A ‘new economic model’ in Australia? The political economy of the Australian Labor Party

The election of the Labor government in Australia in 2022, under the leadership of Anthony Albanese, marked a change in the political and economic direction of the country. Post-pandemic, the Labor government claims that it is seeking to develop a ‘new economic model' in Australia. Drawing upon comparative political economy (CPE) literature, we use the case of Australia to understand how political parties can develop and shape new ‘policy paradigms', or governing narratives as they recalibrate their political economy. First, we outline the discourse, policy developments and key institutional changes that are taking place under the Labour government. We then apply four policy paradigms (neo-corporatism, market design, neoliberalism, and labourism) to systematically analyse what the Albanese government is seeking to achieve. The Australian case is a striking example of how centre-left parties, are seeking to create new ‘political imaginaries’ in a post-third- way era.