Transparency in Trade Policymaking: Lessons for South Africa from Australia’s Experiences
Summary
This policy briefing by the South African Institute of International Affairs examines how Australia used transparency to successfully implement trade liberalisation and economic reform starting in 1983. It argues that transparency—defined as political honesty and the use of independent, evidence-based reporting—is essential for overcoming public and sectoral resistance to the short-term costs of trade reform. The document recommends that South Africa establish a body of independent experts, similar to Australia's Productivity Commission, to determine the benefits of reform and engage the public and media to build a coalition for change.
Key insights
- Transparency in trade policy reform is critical for gaining public support and creating a coalition for change, as it allows governments to explain the reasons for reform and the distribution of costs and benefits.
- The Australian government, under Bob Hawke from 1983, successfully liberalised a highly protected economy by ensuring the public had access to all information regarding trade policy reform, supported by an inquiring media and independent reports on the costs of protectionism.
- A central component of Australia's transparency model was the use of the Tariff Board and its successor, the Productivity Commission, which published evidence on the costs of protectionism, making it easier for the government to reject rent-seeking requests.
- Trade reform typically involves immediate, concentrated short-term costs for specific groups in exchange for diffuse, long-term benefits for the wider population, making transparency and honesty essential to maintain social cohesion.
- To mitigate the adverse effects of trade liberalisation, Australia provided adjustment assistance, specifically focusing on retraining and social welfare for those in heavily protected sectors such as textiles, clothing, and automobiles.
- Beyond trade, Australia implemented a broader set of reforms including financial and banking deregulation, the corporatisation and privatisation of state-owned enterprises, and the 'Accord' with trade unions to lower real wages in exchange for a higher 'social wage' via superannuation.
- The document recommends that South Africa establish a Productivity Commission or commission independent expert reports to provide tangible evidence for trade reform, while utilizing the media to communicate these findings to the public.
Cite the original document
- APA
- Bowen, B. (2010). Transparency in Trade Policymaking: Lessons for South Africa from Australia’s Experiences. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2010/08/Policy-Briefing-23.pdf
- Chicago
- Bowen, Bill. Transparency in Trade Policymaking: Lessons for South Africa from Australia’s Experiences. South African Institute of International Affairs, 2010. https://saiia.org.za/wp-content/uploads/2010/08/Policy-Briefing-23.pdf.
- Wikipedia
- {{cite report |last1=Bowen |first1=Bill |title=Transparency in Trade Policymaking: Lessons for South Africa from Australia’s Experiences |publisher=South African Institute of International Affairs |date=23 August 2010 |url=https://saiia.org.za/wp-content/uploads/2010/08/Policy-Briefing-23.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{bowen2010transparency, author = {Bowen, Bill}, title = {{Transparency in Trade Policymaking: Lessons for South Africa from Australia’s Experiences}}, institution = {South African Institute of International Affairs}, year = {2010}, month = aug, url = {https://saiia.org.za/wp-content/uploads/2010/08/Policy-Briefing-23.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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