Six Years of the Accord: An Assessment

Abstract

For six years the Accord has been the cornerstone of the Australian Government's economic strategy. It has taken many different forms and has displayed considerable adaptability. An assessment of the success of the Accord is important not only for Australia but because of its implications for macro-economicpolicy generally. It may be that the Australian experience has a much wider effect on discussions of appropriate policy formation in other countries. Recent developments in award restructuring have implications for micro-economic policy also. In this paper the evidence regarding the impact of the Accord is assembled and critically evaluated. The general conclusion is that the Accord has had very important beneficial effects on employment and industrial relations. This supports the view that incomes policy is a viable instrument for economic policy.