Malcolm Turnbull, Australia's new prime minister and leader of the Liberal Party, is being sworn in at Government House in Canberra, Australia, on September 15, 2015.  Mark Graham/Bloomberg
Malcolm Turnbull, Australia's new prime minister and leader of the Liberal Party, is being sworn in at Government House in Canberra, Australia, on September 15, 2015. Mark Graham/Bloomberg

Will revolving-door politics in Australia bring instability?



MELBOURNE // Yet another Australian prime minister has been ousted in an internal party coup.

Conservative leader Tony Abbott has become the third prime minister in five years to be sacked by the ruling political party.

Long-time rival Malcolm Turnbull was sworn in as Australia's 29th prime minister on Tuesday, after defeating Mr Abbott 54-44 in a Liberal Party leadership ballot a day earlier.

Despite being one of the better performing OECD economies, and ranked second in the UNDP human development index, Australia over the past decade has been dogged by political instability that the global ratings agency Moody’s warned on Tuesday could erode business confidence.

Mr Abbott had been struggling in opinion polls since he won office in 2013, with Mr Turnbull citing the government’s loss of “30 Newspolls in a row” as one of the reasons behind the coup.

According to Mr Turnbull and his supporters, there was no way for Mr Abbott to lead the conservative Liberal Party to victory in the next elections.

“It is clear that the people have made up their mind about Mr Abbott’s leadership,” Mr Turnbull said prior to the party room ballot.

Mr Abbott’s dismissal follows two similar coups in the Labor party when it was in office between 2007 and 2013.

Labor replaced prime minister Kevin Rudd with his deputy Julia Gillard in 2010, only for the party to reverse the move in 2013 prior to the federal elections.

The last Australian prime minister to complete a full term was conservative John Howard, who was defeated by Mr Rudd in 2007.

Commentators have voiced concern at what appears to be a developing pattern of political parties failing to establish stable governments, and denying voters the chance to choose their national leader.

“We’re fed up with this. Have we, the people, become irrelevant? This country has become an embarrassment when it comes to leadership,” Karl Stefanovic, co-host of Channel Nine’s breakfast programme, said on Tuesday.

Lenore Taylor, chief political analyst for the Guardian Australia, wrote that "public respect for the political process is at a perilous low, hovering somewhere just above terminal and very close to contempt".

According to Bernard Keane, political editor of Australian online news outlet Crikey, the major parties have become hollow entities unrelated to the interest of voters.

"Australians are increasingly disengaged with politics, particularly young people. There's a growing informal vote at Australia's compulsory elections, and a growing deliberate refusal to register to vote," he told The National.

Australian politics has also become increasingly sensitive to media coverage and opinion polls.

Mr Abbott blasted the media in his outgoing speech on Tuesday for engaging in “sour, bitter character assassination”.

“Poll-driven panic has produced a revolving-door prime ministership which can’t be good for our country. And a febrile media culture has developed that rewards treachery,” he said.

Mr Keane noted the media’s damaging role in the political landscape, saying it was “focusing much more frequently on personalities rather than on policy.”

Zareh Ghazarian, political scientist at Monash University in Melbourne, blames the recent instability in Australian politics on three dominant individuals: Kevin Rudd, Julia Gillard and Tony Abbott.

“Australia has now removed those three players from the political leadership positions, and we hope from this point that these leadership changes won’t occur with the same regularity,” he said.

Mr Abbott’s policies pushed Australia further to the right, Mr Ghazarian said, which many Australians found uncomfortable.

“The more centred the government, the more success it has in electoral terms,” he said.

Mr Turnbull is known to be a centrist within the Liberal party, and, in contrast to his predecessor, has openly supported gay marriage and more action on climate change.

The instability in government, however, does not necessarily translate to a constrained ability to govern. “While we have changes at political level, the institutions of governance still remain stable and strong because we have an apolitical civil service,” Mr Ghazarian said.

While Australia has not reached the levels of political chaos of democracies such as Italy, where governments survive less than two years on average, the recent coups suggest a new era of political hyperactivity and instability, according to Mr Keane.

“I think that era is going to be characterised by less stability, shorter-lived leaders and possibly a greater turnover not merely of prime ministers, but of governments.”

foreign.desk@thenational.ae

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Anxiety and work stress major factors

Anxiety, work stress and social isolation are all factors in the recogised rise in mental health problems.

A study UAE Ministry of Health researchers published in the summer also cited struggles with weight and illnesses as major contributors.

Its authors analysed a dozen separate UAE studies between 2007 and 2017. Prevalence was often higher in university students, women and in people on low incomes.

One showed 28 per cent of female students at a Dubai university reported symptoms linked to depression. Another in Al Ain found 22.2 per cent of students had depressive symptoms - five times the global average.

It said the country has made strides to address mental health problems but said: “Our review highlights the overall prevalence of depressive symptoms and depression, which may long have been overlooked."

Prof Samir Al Adawi, of the department of behavioural medicine at Sultan Qaboos University in Oman, who was not involved in the study but is a recognised expert in the Gulf, said how mental health is discussed varies significantly between cultures and nationalities.

“The problem we have in the Gulf is the cross-cultural differences and how people articulate emotional distress," said Prof Al Adawi. 

“Someone will say that I have physical complaints rather than emotional complaints. This is the major problem with any discussion around depression."

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Expert advice

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Stewart Howison, co-founder of Cycle Safe Dubai and owner of Revolution Cycles

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FIRST TEST SCORES

England 458
South Africa 361 & 119 (36.4 overs)

England won by 211 runs and lead series 1-0

Player of the match: Moeen Ali (England)

 

What should do investors do now?

What does the S&P 500's new all-time high mean for the average investor? 

Should I be euphoric?

No. It's fine to be pleased about hearty returns on your investments. But it's not a good idea to tie your emotions closely to the ups and downs of the stock market. You'll get tired fast. This market moment comes on the heels of last year's nosedive. And it's not the first or last time the stock market will make a dramatic move.

So what happened?

It's more about what happened last year. Many of the concerns that triggered that plunge towards the end of last have largely been quelled. The US and China are slowly moving toward a trade agreement. The Federal Reserve has indicated it likely will not raise rates at all in 2019 after seven recent increases. And those changes, along with some strong earnings reports and broader healthy economic indicators, have fueled some optimism in stock markets.

"The panic in the fourth quarter was based mostly on fears," says Brent Schutte, chief investment strategist for Northwestern Mutual Wealth Management Company. "The fundamentals have mostly held up, while the fears have gone away and the fears were based mostly on emotion."

Should I buy? Should I sell?

Maybe. It depends on what your long-term investment plan is. The best advice is usually the same no matter the day — determine your financial goals, make a plan to reach them and stick to it.

"I would encourage (investors) not to overreact to highs, just as I would encourage them not to overreact to the lows of December," Mr Schutte says.

All the same, there are some situations in which you should consider taking action. If you think you can't live through another low like last year, the time to get out is now. If the balance of assets in your portfolio is out of whack thanks to the rise of the stock market, make adjustments. And if you need your money in the next five to 10 years, it shouldn't be in stocks anyhow. But for most people, it's also a good time to just leave things be.

Resist the urge to abandon the diversification of your portfolio, Mr Schutte cautions. It may be tempting to shed other investments that aren't performing as well, such as some international stocks, but diversification is designed to help steady your performance over time.

Will the rally last?

No one knows for sure. But David Bailin, chief investment officer at Citi Private Bank, expects the US market could move up 5 per cent to 7 per cent more over the next nine to 12 months, provided the Fed doesn't raise rates and earnings growth exceeds current expectations. We are in a late cycle market, a period when US equities have historically done very well, but volatility also rises, he says.

"This phase can last six months to several years, but it's important clients remain invested and not try to prematurely position for a contraction of the market," Mr Bailin says. "Doing so would risk missing out on important portfolio returns."

Tips for job-seekers
  • Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
  • Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.

David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East

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