2000, Volume 3, Paper 38
ISSN: 2209-6612

The Northern Myth revisited – A resource economics research response to renewed interest in the agricultural development of the Kimberley region

Romy Greiner
Andrew K.L. Johnson

Abstract

The proposal for a 64,000 hectare expansion of the Ord River Irrigation Area is one example of the renewed interest in agricultural development in the tropical north of the Australian continent. Thirty five years ago Bruce Davidson provided conclusive ‘evidence’ that agricultural development in this region was not financially sustainable unless supported by ongoing government subsidies. He argued that this conclusion was unlikely to change in the future. This paper outlines the controversy over past and proposed agricultural developments and explains the role of agriculture in the Kimberley economy today and in relation to other natural resource based industries.

In a time when the paradigm of sustainable development recognises ‘quality of life’ and ‘equity’ as major objectives of development, positive benefit-cost ratios are reduced to being a necessary but not the only sufficient factor in development decisions. The trend towards regional governance provides regional communities with both the opportunity for and difficult task of managing their natural resources sustainably into the future.

The Ord-Bonaparte Program, a 5-year interdisciplinary multi-agency R&D program, is designed to support regional governance in the East Kimberley region. Its objectives are to provide relevant data and understanding, and build capacity particularly with indigenous stakeholders. Applied economic research, within an ecological economics framework, plays a critical role within the Program. The paper suggests a range of analytical methods and applications that would make significant contributions to the Program.

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