Episode

CONTESTED GROUND: Australia's sovereign capability reckoning – why the system is no longer fit for purpose

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Cyber Uncut
Published
Jun 26, 2026
Duration seconds
2573
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Summary

Host Steve Kuper is joined by former navy logistician Dave Grosvenor and chair of the Gravity Group Steve Hayes for a wide-ranging discussion on Australia's sovereign capability, industrial resilience and the growing gap between strategic risk and national preparedness in this episode of the Contested Ground podcast. The conversation opens with a blunt assessment of Australia's strategic vulnerability, with the argument that it is no longer theoretical but "empirically established" through a growing body of evidence. The panel examines what concrete indicators – ranging from supply chain fragility to operational dependence on external partners – most clearly demonstrate this exposure, and why existing frameworks such as the Defence Strategic Review did not go far enough in diagnosing the scale of the challenge. A key theme is urgency. The guests argue that incremental reform and repeated reviews are insufficient, making a comprehensive national audit of sovereign capability essential now rather than later. They explore how wargaming outcomes and scenario analysis increasingly point to Australia's limited resilience in the face of prolonged disruption, particularly across critical supply chains and industrial dependencies. The discussion then turns to the structural limits of market-driven solutions. The panel outlines how market failures, foreign subsidies and competing international industrial strategies distort outcomes for Australian industry. They also unpack the "theory of the second best" in practical policy terms, arguing that partial reforms in a distorted global system can sometimes worsen outcomes rather than improve them. The debate extends to the real-world cost of inaction, framed not just in economic terms but in strategic and operational risk. Attention…