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Professor Mark Wooden says governments should focus on job creation instead of job protection to halt rising unemployment.

Professor Wooden says state and federal government policies focused on saving jobs are “misplaced” and should be redirected toward job creation.

He says a number of declining industries are going to die out no matter how much funding is provided, and that the recession is “just the mechanism that accelerates the process”.

“Government policy has to think not only about saving jobs but also creating jobs and creating conditions under which employers feel a little less cautious about hiring people,” he says.

“I think this idea gets a little lost when we are too focused on job preservation”.

Professor Wooden agreed that the inclusion of an $8 billion investment toward major projects in the new Victorian State Government budget - with the intention of creating 35,000 jobs - was a good one.

Professor Mark Wooden is Deputy Director of the Melbourne Institute of Applied Economic and Social Research.

Professor Lyn Yates says funding for school buildings and facilities will help improve student morale and retention rates.

In today’s state budget, the Victorian Government has allocated $402 million toward the rebuilding and renovation of 113 state government schools across the state. These funds will be combined with the Federal government’s allocation of $686 million for Victorian schools’ infrastructure projects.

Professor Yates said receiving such a large amount of funding from the Federal government in such dire financial times was an encouraging sign that the Government was taking investment in education seriously and that the funding will do a lot more than simply make things look “shiny and new.”

“Teachers, students and parents really get a sense of whether or not they are valued in an institution if it is shiny and new, we should never underestimate the morale and valuing aspect of improvements of infrastructure,” she says. 

Professor Yates predicted these improvements could increase retention rates, with students actually enjoying their surroundings and deciding to stay on till year 12. Professor Yates also said she hoped this funding will begin to close the disparity between rich and poor schools by “at least making the base level something people will feel happy about.”

Professor Lyn Yates is Professor of Curriculum in the Graduate School of Education.

Dr Sam Wylie says that IMF predictions of a growth phase in the world economy in 2010 are off the mark, and says Australia should expect a long but shallow recession. 

"The financial crisis is going to take between $40-$60 billion out of Government revenues.  We should expect to see big defecits in Australia, with total government debt around $200 billion at the end of 2012, where at the moment its about $50 billion."

Personal insolvency rates in Australia, including bankruptcy, have increased 261% over the past 18 years and, increasingly, it is the middle class that is most affected, according to an Australian first study completed at the Melbourne Law School.

THE global economic crisis could increase the gap between the world’s sick and healthy warns Professor Rob Moodie, Chair of Global Health for the Nossal Institute for Global Health at the University of Melbourne.

Associate Professor Mark Crosby from the Melbourne Business School says the Chinese Governments decision to increase investment overseas is a sign that China wants to be more closely integrated in the world economy.

What were seeing now compared to recent years is a willingness and an ability for the Chinese Government and Chinese companies to become more involved in investment opportunities overseas. China is still a very small player in global investment flows, but what we will see is an increase in the weight and size of the investments to and from China, more relevant to the size of its economy.

Because it allowed money to come in for foreign direct investments for many years but didnt allow money to go out, as well as having big trade surpluses, has meant that China has built up roughly two trillion dollars in foreign exchange reserves. Two hundred billion dollars of that is channeled into China Investment Corporation, effectively their sovereign wealth fund, earmarked for overseas investments.

As far as the Chinese Government is concerned, the feeling is that they need resources to fund a multi-decade infrastructure program to develop their economy. They dont have enough resources themselves so they need to have secure demand, hence their interest in banking and resources.

Mark Crosby is an economist at the Melbourne Business School. His extensive consulting experience includes work with the Monetary Authority of Singapore, the World Bank and BHP-Billiton. He has also worked in the Australian Treasury, and has acted as a Research Fellow at the Hong Kong Institute for Monetary Research.

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