The Race For The World: Strategies To Build A Great Global Firm.

• Author: Schwarz, Brennan
• Position: Review

By Fraser, Jane; Oppenheim, Jeremy; and Rall, Wilhelm

Boston, MA: Harvard Business School Press, 1999. (364 pages)

Reviewed by Brennan Schwarz, Policy Analyst, GFOA Research Centers Chicago, Illinois.

The geographic boundaries that once kept economies distinct are rapidly crumbling under the pressure of increased mobility of capital, deregulation, and the rapid innovation taking place in communication and computing technologies. The authors of The Race for the World: Strategies To Build A Great Global Firm attempt to give firms advice on how to position themselves to take the lead as the world economy undergoes integration and globalization.

Early on in the book, the authors temper their analysis by stating that "we will never live in a fully global market;" thus, the authors segregate themselves from the population of globalization zealots that have sprung up over the last decade. Instead, they focus their message on the increased opportunities for businesses to capture the benefits of economic integration.

At first glance, those involved in the world of public finance may see no need to concern themselves with the globalization occurring in the private sector But upon further examination, there are numerous reasons for those in the public sector--namely, pension fund administrators and cash managers--to understand the economic integration taking place in the private sector First, local governments cannot help but be affected by the breakdown of geographic boundaries that are shaping the new global economy. Second, cash and pension managers need to understand the global investment climate. Third, the current atmosphere of accountability and fiscal belt-tightening has forced many segments of government to compete with the private sector (e.g., waste management, prisons, schools). Because global companies have "access to the best resources the world has to offer, the most talented labor, the most extensive customer markets and the most advanced technology, and the lowest-cost, highest-quality suppliers of goods a nd services," the private sector may be able to deliver services cheaper, faster, and at a higher level of quality than the public sector While competing with the public sector, they also may provide opportunities for the public sector. In particular, governments may be able to outsource certain activities (e.g., selected financial management functions) to firms that have emerged as world-class specialists within a specific business...