American business leaders who believe in free and fair trade are at risk of
losing a significant battle. The small but vocal anti-globalization movement
has pushed its message forward with great force and tenacity. We're facing
a significant disconnect with the greater public. A recent NBC-Wall Street
Journal poll shows that 54 percent of Americans believe global trade is
bad for American workers and our economy. These fears threaten to promote economic
isolationism, which would be disastrous for U.S. business, workers and the economy.
One could argue that we in the business community have not done a very good
job framing and promoting the benefits of trade. The free trade message fails
to resonate because it is not widely understood. Trade and economic literacy
in this country simply has never ranked as a national priority.
On top of that, globalization is being cast as a political issue. Instead,
it should be heralded as one of the greatest success stories of our era. As
business leaders, we can control and turn around the bruised reputation of global
trade.
I would like to suggest five specific areas where we can do that:
First, we need to make sure our educational system is aligned with the global
marketplace. We need to ask ourselves, "Are we producing enough engineers,
scientists, technologists, materials researchers, manufacturing and trade
specialists and other professional services that are in such huge demand and
so needed to ensure our competitive vitality?" The answer, of course, is a
resounding "No." Almost 50 years ago, Sputnik not only launched the race
for space, but was the catalyst for encouraging tens of thousands of American
kids to study science, math and engineering. We need a similar wake-up call
today.
Secondly, we need to make global trade literacy a priority. It's encouraging
to see the good work of several organizations in this area. One is the Southern
Center for International Studies in my hometown of Atlanta, which has developed
a curriculum to train every social studies teacher in the state of Georgia on
global trade and geography.
A third way to meet the challenges of the anti-globalization movement is by
supporting programs and policies that address training and career development
for all of those who have been displaced by international trade. We can recite
trade facts until we're blue in the face – but if you have lost a job,
the facts mean nothing.
Innovation is yet a fourth way. Think back 25 years ago. People were afraid
the U.S. was going to lose its jobs to Japan. Even greater numbers were worried
about having their careers rendered obsolete by technology. That mirrors the
fears we see today, only the names have changed. Instead of Japan, it's
India and China. Instead of technology, it's globalization.
Obviously, the challenge of 25 years ago turned into opportunity. American
business did what we historically have done best – we innovated. Tom Peters
reminds us that in the process of innovating, we replaced 44 million antiquated
jobs with 73 million new jobs. The bulk of those jobs required knowledge of
technology. The net effect was 29 million new higher paying, higher skill jobs
between 1980 and 1998. We need to continue our rich tradition of innovation.
Innovation is dependent on legal reform as well as regulatory, tax and other
financial policies that promote and reward growth, investment and risk. Without
a climate that promotes them, innovation will wither.
The fifth and final way is to understand that in foreign affairs, corporate
diplomacy is as important as political diplomacy. Anti-Americanism abroad is
a significant concern. We have seen a serious slide in American business's
favorability around the world, and in a short time frame.
At UPS, we have been fortunate, so far, to weather this storm. Our international
business is the fastest growing part of UPS. I believe part of that success
is because we have been able to localize our brand and our operations. In fact,
of the 40,000 non-U.S. based employees at UPS, less than 40 are U.S. expats.
The drive to localize is also reflected through our corporate foundation, which
now has a global strategic plan.
I believe that if we make stronger inroads in all of these areas, we'll
win the most important market share of all – the minds of all those we touch.
|