Subjects: World Economic Forum; economy.
E&OE...........
ROSSELL:
I have the pleasure of sitting right across from Mr John Howard, Prime Minister of Australia. He has come here to the World Economic Forum and I';m just a little bit curious – what would draw a world leader like you to an event like this?
PRIME MINISTER:
Well it brings together an enormous spectrum of world business leaders but there are also a number of major political figures in the world including the American Secretary of State. And of course it being held in New York it enables me to do other things while I';m in New York as well.
ROSSELL:
Like what?
PRIME MINISTER:
Well, I';ll meet other leading financial figures who I would want to see anyway, and I saw the provisional Prime Minister of Afghanistan yesterday. It';s the sort of meeting and the sort of location that enables you to kill many birds with the one stone.
ROSSELL:
Yeah it does kind of cut down costs just a little bit.
PRIME MINISTER:
[inaudible] you could put it that way, yes.
ROSSELL:
What are you expecting to take away from this meeting?
PRIME MINISTER:
Just a slightly better understanding of what';s going to happen with the American economy which I';m pretty optimistic about, and I think in a small way make a contribution to a better understanding of the globalisation processes and the challenges facing us. I think everybody who understands what';s happened in the world in the last few years knows that we have to push ahead with globalisation. I think all of us have to do more to explain it. I don';t think either businessmen or political leaders explained the benefits of globalisation quite as well as they might. I think Davos does make a contribution to that and the fact that it';s being held in New York for obvious reasons gives it I think a greater focus this year and it';s obviously far more strongly supported this year than on earlier occasions.
ROSSELL:
As I was walking around outside and saw all the security I was really reminded of what';s likely to happen in a few weeks at the Olympics. You of course presided over the Sydney Olympics a few years ago. Do you have any advice for Salt Lake City? You know, what are they going to do in an environment like this?
PRIME MINISTER:
Look I';m an optimist. I saw what happened, people grizzled a bit before the Sydney Games started and once they got going everybody got together and worked and made it a huge success and I';m sure Salt Lake City will be the same. I';m an optimist.
ROSSELL:
You';re an optimist. You know I';m an optimist too. The Australian economy has been one of those unnoticed economic miracles sort of out there - an island all by itself. How';s the Australian economy doing right now considering that it tends to be more natural resource based than service economy based?
PRIME MINISTER:
That';s changing. We have strong natural resources but we also have a very strong service sector, very strong financial services, very strong IT and it';ll go very well this year. The Economist magazine predicts it will grow faster than any industrialised country in the world. I hope that';s right but whether it';s right or close to right doesn';t really matter. I think the main reason we';ve done well and will continue to do well is that we';ve undertaken a lot of structural reforms - labour market, a new tax system, further financial deregulation, strong pro-competition policies. All of those things have created very strong productivity growth and as you know from the American experience strong productivity growth is really the key to a sustained non-inflationary boom if you like and I think essentially they';re the sort of conditions we';ve had.
ROSSELL:
Well considering structural reforms are really on the agenda for a lot of countries right now, particularly places like Japan, maybe they';ll have some lessons to learn from Australia. Mr Howard thank you very much for joining me today. I really appreciate you taking time out of your schedule to be here.
PRIME MINISTER:
Thank you.
[Ends]