Interventionist policy in a declining industry : ‡b the textiles, clothing and footwear plan 1988-1995

Abstract

The central focus of this thesis is a critical evaluation of the Textiles, Clothing and Footwear Plan, 1988-1995. In order to adopt a critical stance from which to undertake this evaluation, I advanced a number of arguments. Firstly, I argued that the process of economic restructuring is constrained by Australia's marginal position in the international economy, and by domestic political and institutional incapacities. Secondly, I argued that the government view of the origin and extent of the problems of the TCF industry was flawed and as a consequence, the Plan, as a policy response was deficient. This policy deficiency, I argued, has both an empirical and a theoretical dimension. I concluded therefore, that substantial, and unanticipated restructuring costs would necessarily flow from the implementation of an industry plan which, being deficient, would have minimal impact on the restructuring of that industry. Further, I argued that, the magnitude of restructuring costs, evident in a declining industry, may be indicative of the magnitude of costs entailed in the protracted process of restructuring Australia's economy. [...]