EDUCATION FOR GLOBAL LEADERSHIP AND CITIZENSHIP

1. EDUCATION FOR GLOBAL LEADERSHIP AND CITIZENSHIP JOSEPH STIGLITZ BOSTON MARCH 2, 2006

2. THE NEW GLOBAL WORLD • Globalization: the closer integration of the countries and peoples of the world • The result of lowering of communication, transportation costs • And the elimination of man-made barriers • Closer integration means more interdependence, more interdependence means more need to act cooperatively, as a global community

3. THE MANY DIMENSIONS TO GLOBALIZATION • Not just economic globalization • Globalization of ideas • Globalization of civil society • Global political institutions • But economic globalization has outpaced political globalization • Impairing our ability to act cooperatively to solve global problems—like global environment

4. BUT IT’S MORE THAN JUST A MATTER OF POLITICAL INSTITUTIONS • Mindsets— • We do not think globally • We do not feel globally • We do not know enough about what is going on elsewhere, how they and feel about the issues confronting the world • Enormous consequences • For how we are perceived • For the success of our efforts at global leadership

5. FAILED OPPORTUNITY • The end of the Cold War provided an opportunity to reshape globalization • Could have reshaped it to reflect more our ideals and principles • But the end of Cold War also meant that, unfettered by competition, we could use our power to enhance our economic position—or more accurately, those of our multinational corporations—creating a more unfair globalization

6. We chose the second course • Poorest countries of the world actually worse off as a result of the last round of trade negotiations • Tariffs of advanced industrial countries four times higher against developing countries than against other industrial countries • Denying access to life saving medicines for the poorest people of the world • At Doha, in 2001, we promised a Development Round • In Hong Kong, in 2005, we effectively reneged on that promise

7. THE ROLE OF EDUCATION • America may be the only superpower in the world • But it cannot exert effective leadership if its leaders have not been trained to understand the world in which we live • And if there is not within its citizenry the right mindset • There has to be a change in education at every level

8. CHANGES AT THE UNIVERSITY LEVEL • Columbia has gone from being a university in New York City, to a regional university, to a national university • It now sees itself as becoming a global university • More than just teaching about Non-western civilization • Seeing the world through the eyes of those in other parts of the world, in the developed and developing world • And addressing the major global problems facing the world • Changes in both what we teach and how we teach, and in our research

9. Changed perspective reflected in the creation of a Committee on Global Thought • Cross cultural, multi-disciplinary • As well as close links with universities around the world • Similar trends are going on at other major institutions • But universities have to build on what goes on at the elementary and secondary level • Importance of the topics you are discussing

10. SOME BIG CHANGES • More than just enormous increases in trade • And the movements of capital and labor across boundaries • The integration of China and India (and the other countries of Asia) is a change of historic proportions • Fastest growth ever recorded • Most rapid reduction in poverty

11. THESE CHANGES WILL AFFECT EVERYONE • Change the competitive position of the United States and EU • MODERN ECONOMY BASED ON TECHNOLOGY • BUT NUMBER OF GRADUATES IN SCIENCE AND ENGINEERING NOW DWARFED BY THOSE IN ASIA

12. SOME STATISTICS • Of 2.8 1st university degrees in science and engineering • 1.2 million in Asia • 830,000 in Europe • 400,000 in U.S. • In engineering, Asia produces 8 times U.S. • since 1993, the number of American citizens in graduate science programs has fallen from 55,000 to under 42,000 while the global supply of Ph.D. in science has increased by 25%--mostly in Asia • Just under half of all doctorate degrees in engineering and computer science in the United States are earned by foreign students • Serious visa problems since 9/11

13. PROBLEMS START EARLIER • PROBLEMS START EARLIER IN ELEMENTARY AND SECONDARY SCHOOLS • EVIDENCED BY PERFORMANCE IN STANDARDIZED TESTS IN SCIENCE AND MATH. For example, at 8th grade • 44% of Singapore performed at highest level • 38% of Taiwan • 7% U.S.

14. EXPENDITURES ON RESEARCH DECLINING • As percent of GDP, 37% decline in federal funding since 1970 • Reflected in part in patents • Since 1980, Japan’s share world wide increased from 12% to 21%, mostly at expense of U.S. (which has decline 8 percentage points)

15. SUCCESS OF CHINA IN MANUFACTURING NOT JUST A MATTER OF UNSKILLED LABOR • Combining skilled and unskilled • Even in textiles and automobile assembly • ISSUES MAY BE OF EVEN MORE CONCERN IN IT, TELECOM, AND RELATED SECTORS

16. EMERGING STRAINS • COMPETITION LIKELY TO RESULT IN LOWERING WAGES OF UNSKILLED WORKERS • AND EVEN OF OTHERS • ENORMOUS STRAINS ON SOCIETY • BUT NEITHER U.S. NOR EUROPE ARE IN GOOD POSITION TO RESPOND • IN U.S. HUGE FISCAL DEFICITS • IN EUROPE, GROWTH AND STABILITY PACT, ECB FOCUSING ON INFLATION, PROBLEM OF EARLIER DECADES

17. ECONOMIC TYPOGRAPHY HAS CHANGED • The world is not flat • Disparities between the haves and have nots have increased • Power of entrenched monopolies, like Micro-soft, is probably greater than ever before • Importance of research gives enormous advantage to those who have the resources and skills to undertake it • But the nature of competition is enormously changed • Cannot simply rest on laurels

18. Preparing for Global Leadership and Citizenship • There are three ways we can respond to challenges posed by globalization • Retreat behind protectionism • Use our current power to try to create rules of the game that are more favorable to us—a more “ unfair” globalization for the poor • Understand the changes, preparing ourselves for the new world

19. Preparing for Global Leadership and Citizenship • Recognizing that there will be increases in inequality, we need to have more progressive taxation, better safety nets • Scandinavian model • Fast growth, higher living standards (measured by HDI) • Our economy may have high growth of GDP, but for average American, things are getting worse • Falling median income • Falling real wages • Working longer

20. Preparing for Global Leadership and Citizenship • But at the center of any successful response will be our schools • Science and technology • Meaning of the enlightenment and the scientific method • Understanding the meaning of democracy • Including democracy at the global level • Democracy is more than periodic elections • Importance of basic rights that we traditionally held as so important • Importance of the right to know—the dangers of secrecy

21. Preparing for Global Leadership and Citizenship • Understanding notions of ethics—concepts of social justice • Understanding our world, seeing the world from multiple perspectives—through the eyes of others—knowing about our international institutions, our imperfect system of global governance without global government, understanding the economic and political forces that are shaping our world

22. America’s educational institutions • Are among our most important assets • Have shown their ability to respond to challenges in the past • Globalization and America’s role in this new globalization is among the biggest challenges we have faced • I am confident that they will respond to this