This article seeks to explain the significance of the Republicanism issue in the economic reforms led by the Hawke/Keating Labor government. In 1992-93, there was a strong rise in the republicanism debate in Australia, triggered by Prime Minister Keating's statement advocating a Republic of Australia by 2001. Labor's advocacy for republicanism aimed to establish a new symbol for unity to complete the process of transformation from the closed homogeneous nation with the Anglo-Irish cultural background into a multicultural society opened towards the neighbouring Asia-Pacific region.In order to integrate the Australian economy into the high economic growth of the region, the Labor government has implemented a series of market-oriented economic reforms to strengthen the export competitiveness of Australia's industrial sectors which had long been protected by government regulation. These reforms makes it necessary for Australia to open its national border to the freer flow of goods and services with the Asia-Pacific nations. The opening of the economic border to further regional cooperation inevitably entails the opening of human and cultural borders to wipe away the past bad reputation of the White Australia policy. Thus the cultural reforms have to be taken up in tandem with the economic reforms. The republicanism issue has such a symbolic meaning to impress the electorate with the reality that Australia needs to take on the task of cultural transformation if it is to obtain economic benefits from closer relations with the Asia-Pacific nations. Once Australia opened the human border through the implementation of the multicultural policies, it has become impossible to reverse this process, if the Australians wish to maintain social stability and harmony which they have enjoyed since the nineteenth century.
