In the United States and Europe economic woes seem often at the forefront of discussion and the clouds of gloom show few signs of being dispelled in the near future.

The Middle East – as usual, perhaps – appears ready to collapse into new paroxysms of violent conflict. Tensions over Iran’s alleged nuclear intentions have everyone from Israel to Russia rattling their sabres and making threats. Afghanistan is as chaotic as ever and neighbouring Pakistan looks shaky.

Japan is still trying to recover from its tsunami and nuclear disaster. Many of the nations of Africa are riven by conflict.

Australia might have its problems, but compared with many other parts of the world it is an island of calm and peace. That’s something to be grateful for.

And, as the Australia Day honours list amply illustrates, this country benefits from a powerful sense of community and shared responsibility that inspires many citizens to extraordinary lengths in helping others.

After the flag-waving and demonstrative patriotism that will mark this day subsides, these qualities of caring community will remain, quietly sustaining the values that give Australia its real greatness.

But while it is proper and right to be grateful for the many privileges that come with being Australian, it would be foolishly complacent to ignore those challenges that exist and that may lie ahead.

Patriotic fervour

It is a conspicuous fact that one of the most volatile subjects of public debate circulates around people who, escaping from poverty, war and persecution, seek to make Australia their home.

Australia has not yet been able to formulate a mature policy to deal with this, and it should be a matter of national embarrassment that many leaders of opinion seem more interested in making political mileage from the problem than in trying to solve it fairly and honestly.