The politics of services globalization

Key messages

• The US is already a services economy
• Global services competition is moving rapidly up the value chain
• Do you want the good news or the bad?
• The need for solutions rather than reactions

Protectionist sparks

Small and sweeping issues drive fears

The downside of public attention

Election + recession = a volatile mix

A shifting economic profile

• Agriculture and manufacturing' s waning role
• Concerns about offshoring center on lower-skilled jobs

Moving up the services value chain

• Stage is being set for offshoring of high-skilled jobs
• A growing trend to offshore R&D

Implications for US and developed country policies

Challenging demographic and education trends

Offshoring as precursor to automation

Following in the paths of agriculture and manufacturing

Of national priorities and political will

Offshoring just one of many pressing challenges