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Department of the Premier and Cabinet
http://www.premcab.sa.gov.au
COAG’s National Reform Agenda:
Human Capital
Dr Adam Graycar
Head, Cabinet Office
Department of the Premier and Cabinet
Government of South Australia
September 2006
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Department of the Premier and Cabinet
http://www.premcab.sa.gov.au
Challenges for the coming years

Ageing population

Skills shortages

Changing international market including
China and India
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Department of the Premier and Cabinet
http://www.premcab.sa.gov.au
Three waves of reform

De-regulation

National Competition Policy

National Reform Initiative/Agenda
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NATIONAL REFORM AGENDA – [Senior Officials’ Meeting]
COMPETITION AND REGULATION
[C’th chair]
COAG
Secretariat
[C’th]
HUMAN CAPITAL REFORM
[C’th chair]
(energy, transport, regulation, infrastructure,
climate change)
Emissions
Reporting
[Chair to
be agreed]*
Infrastructure
Regulation
[C’th chair Treasury]
Climate
Change
[C’th & SA
co-chair]
Best
Practice
Regulation
[C’th & NSW
co-chair]
Diabetes
[Vic chair]
Literacy
and
Numeracy
[Qld chair]
Early
Childhood
and Child
Care
[NSW chair]
Data
[SA chair]
Other COAG Working Groups
COAG Reform Council [C’th Chair – PM&C]
PC modelling [C’th chair – Treasury]
- Pandemic Preparedness [C’th chair]
- Health Workforce [C’th and Qld co-chair]
- Indigenous Affairs [chair to be agreed]*
- Exchange of Criminal History Information [Qld chair]
- Double Jeopardy [chair to be agreed]*
Additional Key Reports due to COAG in December 2006 and early 2007
- counter-terrorism (NCTC – C’th Chair)
- MCEETYA (youth transitions)
- AHMC (Australian Better Health Initiative)
- MCVTE (possible further reform of vocational education and training)
- skills
- MCIMA (temporary entry and employment of skilled migrants)
- five yearly infrastructure report
- local government funding
- stem-cell research (Lockhart Review)
New working groups are indicated in italics. *Asterisks indicate that chairing arrangements are to be agreed.
Department of the Premier and Cabinet
http://www.premcab.sa.gov.au
Why have a Human Capital agenda?

What is ‘Human capital’? –a measure of
the economic value of an employee’s
skill set
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Policy options to improve productivity and
participation
Human Capital
Increased Participation
Education and
Training
Work
Incentives
Family
Friendly
Policy
Health
Industrial
Relations
R&D
Regulatory Reform
Infrastructure
Increased Productivity
Source: Page 9 A Third Wave of National Reform, Department of the Premier and Cabinet Victoria August 2005
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Department of the Premier and Cabinet
http://www.premcab.sa.gov.au
Health aims




Reduce rates of illness, injury and disability
Reduce the burden of chronic disease and
cancer
Reduce prevalence of key risk factors and
increase productivity of the health system
Better overall health related to increased
labour force participation
Source: Economic Assessment of NCP and NRI Reforms, Australian Treasury Dec 2005
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Department of the Premier and Cabinet
http://www.premcab.sa.gov.au
Education aims





Early Childhood – acquiring the basic skills for life
and learning
Improving school performance – numeracy and
literacy
Youth transitions – effective pathways between
schooling/training and employment
Adult learning – more advanced skills
People with increased numeracy and literacy are
likely to be more productive and more engaged with
the community and therefore more likely to be labour
force participants.
Source: Based on ‘Economic Assessment of NCP and NRI Reforms’, Australian Treasury Dec 2005
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Department of the Premier and Cabinet
http://www.premcab.sa.gov.au
Work incentives aims

Increase participation of under-employed
sections of the population, for example




Increase mature age participation
Increase female participation
Encourage more welfare to work
Make regulations for skilled workers more
flexible
Source: Economic Assessment of NCP and NRI Reforms, Australian Treasury Dec 2005
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Links to social capital

The OECD definition of social capital:
“networks, together with shared norms,
values and understandings which
facilitate cooperation within or among
groups”
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COAG’s Human Capital Progress
Measures

Indicative Outcome 2.1 –

‘Significantly improve the proportion of children
acquiring the basic skills for life and learning’

Indicative Progress Measures


2.1a) 0-3 years – no universal capture point or
agreed measure
2.1b) 3-5 years – no universal measure, Australian
Early Development Index being trialled in all
States
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Link between Social Capital and
Human Capital




All children are born wired for feelings and ready to
learn.
Early environments matter and nurturing
relationships are essential.
Needs of young children should be addressed as
society changes.
Interactions among early childhood science, policy,
and practice are problematic and demand dramatic
rethinking.
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Human capital
Social capital
Cultural capital
Child wired
to learn
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