AUSTRALIA has a unique and privileged place in the world by being inextricably linked to both the traditional economic powerhouses of the West and the emerging economies of Asia, BHP Billiton chief executive Andrew Mackenzie said in a landmark speech last night. 
With privilege comes responsibility, he said in delivering the Edward "Weary" Dunlop lecture at the Asialink chairman's dinner.
"To reinforce that, the best way to make the world more stable is through trade and co-operation, exchange and understanding," he said.
"We must resist the belief that Australia has to choose between a partnership with the US and a relationship with China." Australia can collaborate with both those giants as well as European countries and India, Indonesia and others in Asia.
Mr Mackenzie called on Australia to pursue three strategic paths to claim its position at the leadership table.
Firstly, Australia must be the champion of free trade because this enhances efficiency and reduces the risks of economic imbalance and volatility.
Secondly, Australia should lobby for reform of international bodies, especially the International Monetary Fund and the International Energy Agency. Mr Mackenzie was particularly concerned that China and India - which will dominate energy demand growth over at least the next two decades - are not members of the IEA.
"This is in no one's interest," he said, urging that creating a more inclusive IEA should be a priority in 2016.
Thirdly, Mr Mackenzie said Australia should push for a co-ordinated approach to managing climate change because regional campaigns were more likely to succeed than go-it-alone initiatives.
"Australia must . . . play an important role by accelerating the development and deployment of low-emissions technologies to identify and invest in opportunities both here and abroad and bring commercially viable solutions to market quickly," he said.
Mr Mackenzie warned about complacency that would catch the West napping. China's research and development was already ahead of the EU and would match US levels within four years. India would have more university students than the US before the end of the decade.On his frequent visits to China he sees entrepreneurs eager to learn from the West, but there was "scant evidence of the West and Australia looking to learn from the innovations of the East".