SYDNEY LETTER:Australia's richest man intends to create 50,000 jobs for indigenous Australians, writes Padraig Collins
UNIVERSITY OF California professor Gregory Clark told ABC radio last week that "some societies . . . went straight from foraging to the modern economy, as Australian Aboriginals did in 1788 (the start of European settlement)".
Visiting Australia to promote his book, A Farewell To Alms: A Brief Economic History Of The World,Prof Clark said: "These societies have historically rooted disadvantages in competing in a capitalist world.
"Their response to market incentives can be limited. This may explain the extraordinary difficulty forager groups such as Australian Aboriginals have had in successfully incorporating into capitalism."
The professor's trip and candid remarks were timely. Australia's richest man, mining billionaire Andrew Forrest, had just announced his desire to create 50,000 jobs for Aborigines. The how and where of this work is supposed to be ready in 100 days and the jobs all created within just two years.
Speaking at the launch of what is being called the Australian Employment Covenant, prime minister Kevin Rudd said it was a "very ambitious" plan.
"It's far better to set some ambitious goals, even if, from time to time, you fall short," he said.
More important than government backing is that of Aboriginal leaders such as Noel Pearson.
"I've been talking up hill and down dale for many years about the scourge of welfare and the deep need for our people to engage in the opportunities of Australia's incredible economy," said Mr Pearson.
Warren Mundine, an Aborigine and former Labor party national president, said he had discussed the plan with Mr Forrest earlier this year.
"You can educate people as much as you like. But if they've got no jobs to go into, as a young Aboriginal 10 year old told me, 'why do we need to be educated? If there's nothing for us, there's no future.' "
This is going to fill that gap," Mr Mundine said.
The unemployment rate for Aborigines is 14 per cent, some three times that of the general population. But much Aboriginal unemployment and underemployment is hidden by Community Development Employment Projects (Cdep) which give indigenous people community-based employment for up to 15 hours a week. Those on Cdep schemes, derided by many as "sit down money", are counted as employed.
Speaking at an economic development forum last week another Aboriginal leader, Galarrwuy Yunupingu, called for the abolition of the schemes, calling them a welfare trap which is "killing Aboriginal people" and saying they were premised on the belief that "money spoils black fellas".
"Cdep is one hell of a weapon to take Aboriginal people's rights," he said. "It's a killer. It's worse than bashing women, it's worse than bashing children, it's worse than drugs. I would like to take every dollar of Cdep and build a training school and give skills to our people for their future."
The Australian government is going to fund the training side of Mr Forrest's plan, but most of the jobs are set to come from the private sector.
Mr Forrest has not yet said which companies will help make his ambition a reality, but promised to name names when the 100-day planning period is over. "I've canvassed particularly the leaders, and in many cases the owners of those companies, and what I've found myself pushing against is an open door," he said.
The covenant has not met with universal approval, however. Australian National University professor Jon Altman is sceptical and said he would prefer to see "place-based initiatives predicated on participatory consultations and in a careful matching of aspirations for engagement with all productive sectors of the economy with local and regional opportunity".
Roughly translated, Prof Altman is saying people won't travel for jobs, the jobs will have to come to them.
The reality is somewhat different. A scheme overseen by Mr Pearson has already seen 100 young Aboriginals travel huge distances for work in abattoirs, orchards and vineyards. He is confident the 50,000 jobs will happen. "I suppose the big question mark is will there be 50,000 takers? And the answer to that question will depend on the indigenous community of Australia who are crying out for jobs, but it will require us to make hard decisions about taking up welfare reform, getting off welfare and into the real economy," said Mr Pearson.
Greater employment opportunities bring benefits far beyond a steady income of course. Life expectancy for indigenous Australians is 17 years less than for non-indigenous Australians. Forty-five per cent of Aboriginal males and 34 per cent of females die before the age of 45. Indigenous babies are twice as likely to have a low birth weight, which increases the risk of health problems as a child and later in life.
If Andrew Forrest's job creation plan is even modestly successful this enormous health gap will start to narrow.