Conversations with History: Institute
of International Studies, UC Berkeley
This interview is part of the Institute's "Conversations
with History" series, and uses Internet technology to share with the
public Berkeley's distinction as a global forum for ideas.
Welcome to a Conversation with History. I'm Harry
Kreisler of the Institute of International Studies. Our guest today
is Clyde Prestowitz, who is president and founder of the Economic Strategy
Institute in Washington, D.C. 
His
publications include Trading Places and Rogue Nation. He
has just published Three Billion New Capitalists: The Great Shift of
Wealth and Power to the East.
- Background ... early interest in international issues ... languages
... the luckiest generation ... foreign service
- The Second Wave of Globalization ... The American Challenge ... Scott
Paper Company and Europe ... fixed exchange rates ... post-Depression mindset
... subsidized consumption ... collaboration among government, industry,
and labor ... unexpected benefits of security-related technology ... neglecting
America's competitiveness
- Globalization Goes Global ... Asia enters the economy ... many highly
educated ... low labor costs ... negation of time and distance
- Globalization of the Service Economy ... "service sector" hailed
at loss of manufacturing ... the Internet enables outsourcing of services
... example: medical tourism
- The Changing Status of the U.S. Economy ... foreign students find
opportunities at home ... U.S. failing to develop American work force ...
outsourcing the management of the dollar ... lost linkages ... printing currency
to pay ... lack of financial discipline ... borrow and consume ... the Asian
path to development ... India's twist
- Serving in Government ... newfound respect for bureaucrats ... unique
American distrust of government ... unacknowledged and uncoordinated industrial
policy ... blind-spot to national differences ... U.S. focus on market as
goal vs. others' utilization of it as a tool ... example: China's attempt
to purchase Unocal
- The Economic Future of the U.S. ... comparing security and economic
"threats" ... dangers of complacency ... low savings rate ... neglect of
secondary education ... adjusting the recent global imbalance ... rise of
China and India ... playing our cards right ... stable institutions ... cultural
openness to second chances ... elite higher educational institutions
- Conclusion ... importance of
public education ... need for government and business to take responsibility
for educating future generations ... need for citizens to speak up ... need
for broad education
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