"You don't seem to understand basic economics."

Obviously nor do you.

From a purely economic perspective, Australia's strategic position couldn't be any worse. Australia simply cannot compete in the so-called "Asia-Pacific" region, beyond serving as China's quarry. Half of our exports are primary products, and roughly two-thirds of imports are manufactured goods. A downturn in commodity prices would force Australia to enhance the value of its service exports, where it faces tough competition from India, or its manufacturing exports, where it faces even tougher competition from China. Such a path would doom us to become the "poor white trash of Asia" after all.

If Australia is to maintain its living standards beyond the present Chinese-driven commodities boom, then it is imperative for Canberra to seek trade opportunities elsewhere. That means becoming a truly global exporter.

Keating believed that economics overruled culture in shaping Australia's place in the world. However, one should not discount the crucial role culture and people-to-people links play in the formation of trade relations. Regional trade blocs are largely built upon cultural commonalities. That's why Australia and New Zealand will remain orphans in the South Pacific.

In the 21st century, globalisation has overcome the tyranny of geography. Yet Australian policymakers seems more captivated by blind geographical determinism than ever before.

To quote international affairs expert Owen Harries:

"To emphasise geography as decisive at the very time when technology is making physical distance and proximity less significant than they have ever been in human history, and when communication with any part of the world is virtually instantaneous, seems perverse. Far from being inescapable, the reality of geography, in a sense of it's human significance, is constantly changing, constantly being circumvented."