Better ways of getting into the space business: microeconomic reform in Australian space affairs

This personal view of trends in global space enterprise suggests that, unless they adapt and re-structure, large-scale national and regional space agencies built on traditional lines may struggle to survive, at least in the developed world. With the growing maturity of speculative private sector space initiatives, the role of traditional space agencies as project managers and mediators between providers and the market may become redundant, while in the absence of a cogent national security argument, public interest in space is no longer to be relied upon to deliver large national space budgets. Australia’s newest space mission, the FedSat scientific microsatellite, was announced at the same time as the former national space program was terminated. This process and its consequences are examined as an instance of microeconomic reform, which seeks to improve productivity and competitiveness by producing a regulatory and infrastructure environment that gives business more flexibility. Historical circumstances unique to Australia may have contributed to this change of direction, but many contributing elements also apply elsewhere. The features of the new approach are identification of public sector space needs; selecting the most suitable team from both public and private sectors to manage the project; and the acceptance of a large proportion of the risk by the proponents.