critical review

Final Article Review

Garnett, AM 2012, 'The Effect of the Resources Boom on the Population and
Labour Market of Western Australia', Economic Papers, vol. 31, no. 1, pp.
63-75.



Australia has experienced rapid economic growth, employment, and
population, due to increasing mining activities since 2000s. The effect of
robust mining activities to people in Western Australia (WA) and
particularly in the mining town results in a number of positive impacts and
social problems. Garnett (2012) conducted a research on the phenomenon of
the resources boom and its implication on the population and labour market
in Western Australia. This study reveals that the demographic change and
labour market movement have significant effect not only in remote area
where the mining regions located but also impact on communities in capital
state. Garnett's article explores the current and future challenges that
are faced by government to retain communities' welfare. Garnett's approach
is comprehensive and systematic. Results of her study provide recognition
of the importance long-term policy of resourced-based development, but at
the same time it presents limited policy recommendation.

In this article, Garnett (2012) assessed the significant inflow of labour
force into the mining region, which increase the number population in
Western Australia. 'A regional classification system' was used to identify
the demographic and labor market changes in WA. She applied descriptive
statistic method to map the flows of intra and inter regional migration
between the capital city, inland, coastal, remote area, and territory. In
this study, Garnett (2012) found that during early mining boom period
between 2001 and 2006, there was positive migration from the capital city
into inland and remote WA areas. The number of the population continued to
double in WA, particularly in the Pilbara region, when resources and energy
production rose to the peak level between 2004 and 2009. This reliable
evidence shows that the population growth in mining town is closely related
to market labour. Moreover, another Garnett's important finding that the
migration of skilled foreign labour was the main causes of high population
growth in WA. The rapid increase of overseas labour migration is as a
consequence of labour shortages in the mining industries.

Garnett (2012) found that An accumulation of high population and economic
growth in short terms creates not only economic benefits for the region,
but also increases social problems. She argues that despite the increasing
mining activity foster state and regional welfare, high level employment
and rise disposable income, mining towns such as Pilbara have to deal with
housing shortages, high rental prices, and inadequate provision of
infrastructure services. These are common problems of the mining town in
Australia (Rolfe, J, Miles, B, Lockie, S & Ivanova, G 2007; Akbar, Rolfe &
Kabir 2013) that not only impact mining sectors but also other public and
service sectors. Garnett (2012) claimed that one of the causes of social
problems is high income in mining sectors which is two times higher than
other sectors. This is expected to increase personal spending which will
rise demand of good or service, and give pressure to the regional price
level to rise. Furthermore, She stated that high housing costs, and minimum
livability in remote areas inhibit in flows of skilled labour into mining
regions and exacerbates the problem of labour shortages.

There are many strengths in Garnett's article. First of all, regional
classification system is used in this article which is able to provide
clear and analytical geographical information about the changing population
and labour market. This statistical analysis method grasps the localities
characteristic and is the most suitable method to analyze the population
and labour market changes from the spatial perspective (Garnett, A & Lewis,
P 2007). It gives also specific classification of remote region which is
probably other method lack of this component (p.65). Secondly, Garnett's
article provides objective analysis. She analyses both positive and
negative aspects of the effect of the resources boom. Garnett's study could
be important references for mining stakeholder, for example, government,
economic sectors, and communities to reach a compromise. Referring to
Brueckner et al. (2014) that there is a strong contradiction between them
on resources led development as 'curse or cure' that needs broad and deep
discourse.

In spite of these strengths, however, there are some weaknesses in this
article. One main problem is that she bases her argument on simply
descriptive analyses. No theoretical background or conceptual framework and
quantitative models are provided to support her argumentation and policy
recommendation. Regarding of this, Tonts's article (2010) demonstrates more
complex correlation between resources price, labour supply and demand, and
resource production. Tonts's study bases on the Lucas model which describes
the movement of labour in four different stages. He found that the change
in supply and demand is influenced also by the duration of working time,
and regional labour market competition.

In conclusion, apart of these weaknesses, Garnett's research provides a
inclusive overview and arguments on estimating the impact of the resource
boom in WA. The writer provides unbiased perspectives; the positive effect
of the resources boom, and its potential adverse effect which probably
outweighs the positive effect of the resource-led development. This article
could become direction for policy makers in planning short term and long
term policy, mainly in labor market fields. Nevertheless, this research may
need further research to conduct more factors which influence the dynamics
of labour market.



Reference



Akbar, D, Rolfe, J & Kabir, SMZ 2013, 'Predicting impacts of major projects
on housing prices in resource based towns with a case study application to
Gladstone, Australia', Resources Policy, vol. 38, no. 4, 12//, pp. 481-489,
viewed 12 July 2014, .

Brueckner, M, Durey, A, Mayes, R & Pforr, C 2014, 'Curse or Cure?
Revisiting State, State Capital and Resource', in M Brueckner et al.(eds),
Resource Curse or Cure ? On the Sustainability of Development in Western
Australia,CSR,Sustainibility,Ethics & Governance edn, Springer-verlag,
Berlin, Heidelberg,pp.273-290,viewed12July2014,.

Garnett, A & Lewis, P 2007, 'Population and employment changes in regional
Australia', Economic Papers, vol. 26, no. 1, pp. 29-43, viewed 19 July
2014,<
http://web.b.ebscohost.com.proxy.library.adelaide.edu.au/ehost/pdfviewer/pdf
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Garnett, AM 2012, 'The Effect of the Resources Boom on the Population and
Labour Market of Western Australia', Economic Papers, vol. 31, no. 1, pp.
63-75,viewed 7 July 2014, .

Rolfe, J, Miles, B, Lockie, S & Ivanova, G 2007, 'Lessons from the Social
and Economic Impacts of the Mining Boom in the Bowen Basin 2004-2006',
Australasian Journal of Regional Studies, vol. 13, no. 2, pp. 134-153,
viewed 12 July 2014,<
http://search.informit.com.au.proxy.library.adelaide.edu.au/
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Tonts, M 2010, 'Labour market dynamics in resource dependent regions: an
examination of the Western Australian Goldfields', Geographical Research,
vol. 48, no. 2, pp. 148-165, viewed 19 July 2014, < http: // web. a.
ebscohost. com.proxy. library.adelaide.edu.au/ehost/detail?sid=870d9498-
6025-4111-b411-0b149e15d347%40sessionmgr4002&vid=1&hid=4101&bdata=JnNpdGU9
ZWhvc3QtbGl2ZSZzY29wZT1zaXRl#db=a2h&AN=50069155>.