U. S. Commerce Secretary pushes Competitiveness Initiative
BY KAREN O'LEARY
The United States will sustain its leadership in the global economy and thrive by focusing on systems and policies that have made it successful in the past, U.S. Commerce Secretary Carlos Gutierrez recently told an audience at the Graduate School of Business.
Pro-growth trade policies, an unequaled free enterprise system, business management expertise that is "second to none" and a national culture that attracts and assimilates the best and brightest minds in the world will fuel the U.S. economy in increasingly competitive times, he predicted.
"Some say China, India and others are raising the heat so high in the global economy that we'll be forced to flee. We reject that idea," he said.
"In spite of the competitive intensity, we've been able to fly," Gutierrez said in a talk that was geared to promoting the "American Competitiveness Initiative," a program announced by President Bush in his State of the Union address.
Plans in the initiative include modernizing tax credits, doubling investment in research and development in the physical sciences, extending tax credits, increasing funds for K-12 math and science education and reforming immigration laws to provide incentives to retain top students from overseas. Advancing fields that will not have an impact for 10 to 15 years—such as nanotechnology and quantum research—is also part of the plan.
Gutierrez, who was appointed by Bush last year, fled from communist Cuba with his family when he was 6. He learned to speak English from bellhops in Miami hotels and attended college in Mexico but never earned a degree.
Gutierrez launched his career with Kellogg Co. in Mexico, where his job included driving a truck to small stores to deliver cereal. He became general manager of Kellogg's plant in Mexico and within two years transformed it from the company's least productive in the world to one of its top-performing operations. He held various management positions with Kellogg in Battle Creek and at 43 became the youngest chief executive officer in the history of the company.
Asked what leadership style and principles he credits for his success, Gutierrez said, "You have to have some luck." Making the most of mentors was also important in his career, and he considers it an important skill.
"Many people don't like to have mentors. They think it makes them appear weak," Gutierrez said.
Early in his corporate career, Gutierrez was encouraged that Coca-Cola Co. had appointed another Cuban-born manager as chief executive officer. "I studied his life," said Gutierrez, stressing the importance to him of role models.
With experience in both private and public sectors, Gutierrez told the students that the skills required to manage people in the two different sectors is remarkably similar. Working in the public sector is an opportunity to make a contribution, said Gutierrez, and although most people could make 10 times the amount of money in the private sector, it's a "great thrill."
Following his prepared remarks, students asked Gutierrez about the administration's approach to the trade deficit with China, the environment and the war in Iraq. "If the U.S. is so competitive, why do we have such a large trade deficit with China?" asked one member of the audience.
Concern about trade deficits shouldn't be the driving force in the economy, replied Gutierrez. The U.S. trade deficit with China is a result of our pro-growth and open-market policies and is a tribute to the nation's success, Gutierrez said.
"Controlling inflation and adding jobs are more important than concern about trade deficits," he said, cautioning that U.S. policy decisions should not be based on fear. Keeping tariffs low is critical, Gutierrez said, and protectionism would be dangerous at this point.
"Twenty-five percent of the world's CO2 emissions is generated by 4 percent of the world's population. How does that factor into your plans?" asked a student.
"CO2 emissions is a factor of productivity," Gutierrez said. "If we weren't growing, we wouldn't have the luxury of worrying about it."
"We probably should be concerned about global warming," he said, but added that global cooling had once been a concern. He argued that not enough is known about global warming and more research needs to be done before billions of dollars are invested in addressing it.
"I don't think we have anything to be embarrassed about regarding the stewardship of our environment," Gutierrez said.