Australia became a commonwealth of the British Empire in 1901. It was able to take advantage of its natural resources to rapidly develop its agricultural and manufacturing industries and to make a major contribution to the British effort in World Wars I and II. Now, Australia has a prosperous Western-style capitalist economy, with a per capita GDP at the level of the four dominant West European economies. Rich in natural resources, Australia is a major exporter of agricultural products, minerals, metals, and fossil fuels. Commodities account for 57% of the value of total exports, so that a downturn in world commodity prices can have a big impact on the economy. The government is pushing for increased exports of manufactured goods, but competition in international markets continues to be severe. While Australia has suffered from the low growth and high unemployment characterizing the OECD countries in the early 1990s and during the recent financial problems in East Asia, the economy has expanded at a solid 4% annual growth pace in the last five years. Canberra's emphasis on reforms is a key factor behind the economy's resilience to the regional crisis and its stronger than expected growth rate. Growth in 2000 will depend on key international commodity prices, the extent of recovery in nearby Asian economies, and the strength of US and European markets. Australia's economy is basically free-enterprise in structure, and its largest components are finance, manufacturing, services, and trade. The gross national product (GNP) is increasing more rapidly than the population, and the GNP per capita is comparable to those of other industrialized countries. Agriculture produces 4 percent of the gross domestic product (GDP) and occupies an almost equal proportion of the labour force. Arable land totals approximately 6 percent of the total area; of that, about one-third requires irrigation. Wheat and sugarcane are the leading crops, follow...
