Columbia International Affairs Online: Working Papers

CIAO DATE: 07/2010

The State in A Double Bind: Staying Wealthy in a Changing Global Economy

John Zysman, Dan Breznitz

April 2010

Berkeley Roundtable on the International Economy


Can Wealthy Nations Stay Rich In A Rapidly Changing Global Economy? This was the question with which we began our inquiry several years ago. The policy objective for governments is classic and enduring: sustain the growth of employment and productivity to assure expanding real incomes of the citizens. Success requires that ―under free and fair market conditions, the community (firms and populace) can produce goods and services that meet the test of international markets while simultaneously expanding the real income of its citizens.‖i But the strategies required to achieve the goals and the debates about those strategies have evolved in two different directions, seemingly proposing alternate and contradictory priorities on governments.