WINNING ELECTIONS: LESSONS FROM THE AUSTRALIAN LABOR PARTY 1983-1996 i The Institute of International Studies (IIS), Department of International Relations, Universitas Gadjah Mada, is a research institution focused on the study on phenomenon in international relations, whether on theoretical or practical level. The study is based on the researches oriented to problem solving, with innovative and collaborative organization, by involving researcher resources with reliable capacity and tight society social network. As its commitments toward just, peace and civility values through actions, reflections and emancipations. In order to design a more specific and on target activity, The Institute developed four core research clusters on Globalization and Cities Development, Peace Building and Radical Violence, Humanitarian Action and Diplomacy and Foreign Policy. This institute also encourages a holistic study which is based on contempo- rary internationalSTRATEGY relations study scope TO and WIN approach. AN ELECTION: ii WINNING ELECTIONS: LESSONS FROM THE AUSTRALIAN LABOR PARTY 1983-1996 By Dafri Agussalim INSTITUTE OF INTERNATIONAL STUDIES DEPARTMENT OF INTERNATIONAL RELATIONS UNIVERSITAS GADJAH MADA iii WINNING ELECTIONS: LESSONS FROM THE AUSTRALIAN LABOR PARTY 1983-1996 Penulis: Dafri Agussalim Copyright© 2011, Dafri Agussalim Cover diolah dari: www.biogenidec.com dan http:www.foto.detik.com Diterbitkan oleh Institute of International Studies Jurusan Ilmu Hubungan Internasional, Fakultas Ilmu Sosial dan Ilmu Politik Universitas Gadjah Mada Cetakan I: 2011 x + 244 hlm; 14 cm x 21 cm ISBN: 978-602-99702-7-2 Fisipol UGM Gedung Bulaksumur Sayap Utara Lt. 1 Jl. Sosio-Justisia, Bulaksumur, Yogyakarta 55281 Telp: 0274 563362 ext 115 Fax.0274 563362 ext.116 Website: http://www.iis-ugm.org E-mail: [email protected] iv ACKNOWLEDGMENTS This book is a revised version of my Master of Arts (MA) thesis, which was written between 1994-1995 in the Australian National University, Canberra Australia. After more than 15 years, I decide to publish this thesis in a book format for at least two aims and reasons. First, to provide additional resource for the students of Australian Studies, especially those who are interested in studying Australian Politics dan Government in Indonesia. I believe that this book is still relevant as a resource to understand why and how the present Australian Labor Party successfully defeated Leberal Party/National Party Coalition in 2007 federal election and be able to maintain its power till now. Furthermore, this book also can be used as a useful resurces to understand the way the existing Australian Labor Party government managing the government and politics of Australia. In order to keep the substance of this book is still relevant with the contemporary Australian political development, I have made some correction, up dating and adjustment to the manuscript. Second, this book which explores the strategic and management practices adopted by the Australian Labor Party under Hawke/Keating leadership in 1983-1996 is relevant to states which are in transition process to democracy like Indoensia. The Australian Labor Party experiences in 1983-1996 provides a good lesson to any political party in a country like Indonesia how to become a professional party and able to contribute to the demoratization process in its own country. For instance, political parties can learn much from the Australian Labor Party how to win a national election (to get in power) and v maintain it as long as possible, through professional, democratic and, more important, non-violent way and mechanism. There are too many scholars, students, colleagues to thanks in relation to the whole proceess of publication of this book. I would like to acknowledge my gratitude to my supervisor, Dr. Rolf Gerritsen, who patiently and enthusiastically gave me every encouragement, conscientious guidance and many valuable insights so that I could finish this work. Without his assistance and encouragement this work would not have been possible. Later on, Dr. Rolf Gerritsen was not only my formal academic supervisor at the ANU but he and his family became my family close friends. I also would like to express my deeply indebtedness to staff of the Study Skills Centre, particularly John Clanchy and Brigid Ballard who patiently and tirelessly helped me in correcting the drafts of this book, discussing the arguments as well as helping me in solving the problems that I often faced while I was studying in the Australian National University. I feel that the relationships with both of them were more than just formal or working relationships, in fact I regarded them as personal close friends to whom I could talk and express whatever problems I faced, even personal problems. They gave me a lot of moral support so that I could enjoy and have more confidence in my study. My thanks to Mrs. Alicia Curtis, staff of the Australian International Development Assistance Bureau (AIDAB), and Mrs. Susan Lindsay, staff of Public Policy Program, Department of Political Science, A.N.U, for giving me help and support that I need to finish my study. I also would like to thank the former ALP's national Secretary, Gary Gray, and Ian Henderson (formerly vi Assistant National Secretary) for the interviews, and my friend Rod McGibbon for his support and guidance when I was faced with a critical moment in my study. I would like to thank all staffs of the Department of Political Science, Faculty of Arts, The Australian National University, particularly Dr. Marian Simms, Dr. John Ballard, Dr. Rick Kuhn and Dr. Jim George for their enlighthening lectures and support while I was doing my coursework at the Australian National University. My special thanks to Greg Fry, the Director of Graduate School in International Affairs, the Australian National University for his invitation to visit Canberra again and doing a research in at the ANU in 2010. While I and my family were there, he has not only given me a lot of brilliant ideas and encouragement so I can publish this book, but he and his family- Anne Barlett and Nikki, also has made our visit to Canberra became enjoyable. I would like to give the same thanks to Paul Keal, Leoni and Hanna, David and Belinda for their frienship and helps while we were in Canberra. I am also grateful to the Australian government for making me possible to do a research and re-write the manuscripts of this book through its Endeavour Awards Scholarship program 2010. I thank my close friend, Nanang Supriono, for digitalizing this manuscript from its original format, and Dedy Permady, my young and energic colleague, who give me any support that I need to publish this book. My special thanks the Institute for International Studies (IIS), Department of International Relations, Faculty of Social and Political Sciences, Universitas Gadjah Mada. This book would not be existing without support from the IIS. Finally, I would like to express my special acknowledgement to my wife Sumi, my pretty doughters, Amalia and Heidy, and my young and vii handsome hero, Alhaqi, for their patience and support in seeing the completion of this book. Dafri Agussalim Department of International Relations Faculty of Social and Political Sciences Universitas Gadjah Mada viii TABLE OF CONTENTS Acknowledgments ......................................................... v Table of Contents .......................................................... ix Introduction ................................................................... 1 Part One Background: Labor 1972 - 1982 Chapter One: The Legacy of the Whitlam Government 1.1. Economic Mismanagement ................................... 10 1.2. Lack of Planning ................................................... 16 1.3. Mode of Government ............................................ 21 1.4. Relations with Trade Unions and Business........... 29 1.5. Mass Media Management ..................................... 24 Chapter Two: Reconstructing Labor Under Hayden 2.1. Restructuring the Party.......................................... 37 2.2. Reforming Machine Politics ................................. 45 2.3. The Need For Economic Management ................. 52 2.4. Approaching the Unions ....................................... 58 Part Two The Hawke - Keating Era: Labor 1983 – 1993 Chapter Three: Labor Under Hawke: The New Directions 3.1.1. Managing the Cabinet ......................................... 66 3.1.2. Managing the Bureaucracy ................................. 74 3.2.1. New Policy Directions ........................................ 80 3.2.2. Consensus Politics and the Accord ..................... 85 3.2.3. Embracing Business ............................................ 91 3.2.4. Managing Exogenous Shocks ............................. 98 3.2.5. Managing External Problems .............................. 102 3.2.6. The 1987 Share Market Crash ............................ 107 ix 3.2.7. The Economic Impact of the Accord .................. 111 3.2.8. Resilience of the Accord ..................................... 116 Chapter Four: Labor "New Politics" and Media Management 4.1.1. The Rise of "New Politics" ................................. 121 4.1.2. The Franklin Dam Case ..................................... 124 4.1.3. Hard Choices: Economic and Environmental Imperatives .......................................................... 128 4.1.4. "Green Strategy" in Progress ............................. 132 4.1.5. The Final Test: 1990 Election ............................ 134 4.1.6.