Read The Times Australia

Daily Bulletin

what we can learn from the successes of post-war reconstruction

  • Written by: David Lee, Associate Professor of History , UNSW

As Australia begins to plot a recovery strategy from the first recession in the country in decades, the Morrison government needs to examine what has worked well in the past.

Crises require strong leadership, national cohesion and a framework for carrying out recovery efforts on a grand scale.

As such, there is a case to be made for a new Commonwealth agency to lead the recovery effort, built on the model of the Department of Post-War Reconstruction that helped Australia emerge from the turmoil of the second world war.

The Department of Post-War Reconstruction

In December 1942, Prime Minister John Curtin established the Department of Post-War Reconstruction. Even though the war was still raging, its task was to begin planning and coordinating Australia’s transition to a peacetime economy.

The department brought together a talented group of officials, many of them from the new discipline of economics, to advise the government. Its establishment reflected the efforts to which the Commonwealth government went after the war to professionalise the Australian public service.

The department did not have a large staff. It was devised as a policy department that would coordinate the work of other agencies. The treasurer, Ben Chifley, was appointed the first minister for post-war reconstruction. H. C. “Nugget” Coombs, one of Australia’s “seven dwarfs”, named for their diminutive stature, was his first departmental secretary.

Read more: Lessons from history point to local councils' role in Australia's recovery

One of the major successes of the department was its contribution to the full-employment policy, a goal set by post-war governments to achieve a higher standard of living and regular employment for all Australians after the war.

To that end, the department helped establish a new employment agency, the Commonwealth Employment Service, to match workers with jobs. It also helped overhaul the social welfare system and create the pharmaceutical benefits scheme.

Full employment became a bipartisan policy goal throughout the economic “golden age” from the end of the war to the 1970s. The policy was so popular that even the smallest deviation from it, such as during the “credit squeeze” of 1960-61, almost cost the Menzies government re-election.

what we can learn from the successes of post-war reconstruction H. C. Coombs at a conference in 1948. Wikimedia Commons

The Department of Post-War Reconstruction didn’t succeed in pushing through sweeping new federal powers for reconstruction in a 1944 referendum. Nonetheless, it found ingenious ways to foster Commonwealth-state cooperation, for instance, through section 96 grants (which provided federal funding to the states on terms and conditions set by the Commonwealth), and the federal funding of housing, hospitals and later universities in the states.

Read more: Australia's post-war recovery program provides clues as to how to get out of this

New Commonwealth-state bodies were also devised to support the coal and aluminium industries. The Commonwealth and NSW state Joint Coal Board, for example, completely revamped the almost moribund NSW black coal industry. A revived and mechanised NSW coal industry became internationally competitive and a significant export earner for Australia by the 1970s.

On the international front, Chifley and Coombs supported Australia’s participation in the 1944 Bretton Woods Conference, which reinvented the global financial system based on fixed exchange rates with the US dollar as a reserve currency. The International Monetary Fund and the World Bank were also established at the time.

Chifley and Coombs supported the new international arrangements because they understood the revival of the global economy was essential for Australia’s own prosperity. As they hoped, the Bretton Woods system, the General Agreement on Tariffs and Trade (GATT) and the Marshall Plan for western Europe all laid the global foundations for Australia’s domestic recovery.

How a post-pandemic agency might work

The federal government has already trialled a new policy-making agency during the COVID-19 pandemic with its “wartime” National Cabinet, which featured federal and state governments and their agencies working as one.

There are many ways a new economic recovery agency could build on the cohesion demonstrated by the National Cabinet and advise the Commonwealth government on rebuilding the economy.

Specifically, it could help replicate Curtin’s achievement in 1942 by advising on comprehensive reform of the Commonwealth-state taxation system. This process is already under way with several states calling for the substitution of land taxes for stamp duties.

A post-COVID-19 agency could also be involved in the revamping of the welfare system (post-JobKeeper/JobSeeker) to cope with the higher levels of unemployment and under-employment.

The agency could advise or coordinate a strategy for new infrastructure to create jobs, such as the building of hospitals, public housing and a transition to cleaner energy. Another possibility would be a return to independent petroleum refining, similar to Billy Hughes’s Commonwealth Oil Refineries that operated from 1919-52.

Read more: The PM wants to fast-track mega-projects for pandemic recovery. Here's why that’s a bad idea

And a new agency could advise on reviving other major industries, such as tourism, the airlines, the higher education sector and even the banking system. During the Global Financial Crisis, the Rudd government had to underwrite loans to the banks and guarantee bank deposits. A major intervention may again be required.

Creating a Department of Post-War Reconstruction was considered by some to be the “boldest experiment” the country took after the war. And as a result, Australia’s post-war recovery was a remarkable success. This is what we need now – another bold experiment, in the spirit of bipartisanship.

Authors: David Lee, Associate Professor of History , UNSW

Read more https://theconversation.com/rebuilding-australia-what-we-can-learn-from-the-successes-of-post-war-reconstruction-137899

Business News

Cost Savings and Benefits of Using Used Pallets in Logistics

In today’s competitive logistics and supply chain industry, businesses are constantly looking for ways to reduce operational costs without compromising efficiency and reliability. One of the most prac...

Daily Bulletin - avatar Daily Bulletin

How Fulfilment Services in Australia Help Businesses Scale Efficiently

The growth of e-commerce and modern retail has transformed customer expectations. Consumers now expect fast shipping, accurate order processing, and seamless delivery experiences regardless of where...

Daily Bulletin - avatar Daily Bulletin

Practical Ways Australian Workplaces Can Reduce Operating Costs

Reducing business costs doesn’t always mean cutting staff, shrinking services or making the workplace feel bare-bones. In many cases, the smarter savings are hiding in everyday operations: the light...

Daily Bulletin - avatar Daily Bulletin

Executive Recruitment Solutions That Help Organisations Secure Exceptional Leaders

Leadership has a direct impact on organisational performance, employee engagement, strategic growth, and long-term success. Businesses operating in increasingly competitive environments require experi...

Daily Bulletin - avatar Daily Bulletin

Why A WooCommerce Website Designer Matters For Online Growth

Running an online store today requires more than simply listing products and waiting for customers to arrive. Businesses need a website that is fast, reliable, easy to navigate, and designed to suppor...

Daily Bulletin - avatar Daily Bulletin

Turning Your Empty Tables into Revenue

The rise of AI demand tools in hospitality, the EatClub–CommBank partnership, and seven trends reshaping Australian dining  A growing number of Australian venues are turning to AI-powered demand ma...

Daily Bulletin - avatar Daily Bulletin

High-Impact Dental Marketing Strategies That Are Driving Real Practice Growth Today

The landscape of dental practice growth in Australia has shifted dramatically over recent years. Standard, broad-spectrum advertising campaigns no longer yield the return on investment they once did. ...

Daily Bulletin - avatar Daily Bulletin

How Telematics Helps Australian Companies Improve Productivity

Operating a commercial fleet in Australia is a uniquely demanding endeavour. Between the sprawling urban sprawl of cities like Sydney and Melbourne and the immense, unforgiving stretches of the Outb...

Daily Bulletin - avatar Daily Bulletin

Inside the Icon: The BridgeMuseum Officially Opens at the Sydney Harbour Bridge

A bold new way to experience one of Australia’s most recognisable landmarks has arrived, with BridgeClimb Sydney officially opening the all-new BridgeMuseum.  Located inside the Sydney Harbour Bridge...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Traffic Light System Solutions For Safer And More Efficient Traffic Management

Modern cities and growing communities rely heavily on effective traffic management to ensure safety...

Gold Migration Lawyers in Liquidation: How the Closure Affects Your ART Appeal

If your appeal was with Gold Migration Lawyers, a recent change to how the Tribunal decides cases ...

The pressure cooker: life in urban Australia in 2026

Australian cities have always been demanding. Long commutes, rising housing costs, busy schedules a...

What Actually Makes a Good Criminal Lawyer in Melbourne

Most people only think about this question once. That is usually too late. Most people charged wi...

Why Working With A Chatswood Tutor Can Improve Academic Performance

Academic expectations continue increasing for students across primary school, high school, and senio...

Is It Worth Getting Solar Panels in Melbourne?

The real question is not whether solar works in Melbourne. It works. The question is what it is co...

How A Diploma Of Project Management Builds Practical Skills For Modern Work Environments

Developing the ability to plan, execute, and deliver outcomes efficiently is a key requirement in to...

How to Choose the Right Football for Every Level

Choosing a football may seem straightforward, but the right option depends on who will be using it a...

What to Ask a Wedding Photographer Before You Book

Booking a wedding photographer can feel deceptively simple: you like the photos, you like the vibe...