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Ideas




Trade & Global Markets
The Globalization Debate

DLC | Blueprint Magazine | July 22, 2006
Winning the Future
By Thomas Z. Freedman, Nick Gossen, and Ed Gerrish

Many Americans take our success for granted. But in a flat world, states and communities must quickly make smart policy choices to strengthen education, the economy, and our security.

Table of Contents

America is at a turning point. The world has changed dramatically in recent years, bringing new challenges and opportunities to our country. In Thomas L. Friedman's recent book, The World Is Flat, he describes how America's leadership is being challenged by a convergence of factors that flatten the global playing field, eroding the economic and technological high ground we enjoyed for much of the 20th century. Meeting the challenges of the flat world will be one of the central tests of American government in the decades to come.

To succeed in the flat world, we must develop policies that make America smarter, stronger, and safer. By giving individual families and communities the tools to deal with the flat world on their own terms, we can build a country that is empowered, not threatened, by globalization. As we argue in a longer report, Winning America's Future, it is only by embracing the flat world that our country will be able to take full advantage of its benefits. For half a century, America has been the world's leader politically, economically, and technologically. Many of us take our success, and the benefits it entails, for granted. However, America's ascent to its current position in the world economy was neither accidental nor inevitable. Over the course of our history we have been fortunate enough to have leaders who took what Theodore Roosevelt called "the long look ahead." They made investments in our nation's educational system, economic infrastructure, and national security that allowed us to grow, innovate, and improve the lives of generations of Americans. Now, a new generation must take on new challenges so America can lead and grow in the century ahead.

We offer a series of policy proposals in our full report that can be implemented on the state and local level to help America lead in the new century. The ideas are divided into three sections: education, economy, and security. Some of these ideas have been in the DLC playbook for some time and have already proven successful in cities and states across the country; others are fresh from the drawing board, waiting to be used. What they share is a recognition that the world is changing fast and that American students, workers, and governments must work hard to keep up.

In education, our proposals emphasize raising the bar so our children can compete and win. Among the key proposals:

  • Guarantee 14 years of schooling for everyone, so that young Americans can build the intellectual capital they will need for a lifetime;
  • Start a math and science initiative modeled on the national response to Sputnik in order to retain our competitive advantage;
  • Give children Life Investment Funds for Education (LIFE) accounts to help young people pay for higher education and achieve their dreams;
  • Explore options for longer school days and school years to catch up to our Asian and European counterparts;
  • Teach creativity in the curriculum, because innovation is critical to creating new products and building a new economy;
  • Focus on the teaching profession by improving pay, reforming teacher tenure, and installing measures of accountability; and
  • Introduce efficiency audits to ensure that every dollar we spend on our schools is being used effectively.

The new world we live in also demands that America become stronger and more flexible economically. That means becoming more competitive and helping workers succeed in the new global marketplace. Our economic proposals include:

  • Create portable pensions and health insurance so that as employees move from job to job their health care plans and pensions follow them;
  • Form regional health care pools and alliances so small businesses can more easily offer coverage, and employers of all sizes can drive down health care costs while improving quality;
  • Spur private technology development through innovative business tax credits;
  • Promote the use of broadband Internet for more Americans;
  • Expand Regional Skills Alliances to help workers gain new skills that will help them get jobs in burgeoning local industries; and
  • Cement the foundation of family life that America was built on by giving parents more time to care for their children.

The same economic and technological developments that present people with new opportunities today also present new security threats. On security issues, our proposals include:

  • Make America less dependent on foreign countries for our energy through smart investments in conservation, renewables, and practical incentives;
  • Create local counterterrorism forces and emergency service corps;
  • Update communication systems so first responders can coordinate emergency response;
  • Improve the security of identifications cards;
  • Update our food security practices to prevent biological attack; and
  • Support our troops by aiding military families when troops are abroad, and by helping military men and women transition into high-quality jobs when they leave the military.

While the world has fundamentally changed in recent years, our policies so far have done too little to catch up. America's education system was developed at a time when a high-school diploma and a strong work ethic were enough to achieve a middle-class lifestyle. America's safety net was created at a time when companies provided health insurance and pensions and most people stayed with one company for much of their working lives. The challenges faced by Americans today are entirely different, but rather than stepping up to help people meet those challenges, our policies have let the risk and the burden fall on the shoulders of individual workers and their families.

The flat world requires that we rethink what security means. Job security, financial security, homeland security, all of these phrases mean something different now than they did 10 years ago. It is no longer enough just to get a good job and hold onto it, or to build a strong army and rest assured that no one will attack us. Security in the flat world does not mean keeping things the same, but changing and adapting better, faster, and more efficiently. In the face of change and challenge, there is a strong temptation to step back and fight to keep things the same. But America's success has always sprung from its eager embrace of the future and its confidence in things to come. That forward-looking attitude will serve us well in the flat world if we match optimism with prudence and prepare wisely for the future. The bottom line is that change is coming whether we like it or not. The only question is whether we benefit from it, or whether we fall behind and lose the benefits of the flat world to nimbler and hungrier countries.

While today's circumstances are unique, this is not the first time America has faced a crisis of competitiveness. In 1957, the Soviet Union launched the Sputnik satellite, catching America off-guard and marking the dawn of a new era of scientific competition between the two superpowers. For an entire generation of Americans, the sound of Sputnik beeping its way across the sky served as a reminder that America's position at the forefront of science, technology, and economic growth was by no means guaranteed.

Today America needs that same determination with which we confronted the Cold War as we confront the challenges of a flat world. Regrettably, foresight and leadership have been sorely lacking at the national level in recent years. Instead of investing in the future, the federal government under Republican leadership has instead chosen to cut taxes and run up the deficit, squandering our country's future for short-term political gain.

Across the country, however, there are farsighted state and local leaders who are working to adapt government to the flat world and give their citizens a chance to succeed. While the solutions to many of the challenges we face must be found at a national level, there is much that can and should be done at the state and local level. The purpose of our report is to share state and local policy ideas that can keep America at the forefront of the world economy, even as it develops in ways that will be difficult and unexpected.

If innovation is the key for businesses competing in a flat world, it is also critical that government demonstrate an entrepreneurial spirit as it develops policies for the future. Rather than sitting back and letting change wash over our country and communities, our leaders must be entrepreneurs, looking for opportunities to give our citizens the edge they will need to succeed in the flat world. Not everyone will agree that all the policies proposed here are the best approach to reach this goal, but a vigorous debate can only help improve our chances of finding the right solutions.

What we're offering is more a menu of options than it is an agenda for people to sign onto. Every state and region is different, and what is appropriate in one state might not work in another. Frankly, what we call for is experimentation. Some of these policies will succeed; others may need to be modified. What we all agree on is the critical importance of taking a fresh approach to policymaking in the global era. We also agree that the impasse on policy progress at the federal level has been devastating. On some issues, such as energy independence, the best hope ultimately is for a federal strategy. But in the meantime, states and communities throughout the country must do what they can.

Even as we discuss what governments can do to help our citizens thrive in a flat world, we must also recognize that America needs more than just smart policies. We need to promote a culture that values flexibility and creativity. It is only through the daily lives and personal decisions of millions of Americans that we can achieve the goal of competing successfully and building a safe and prosperous future. Our political leaders have a role to play not only by their policymaking, but also by starting a national conversation about the challenges we face.

We hope to begin the conversation.

Thomas Z. Freedman is a former senior advisor to President Clinton and is president of Freedman Consulting, LLC, where Nick Gossen and Ed Gerrish are associates.