2016 DEFENCE WHITE PAPER

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44 CHAPTER TWO: STRATEGIC OUTLOOK SECTION ONE STRATEGY 2.17 For Australia, our relationships with both countries will remain crucial in different ways. The way the Government approaches our defence strategy reflects these differences. Australia’s alliance with the United States is based on shared values and will continue to be the centrepiece of our defence policy. The Government will continue to strengthen the alliance including by supporting the United States’ role in underpinning the stability of our region through its rebalance. The Government will also continue to work closely with the United States and coalitions of like-minded countries to address common global security challenges, such as in Iraq, Syria and Afghanistan. 2.18 Australia welcomes China’s continued economic growth and the opportunities this is bringing for Australia and other countries in the Indo-Pacific. Formally elevating Australia and China’s bilateral relationship to a Comprehensive Strategic Partnership during President Xi Jinping’s visit to Australia in 2014 was a reflection of the importance both countries attach to our expanding political, economic, strategic and people-to-people ties. The Government will seek to deepen and broaden our important defence relationship with China while recognising that our strategic interests may differ in relation to some regional and global security issues. The rules-based global order 2.19 Australia’s security and prosperity relies on a stable, rules-based global order which supports the peaceful resolution of disputes, facilitates free and open trade and enables unfettered access to the global commons to support economic development. 2.20 The current global environment is more interconnected than ever before, including communications, trade, global supply chains and the mobility of finance and labour around the world. Interconnectivity means that events in our immediate neighbourhood, the Indo-Pacific region more broadly and in more distant places like the Middle East, Afghanistan
Australia’s security environment 45 and Ukraine can affect Australia’s security and prosperity. The global nature of the challenges we face have been demonstrated by the rise of Daesh in Iraq and Syria. Daesh’s violent extremism has attracted foreign terrorist fighters from around the world including Australia. Terrorists acting in the name of Daesh have perpetrated attacks in several countries including Australia. Never before has there been a time when external threats so distant from our shores have had the capacity to so quickly affect our direct interests. In the decades ahead, we are likely to face new challenges to our interests across the globe. SECTION ONE STRATEGY 2.21 While Australia is the world’s twelfth largest economy and has sophisticated and growing military capabilities, Australia does not have the capacity to unilaterally protect and further our global security interests. This means we will be working with our alliance partner the United States, ASEAN countries, the North Atlantic Treaty Organization (NATO), the United Nations and other partners to achieve our common goals in protecting and promoting a stable rules-based global order. 2.22 Underpinning the rules-based global order is a broad architecture of international governance which has developed since the end of the Second World War. This governance framework, including the United Nations, international laws and conventions and regional security architectures, has helped support Australia’s security and economic interests for 70 years. 2.23 The framework of the rules-based global order is under increasing pressure and has shown signs of fragility. The balance of military and economic power between countries is changing and newly powerful countries want greater influence and to challenge some of the rules in the global architecture established some 70 years ago. 2.24 While it is natural for newly powerful countries to seek greater influence, they also have a responsibility to act in a way that constructively contributes to global stability, security and prosperity. However, some 2016 DEFENCE WHITE PAPER
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Page 6 and 7: 4 TABLE OF CONTENTS The United Stat
Page 8 and 9: 6 TABLE OF CONTENTS The South Pacif
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Page 12 and 13: 10 MINISTER’S INTRODUCTION The Au
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Page 16 and 17: 14 EXECUTIVE SUMMARY dynamics betwe
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Page 26 and 27: 24 EXECUTIVE SUMMARY The Government
Page 28: 26 ' SECTION ONE Strategy CHAPTER O
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Page 33 and 34: Why now? 31 strategy and budget, de
Page 35 and 36: Managing strategic risk 33 1.15 A s
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The funding model 179 provided assu
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How will Defence funding be spent?
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Budgeting in Defence 183 8.18 Imple
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2016 DEFENCE WHITE PAPER

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