Conversations with History: Institute of International Studies, UC Berkeley

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 Prestowitz

The Changing Balance of International Economic Power: Conversation with Clyde Prestowitz, President of the Economic Strategy Institute, August 9, 2005, by Harry Kreisler

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. book coverHis 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.

  1. Background ... early interest in international issues ... languages ... the luckiest generation ... foreign service
  2. 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
  3. Globalization Goes Global ... Asia enters the economy ... many highly educated ... low labor costs ... negation of time and distance
  4. Globalization of the Service Economy ... "service sector" hailed at loss of manufacturing ... the Internet enables outsourcing of services ... example: medical tourism
  5. 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
  6. 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
  7. 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
  8. 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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