The impact of the Australian election results, or lack thereof, will not be fully understood for many months to come. However, the most notable impact was the relative lack of financial interest globally and locally by anyone outside of the analysis and consultancy communities.
Considering the uncertainty created by four diverse scenarios – a Coalition government, a Labor government, a hung parliament or the requirement for a fresh election, markets have remained relatively stable and any currency fluctuations have been limited. While commentators in the currency markets have attributed this in part to recent uncertainty and a focus on the Brexit result, it’s interesting to see that the Australian economy, and constituency in general has become – depending which perspective is chosen – robust or indifferent to political upheaval.
Businesses in Australia could be forgiven for choosing to see this reaction as positive. In the end, the elimination of variables, including election results is an important part of effective commercial sustainability. Although the path to this outcome may have been less than elegant, it seems that politicians have less to do now with the commercial sector than they did 10 years ago.
Political doctrine, often speaks of the evolution of both political ideology and the intricacies of incorporating politics, religion and commerce in a society. It’s possible, that Australia through the revolving door of Prime Ministers, and Australian citizens becoming immune to political upheaval, in the same way that those living in war zones become immune to gunfire, has entered a new and important phase of it’s political history.
A less optimistic view would be that the constituency has become jaded with political intrigue and has chosen to ignore the election until a formal result comes to light. But regardless of political leanings, with many minor parties now holding – yet again – the balance of power, it’s unlikely that we’ll see a robust government for the next four years. The question must be asked of both the left and the right, with centrist policies dominating the agenda on both sides, how is a government that is representative of the wants of its citizens at any given time, now a viable option? In other words, with parties no longer willing to operate along traditional ideologies, and choosing instead to revert to populist views, it seems that voters no longer have a clear understanding of the differences between the various parties.
Regardless, the end result has the potential for being a more robust economy, and business can take solace in the lack of reactionary fear prevalent post-election.