Poor economic performance in the past has focused the political and economic debate in Australia on long-run issues of structural change crucial to Australia in regaining its leadership role among industrial countries. This book identifies the principal constraints that have affected long-run economic performance in Australia and discusses the extent to which successive reform agendas have reduced these constraints. The book concludes that the economy’s growth potential has increased from the range of 2½-3 percent in the late 1980s to around 3½ percent currently, because of higher productivity and investment in the 1990s in response to the reforms thus far. Moreover, additional reforms in several areas have the potential to increase long-term growth further. Ultimately, Australia’s success in raising per capita incomes and reducing unemployment will depend on the strength of its structural transformation efforts. The book is raised, against the background of the turbulence in Asian and international financial markets, a number of key issues and policy challenges that remain at the forefront of the debate on Australia’s future economic performance.