Gillard snags Prime Minister seat from Rudd. What's next for Australia?

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Australia's political shake up made global headlines as Prime Minister Rudd was ousted by his Deputy Prime Minister Julia Gillard. She had enough with Rudd's handling of the Australian government, which she realized was going off track. Gillard decided to exercise her right to step up and contest Prime Minister Rudd who respectfully backed down, thus declaring Julia Gillard the first female prime minster of Australia.

Gillard's forceful political action comes just before national elections. She realized an opportunity to gain the high seat of Australian politics by highlighting Rudd's weak points which now gives her an advantage in the upcoming elections. It's embarrassing to have a member of your cabinet speak out against your governing and then request a leadership change. Gillard is now in the spotlight, and she has time to reverse Rudd's unpopular policies to gain favor amongst Australian voters.

Former Prime Minister Rudd gave a very emotional speech that was tear jerking for many viewers, including myself. He started each sentence with "I'm proud of the fact of" and everyone was able to understand the economic and social accomplishments of Kevin Rudd. For one, along with his Finance Minister, Rudd helped Australia weather the global recession, a move that is highly praised on Dantes Outlook. I'm a fan of the new Australia, and the country is certainly in a better financial position despite the global economic downturn. Rudd continued to state that he is proud of establishing Australia's first education curriculum and national standards. Setting up a national organ donors market was an accomplishment that hit close to home for Rudd. He received a heart valve transplant many years ago, and memories of that caused Rudd to shed a tear during his farewell speech.

Seven years ago, Rudd won Australia's Prime Minister elections by a landslide, but then his approval ratings recently declined significantly. He flip flopped on climate change policies, and is not liked by Australian miners who face a 40% tax on the nation's most successful industry. Gillard is set to make a final decision about the tax by Friday. Mining sector stocks such as Peabody, BHP Billiton, and Rio Tinto are set to rise ahead of anticipation that Gillard will take the popular course of action in support of the mining sector and reverse Rudd's tax.

The Australian dollar rose as the leadership shift took place, proving even the market's dislike of Kevin Rudd.

Despite some unpopular policies, Rudd had a good outlook for Australia. He strengthened Australia's ties with Asia to boost the country's export economy. Australia was always an isolated country, but for the first time they have a say the world economy, gaining a seat at the G-20 meetings. Julia Gillard thinks Australia is expanding too fast and population growth is unsustainable. Real estate developers who are participating in the country's booming housing market dislike Gillard's goals of closing up Australia.

One of the biggest take-away from Rudd's speech was the commitment to lead. Rudd was defeated and he backed down, but his interest in moving Australia forward remains as he vowed to help the government in any way he can. Prime Minister Gillard stated that she will re-appoint Rudd to perhaps a cabinet if she wins the upcoming elections. I'm not sure how likely that will be; I wouldn't trust her.

Either way, I admire Rudd's dedication to his job. He did encourage social change, and accomplishing government assistance programs to the people of Australia were positive moves. That's the reason why I take a conservative approach to governments in trouble - to support a more liberal government during good times. Australia is in a better position to provide good services to the people, and that's a remarkable accomplishment for any leader. When a country prospers, so do the people who are invested in its longevity. I'm proud of the fact that Australia has gained the global recognition that it deserves.