Australia's Economic Plan Spurs Business Volatility

MELBOURNE: Sunday 3 November 2024– The Centre for Optimism today launched a groundbreaking Economic Framework aimed at transforming Australia's narrative from one of crisis to one of opportunity.

The Centre emphasises the importance of optimism in fostering innovation, resilience, and sustainable growth.

The Centre's six-steps framework seeks to inspire a shift towards a positive outlook in economic planning, backed by the recent UN Pact for the Future which highlights the need for change, cautioning against the risks of despair.

The Centre's COO Victor Perton said today the Centre's research highlights that embracing optimism Australia can unlock new pathways for entrepreneurship and economic performance.

"It's crunch time for Australia's small business sector, let alone the broader economy," he said. "Australia experiencing dramatic business volatility. We cannot continue having 362,893 businesses closing their doors, as was the case in 2023-24. This staggering 14% exit rate shows that change is needed urgently.

"The Australian narrative is dominated by too much negativity. We believe it's time to focus on the potential for prosperity and resilience. Our Economic framework builds on extensive research that shows optimism is not a 'feel-good' sentiment, but a vital catalyst for innovation and economic success."

Mr. Perton said this was confirmed at the recent 2024 Commonwealth Heads of Government Meeting (CHOGM) in Apia, Samoa. The meeting confirmed the importance of "optimism" amongst its members and people, and in its final declaration commitment the Commonwealth to "hope and optimism in our common future".

"This communique marks a significant turn-around for CHOGM members and their economic outlooks. They have moved away from doom and gloom and press predications of unresolvable disputes and problems," he said.

"This reinforces our foundations for Australia in adopting the Centre's Economic Framework to transform Australia's economic future."

The Optimistic Economic framework also builds on the Centre's recently released Optimism Principle, which emphasises optimism as a strategic planning imperative for both businesses and governments.

Key Highlights of the Optimistic Economic Framework are:

1. Unified National Vision: A call for a long-term, bipartisan agreement to set a collective vision for Australia's future, positioning the country as a leader in sustainable solutions and innovation.
2. National Fourth Industrial Revolution (4IR) Plan: Promoting domestic manufacturing and technological advancements to enhance productivity and create jobs in emerging industries.
3. Transformational Change: Implement large-scale, well-designed policy initiatives with the focus on rapid reskilling, upskilling and fostering entrepreneurship to absorb new capabilities in the workforce and companies.
4. Opportunity Engines: Developing and implement initiatives designed to address pressing challenges, such as sustainable housing and climate resilience, transforming perceived crises into opportunities for growth.
5. Enhancing Competitive Environment: A commitment to regulatory frameworks that support business innovation and community welfare, fostering trusting collaboration between government, businesses, and citizens.
6. Embracing Institutional Change: Strengthening partnerships among various sectors to ensure a cohesive approach to economic and social development.

The Centre for Optimism echoes the sentiments of renowned economists, such as John Maynard Keynes, who recognised optimism as a driving force behind positive action. This approach is also reflected in recent research from the University of Sydney, which highlights optimism among business leaders significantly boosting innovation and economic performance.

The Centre's Chief Economist Dr Anand Kulkarni said that ultimately, optimism should form "the backbone of Australia's new economic agenda".

"By acting together, government, businesses, and communities can drive a prosperous and sustainable future.

"The six key principles of our Framework reflect this and provide the pathway," he said. "As outlined in The Optimist's Checklist for Success in Transformation and Change, the keys to navigating change successfully include creating an optimistic culture, promoting strategic foresight, and enabling the workforce to embrace new skills."

Mr. Perton added: "By adopting a collaborative optimistic approach, Australia can continue to thrive and lead in a rapidly changing world.

"We invite everyone—government, businesses, and communities—to join us in realising this vision."