Population growth will be the biggest challenge Australia will face emerging from the global financial crisis says head of Treasury, Dr Ken Henry.
Giving a speech in Brisbane on Thursday, Dr Henry predicted a 60 percent increase in population by 2050. He said the challenge would require national leadership on urban development.
“This certainly does pose a set of challenges, just the larger population… does pose a set of challenges for Australian governments, Commonwealth and state, that is probably in order of magnitude larger than any that the Federation has yet had to deal with,” he said.
Dr Henry added that he sees four major challenges facing Australia over the next few months: ageing population, climate change adaptation and mitigation, information and communication technology and the impact of a booming China and India on Australia.
“With the right decisions one can envisage a period of unprecedented prosperity,” he said.
“With less judicious decision, however, we could experience an extended period of extreme volatility, with no growth path proving sustainable.”
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