
Australia is one of the most multicultural countries in the world, with a highly skilled workforce and a strong, open economy. It has a diverse and pluralistic society, rooted in liberal democratic traditions and influenced by its Indigenous, British, and migrant populations. Australia's foreign relations and policies have been significantly influenced by other countries, including its historical ties with the British Empire, its security alliance with the United States, and its economic partnerships with various nations. Australian culture, cuisine, business, arts, and sports have also been shaped by external influences, reflecting the country's diverse and dynamic nature.
| Characteristics | Values |
|---|---|
| Multiculturalism | Australia is one of the most multicultural countries in the world, with people from 200 countries accounting for more than 43% of the population either being born overseas or having one parent born overseas. |
| Democracy | Australia has a proud history of democracy and stable government. |
| Indigenous Peoples | Aboriginal Australians have lived on and managed the land for more than 60,000 years and possess one of the oldest living cultures in the world. |
| Foreign Relations | Australia has strong foreign relations with the United States, New Zealand, and other countries in the Asia-Pacific region. |
| Economy | Australia has one of the fastest-growing economies among major developed countries, with a strong focus on international trade and natural resource exports. |
| Education | Australia has the highest ratio of international students per head of population, with international education being one of the country's largest exports. |
| Culture | Australian culture is influenced by its British colonial history, Indigenous heritage, and waves of multi-ethnic migration, shaping various aspects of Australian life, including sports, cuisine, and the arts. |
| Environment | Australia is vulnerable to climate change impacts, such as increased temperatures, extreme weather events, and frequent droughts and flooding. |
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What You'll Learn

Australia's foreign policy
History and Cultural Diversity:
Australia has a long history of Indigenous peoples, dating back over 60,000 years. The British colonisation of Australia began in 1788, bringing with it Western influences and a wave of multi-ethnic migration, primarily from Anglo-Celtic origins. This migration has continued post-1945, shaping Australian culture, values, and society. Australia's early treatment of Indigenous peoples was marked by conflict and mistreatment, but since the 1960s, the government has worked towards reconciliation, including a formal apology in 2008.
Economic Interests:
Australia has a strong and open economy, with plentiful natural resources, a sophisticated services sector, and a highly skilled workforce. It has fifteen Free Trade Agreements (FTAs) with 26 countries, promoting export markets and international trade. Australia has a trade-exposed economy, meaning changes in global demand for its goods and services can significantly impact its economy. For example, the post-war boom increased demand for commodities, benefiting rural producers and miners, with Japan becoming Australia's largest customer. Australia also experienced a terms-of-trade boom from 2005 to 2011 due to increased global demand for commodities like iron ore, coal, and natural gas.
Strategic Alliances:
Australia has a strong security alliance with the United States, formalised by the ANZUS Treaty in 1951. It also has long-term links with New Zealand, as seen in the ANZAC pact, and robust defence ties with several Asian countries, including India, Indonesia, Japan, and South Korea. Australia actively engages in international organisations, such as the Commonwealth Heads of Government and the Pacific Islands Forum, and has been a leader in the Cairns Group for agricultural trade reform.
Foreign Policy Development:
The 1920s marked the genesis of distinct Australian foreign policy, influenced by its changing relationship with the British Empire post-World War I. The Lyons government in 1932 furthered this development with initiatives in the Asia-Pacific region. Australia played a role in the Far Eastern Commission in Japan and supported Indonesian independence. Australia was a founding member of the United Nations in 1945 and has since actively participated in peace and security operations worldwide.
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Influence of British colonialism
Australia was a collection of British colonies from 1788 until 1901. The British colonisation of Australia began with the arrival of the First Fleet in 1788, and waves of multi-ethnic (primarily Anglo-Celtic) migration followed shortly thereafter. The early colonial years of Australia were difficult, with settlers having little to no understanding of the environment, including the land, climate, plants, and animals. They also angered the local Indigenous population by destroying their traditional lands.
The first colonies were established as convict settlements or penal colonies, where criminals were sent to live and work as punishment. Convicts with special skills, such as leatherwork, blacksmithing, or carpentry, were tasked with building the colonies. Later, colonies were established by free settlers, who were usually seafaring men who remained in Australia at the end of their contracts. These free settlers were given free land, farming tools, and convict labour by the British government.
Several states and territories had their origins as these penal colonies, with this convict heritage having an enduring effect on Australian music, cinema, and literature. Manifestations of British colonial heritage in Australia include the primacy of the English language and Western Christianity, the institution of constitutional monarchy, a Westminster-style system of democratic parliamentary government, and Australia's inclusion within the Commonwealth of Nations.
British colonial influence is also evident in Australian sports. Early colonial Australian sports were influenced by British sport heritage brought by the convicts and free settlers, serving as a nostalgic link to their nations of origin. As a result, many Australians are passionate about sports, and it forms a significant part of the country's culture and economy. Cricket is popular in the summer, and football codes are popular in the winter.
The British military also played a role in Australia's colonial history. British troops were involved in suppressing convict rebellions and battling insurgent miners, such as at the Eureka Stockade in 1854. However, they rarely engaged with Indigenous Australians, with most of the fighting conducted by settlers and police. By the 1870s, the colonies assumed responsibility for their defence as the British troops left.
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Multiculturalism and immigration
Australia's immigration policies have evolved over time, reflecting the country's changing attitudes towards cultural diversity. The White Australia Policy, formally known as the Immigration Restriction Act, was introduced in 1901 to curb Chinese immigration during the gold rush of the 19th century. This policy, which favoured British migrants, remained in place until the 1970s, when it was gradually dismantled due to its racist underpinnings.
The shift away from the White Australia Policy marked a turning point in Australia's immigration policies. The new Labor government, led by Prime Minister Gough Whitlam, implemented the Universal Migration Policy in 1973. This radical change allowed anyone to apply to migrate to Australia without facing discrimination based on ethnicity, gender, or religion. The focus shifted to attracting skilled and professional workers who could contribute to the country's economic growth.
The 1970s also saw the arrival of the first Asian refugees as part of assistance programs with the United Nations. As the Vietnam War ended, refugees from Southeast Asia, fleeing persecution by communist regimes, made their way to Australia. By 1985, over 75,000 refugees from this region had found a new home in the country.
Since the end of World War II, Australia has welcomed about 600,000 refugees and displaced persons, with a significant proportion of its population now having at least one foreign-born parent. The country has also seen waves of immigrants from various regions, including South and Central America, the Middle East, Afghanistan, China, and the Balkans, due to global crises and persecution.
While Australia's embrace of multiculturalism has been largely successful, there have been challenges. Concerns about national identity, globalisation, and population growth have influenced public support for multiculturalism. Additionally, terrorist attacks by individuals with Muslim backgrounds have impacted government support for multicultural policies, despite the broader success of integration and adaptation among different cultural groups.
Despite these challenges, Australia remains a leader in successful multiculturalism and immigration. The country consistently ranks as one of the most receptive to immigration, with its diverse population contributing to its strong economy and peaceful society.
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Trade and the economy
Australia's economy is heavily influenced by its trade relationships with other countries. Australia has a relatively open, trade-exposed economy, meaning that changes in global demand for its goods and services can significantly impact its economy. The country has plentiful natural resources, including the second-largest accessible reserves of iron ore and the fifth-largest reserves of coal, which have historically made up a large share of its exports.
From the early 1900s to the 1950s, Australia primarily exported agricultural products (such as wool, wheat, and dairy) and gold to the United Kingdom and other European economies. After World War II, exports of resources, manufactured goods, and services became more important, and Australia's trade orientation shifted towards the rapidly growing Asian economies, including Japan, South Korea, and later, China. The industrialisation and urbanisation of these economies increased their demand for Australia's natural resources, which are crucial for construction, manufacturing, and power generation.
In the 2000s, global demand for commodities like iron ore, coal, and natural gas, which are used to produce steel and generate energy, rose sharply. This was driven by rapid urbanisation and industrialisation in China and other emerging economies. As a result, Australia's terms of trade reached very high levels, with a significant increase in its terms of trade from 2005 to 2011. This boom was driven by large increases in the prices of some of Australia's commodity exports. During this period, Australia's economy was influenced by the economic growth of China, with the mining sector experiencing increased profits and government revenues.
However, a decline in commodity prices can negatively impact Australia's economy. For instance, a decrease in demand for commodities from China and other parts of Asia can lead to a decline in Australia's terms of trade, affecting GDP growth, employment, profits, and fiscal revenues.
Australia has also benefited from foreign investment, which has played a growing role in its economy over the past two decades. The country has entered into numerous free trade agreements, including with ASEAN, Canada, Chile, China, South Korea, Malaysia, New Zealand, Peru, Japan, Singapore, Thailand, and the United States. Australia's average GDP growth rate from 1901 to 2000 was 3.4% annually, and its per-capita GDP is higher than that of many comparable countries.
In summary, Australia's trade and economy are strongly influenced by its natural resources and exports, particularly to Asian markets. The country's open economy makes it susceptible to fluctuations in global demand and commodity prices, highlighting the importance of trade relationships and the performance of key trading partners in shaping Australia's economic trajectory.
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Security and defence alliances
Australia's security and defence alliances have been influenced by several factors, including its historical ties, geopolitical considerations, and responses to emerging threats. As a middle power, Australia has sought to maintain strong bilateral relations with its allies while contributing to multilateral security initiatives.
During the Cold War, Australia firmly aligned itself with the Western powers, particularly the United States. This alignment saw Australia contribute troops to the Korean War and the conflict in Vietnam, as well as actively participate in the Five Eyes intelligence alliance and the Australia-New Zealand-United Kingdom agreement. The country's security and defence policies were also influenced by its desire to counter the spread of communism in Southeast Asia, as evidenced by its involvement in Malaya and Sarawak.
In recent years, Australia's security and defence alliances have been shaped by its response to a rising China and the growing competition between China and the United States in the Indo-Pacific region. Australia has sought to strengthen its defence capabilities and increase its defence budget significantly. It has also pursued new security partnerships, such as the Quadrilateral Security Dialogue with India and Japan, and the AUKUS security partnership with the United States and the United Kingdom. These moves signal a shift in Australia's defence posture, with a focus on deterring attacks and maintaining stability in the Indo-Pacific.
Additionally, Australia has a long-standing alliance with New Zealand, dating back to the 1800s, and maintains significant ties with ASEAN. Australia has also played a leading role in providing humanitarian aid and has been active in United Nations peacekeeping missions.
Australia's security and defence policies have evolved to address emerging challenges, such as the impact of global warming and the complex geopolitical landscape characterised by great power competition and grey zone activities. The country's 2020 Defence Strategic Update underscores its commitment to enhancing defence capabilities and strengthening alliances, particularly with the United States, to address these evolving security dynamics.
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Frequently asked questions
Australia's foreign policy has been influenced by several factors, including its historical ties to the British Empire, its participation in World War I, and its desire to promote peace and security in the region. Australia has a strong security alliance with the United States, formalised by the ANZUS Treaty in 1951, and has also played a role in regional missions in the Solomon Islands, Timor-Leste, and Papua New Guinea.
Australia has a relatively open and trade-exposed economy, meaning that changes in global demand for its commodities, such as iron ore, coal, and natural gas, can significantly impact its economic growth. Australia has fifteen Free Trade Agreements (FTAs) with 26 countries, contributing to its strong economic position.
Australian culture has been influenced by its British colonial heritage, Indigenous traditions, and post-1945 multicultural immigration. Early colonial sports, such as cricket, were influenced by British settlers, while Australian cuisine, such as fish and chips, reflects British and Irish influences. Australia's arts and literature also show European influences, with composers like Percy Grainger drawing inspiration from folk music and orchestral traditions.
Australia is one of the most multicultural countries, with people from over 200 countries making up its population. Since 1945, Australia has welcomed over 6.5 million migrants, and as of 2019, international students represented 26.7% of the student bodies in Australian universities. This diversity has shaped various aspects of Australian life, including business, arts, cuisine, and sporting tastes.































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