Comparison of Australian and Indonesian Economy
The major points of contrast between the Australian and Indonesian economies are: GDP, GDP growth, inflation, unemployment and quality of life. In this essay I will also discuss the quality of the environment in each. There is also a large contrast between the land area and population of each nation.
The World Bank classifies Australia as a developed economy. It is a mixed market economy because the price mechanism works within the framework of government controls. 84% of the workforce is involved in service, 11% in manufacturing, and 10% in primary industry. In 2002, it was ranked 12th in the world in terms of per capita income. Indonesia is a developing economy. It relies heavily on primary industry and agriculture for domestic and international income, although, it is industrializing. 50% of the workforce is involved in agriculture, 35% is involved in manufacturing, and 15% is involved in services. In 2002 it was ranked 111th in the world in terms of per capita income.
Australia has a much larger surface area than Indonesia, and a much smaller population. Australia has a surface area of 7692 thousand sq km, whilst Indonesia has a surface area of 1905 thousand sq km. Australia’s population in 2004 was 20.2 million, whilst Indonesia in the same year was 223.8 million. It is important to note that because of Indonesia’s much higher population compared to Australia; it has a much lower GDP per capita, as GDP per capita is calculated as GDP/population.
In 2005, Indonesia’s GDP was US$280.9 billion; its GDP per capita was US$1237. In 2005, Australia’s GDP was US$692.4 billion; its GDP per capita was US$33629. This huge difference in GDP per capita is a result of the major difference in population size. From 2001-2002, Australia’s GDP increased by 3.5%. In the same time Indonesia’s GDP increased by 3.7%. This indicates that both economies are growing. Indonesia’s economy has been growing more than the...
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