Economist Chris Richardson likens Jim Chalmers’ reform push to Deng Xiaoping

A leading economist has likened Jim Chalmers’ approach to lifting lacklustre productivity growth to that of communist reformer Deng Xiaoping’s bid to liberalise the Chinese economy.

Matthew Cranston and Greg Brown

Then prime minister Bob Hawke with China’s then paramount leader Deng Xiaoping in 1986. Picture: supplied

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One of Australia’s leading economists has described Jim Chalmers’ approach to lifting the country’s lacklustre productivity growth as similar to that of communist revolutionary Deng Xiaoping’s bid to liberalise the Chinese economy.

Chris Richardson, who has worked for Treasury and the International Monetary Fund, was responding to a feature in The Australian on how Dr Chalmers’ economic philosophy would guide the upcoming economic reform roundtable and his second-term agenda.

“It’s going to be like Deng Xiaoping … it doesn’t matter whether a cat is black or white, if it catches mice it is a good cat’,” Mr Richardson said, quoting Deng’s proverbial “cat theory” of introducing capitalism into a planned economy to lift economic growth and prosperity.

Paramount leader Deng Xiaoping in 1992. Picture: supplied

Dr Chalmers, who has previously declared that he had “a mountain of respect for Chris Richardson”, is under some pressure to articulate a clear vision for lifting productivity, which declined 1 per cent in the year to March and has been at 60-year-lows.

Mr Richardson also pointed to former US president George Bush Sr’s response when pressed about his own economic and political agenda.

“There is a bit of what George Bush described as ‘the vision thing’ here,” he said.

Mr Bush mentioning “the vision thing” was widely interpreted to be reflecting his struggle to articulate an overarching theme or vision for his presidency.

Chris Richardson in 2019. Picture: Richard Jupe

In The Australian on Saturday, Judo Bank chief economic adviser Warren Hogan accused Dr Chalmers of having “no coherent economic philosophy as best I can tell”.

“Economic thought is a subservient and flexible tool to be employed as needed for political ends, both internally within the party and across the community,” Mr Hogan said.

Mr Hogan’s view was backed by Outlook Economics director Peter Downes, a former Treasury and OECD official.

“I’m not sure that he has one. Any economic philosophy he professes would be crafted to win the maximum support from the caucus for his next promotion,” he said.