The reorientation towards the US was reflected economically as well, especially in relation to the two major developments in post-war years Australia, the rise of secondary industry and resources extraction. Here large American corporations took over the industrial growth sectors as well as minerals and energy projects, reshaping the national economy at a rapid pace.
Since 1984 we have seen Australian forces operate in Iraq and Afghanistan in support of US operations and US bases continue to carry out their war-fighting role. Furthermore we have seen increased collaboration as part of the US 'pivot' towards China. Indeed, the collaboration between Australian and US forces is now so intricate, including in terms of equipment and operating systems, some commentators have questioned whether Australian forces could even act independently if so desired.
Perhaps the thorniest matter of all is the growing tension between our apparent strategic and trading postures in relation to Asia and especially China. As noted, the US has shifted to a more hard line strategic position in regard to China, which under current spending rates could genuinely challenge US military power within two decades. As Hugh White and others have pointed out, because of Australia's reliance on Chinese demand for our natural resources, we are in an increasingly tricky position.
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Currently a number of important decisions on the shape of Australia's military and foreign policy are being made. We have just seen a major military exercise in the Northern Territory involving large numbers of Australian, US and Japanese units. Australia is about to make some critical and immensely expensive weapons procurements, including new submarines and strike aircraft. And a new defence white paper that will shape the basic strategic position is due.
In addition, we have just agreed to a major new economic relationship sponsored by the US, the Trans-Pacific Partnership which locks us into a more restrictive reliance on big corporate interests. It has been argued that the TPP is in part an attempt to rein in Chinese economic power.
The question arising out of all this: is the road Australia is currently taking the end result of clear-eyed analysis, or is it really more domination by overseas powers whose interests are not necessarily those of Australia? Dunn's analysis warns us that as a mid-sized nation we need to tread a careful path in a world run by competing imperial powers. Our past choices have led us into military action in other countries with little or no actual relevance to our own interests just to curry favour with our imperial superiors. Associated with all this has been seriously distorted economic development which has left us with ongoing structural problems.
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