The students’ issue, a year later

It is almost a year since angry Indian students swarmed onto the streets of Harris Park, venting their anger against relentless physical assaults aimed at them.

The protests continued for two nights and turned peaceful streets into angry confrontational grounds between students and authorities.

Racism was seen as a cause for the attacks on the students and this later escalated into a war of words between Canberra and New Delhi. Media in both countries had a field day making accusations - and denials - of racism, even as an effigy of Kevin Rudd was burnt on the streets of New Delhi.

Now, almost a year on, the situation is calmer and the headlines seem to have died down. The effects on the Indian community are profound and while some are good, others have created insecurity and uncertainty.

Firstly, on the positives: the entire episode gave the Indian community a voice in mainstream Australia. The community benefited from giving well meaning, articulate Indian Australians a chance to voice their opinions on what was happening around them and to offer solutions to the problems. For the first time, the local community found itself in the spotlight and it allowed the Australian media and politicians to interact with a number of these newly emerging community leaders. These spokespeople were spread across the spectrum – from the younger generation of students to the older more established Indians in Australia; from the representatives of Indian organisations to the self appointed guardians of the community. While the established players were miffed at having their power base diluted, it also served as a wake-up call to take their responsibilities more seriously, knowing there were others in the sidelines who could get on to the centre stage too. It also was a time to get rid of the deadwood who were entrapped in the databases of the government and media organisations as spokespeople for the Indian community for a long while. When there were intelligent comments needed at times of crises, these individuals or organisations were found wanting. The community has now cleared the decks and there are signs of articulate and aggressive representatives emerging from the community.

While the students’ crisis opened these doors for the community, the negative effects are only just emerging. The community was enjoying the benefits of growth, but the wings. With the Indian student population increasing by 2009, there were multitudes of Indian restaurants, travel businesses, spice shops etc. which had sprung up to service the needs of Indian Australians. The government’s decision to tighten the restrictions on these students - and this affected not only those studying in Australia and hoping to apply for permanent residency visa but also those students in India who were keen to pursue their studies in Australia - meant that all these small businesses are under threat. Without the robust activity and business from the student market, these small businesses are already experiencing severe pressure to keep themselves afloat. Those which can adapt by either cutting costs or aligning to a new market, will be able to ride this out; others may find it difficult to survive.

Particularly hit will be those who have taken on debt to start their businesses: this debt, in the increasing interest rate environment, will create further cash flow pressures. Also affected will be the students who were planning to apply for permanent residency in Australia at the conclusion of their studies. These students and by default their support network like their families, may have been counting on the financial options opening for them after they secure their PR, helping pay back any debts they may have incurred while undertaking their studies. They will now not have any of these options available.

For Australia itself, it has deprived itself of not only the revenue these students were bringing to the economy, but also of a future work force which was highly ethical and industrious. As one looks around the economics of Europe where the aging population is soaking up national earnings with their pension, and a declining younger generation, Australia needs to continually renew itself to ensure it does not fall into a similar trap. Long term, a steady flow of new entrants will help ease this problem but for the short term, the Rudd government is counting that its newly released skilled migration list can meet its long term demand.

The Indian community, the established as well as the student community, have both undergone a trial of fire in the last 12 months. Indications are that the heat from this fire will continue to burn for a while.

Pawan Luthra