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The expression is not actually "rode on the sheep's back" but "built on the sheep's back".

Australia is often referred to as the country that was built on the sheep's back. That is because the wool industry is one of Australia's earliest industries, and the one that initially propelled Australia into success as a self-sufficient colony, able to trade with England in its own right. Australia's economic success and political development was "built on the sheep's back".

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