Tag Archive for: defence white paper

Australia’s defence budget before and after the 2009 white paper

Thanks to Michael Pezzullo’s Strategist article last month, we now know that Australia’s 2009 defence white paper foresaw our risky future and planned for it.

The white paper’s outlook for Chinese force development and the associated geopolitical risks has largely come to pass. It anticipated the world we now inhabit.

To face the changes, it envisaged Australian force expansion in five-yearly cycles that would extend into the 2030s and be informed by regular reappraisals of strategic risk. Had we stuck with the white paper’s plan, Pezzullo writes, 2025–26 defence spending would be $85 billion to $90 billion instead of the actual $59 billion. We would have an easily adjustable force structure and a level of expenditure that could pay for it.

Instead, this landmark policy was set aside when Kevin Rudd lost the prime ministership in 2010.

I can add to the story. In the years that followed the white paper, Australia and the United States thought diplomatic approaches could handle rising China. The US still wanted us to implement the 2009 white paper, but it was focused on making progress with its Strategic and Economic Dialogue with China. This occurred during my term as ambassador to the United States from 2010 to 2016.

Before we get to that, let’s go back to the 1987 defence white paper, which I delivered, which Paul Dibb wrote and which, as Pezzullo writes in another article, ‘established the self-reliant defence of Australia as the organising principle of our defence strategy.’

The 1987 and 2009 white papers both argued for a force structure that could achieve a self-reliant capability with our own resources in our area of direct military interest, covering the approaches to the continent. The explicit objective in 1987 was to be able to handle threats to Australia without imposing on the US greater burdens than the provision of equipment and intelligence, not an obligation to intervene. We wanted to be an easy ally.

The task in 1987 was much easier and far less urgent than what we must do now. China in defence terms was barely considered. In fact, we eschewed identifying any potential opponents, because the focus on the modest capabilities of our neighbours did not require naming a country.

By 2009 an opponent was identifiable and the outlook was much more severe. The force requirements for meeting it in a regional strategy were still achievable—if there was enough money and focus.

In 1987, we didn’t set resources as a fraction of GDP, though, if we had, it would have been a continuation the effort we’d maintained since the Vietnam War, 2.5 to 3.0 percent of GDP. Defence spending in 1987 was around 10 percent of the federal budget.

Resources looked adequate. For the navy, for example, there was some confidence we could buy eight submarines of what became the Collins class, replacing the six Oberon-class boats we had. When the Collins program was approved, it was for six submarines, but the submission to Cabinet noted if that number were achieved another two could be sought.

The surface fleet was more confidently projected at 17 ships, up from the 12 we had at the time. These were to be three destroyers (which were already in service), six first-tier frigates (four in service, one building and one planned) and eight new second-tier frigates of what became the Anzac class.

It was estimated that a fleet of 20 ships would be needed to cover the entrances through the archipelago north of Australia that led to our continental approaches. But it was hoped New Zealand would come up with four ships. (It eventually bought two Anzacs.) As the next decade-and-a-half proceeded, the two extra submarines were not built. The destroyers and first-tier frigates eventually paid off and were replaced with not nine ships, as expected, but three, the present Hobart-class destroyers. The surface fleet slowly declined.

The inflexion point was the 1994 white paper. We took a peace dividend from the end of the Cold War. This was despite our rejection in 1987 of the Cold War as the basis of spending. We argued in 1987 that the force structure we needed was based on regional, not global, strategic circumstances.

Moreover, the 1994 white paper changed the guidance for spending to a fraction of GDP, which it set at about 2 percent. With that much money the 1987 objective of controlling the approaches to the continent was still doable, but by 2009 the outlook demanded much more.

When the 2009 white paper was published, we were in fact below 2 percent of GDP, and the defence share of the budget was below the 10 percent we had had in 1987. Since 2009, the 1994 target has been reached only in the past two budgets. If we had reached Pezzullo’s figure of $85 billion to $90 billion for 2025–26, we would be around 3 percent.

When I was ambassador to Washington, the US constantly pressed me for Defence spending to reach 2 percent of GDP. US officials noted both the contents of the white paper and our reluctance to spend.

I used to point to an unusual position shared by the two countries’ national governments. Both had available about 25 percent of GDP to spend. With that, the US government did defence, social security, Medicare and Medicaid. Beyond those items, the federal government used funds for leveraging the states, local government and the private sector. There were no other programs on which the federal government was the major or exclusive provider.

But our 25 percent, I pointed out, covered pensions and defence and also universal health care, the universities, the 35 percent of students in private schools, a substantial subsidy for state schools and a range of social benefits (for example far more complete unemployment benefits than the US government provides). Today we could add the National Disability Insurance Scheme to the list.

A US defence secretary meeting Treasury and Congress for the upcoming year’s funds sees smiling faces. Here a defence minister sees no smiling faces.

It’s worth comparing US and Australian national-government spending of about 25 percent of GDP with the figures for European countries, including Britain, Germany, France and the Scandinavian countries, which all spend around 45 percent or more. The truth is we were nowhere near resourcing the 2009 plan.

Then there was the issue of focus. The 2009 white paper sought to prioritise our area of direct military interest in a way that no major defence policy statement had since the 1980s.

Our military had been and was heavily occupied—dramatically with East Timorese independence and then with Afghanistan and the Middle East. Our force structure needed only small adjustments for meeting these tasks. We performed as usual to very high standards and impressed our allies.

I remember a meeting in the Oval Office between prime minister Tony Abbott and president Barack Obama. Vice president Joe Biden and almost all Obama’s senior state, defence, trade and intelligence officials were present. They were ready to take us to task on fighting global warming, where they were not happy with our efforts.

But Obama began by asking Abbott for more general views on affairs.

‘Well,’ Abbott said, ‘we know that most foreign leaders who come to see you are unhappy about some aspect of US policy. We have no problems. Or there’s something they want. But we are happy with everything we get from you.’

‘But I want to tell you we think you are about to get into a lot of trouble in the Middle East [fighting ISIS in Iraq], and when you do we will be with you in numbers.’

The atmosphere deflated. How could you pressure a fellow who had said that?

I heard that, for months afterwards, whenever Obama was frustrated by allies, he’d say, ‘We need more Tony Abbotts.’

The prospective military tasks were expeditionary missions. In the first half of the 2010s, these were our focus, despite the clarity of outlook in the 2009 white paper. Except in promoting the solidity of the alliance, they had nothing to do with Australia being able to prevail in its own area of military interest. And the operations were readily achievable within the approximately 1.6 percent of GDP we were spending at the time on defence.

By 2009, China was emerging as the pacing power for the US in the Western Pacific. It was the main factor in Obama’s rebalancing of US forces to the Indo-Pacific, announced in 2011. This was the zone that Australia’s 2009 white paper addressed. China’s rise and the US pivot to Asia was the context in which the US pressured us to spend 2 percent of GDP on defence.

The Chinese forcefully objected to the 2009 white paper. Rudd rejected the complaints. There were domestic objections, too, some based on the importance of achieving satisfactory diplomatic dealings with China.

Also, with such a small fiscal pie to carve up, many people were concerned with the other pressures on the budget. Such pressures tend to be immediately politically salient. Except in a confrontation or when war threatens, defence tends not to be.

Later, the Obama administration was focussed on a process it had put in place in 2009, the Strategic and Economic Dialogue with China. To some extent this effort to deal with the China problem diplomatically took the administration’s attention away from pressuring us to implement the 2009 white paper.

Under the Sino-US dialogue, an annual meeting took place alternately in Beijing and Washington. It covered security, including the main points at issue between the two powers, such as military issues around Taiwan and US deployments in waters close to China. The nuclear ambition of North Korea was also a preponderant issue.

This dialogue with China, I reported back to the Australian government, was probably the most important diplomatic effort that engaged the US.

The 2009 white paper is worth reading again. It provided for very disciplined force-structure development on a timeline that would have met what Australia now confronts. With the reliability of the Trump administration in doubt, self-reliance in the framework of the alliance has become critical. We really do need to be able to deter hostile developments in our area of direct military interest.

We are headed towards spending 2.3 percent of GDP on defence, in large part to pay for nuclear submarines. I believe as time goes by we will move to 3 percent of GDP.

Why didn’t Australia consider nuclear propulsion for its new submarines?

The following extract is from ASPI’s latest special report, Submarines: Your questions answered, which attempts to answer the many questions that Australians pose when it comes to the design, acquisition, cost, operational service and strategic implications of submarines.

After the publication of the 2016 defence white paper in February that year, I was approached by a senior politician who had been involved in the earlier stages of the white paper’s production wanting to ask a ‘couple of questions about Defence’. Started in early 2014, the white paper had the unique history of being developed under the direction of two prime ministers and three defence ministers.

We duly met at a Canberra institution, the Charcoal Restaurant.* Over blue steak and red wine, my friend’s puzzlement became clear: ‘Why didn’t we talk about nuclear propulsion for submarines during the white paper process?’

Why indeed! I would venture that there hasn’t been a detailed discussion of nuclear propulsion around the Australian cabinet table since the nuclear crisis in ANZUS in 1984, in which New Zealand cast away the alliance over the vastly improbable risk that a US warship might sneak a nuclear weapon into Auckland Harbour. I was closely involved in the defence white papers produced in 2000 and 2016 and had a ringside seat at the 2009 white paper. To my knowledge, nuclear propulsion wasn’t part of any formal cabinet consideration. The 2009 white paper quickly dismissed any interest—‘The Government has ruled out nuclear propulsion for these submarines’—at the same time as it stressed the importance of range and ‘prolonged covert patrols over the full distance of our strategic approaches and in operational areas’.

At a major maritime conference in 2019, the chief of navy, Vice Admiral Mike Noonan, tentatively ventured the thought that a slow build of 12 boats might allow nuclear propulsion to be considered at a later stage (‘A change in the propulsion system for the Attack-class submarines; it’s something that will no doubt be discussed over the next 30 years, bearing in mind that by the time we deliver No. 12 it will be 2055’), but the government quickly said that this wasn’t under consideration. In fact, there doesn’t appear to be a strong constituency for nuclear propulsion inside the navy, which is still culturally an organisation built around surface ships. The wider defence organisation has the Attack-class project to deliver, which is complex enough without adding a major new challenge to master nuclear propulsion.

Parliament is filled with many MPs on both sides of politics who will privately advocate for nuclear propulsion but publicly shy away from discussing the capability. The fear is that it isn’t possible to build a bipartisan consensus for nuclear propulsion in ways that prevent one side of politics rejecting the idea, leaving the other side with a potential political liability.

That was certainly the outcome of the 2019 House of Representatives Standing Committee on the Environment and Energy review of the future of nuclear technology in Australia. Government members of the committee recommended ‘adopting a strategic approach to the possibility of entering the nuclear energy industry’. This was countered with a Labor Party dissenting report claiming that ‘There is simply no case for wasting time and resources on a technology that is literally the slowest, most expensive, most dangerous, and least flexible form of new power generation.’

Nuclear propulsion for submarines wasn’t considered, but it’s clear at least in the short term that there’s no prospect for bipartisan cooperation on this issue.

Political ambivalence is fuelled by popular concerns. In Australia, there are strongly divided views for and against nuclear power in any form. The parliamentary committee review acknowledged that ‘the will of the people should be honoured by requiring broad community consent before any nuclear facility is built’.

Is anything likely to change this situation? Potentially, yes.

The strategic ground is changing quickly under our feet, and those developments might, in future, force a more urgent government consideration of the submarine capability Australia needs. The 2016 white paper pointed to the need to keep the submarine capability under examination, stating that a review would be needed ‘in the late 2020s to consider whether the configuration of the submarines remains suitable or whether consideration of other specifications should commence’.

A significant pressure point may emerge in the next couple of years, when the detailed design work for the Attack class will reveal the capability parameters of the boats’ propulsion system. How that plays out against the advertised need for a ‘regionally superior submarine’ could lead to some arresting discussions around the cabinet table.

* Established in 1962, the Charcoal Grill pre-dates the creation of the Royal Australian Navy’s Submarine Service. The Australian government ordered four Oberon-class submarines in 1963, and the first was commissioned in 1967. Before the arrival of the Oberons, the Royal Navy’s 4th Submarine Flotilla (later designated the 4th Submarine Squadron) was based in Sydney from 1949 until 1969. The last Royal Navy submarine to be based in Sydney, HMS Trump, was withdrawn in 1969, although HMS Odin was based in Sydney with the Australian submarines from December 1972 to September 1975.

A new DWP wouldn’t be worth the white paper it’s written on

On a five-year timetable, we’re due for another defence white paper (DWP) in 2021. The last one took the best part of two years to prepare, so starting one now would be about right. If the five-year timetable continues, Defence would spend fully 40% of its time in white paper mode, which would significantly eat into its ability to do other things—like planning to deliver the capability initiatives from the previous one.

I lean on the side of ‘fewer but better’ where major strategic policy documents are concerned, and the idea of defence white papers being produced on a five-year timetable makes little sense. For a start, they take much longer than that to play out—we’re only just getting around to the delivery of initiatives contained in DWP 2000, in the form of the Hobart-class ships and the F-35.

Instead, the timing for white papers should be driven by Australia’s strategic circumstances and the broader strategic outlook, which don’t change on nice, neat timescales. We didn’t have a DWP between the first one in 1976 and the next in 1987 for the very good reason that not a lot was happening. That said, I think the changes we’re seeing now, both in our immediate region and globally, mean that a new white paper actually is needed.

The assumption of continued US primacy that permeated DWP 2016 looked heroic at the time. It seems almost foolishly misplaced now. While the Obama administration often disappointed the strategy community with its tepid responses to geopolitical challenges, those now seem like the good old days.

Under the current administration, the caprice and bullishness of US foreign policy—not to mention its unseemly embrace of autocrats—seems as likely to precipitate a crisis as it is to resolve one. It’s hard to say whether the rise of President Donald Trump is an aberration or a trend, but the past few US administrations haven’t really inspired confidence in the longevity of US hegemony in any case. The obvious conclusion for America’s friends and allies is that more self-sufficiency wouldn’t go astray.

DWP 2016 did get China right in the sense of identifying its potential to become an active revisionist. Where it probably got things wrong was in the timescale. Back then we were told that China could disrupt the strategic order sometime in the period out to 2035, which is a comfortable way off if you don’t actually want to do anything quickly that entails force structure changes. But actions in the South China Sea in the past few years and the Chinese messaging at the recent Shangri-La Dialogue suggest that we might not have that luxury. Meanwhile, our first Hunter-class frigate and Attack-class submarine will be doing their first sea trials around 2030, so it doesn’t look like we have appropriate urgency.

And then there’s the matter of emerging technologies, some of which look like being, if not game-changing, at least game-extensively-modifying. The list includes swarming unmanned systems—potentially autonomous ones—‘artificial intelligence’ (which in practice means machine-based expert decision-making), high-precision quantum sensors, and hypersonic weapon systems. Individually, any of those could be disruptive of current force structures. Collectively, they could change the face of warfare as we know it. Yet the Australian Defence Force outlined in DWP 2016 would be readily recognisable to defence planners in the Menzies government.

Consistent with all that is the first of two takeaway points from my talk at ASPI’s ‘War in 2025’ conference last week:

Australia desperately needs a new defence white paper.

Less obvious was the second point:

There is no point in embarking on a new defence white paper.

In the light of everything I’ve just said, you might well wonder why I don’t think it’s worth producing another defence white paper. The answer is that I don’t believe that the system that would be asked to produce it has the courage or imagination required to significantly change direction.

A DWP breaks down into four major sections: an essay about our strategic circumstances, an essay about our military strategy, an outline of a future force structure, and a budget. The first of those is the easiest to modify and the least significant in practice. Our future security won’t be guaranteed by a nicely crafted assessment of China’s strategic intentions. If we’re serious about meeting the challenges we face, we need to take a hard look at the military strategy and especially the force structure.

Neither of those is likely to happen. The sunk cost and institutional fondness for the current ADF structure, combined with the industrial landscape and its associated politics, will see to that. The mega-projects and the joint and ‘balanced’ ADF are for all practical purposes immutable. Even if the government was seized with urgency, after two years of staff effort and upward management from Defence the most likely outcome is that we would end up with the next few items on the ADF’s wish list grafted onto the existing plan, with all the big-ticket items—and their relaxed timescales—unscathed. Plus ça change, plus c’est la même chose.

Whether we like it or not, if there was to be a war in 2025, or even 2035, it’s going to be largely a ‘come as you were before the 2016 white paper’ affair for Australia. That might or might not be good enough, but I don’t think DWP 2021 is likely to significantly change that.

This article was adapted from a talk given at ASPI’s ‘War in 2025’ international conference on 14 June 2019.

The case for a new defence white paper

Successful defence white papers have to find the right resting place between four sets of demands: politics; strategy and policy; military capability; and money.

That’s what makes them so interesting, and also so hard to do well.

How do those factors play out in terms of likely considerations for the Morrison government?

In saying that white papers are political, I make no negative judgement. All complex policy is political in the sense that an elected government is making choices which, it hopes, will get it re-elected as well as do the right thing for the country.

Policy is inherently political. As John Howard used to say, good policy is usually good politics.

It’s noteworthy that neither of our major parties went into the election campaign promising to do a new defence white paper.

Labor proposed a force structure review, which seemed harmless enough. Maybe it was intended to be a bit of throat-clearing for 12 months or so before a white paper was started.

Politically, Labor just didn’t want to bring defence and security into the election campaign. It’s not the battleground of their choosing and I imagine they didn’t want to spend a day or more in the campaign arguing the case for a new white paper.

As for the Coalition—well, they had produced the 2016 defence white paper.

And this raises an interesting point. It’s easy for a new government to ditch a white paper written by its political opponents, but it’s another thing altogether for an incumbent government to replace one policy which it produced with another.

The 2016 white paper’s sponsor, Marise Payne, is now the foreign minister, and quite a number of senior political heavies are deeply invested in that document, which is often presented as the centrepiece of the government’s security policy.

So I don’t expect an announcement this year that a new white paper will be started.

That’s a good thing. It gives the new defence minister and the government time to consider what needs to be done.

So much for the politics. Going back to the other dimensions of white papers—strategy and policy, military capability, and money—it’s increasingly clear that the case for a new white paper is looking very strong.

It’s clear that major areas of our strategic outlook have changed quite dramatically since the 2016 white paper was released. It’s not that the judgements in it were wrong, but much of what was thought to be likely in, say, 2030 has effectively already happened.

We are confronted with the reality of a harder, riskier, more immediate strategic competition and a force development plan which makes sense but is about 15 years out of sync with the ugly reality.

So the case for change in our strategic policies is strong and, in areas like the Pacific step-up, it’s clear that the government and the defence organisation are adjusting to the new realities.

The question about what to do with military capabilities in a policy sense is the area that’s least clear to me. I certainly accept that a lot of the emerging technologies that we hear a lot about are years from being fielded. We all sense the great potential of AI, machine learning and autonomous systems, but quite what that means for today’s investment choices is unclear.

And that’s where I think a new white paper, sooner or later, will be useful.

It can act as a forcing function to jolt the system into new ways of looking at old problems.

What bureaucracies and governments do best is to defend old policies—especially the ones they’ve produced.

What white papers do is to create permission to think laterally and differently from past policy work. Opportunities to do that in a thoroughgoing way don’t come around all that often in public policy.

And a new white paper could also help the government and officials think laterally about the means and methods we use for making policy. For example, does the pace of change mean that we need to have annual white papers rather than every five or six years? Clearly an annual white paper would have to be developed differently compared to the current approach, which is a bit like forcing a heard of grumpy rhinos backwards through a mincer, in slow motion—not pretty.

And finally we come to money. White papers force a conversation about money, which the central agencies and many parts of government are otherwise hellbent on trying to avoid.

We will never get out of the ‘about 2% of GDP’ mantra unless a new white paper gives permission to unlock a different discussion on defence spending.

I have said this before, but we would be delusional to think that we can modernise the ADF and make it fit for purpose for a much more risky strategic outlook within the current 2% ceiling.

In fact, we know what 2% of GDP buys us. It’s what we have now, plus a little more, prettied up to go to the ball in 2040.

Two per cent won’t buy much AI, machine learning, hypersonics, quantum computing, big data, synthetic biology, autonomy and all the rest. And it won’t buy much of a Pacific step-up—or an Indian Ocean step-up or a Southeast Asian step-up, which we also badly need.

Nor will 2% buy much of a force with enhanced readiness and a broader national mobilisation capability.

And no matter what one says about a hundred years of mateship, 2% of GDP doesn’t buy much coffee on the E-ring of the Pentagon, where America’s expectations of its allies are, rightly, growing.

It’s only a new defence white paper which would allow that discussion about future funding to be held. And fundamentally, that is a discussion where our strategic outlook should force us to think about what a defence budget of 2.5 or 3% of GDP could deliver for our security.

So, I absolutely think that a new white paper will be timely and needed within the life of the current government.

A paper commissioned in early 2020 could, with the right design, be completed in mid-2021. It would have to be done differently to the 2016 white paper, which was the heavy armoured division of the policy world.

The good news is that Defence is substantially ready to go, because of standing policy, capability development and costing methodologies that were put in place last time around.

My hope is that the decision to commission a new white paper is a step the government will be prepared to take in coming months.

This is an edited version of remarks delivered by ASPI’s executive director at ASPI’s ‘War in 2025’ international conference on 14 June 2019.

Politics dictates the timing of defence white papers

In a recent Strategist post, Mike Kalms and Adam Lockyer made the case for defence white papers (DWPs) to be produced on a fixed cycle. A set schedule would, they argue, provide certainty for both the Department of Defence and defence industry. However, the reality is that the timing of DWPs is driven, first and foremost, by political considerations.

Arguments for imposing regularity on DWP releases overstate the role that DWPs play in providing policy direction on defence strategy, and disregard the political considerations that inevitably feed into the government’s policymaking.

As ASPI’s Peter Jennings has written, ‘All Defence White Papers are inherently political documents’ and ‘Governments make policy aiming to stay in power’. Thus, DWPs are underpinned by domestic party-political considerations, as Kim Beazley has noted. ‘A defence white paper’, he wrote, ‘is not simply a product of a dispassionate view by defence officials of the nation’s defence needs. It is a document approved by a political cabinet and reflects at least in part the ideological perspectives and internal political settlement of the party in power.’

So, given that governments set policy and that DWPs provide an overarching policy framework for defence, it follows that DWPs won’t last if they don’t have the governing political party’s approval and support. As Jennings put it, ‘[A] White Paper without a Prime Minister actively claiming to “own” it does not survive for long.’

And because DWPs are the primary policy documents for addressing national security matters—and play a role in supporting the significant expenditure associated with implementing defence policy—it’s reasonable to expect that a change of government will be followed by a new DWP at some point during the new party’s term of office (unless there’s overwhelming support in the party for the policy positions outlined in the existing DWP).

It’s not just changes of government that can prompt a new DWP. History shows that leadership changes in the governing Labor Party twice prompted new DWP releases: in 1994, with the shift from Bob Hawke to Paul Keating as prime minister; and in 2013, with the shift from Kevin Rudd to Julia Gillard (see the table below). These two examples highlight the imperative for alignment of DWPs with the foreign and defence policy positions of the incumbent leadership.

Australian defence white paper releases, 1975 to 2018

[table id=9 /]

Notably, in Gillard’s case, the differences between her and Rudd’s positions were stark and substantive. She refused to support the sizeable defence expenditure outlined in Rudd’s 2009 DWP, which she saw as excessive and unnecessary. And she viewed Rudd’s policy position on China as diplomatically unwise and not aligned with the foreign policy positions set out in her 2012 Australia in the Asian century white paper and 2013 National Security Strategy, both of which evinced a more optimistic view of Australia’s position within Asia and of China’s importance to a growing Australian economy.

The reverse also applies. When a change in party leadership isn’t accompanied by a new DWP, it can reasonably be assumed that the current white paper has the implied support of the new PM. This is best illustrated by the Coalition government that’s been in power since 2013. The 2016 DWP was released early in Malcolm Turnbull’s tenure as PM, but the groundwork was laid during Tony Abbott’s time in the job. The defence policy positions it outlined had (and continue to have) broad party support. The projected future expenditure was fully costed and accompanied by two new and significant policy documents aimed at more closely integrating defence industry with future defence expenditure: the 2016 Integrated Investment Program and the 2016 Defence Industry Policy Statement.

The claims that changes in Australia’s strategic environment are primarily driving the recent pattern of more frequent DWPs are not supported by the evidence. Certainly mechanisms exist within Defence to provide strategic guidance to government between white paper cycles. These include Defence’s defence planning guidance, quarterly and annual strategic reviews, and strategic policy statements. All of these are high-level, classified strategic documents that provide government with up-to-date advice on a range of defence issues (including force posture, force design and operational planning) and potential proximate and longer term changes in Australia’s strategic environment that might affect the policy direction and options covered by the existing DWP.

While the calls for regularity in the release of DWPs are understandable—particularly from the point of view of providing greater certainty for defence industry—the evidence shows that political concerns overwhelmingly dictate the timing of DWP releases. All other influences are subordinate to those considerations.

And while the number of years between DWPs has been shrinking recently, as Kalms and Lockyer note, that’s probably a reflection more of the increasing instability in Australian politics over the past decade (of which changes in party leadership have been the defining characteristic) than of the influence of external factors.

If instability and the associated changes in leadership continue, the frequency of DWPs won’t decrease. Introducing fixed terms of government might enable white paper cycles to be regularised. However, even though both major parties have introduced rules to raise the bar for successful leadership challenges, a change in prime minister could still happen during the course of a fixed term—and that could still result in a new DWP. In any case, if Australia did shift to fixed terms of government, it’s unlikely that bringing cyclical regularity to DWP releases would be the primary driving factor.

Liberal internationalism: hard days, hazy daze

The core belief system of Australia’s approach to international affairs for 75 years is the cause that can barely speak its own name.

Whisper it softly: ‘liberal internationalism’, an aspiration big enough to encompass democracy and rule of law, open markets and free trade, individual liberty and human rights.

The Turnbull government’s imminent foreign policy white paper will have liberal internationalist molecules throughout its DNA. Yet the arguments the white paper has with itself about the state of the world will reflect the troubles afflicting liberal internationalism.

Labels and understandings drive what matters, and this vital two-word label is suffering.

Internationalism stands in the dock with its mate globalisation, assailed by nationalism and mercantilism and all the opportunities—masquerading as troubles—of a world growing ever closer.

The liberal label is beset by hostile fire from the right and left wings and a less-than-convinced centre. US Republicans love liberty but disdain liberals as soft socialists and European cheese–eating surrender monkeys. To dodge such smears, US Democrats won’t own to being liberals.

Liberal internationalism stands condemned because of its supposed association with economic neoliberalism. Neolib nostrums that dominated the final quarter of the 20th century—deregulation, privatisation and market forces—are derided as failed bizonomics. Neoliberalism is rendered in Oz-speak as ‘economic rationalism’, and its great Australian champion, the Productivity Commission, has run up the white flag on all things neo with its Shifting the dial review, arguing that without equity and fairness there can’t be economic efficiency. Fancy that—markets mediated by politics.

Australia’s affection for liberal internationalism began at that moment of existential crisis in 1942 when we abandoned Pax Britannica and went looking for new ways. That arc is a theme in the latest (12th) volume of the Oz-in-the-world series from the Australian Institute of International Affairs; the book’s title, Navigating the new international disorder, can do double duty as the unofficial title of the foreign policy white paper. A fine chapter by Andrew Phillips offers three phases of the arc:

Liberal internationalism Mark I, 1942–72: Embracing the US (and its values) as the security patron, while Australia joined efforts to create a new global order at the United Nations. Australia argued for the right of states to deliver full employment—and to ensure social stability through White Australia. Phillips comments, ‘Australia’s moral universalism remained limited by its dedication to a domestic political order that presupposed racial homogeneity as a prerequisite for social harmony and national security.’

Liberal internationalism Mark II, 1972–2001: Human rights norms erased the last vestiges of colonialism, while the old economic order of ‘embedded liberalism’ gave way to neoliberal globalisation. The Australian response was two ‘master shifts’ to multiculturalism and our neolib version, economic rationalism.

Liberal internationalism in crisis, 2001–present: Rapid changes in the security and economic spheres feed into ‘a broader ideological crisis of liberal internationalism’. Phillips judges: ‘Neither jihadism nor authoritarian nationalism stand as credible competitors to liberal internationalism in offering an alternative foundation for global order. Nevertheless, the persistence and even intensification of these challenges equally confirms the return of ideological contestation as a central feature of world politics.’

The crisis of liberal internationalism translates into Canberra’s talk of uncertain and dangerous times; this says more about Oz uncertainty than about the state of the world. We’ve lived through vastly more dangerous times. The Canberra perception, though, isn’t just the tyranny of the present—it’s the frightening sight of Australia’s conceptual framework shaking and shedding bits.

The Canberra sense of hard days peering through a hazy daze was striking in last year’s defence white paper, fretting loudly about the need for international rules. The policy document used the word ‘rules’ 64 times—48 of those in the formulation ‘rules-based global order’.

The word that didn’t appear once in the defence white paper was ‘liberal’—quite an omission for a Liberal government. The defence hardheads understand that China is all for a rules-based order, but Beijing isn’t interested in an American-designed liberal order.

Other parts of Canberra do push back on the need to preserve and defend the liberal order. Hence, the proposition from Foreign Minister Julie Bishop that China can’t rule because it’s not a democracy: ‘The importance of liberal values and institutions should not be underestimated or ignored. While non-democracies such as China can thrive when participating in the present system, an essential pillar of our preferred order is democratic community.’

Ah, the ordeal of ordering orders. What we prefer and what we get …

Be amazed if the foreign policy white paper says much about the China–democracy equation. Still, it’ll want liberal rules—this is the diplomats’ take on our policy DNA, not the defenceniks.

The sense of uncertainty ran through Malcolm Turnbull’s Asia–Pacific speech before he headed to the Asia summits:

  • The multilateral trading system faces greater challenges than at any time since its creation in the 1940s to ‘contain protectionism and enforce international rules … The siren songs of populists, advocating protectionism as simple quick solutions, have gained considerable support’.
  • ‘Rising major power trade tensions—tensions between assertive state capitalism in China and populism in the United States’ could undermine the WTO’s rules-based system.
  • The global rules are fraying, opening the way for large states to use arbitrary barriers and coercion.
  • And quoting French President Emmanuel Macron: ‘Democracy needs to recover its ambition.’

The declarations have a tinge of desperation. For liberal internationalism, the haze thickens.

An inflection point in nuclear deterrence?

In recent days, Wilton Park—the British Foreign and Commonwealth Office’s discussion forum—released a report (PDF) on its June workshop on nuclear deterrence and assurance. The report’s not overly long, but bears a close reading given the current debates about the future of nuclear weapons. One of its conclusions is that Western governments need to make greater efforts to engage their publics on the difficult issue of nuclear deterrence, ‘to maintain—and to lead—a balanced and nuanced debate’ about the place of nuclear weapons in their own future defence strategies. Presenters at the workshop were drawn primarily from NATO countries and Northeast Asia, but Australian policymakers would do well to heed some of the key lessons.

I’ve argued before that Australian governments have broadly stepped away from publicly defending the doctrine of nuclear deterrence since the Cold War ended. Personally, I think that’s unhealthy. When governments cease to defend nuclear deterrence, public support wavers. And building and sustaining that support is getting harder with the passage of years. Both the risks and the benefits of the doctrine were comparatively easy to sell to the generation or two that had access to direct memories of World War II. After all, a war that killed over 50 million people—that is, an average of 25,000 people every day for six years—was bound to leave deep scars about the costs of great-power war. Those generations largely understood that nuclear weapons helped make great-power war more unlikely, mainly by inducing greater caution among decision-makers.

But to many young people today, nuclear deterrence looks like a hangover from an earlier era of mass war—with a large downside and little upside. Hence the new nuclear weapons ban treaty, written by governments with no attachment to nuclear deterrence at the prompting of social groups with no belief in it. With the treaty text safely in the locker, the ban’s proponents have embarked on a bottom–up strategy of persuading individual politicians to embrace the cause. ICAN Australia’s Twitter feed shows an adroit application of the lobbying principles displayed in Miss Sloane: individual politicians are often photographed holding signs declaring their support for the ban treaty, making it much harder for them to reverse those positions at a later date.

Meanwhile, no individual cabinet minister has volunteered any sustained defence of nuclear deterrence. At a time when many US allies around the world are attempting to strengthen US extended nuclear assurances, Canberra’s been largely silent on the topic. As North Korea’s ballistic missiles have become more and more capable, the dominant theme in public discussion hasn’t been extended nuclear deterrence; it’s been a sudden, touching—and misleading—faith in ballistic missile defence. The 2016 Defence White Paper, the most recent articulation of Australian declaratory policy, had little to say on the issue of extended nuclear deterrence—and that at a time of rising risks from nuclear proliferation and Russian and Chinese modernisation. In response to ICAN’s current targeting of individual members of parliament, there seems to be no comparable effort from either major political party to solidify political support behind our existing defence strategy.

In short, in Australia as across much of the West, nuclear deterrence is in danger of death by neglect. Elsewhere, the reverse is happening. The Russians have moved into a tighter embrace of nuclear weapons, eager to find ‘a “nuclear scalpel” capable of “surgically” destroying local military targets’. China has embarked on a substantial modernisation of its arsenal, keen to improve survivability and targeting options. In South Asia, Pakistan has moved to declare ‘full-spectrum deterrence’ as it seeks to offset India’s growing conventional capabilities. India, too, is making its own modernisation effort, in part to stay within reach of China. And North Korea’s nuclear and missile programs make daily headlines. Across the broader Asian nuclear order, the principle of voluntary restraint is weakening.

Perhaps opponents of the nuclear ban treaty are hoping that it will quietly die from its own historical irrelevance—that it will fade gradually into obscurity as nuclear warhead numbers remain largely constant, and as the US strategic modernisation program unfolds. But we shouldn’t assume that anti-establishment narratives will automatically succumb to strategic good sense. There’s no law of politics that says good sense triumphs.

In short, it’s long past time that the Australian government re-engaged the public on the meaning and purpose of nuclear deterrence. Extended nuclear deterrence—the doctrine under which the US agrees to run nuclear risks on its allies’ behalf—has traditionally enjoyed a degree of bipartisan support in Australia. (Labor’s 2009 Defence White Paper defended the concept with greater vigour than either of its successors.) If that’s still an accurate reflection of the prevailing orthodoxy, it would be nice to hear some voices raised to support it. Public re-engagement, of course, is only the first step on a longer and more difficult journey. Like other US allies, Australia should be looking for ways to strengthen nuclear deterrence, not merely to explain and defend it. But that’s a topic for another day.

DWP: Defence With Partisanship

Image courtesy of Flickr user MomentsForZen.

In his usual fashion, Peter Edwards’ recent report ‘Defence White Papers at 40’ offers an elegant, illuminating and historically grounded review. Edwards is right to cast his attention to this habit of government, noting that Australia managed to survive for 75 years without one, before producing seven in the next 40 years.

Given the growing dissatisfaction many have with recent documents, as well as the uncertainty of our times, his call to ‘draw breath’ on the practice is worth considering. As Edwards notes, his paper is far from alone in critiquing the quality of Australia’s contemporary strategic policy debate.

A common conclusion among the critics is the need for institutional change. Edwards argues for better use of parliamentary statements and use of the committees. James Brown has called for better involvement and education of our politicians on strategy; John Faulkner for better judicial oversight of intelligence; and many voices have supported parliament taking away from the executive power over the use of force.

That is, more positions of authority, more power to parliament, more independence for auditors and assessors. Where the culture of the debate is mentioned, it’s simply to refrain that we have too much pointless bickering and need steady and strong bipartisanship. But I’m not sure the case can be made that Defence White Papers suffer from partisanship (as Edwards alleges) or that bipartisanship produces stronger documents.

We’ve had three significant Defence White Papers. Two of them are singled out for praise by Edwards: the 1976 and 1987 documents. Both of these however were fundamentally the product of partisan debate. While the 1976 document reflects the influence of both the Coalition (1966–1972 and 1975–6) and Labor (1972–1975), their differences were bitterly argued over at the time. The document reflected a fragile—and temporary—moment of agreement as both parties were forced to shift their world view (most notably with the Coalition accepting the limits of the alliance; the ALP accepting its benefits).

The 1987 White Paper was also a partisan document. The Hawke government needed to keep faith with the mainstream and the US alliance while managing its left wing. (A story set out most recently in Kim Beazley’s chapter on sovereignty and the alliance). The Coalition strongly criticised the 1987 White Paper at the time, arguing it was a form of isolationism and a poor response to growing Soviet threats in the Pacific.

Those critiques would in time lead to the final standout and yet partisan document, the 2000 White Paper. The Coalition wanted to make a clear break with the Defence of Australia construct with big changes to how Australia chose its capabilities, what it used them for and how it explained these to the public. The document was then used by the Howard government to fully reclaim primacy in the politics of security and international affairs, which the Coalition had ceded to the ALP in the 1980s and early 1990s.

All three of those documents had core elements that reflected the differences of their authoring parties and those differences were strongly argued for following their release. These are wise documents, but they linger because their ideas were justified and defended at length in public. It’s hard to say Australia has suffered because of the political motives or ambitions contained within these documents.

By contrast the 2009, 2013 and 2016 DWPs all seem to have disappeared within months of their release. That’s a shame, as all contain different and potentially important ideas—2009 on China, 2013 on regional cooperation, 2016 on industry and capability. Yet in the spirit of ‘bipartisanship’, few if any of those ideas have been properly explored or explained to the general public. As such, scholars and public servants have been left with many questions, leading to confusion and at-times ad hoc policymaking.

It’s easy to be pessimistic about democracies today. Yet the story of the twentieth century is one of the democratic countries repeatedly having better strategies than their opponents. Those strategies were formulated because of partisan differences, democratic debate and public involvement, not in spite of them. Before we overhaul our system of government, we should try and allow it to operate as it was designed to: with the title ‘Leader of the Opposition’ meaning something, particularly when it comes to national security.

Ultimately, I think Edwards’ call for a pause in the production of Defence White Papers is wise. But that’s partly because our parties today don’t have enough to say on those issues. When they do—when we allow them to debate and divide on the question of defence—then we can return to producing such documents. Not until we allow our political parties to be political will we have another Defence White Paper worth storing on the shelf.

Tiger, Tiger, not so bright

A Tiger Armed Reconnaissance Helicopter prepares to depart RAAF Learmonth to conduct security operations during an Exercise Northern Shield scenario. *** Local Caption *** Tiger Armed Reconnaissance Helicopters (ARH) have arrived in Exmouth, Western Australia on Exercise Northern Shield to assist the Ready Combat Team (RCT) conduct security operations in the region. The Tigers, operated by the Darwin based 1st Aviation Regiment, deployed at short notice to respond to a simulated enemy threat. Exercise Northern Shield involves over 1000 troops from the Army and Air Force. It is occurring in North West Australia from the 19th – 24th of September.There was a new acquisition project that was given a lot less prominence than the big ticket naval items in today’s White Paper launch. In the paper’s paragraph 4.56, we find this:

‘The Government will replace the 22 Tiger Armed Reconnaissance helicopters with a new armed reconnaissance capability from the mid-2020s.’

It’s certainly to the point, but a more accurate—if slightly wordier—way of putting it would be this:

After almost a decade of effort and a $2.03 billion project budget, the Government has decided to give up trying to integrate the Tiger helicopter into Army’s emerging C4ISR architecture, let alone the wider ADF. We’ll try something else instead. (Now, where’s the FMS catalogue?)

I have to give the Turnbull Government credit for taking an overdue step. It takes some courage to cut the losses and move on, but I think that’s precisely what was required here. And this problem was hardly of the current government’s making. Today’s announcement is actually a sorry ending to a long and troublesome project that was the subject of the ANAO’s attention a full decade ago. Back then the Auditors made this observation:

Defence had intended that the ARH aircraft was to have been an ‘off-the-shelf’ delivery of proven, operational technology, lowering the risk of schedule, cost and performance shortfalls. The ARH acquisition transitioned to become a more developmental program for the ADF, which has resulted in heightened exposure to schedule, cost and capability risks…

Ten years on—a decade that saw Army’s deployed personnel in Afghanistan rely on armed reconnaissance support from other nations—it seems that it all got too hard. Defence admits as much in today’s Integrated Investment Plan (IIP), admitting that ‘the Tiger has had a troubled history’ and it seems that from here on the platform will only receive ‘essential upgrades’ to keep it flying until a replacement (which could be manned, unmanned  or a combination of the two) is acquired. So we can file this one under ‘poor return on taxpayer’s investment’ beside the Super Seasprite, although at least we got some exercise effort out of these and they were once deemed fit for a Prince (video).

Rather than closing on a sour note, let me observe that there were a few reasons for optimism in today’s White Paper launch for followers of the not always happy story of Army aviation. Another long term problem child in the form of the MRH-90 battlefield helicopter seems to be slowly gaining some ground in terms of capability delivery. The accompanying IIP mentions ongoing work to use the helicopter in Special Forces counter-terrorism work. Given the Special Force’s previously reported antipathy towards the type, that’s a positive (and it accords with anecdotal reports we’re hearing that the Army is starting to become much more comfortable with the MRH-90).

And there’s even a new type of helicopter altogether about to join the ADF’s inventory:

A new capability for the ADF will be introduced with the acquisition of dedicated light helicopters to support Special Forces operations. These light helicopters can be rapidly deployed in C-17s, and can insert, extract and provide fire support for small teams of Special Forces undertaking tasks ranging from tactical observation through to counter-terrorism missions, or hostage recovery.

Extra air mobility for Special Forces is a sensible step—in a counter-terrorism mission, speed and access can be crucial. (Just don’t anyone mention the apparently long dead and buried ADF Helicopter Strategic Master Plan, which set out to reduce the number of types in the ADF inventory to just four…)

Finally, another three CH-47F Chinooks will join Army’s fleet, building on an already successful acquisition and adding additional medium lift.

Julia on attack and defence

Then Prime Minister of Australia, the Honourable Julia Gillard MP launching the Defence White Paper at No. 34 Squadron, Fairbairn.Julia Gillard writes that she inherited ‘unrealistic’ defence settings from Kevin Rudd and hints faintly that she bequeathed the same to the Abbott government. Just as Gillard needed a new defence policy because of Kevin Rudd, she needed a new Asia policy because of The Kevin. Gillard had to replace Rudd’s unaffordable and faltering Defence White Paper, while her Asia Century White Paper gave her a chunk of foreign policy without Rudd’s finger-prints all over it.

What was more important—the policy interests or the shadow of Kevin? Pointless question. Both sides of the equation were vital.

Remember Rule 1 of understanding Canberra: ‘It’s always personal‘. The personal shapes power and shifts policy; see Gillard’s grand swipe at Rudd and Bob Carr: ‘After the 2010 election, I never had a Foreign Minister I could rely on’.

Gillard’s book is useful on defence policy, if not as vivid in its verbal voltage as it is about Rudd’s ‘destabilisation’, ‘leaking’ and ‘treachery’. In such a spirit, turn to Julia’s demolition of the 2009 Defence White Paper. She makes familiar criticisms. But this is the Deputy Prime Minister who was present at the creation (of the mess). On the Rudd White Paper, Gillard writes: ‘The overblown nature of the prose had drawn an adverse reaction from the Chinese and the budget rule laid out in the White Paper for defence expenditure was unrealistic and almost immediately breached’. Read more