The Centre for Optimism today urged government, business and the community to adopt a bold, optimistic mindset to drive economic growth, innovation and productivity.
By embracing the principles of the Optimistic Economy, the Optimism Principle, and the Optimism Effect, Australia can unlock new opportunities for productivity, innovation, and prosperity.
This renewed call comes as inflation eases and expectations grow that the Reserve Bank will cut interest rates in February, providing a critical opportunity for renewed confidence and investment in innovation.
The Centre for Optimism's COO, Victor Perton, said Australians should seize the moment and take bold action.
"Pessimism, anxiety, distrust, and a cycle of negativity have taken a toll on Australians and their outlook for the future," he said.
"The lingering impact of COVID-19 and prolonged lockdowns has deepened this decline, leaving a lasting effect on national confidence and social cohesion. The diminishing focus on our national strengths and values has further eroded optimism. Global surveys show a dramatic decline in Australian optimism, with Australians tending to be less optimistic than people in other nations about both our country and the world."
Mr. Perton emphasised that global leaders increasingly recognise that optimism requires action, not just rhetoric.
"It's not enough for leaders to simply say they are optimistic. They must generate infectious optimism by actively engaging with people—asking what makes them optimistic and how they can spread that optimism to those around them. True leadership is about fostering a culture where optimism is actionable and shared," he said.
The Centre's call aligns with Prime Minister Albanese's Australia Day message, which emphasised the "opportunity to celebrate everything we've built together and be optimistic for the future we can shape together."
It also meets the challenge of last week's Davos meeting of the World Economic Forum in which "Declining Optimism" was highlighted at the first mentioned global risk in the EWEF Annual Global Risks Report.
This urgency for optimism is not just an Australian issue—it has been recognized globally, with leaders at last week's World Economic Forum in Davos, the Commonwealth Heads of Government Meeting in October, and by the OECD, reinforcing that optimism is not just a desirable trait—it is a strategic economic and social imperative.
The Centre for Optimism's Chief Economist, Dr. Anand Kulkarni, echoed this sentiment, urging Australia to adopt the 2025 World Economic Forum's call for cooperation and constructive optimism to shape a sustainable and inclusive future.
He highlighted that the Centre's updated Optimistic Economic Program aligns with this vision and called on leaders across politics, business, and the community to embrace this optimistic agenda for the nation's advancement.
"They must embrace a spirit of co-operation and constructive optimism with the objective of shaping the forthcoming intelligent Age in a more sustainable and inclusive way," he added. "This is the way forward for our great nation."
Dr. Kulkarni reinforced this by highlighting that while Australia excels in resilience, talent, and education, it is crucial for the nation to focus on innovation to boost economic performance and social prosperity.
"It's time for governments and our people to focus on the importance of innovation in enhancing our economic performance and social prosperity through promoting positive mindsets, growth and expansion, innovation and bold approaches to the future," he added.
Turning this around requires a national shift in mindset—one that embraces innovation, bold action, and collaboration at all levels of government, business, and community.
"This national call for optimism is not just about sentiment; it is about real economic transformation. The Centre's Optimistic Economic Program lays out a clear path for Australia to harness optimism as a driver of productivity, innovation, and prosperity," said Dr Kulkarni.
The Optimistic Economic Program builds on the Centre's Optimism Principle and the Framework for an Optimistic Australian National Narrative.
The program comprises six (6) core elements. The full version is on https://www.centreforoptimism.com
Unified National Vision: Establish a long-term, bipartisan vision for Australia over the next 30 to 50 years, focusing on leadership in energy, food production, and urban design. This vision will promote optimism, investment, and innovation, guided by strategic foresight and collaboration among government, businesses, and communities.
National 4IR Plan: Develop a plan for the Fourth Industrial Revolution (4IR) leveraging technologies like AI and 3D printing. The "Made in Australia" initiative will boost local manufacturing and innovation, enhancing productivity and job creation in advanced sectors while reducing import reliance.
Managing Transformation: Facilitate change through large-scale policies that emphasize reskilling and entrepreneurship rather than protectionism. Key to this is fostering an optimistic culture and enabling workforce adaptability, aligning skills with future job demands like analytical thinking and creative problem-solving.
Opportunity Engines: Promote "opportunity engines" that address complex challenges with innovative solutions—such as sustainable housing, improved urban spaces, support for the care sector, and integrated health approaches—aligned with the concept of a "Mission economy."
Competitive Environment: Create a coordinated regulatory framework that considers the comprehensive costs and benefits for businesses. The World Bank's report emphasizes a lifecycle approach to policy tailored to different stages of a firm's operations, enhancing economic optimism.
Institutional Change: Strengthen collaboration among government, businesses, and the workforce to support the Optimistic Vision through necessary institutional reforms.
