Geography

Climatic zones in Australia, based on the Koppen climate classification

Australia's landmass of 7,617,930square kilometres (2,941,300sqmi)[53] is on the Indo-Australian Plate. Surrounded by the IndianN4 and Pacific oceans, Australia is separated from Asia by the Arafura and Timor seas. The world's smallest continent[9] and sixth largest country by total area,[8] Australia - owing to its size and isolation - is often dubbed the 'island continent'[54] and variably considered the world's largest island.[55] Australia has 34,218kilometres (21,262mi) of coastline (excluding all offshore islands)[56] and claims an extensive Exclusive Economic Zone of 8,148,250square kilometres (3,146,060sqmi). This exclusive economic zone does not include the Australian Antarctic Territory.

The Great Barrier Reef, the world's largest coral reef,[57] lies a short distance off the north-east coast and extends for over 2,000kilometres (1,240mi). Mount Augustus, claimed to be the world's largest monolith,[58] is located in Western Australia. At 2,228metres (7,310ft), Mount Kosciuszko on the Great Dividing Range is the highest mountain on the Australian mainland, although Mawson Peak on the remote Australian territory of Heard Island is taller at 2,745metres (9,006ft).

By far the largest part of Australia is desert or semi-arid lands commonly known as the outback. Australia is the flattest continent, with the oldest and least fertile soils, and is the driest inhabited continent. Only the south-east and south-west corners of the continent have a temperate climate. The population density, 2.8 inhabitants per square kilometre, is among the lowest in the world, although a great proportion of the population lives along the temperate south-eastern coastline.

The landscapes of the northern part of the country, with a tropical climate, consist of rainforest, woodland, grassland, mangrove swamps, and desert. The climate is significantly influenced by ocean currents, including the Indian Ocean Dipole and the El Nino-Southern Oscillation, which is correlated with periodic drought, and the seasonal tropical low pressure system that produces cyclones in northern Australia.[59]

Environment

Although most of Australia is semi-arid or desert, it includes a diverse range of habitats from alpine heaths to tropical rainforests, and is recognised as a megadiverse country. Because of the continent's great age, its extremely variable weather patterns, and its long-term geographic isolation, much of Australia's biota is unique and diverse. About 85% of flowering plants, 84% of mammals, more than 45% of birds, and 89% of in-shore, temperate-zone fish are endemic.[60] Australia has the greatest number of reptiles of any country, with 755 species.[61]

Many of Australia's ecoregions, and the species within those regions, are threatened by human activities and introduced plant and animal species. The federal Environment Protection and Biodiversity Conservation Act 1999 is a legal framework for the protection of threatened species. Numerous protected areas have been created under the national Biodiversity Action Plan to protect and preserve unique ecosystems; 64 wetlands are registered under the Ramsar Convention, and 15 natural World Heritage Sites have been established.[62] Australia was ranked 46th of 149 countries in the world on the 2008 Environmental Performance Index.[63] Australian forests often contain a wide variety of eucalyptus trees and are mostly located in higher rainfall regions.

Most Australian woody plant species are evergreen and many are adapted to fire and drought, including many eucalypts and acacias. Australia has a rich variety of endemic legume species that thrive in nutrient-poor soils because of their symbiosis with rhizobia bacteria and mycorrhizal fungi. Among well-known Australian fauna are the monotremes (the platypus and the echidna); a host of marsupials, including the kangaroo, the koala, and the wombat; the saltwater and freshwater crocodiles; and birds such as the emu and the kookaburra. Australia is home to many dangerous animals including some of the most venomous snakes in the world.[64] The dingo was introduced by Austronesian people who traded with Indigenous Australians around 3000 BCE.[65] Many plant and animal species became extinct soon after first human settlement,[66] including the Australian megafauna; others have become extinct since European settlement, among them the thylacine.[67]

Climate change has become an increasing concern in Australia in recent years,[68] with many Australians considering protection of the environment to be the most important issue facing the country.[69] The first Rudd Ministry has initiated several emission reduction activities;[70] Rudd's first official act, on his first day in office, was to sign the instrument of ratification of the Kyoto Protocol. Nevertheless Australia's carbon dioxide emissions per capita are one of the highest in the world, lower than only a few other industrialised nations including the United States and Canada. Rainfall in Australia has slightly increased over the past century, both nationwide and for two quadrants of the nation,[71] while annual mean temperatures increased significantly over the past decades.[72] Water restrictions are currently in place in many regions and cities of Australia in response to chronic shortages due to urban population increases and localised drought.[73]

Economy

The Super Pit in Kalgoorlie, Australia's largest open cut gold mine

The Australian dollar is the currency of the Commonwealth of Australia, including Christmas Island, Cocos (Keeling) Islands, and Norfolk Island, as well as the independent Pacific Island states of Kiribati, Nauru, and Tuvalu. After the 2006 merger of the Australian Stock Exchange and the Sydney Futures Exchange, the Australian Securities Exchange is now the 9th largest in the World.[74]

Australia is one of the most laissez-faire free market economies, according to indices of economic freedom. Australia's per capita GDP is slightly higher than that of the United States, UK, Germany, and France. The country was ranked second in the United Nations 2009 Human Development Index, first in Legatum's 2008 Prosperity Index, and sixth in The Economist worldwide Quality-of-Life Index for 2005. All of Australia's major cities fare well in global comparative liveability surveys;[75] Melbourne reached 2nd place on The Economist's 2008 World's Most Livable Cities list, followed by Perth at 4th, Adelaide at 7th, and Sydney at 9th.[76]

An emphasis on exporting commodities rather than manufactures has underpinned a significant increase in Australia's terms of trade during the rise in commodity prices since the start of the century. Australia has a balance of payments that is more than 7% of GDP negative, and has had persistently large current account deficits for more than 50 years.[77] Australia has grown at an average annual rate of 3.6% for over 15 years, a period in which the OECD annual average was 2.5%.[77] Australia did not fall into a technical recession during the late 2000s recession that affected most other Western countries [78]

Destination and value of Australian exports in 2006

The Hawke Government floated the Australian dollar in 1983 and partially deregulated the financial system.[79] The Howard Government followed with a partial deregulation of the labour market and the further privatisation of state-owned businesses, most notably in the telecommunications industry.[80] The indirect tax system was substantially changed in July 2000 with the introduction of a 10% Goods and Services Tax (GST), which has slightly reduced the reliance on personal and company income tax that characterises Australia's tax system.

In January 2007, there were 10,033,480people employed, with an unemployment rate of 4.6%.[81] Over the past decade, inflation has typically been 2-3% and the base interest rate 5-6%. The service sector of the economy, including tourism, education, and financial services, accounts for 69% of GDP.[82] Although agriculture and natural resources account for only 3% and 5% of GDP respectively, they contribute substantially to export performance. Australia's largest export markets are Japan, China, the US, South Korea, and New Zealand.[83]

Demography

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