and current annual government revenue, words of Dasho Meghraj Gurung, it is · Good governance, including honest forecast to reach 50 per cent by 2006 – a ‘a vision that puts the individual’s self- well struck balance between cultivation at the center of the nation’s government, decentralisation of power and democratisation. environmental preservation and developmental goals, a primary priority economic self-sufficiency. for Bhutanese society as a whole as well As it progresses from a medieval as for the individual concerned’. kingdom to a modern nation, Bhutan Forest use and protection has set itself the task of strengthening The crucial distinction made here is that all four of these pillars, and ensuring With steep terrain, thin topsoil and slow the Bhutanese government is not that no decisions are made which will growth rates, Bhutan’s forests do not attempting to make each of its citizens fortify one at the expense of the others. recover quickly if clear-felled. Unlike happy. Rather, it sees its role as Following are examples of GNH-based hydro-power, when Bhutan weighed the providing the conditions for self- decision making. economic benefits against the cultural

10 THE AUSTRALIA INSTITUTE

Other illustrations of GNH based never-ending cycle of acquisition, decisions include: construction of overwork, and discontent. The Four university campuses in remote areas to Pillars of GNH prevent rural depopulation; a high- What does seem to lead to happiness is value, low-volume (and very difficult to a sense of belonging and community, a · Economic self- circumvent) tourism policy which focus on internal development, and sufficiency requires a minimum expenditure of devotion to a higher cause – values US$200 per day; health programs run which are as conspicuously present in · Environmental by monks in conjunction with doctors Bhutan as they are increasingly absent preservation and trained in western medicine; and in Australia. enhancement exemplary use of foreign aid to retain debt-free ownership of national The success of GNH in Bhutan leads · Cultural promotion infrastructure. to a series of questions for Australia: Is it time to question the fundamental · Good governance, Modernisation assumptions underlying our pursuit of including honest economic growth? What would an government, In summary, the GNH framework has Australian version of GNH look like, led to led to intelligent, balanced, creative and how would our lives change if decentralisation of and sustainable policy decisions for Australia joined Bhutan in giving equal power and Bhutan. quarter to economic, ecological, social democratisation. and spiritual wellbeing? More recently, Bhutan has begun to confront the dangers of modernisation. Perhaps most tantalizingly, what and environmental costs of forestry, The immediate ramification of the opportunities does the coherent, GNH came down on the side of introduction of television in 1999 was appealing and test-driven platform of protecting forests from use as an income an increase in crime and violence. More Gross National Happiness provide for source. insidious perhaps is the adoption of Australia’s political parties? Western values by Bhutan’s youth. This Legislation now mandates that 60 per experience has led to Bhutan’s emerging Simeon Michaels is Vice President of the cent of Bhutan’s land will remain catch-cry: ‘Modernisation, not Ethical Investment Association. His visit to forested for all time. Export of raw Westernisation’. Indeed, securing the Bhutan was sponsored by the Vincent Fairfax sawlog is prohibited outright. benefits of modernisation (roads, Fellowship operated by the St James Industrial timber usage is also licensed electricity, tractors) without also Centre. He is contactable on and monitored, an example being the importing the cultural deficiencies of the [email protected] n Gedu plywood factory which, despite West (consumerism, loss of initially generating employment and community, MTV) is no easy task. It is profits, was closed due to its hoped that GNH will rise to this The Australia unsustainable timber consumption. challenge, and allow Bhutan to complete Institute The government is supportive of its process of wealth creation without craftsmen who produce low-volume, losing its ecological, cultural and spiritual Members of the Institute high-value carvings for export. integrity. The West faces the same receive our quarterly challenge through the other side of the newsletter and free At a local level, steps have been taken to looking glass. copies manage demand for timber. A strict of recent publications quota system on firewood coupled with Can other countries adopt the GNH (on request). subsidies on metal roofing (replacing framework to attain a balance of wooden shingles) electricity and efficient material and spiritual wellbeing? It If you would like to stoves is ensuring that community use might be argued that the concept of of timber remains sustainable, even as GNH is too uniquely Bhutanese to become a member of population expands due to improved work anywhere else, that the values it the Institute health services. embodies are too foreign to the Western please contact us at: mindset. Level 1, Innovations Bldg It seems that Bhutan, with a per capita Eggleston Road GNP of US$1,400 can ‘afford’ to protect The counter argument is provided by ANU ACT 0200 60 per cent of its forests while Australia, Western scientific research. ‘Happiness with an annual per capita GNP of researchers’ are almost unanimous in Phone: 02 6125 1270 US$30,700 and only nine per cent concluding that past the point of basic Fax: 02 6125 1277 coverage remaining (having cleared 58 comfort, more money adds little to per cent of original forest) cannot happiness. In fact, studies show that Email: [email protected] ‘afford’ to stop wood-chipping our one of the major contributors to remnant native forests. unhappiness is consumerism and its

11 THE AUSTRALIA INSTITUTE Institute notes New Publications Victoria’s Greenhouse Policy: The Moment of Truth, Web Paper, May 2005 R. Denniss, The Attitudes of Young People to the Environment, Web Paper, May 2005 M. Flood and C. Barbato, Off to Work: Commuting in Australia, Discussion Paper No. 78, April 2005. Forthcoming Publications

J. Fingleton, ed., Privatising Land in the Pacific: A defence of customary tenures, Discussion Paper No. 80, June 2005 P. N. Junankar, Who is Better at Managing the Australian Economy: Labor or the Coalition? Discussion Paper No. 79, June 2005 Who owns 4WDs? Young people’s attitudes to work and career

The Institute’s Response to the 2005 Budget

“The 2005 budget is a missed opportunity. The Government has been spending like a drunken sailor and when it’s not doing that it’s robbing Peter to pay Paul. It’s too little too late using too much stick and not enough carrot. At the end of the day, the budget is all smoke and mirrors.”

Climate Change from page 8 Certainly, both carbon sinks and major improvements (far greater than five per INSTITUTE NEWS cent) in the efficiency of all fossil fuel The cost of membership has remained unchanged since power stations will be essential, but in 2000 and regrettably the time has come to put prices addition to, not instead of, reductions in the greenhouse-intensity of electricity up. Full membership will now cost $88, memberships generation. Approving 340 million for libraries $150 and concessional memberships $44 tonnes of emissions just makes the per year. The criterion to qualify for concessional starting point all the more difficult. membership will be an income of less than $30,000 per year. The new prices appear on the Membership Re- If the Victorian Government is newal Forms sent to members with this Newsletter. unwilling to act on an issue as clear-cut as this and with such obvious The Institute has installed a facility on its website alternatives, then perhaps its most enabling orders to be made and paid for electronically useful contribution to the greenhouse via the site. Currently payment can only be made by issue would be to refrain from credit card or cheque but further enhancements in the publishing more strategies, and at least form of BPay and direct debits are due within a month leave some more carbon standing in the forests. n or so and will be added as they become available. Links to use this facility can be found on the Publications and A more detailed paper is available under Membership pages of the website. What’s New on the Institute’s website.

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