By Ajith Rajapaksa –

Far-right politics is an ideology that commonly draws on themes such as nationalism, racial identity, religion, culture, and protectionism. In many Western countries, right-wing nationalist movements tend to gain strength during periods of significant economic stress. Owing to the cyclical nature of the global capitalist system, this tendency can be compared to a rubber ball pushed underwater, submerging for a period before resurfacing again.

In Australia, this trend first emerged in the 1930s, influenced by the economic devastation of the Great Depression and the fears generated by the 1917 Russian Revolution, when the Communists came to power in Russia. This right-wing movement became known as The New Guard, which later established a political wing called The Centre Party. The New Guard was a fascist and paramilitary organisation that was strongly monarchist, anti-communist, anti-Semitic, and authoritarian. Its members engaged in street clashes with communists and trade unionists and opposed the immigration of non-white and non-Protestant groups into Australia. Despite these efforts, the movement failed to gain meaningful representation in Parliament.

In more recent history, racist right-wing forces re-emerged during the 1990s, a period when Australia was experiencing a severe economic downturn. Economic growth had stalled, business profits declined, and many companies responded by closing operations and laying off workers. Several financial institutions collapsed, unemployment rose to 11 percent, and youth unemployment reached nearly 30 percent. During the early 1990s, official interest rates climbed to a record high of 17.5 percent, placing immense pressure on homeowners struggling to meet mortgage repayments. This crisis occurred alongside a broader global economic slowdown that also affected the United States.

The far-right wave that emerged during this period was led by Pauline Hanson, an ordinary small-business owner who operated a fish-and-chip shop. Despite having limited formal education and little background in economics or politics, Hanson became a prominent political figure by offering simple explanations for complex economic problems. She argued that one of the causes of Australia’s economic difficulties was the welfare support provided to Indigenous Australians. At the same time, she launched strong attacks on Asian immigration, claiming that Asian migrants were taking jobs away from white Australians, living on government assistance, and increasing their population through high birth rates.

Such discrimination against minority communities has a long history in Australia. Chinese migrants who worked on the goldfields during the nineteenth century are widely regarded as one of the most persecuted groups in Australian history. Many of the arguments directed against Asian migrants in the 1990s closely resembled those previously used against Greek and Italian migrants during the 1950s and 1960s, and later against migrants from the Middle East and Africa.

Italian migrants were often portrayed as culturally and racially inferior to Anglo-Celtic Australians. Greek migrants likewise faced widespread prejudice, discrimination, and pressure to assimilate into mainstream society. Derogatory terms such as “wog” and “dago” were commonly used against Greeks and other Southern Europeans. Many Greek migrants experienced discrimination in employment, housing, education, and public life. The use of the Greek language was sometimes discouraged, while certain clubs and institutions-imposed restrictions on the use of languages other than English.

These historical experiences demonstrate that periods of economic uncertainty often create fertile ground for nationalist and populist politics. Minority communities frequently become convenient scapegoats for broader economic and social problems, allowing far-right movements to channel public frustration toward immigration, cultural diversity, and welfare policies rather than addressing the deeper structural causes of economic crises.

Economic Cycles, and the Politics of Scapegoating

Rather than encouraging serious discussion about the cyclical nature of the global economy and the structural causes of recurring crises within capitalism, right‑wing political movements backed by various business groups and media organisations often turn to convenient scapegoats. They divert attention away from the real sources of economic hardship and instead channel public anger toward vulnerable and politically powerless communities, deepening social divisions while protecting their own influence and power.

In Australia, John Howard, then leader of the Liberal Party, skilfully capitalised on the rise of right-wing populism during the mid-1990s. Support for these movements often came from economically disadvantaged sections of society, particularly those living outside major metropolitan centres. As is the case today, some members of migrant communities themselves also joined anti-immigration campaigns. Fear that new migrants might threaten their economic security, living standards, or future opportunities appears to have contributed to this support.

Pauline Hanson entered federal politics after winning a seat in a 1996 election. Her political influence grew rapidly, and in the 1998 Queensland state election her One Nation Party secured around 23 percent of the vote. However, the economic conditions that fuelled her rise had deeper causes than immigration or welfare spending.

Australia’s recession of the late 1980s and early 1990s resulted from a combination of excessive borrowing, rising inflation, high interest rates, and a weakening global economy. Following financial deregulation during the 1980s, businesses and property investors accumulated large amounts of debt, fuelling a boom in commercial property and corporate acquisitions. When inflation accelerated, the Australian government and the Reserve Bank of Australia responded by sharply increasing interest rates in an effort to slow the economy. The higher borrowing costs exposed the risks created by excessive debt, leading to falling property values, business failures, declining investment, and rising unemployment. At the same time, a weakening international economy reduced demand for Australian exports, pushing the country into a deep recession.

At the height of the downturn, Treasurer Paul Keating famously described it as “the recession we had to have.” By this he meant that Australia needed a period of economic contraction to correct the serious imbalances that had accumulated during the boom years of the 1980s. In other words, a recession was seen as a necessary adjustment before a new cycle of economic growth could begin. Such periods of boom and bust are widely regarded as inherent features of the capitalist economic system.

As is often the case during economic downturns, the greatest burden fell on the most vulnerable sections of society. Pauline Hanson successfully channelled the frustrations and anxieties of these groups toward multiculturalism, immigration, and Indigenous welfare programs, transforming them into political issues across rural and regional Australia. Nevertheless, as economic growth resumed in the following years, support for these movements gradually weakened.

After coming to power, John Howard’s Liberal government adopted a comprehensive neoliberal economic agenda. As part of these reforms, major public assets and services, including electricity, gas, telecommunications, water, and transport, were privatised, reshaping the Australian economy for decades to come.

Capitalist Economic Crises and the Real Purpose of Immigration

Countries such as Australia, Canada, the United States, and New Zealand do not maintain high immigration programs to assist developing nations or provide humanitarian relief. Rather, immigration serves important economic functions within advanced capitalist economies. Migrants help address labour shortages, provide skilled workers to key industries, expand consumer markets, and support economic growth.

At the same time, a steady supply of labour helps businesses manage labour costs and maintain competitiveness. Successive governments, regardless of political affiliation, generally support immigration because it aligns with the needs of business and economic expansion. Skilled migrants bring expertise, experience, and qualifications that receiving countries acquire without bearing the costs of training and education.

Invaders, Immigrants, and Refugees

Modern countries such as Australia, Canada, and the United States have been shaped significantly by migration. However, the first Europeans who arrived were not immigrants in the modern legal sense. They were settlers and colonisers who established control over lands already inhabited by Indigenous peoples. The process of colonisation involved widespread displacement, violence, and destruction of Indigenous societies. Across many regions, Indigenous communities experienced massacres, forced removals, the spread of diseases, cultural suppression, and the separation of children from their families. These events left lasting social and economic consequences that continue to influence contemporary societies.

At the same time, European empires expanded across large parts of the world, acquiring colonies and extracting resources. The growth of colonial power was often accompanied by warfare, exploitation, and systems such as the transatlantic slave trade, which had profound impacts on Africa and other regions.

The Second Phase of Expansion

Following the two World Wars, the power of traditional European empires began to decline. Independence movements in countries such as India accelerated the collapse of colonial rule and forced imperial powers to withdraw from many territories.

While many Asian and African nations gained formal independence, settler societies such as Australia, New Zealand, and the United States continued to develop within political and cultural frameworks largely established during the colonial era. As a result, debates about migration, national identity, Indigenous rights, and historical responsibility remain central to political discussions in these countries today.

The First Wave of Immigration to Australia

Large-scale immigration to Australia began as part of Britain’s effort to develop and consolidate its colonial possessions. The first fleet arrived in 1788 carrying around 1,400 people aboard eleven ships, most of whom were convicts. Their labour helped establish the foundations of the new colony and support the extraction of resources for the British Empire.

The discovery of gold during the 1850s and 1860s attracted the first significant wave of voluntary migrants. However, the largest influx of Europeans came after the Second World War. Tens of thousands of Greeks, Italians, and other Europeans migrated to Australia to escape the devastation of war and political instability. During the two decades following the war, approximately two million migrants arrived in Australia. Around 40 percent came from Britain and Ireland, while the remainder originated largely from Italy, Greece, the Netherlands, Germany, Malta, and Eastern Europe. The International Refugee Organization (IRO) also assisted more than 182,000 European refugees to resettle in Australia.

The Second Wave

Early migrants played a major role in building Australia’s infrastructure and working in industries such as mining, agriculture, and construction. At the same time, Australia maintained the White Australia Policy, which effectively restricted non-European immigration despite the continent being the homeland of Indigenous Australians.

Following the Second World War, Prime Minister Ben Chifley established a federal immigration department to oversee a large-scale migration program. Government commissions warned that Australia needed rapid population growth for both defence and economic development, leading to a target of increasing the population by around one percent annually through immigration.

Australia’s first Immigration Minister, Arthur Calwell, promoted the famous slogan “Populate or Perish.” Concerns about national security, particularly after Japanese attacks on Darwin during the war, reinforced support for large-scale migration. Although preference was initially given to British migrants, the government soon realised Britain alone could not provide sufficient numbers. As a result, Australia began recruiting large numbers of migrants from Southern and Central Europe. Government documents of the period openly acknowledged that many non-British migrants were needed to perform demanding jobs and provide labour for major development projects.

Unlike war-ravaged Europe, Australia experienced strong economic growth after 1945. Many migrants found employment in expanding industries and major nation-building projects, most notably the Snowy Mountains Scheme. Constructed between 1949 and 1974, this vast hydroelectric and irrigation project employed around 100,000 workers from more than thirty countries and became one of the defining symbols of multicultural Australia.

A major turning point came in 1973 when the government of Gough Whitlam formally ended the White Australia Policy and introduced a non-discriminatory immigration system. This marked the end of the post-war European migration era and the beginning of modern Australian immigration, opening the door to increasing migration from Asia and other parts of the world.

The Evolution of Global Capitalism and Cultural Change

Over the past several decades, global capitalism has continued to evolve through technological innovation while generating new economic and social challenges. Most alternative economic models that emerged during the twentieth century have either collapsed or undergone major transformations. Today, the United States and China stand as the dominant forces in the global economy. China’s rapid rise has challenged American economic supremacy, contributing to the emergence of a more multipolar world order and increasing the risk of regional geopolitical tensions.

At the same time, advances in technology, communication, and trade have made the world more interconnected than ever before. Younger generations increasingly identify with global networks that transcend national boundaries, while migration and cross-cultural interaction continue to reshape societies. In this context, attempts to preserve or impose a single cultural identity are becoming increasingly impractical. Cultural diversity and integration have become defining characteristics of modern societies.

The Major Challenges of the Twenty-First Century

The world today faces a range of interconnected challenges, including climate change, economic inequality, technological disruption, ageing populations, the transition to renewable energy, and housing affordability crises. Rising temperatures, extreme weather events, and environmental degradation threaten food security, public health, and economic stability.

At the same time, wealth is becoming increasingly concentrated among a small segment of the population while living costs continue to rise. The relocation of industries and changing labour markets have contributed to employment insecurity and growing social tensions. Artificial intelligence and automation offer significant opportunities but also raise concerns about job displacement and privacy.

Developed countries face the challenge of ageing populations, while developing nations must create employment opportunities for rapidly growing workforces. The shift away from fossil fuels requires substantial investment in renewable energy, while supply chain disruptions and rising construction costs have intensified housing shortages. Together, these issues form a complex set of challenges that will shape the twenty-first century.

The New Reality and Pauline Hanson’s Politics

Rather than addressing Australia’s increasingly complex economic and social challenges, Pauline Hanson and One Nation promote simplified narratives that divert attention from the structural causes of these problems. Issues such as inequality, technological disruption, and demographic change are reduced to easily identifiable targets, most often immigrants and multiculturalism. Yet these challenges require collective action, evidence‑based policymaking, and social cohesion. Blaming vulnerable communities neither solves systemic issues nor strengthens Australia’s capacity to respond to them.

Hanson frequently attacks multiculturalism and advocates for a predominantly Anglo‑Australian identity, overlooking the central role of Indigenous cultures and the fact that Australia has always been shaped by migration. The nation’s development has depended on cultural diversity, democratic freedoms, and the ability of communities to maintain and express their identities. Her calls to weaken multicultural institutions, including the ABC and SBS, reflect this narrow ideological stance.

Her parliamentary record reinforces this worldview. Hanson and One Nation have opposed expanding free TAFE, increasing public‑education funding, strengthening housing assistance, raising minimum wages, and ensuring equal pay for equivalent work. They have also resisted stronger climate policies, renewable‑energy investment, and net‑zero targets while supporting continued reliance on fossil fuels. This creates a clear contradiction: they claim to defend “ordinary workers” while backing policies that reduce worker protections, expand employer power, and shrink essential public services.

Although Hanson presents her movement as a voice for disadvantaged Australians, it aligns closely with business interests that benefit from the very economic structures causing hardship. Many frustrations, stagnant wages, insecure work, rising living costs, stem from global economic forces, not immigration.

Despite her recent claim that she does not seek to end immigration entirely, Hanson’s political career has been defined by anti‑immigration and anti‑multicultural rhetoric. This ignores the reality that modern Australia relies heavily on migrant labour across essential sectors such as healthcare, aged care, transport, logistics, information technology, tourism, agriculture, construction, and cleaning. Without migrant communities, many of these industries would struggle to function, and Australia’s economic capacity would be significantly weakened. A sustainable and inclusive future requires recognising the essential role of immigration and rejecting attempts to use migrant communities as scapegoats for systemic challenges.