In our first column, we Bi-Sectoralists laid out five principles for the public and private sectors to improve internally & work better together for the public good. Better dialogue and better results are crucial if America is to be successful in its economic and political revitalization both at home and abroad. In today's column, we flesh these principles out and suggest ways to reset public-private interaction.
What does this mean in practice? There is both a recognition and a need growing in the land. The recognition is that the old ways don't work in a globalized world and that new thinking is in order. The need is for leadership; a need that rings out across both public and private sectors. Politicians of all stripes face record low approval ratings; CEO turnover is at a 13-year high; financial markets swoon and soar, confronted by that they fear most -- uncertainty.
For both sectors there exists opportunity. Those of the political class who grasp the mettle of leadership could claim the political high ground for years to come. Private sector companies able to show the way forward will be rewarded with increased appetite for their stocks and bonds. Investors who allocate capital with a solid understanding of long term risk and reward will prosper.
- Strength from Within: National success in the 21st century is less about muscle-flexing abroad than strength from within. This begins with a shared narrative about where we have been and where we want to go. Policy, not politics, is what matters most. Many of our vulnerabilities -- financial stability, energy security, others -- are less about what other states seek to do to us than what we do or don't do for ourselves. For much of our history the US either sat apart or atop the world. Today, amidst globalization we no longer stand apart and with dominance chipped away by the diffusion of power and shifts in economic dynamism we don't sit atop. We have to step up to these challenges without resorting to neo- isolationism; strength from within is about internally generating benefits not externally imposing costs.
The summer is over, the storm (Irene) has passed; however we are left worse off with a slumping economy (joined by Europe), a frustrated electorate, a seemingly dysfunctional political structure and scarred investors. Its time to reset: leadership opportunities abound as the US presidential campaign gets fully underway, the Joint Select Deficit Comm takes up its work, a new ECB head takes over, China prepares for its leadership transition and business plans for 2012. But so do risks: of a negative feedback loop developing, of cross border bank contagion, of sovereign debt infection & default. Who will seize the mantle of leadership? Can public and private alike work together?