Australia’s growth performance during the 1990s in overall terms and per capita has exceeded that of most other OECD countries, and is still on a rising trend (Figure 24). This is all the more remarkable as in recent years the Australian economy could have been potentially more affected than other OECD countries by two major external shocks, the 1997-98 East Asian crisis, and the global economic slowdown in 2001-02, which was associated with a slump in primary commodity prices as well as world equity prices. Nevertheless, Australia has experienced an only mild version of the sharply reduced business and consumer confidence in OECD countries. During both episodes, Australia’s GDP growth stayed well ahead of nearly all other OECD countries.94 This chapter throws some light on the reasons for the improved growth performance, and suggests ways in which it could be maintained or even strengthened....