LOCAL PLACES, GLOBAL PERSPECTIVES
WHY INTERCULTURAL PRACTICE BUILDS STRONGER LOCAL ECONOMIES
By Lynda Ford OAM
INTRODUCTION Australia’ s economy and society is built on diversity. The 2021 Census showed that 51.5 % of Australians were either born overseas or had at least one parent born overseas. 1 This makes multiculturalism mainstream. But recognising diversity is only the starting point. The bigger challenge for councils, businesses, and local communities is how to harness diversity so it strengthens local economies and prepares municipalities for growth.
This is where the distinction between multiculturalism and interculturalism matters. Multiculturalism( multi = lots) is about recognising and celebrating the many cultures that coexist in your community. Interculturalism( inter = within and between) deliberately creates local opportunities for people of all backgrounds, those born in Australia, born overseas, and First Nations peoples, to work together, create relationships, have a laugh, exchange perspectives, share resources, build their businesses and innovate. Interculturalism is the activation of multiculturalism and they are complementary, not oppositional. 2
For economic development officers( EDOs) and councils, the implications are clear. It is not enough to simply acknowledge diversity; the task is to design systems that convert cultural difference into economic strength. Evidence from Sweden, Germany, UK, Canada, USA and others consistently shows that diversity can be a powerful driver of growth and that the more diverse the company, the better the performance, to the point of outperforming on profitability, similar companies with less diversity. 3
In Australia, research shows that regions with higher levels of migrant diversity experience stronger income growth and employment outcomes. 4 And small towns, such as Nhill in western Victoria, have demonstrated how embracing refugee communities revitalises local economies, adding jobs, services, and millions in regional investment. 5
BUSINESSES ARE PEOPLE TOO This article sets out our six-step Intercultural Roadmap for councils. Drawing on interviews with members of Hume City Council’ s economic development team, technology business owner, Fergal Coleman of Symphony 3, Robert Williams, Director of First Nations-owned enterprise Yarn Strong Sista, and digital marketer Hatim Abbas, the article demonstrates how intercultural practice can transform diversity into a prosperous, shared community asset.
With almost 40 % of residents born overseas and First Nations peoples constituting more than 0.5 % of the population 6, Hume City Council’ s economic development team has had to develop cultural competence to work across 27,500 businesses throughout the city with approximately 10,000 migrantowned and more than 50 businesses owned by First peoples. 7
As one Hume City Council officer explained,“ We can talk all the time about structures, but it only ever gets down to people. Business owners pay rates, fees and charges. They’ re the ones supporting local sport clubs and school raffles. They usually employ local people. We have a responsibility towards them. That’ s often forgotten.”
VOL 18 NO 3 2025 10 www. edaustralia. com. au