National economies are becoming more interdependent. Competition is intensifying between companies and countries. Technology is becoming more readily transferrable from one country to another. That puts added pressure on us all to work for new cooperation in these technology and trade policy issues.
Second, trade and economic policy does not have to be a zero-sum game in which one country can gain only at another's expense. The challenge for us is to find a combination of policies that leads to higher income and growth for all participants; in other words, "win-win" in terms of the latest business jargon.
Third, countries have a variety of cultural and historical traditions that lead to different views about the role of government and the nature of economic policy. And the fact that many countries do not share a U.S. or even a European view does not mean that they are, in any sense, wrong.
In trying to persuade other nations of the merits of a U.S. view or a European view, we need to bear in mind that we are dealing with sovereign powers who are reasonably and properly trying to manage their affairs in a manner that they think is in their national interest. Let us not fall into the trap of looking at these issues in terms of right and wrong.
Our first speaker is Bruce Scott. He is Paul W. Cherington Professor of Business Administration at Harvard University in the Graduate School of Business Administration. He is currently writing a book on national economic strategies. He is the coauthor of a 1984 book on U.S. competitiveness in the world economy. In 1991 he was appointed to the U.S. Competitiveness Policy Council, which was established by the Trade and Competitiveness Act of 1988.
Our second speaker is James Fallows, who has been the Washington editor of The Atlantic Monthly since 1979. Prior to joining The Atlantic, he was President Carter's chief speech writer. Among his recent books is Looking at the Sun: The Rise of the New East Asian Economic and Political System.
Lawrence Chimerine is our third speaker. He is the managing director and chief economist of the Economic Strategy Institute in Washington, D.C. His previous positions include chairman, chief executive, and chief economist of Chase Econometrics and of the WEFA Group. He has also served as manager of U.S. Economic Research and Forecasting at IBM for 14 years.
Bruce Scott, Harvard University
I approach the issue of economic strategies from a business school and a mix of business administration and economics. Some of our economics faculty in the real economics department would find it curious that I am here in any role as an economist at all, to put it mildly.
First, let me raise a point as to what an economic strategy does not mean. The most familiar form of economic strategy for those of us who have lived in the