Billions of dollars were recycled through the commercial banking system from the wealthier OPEC countries to both the industrialized nations and the Third World countries. The banks have large loans outstanding to countries whose ability to pay has dropped dangerously because demand and prices for the commodities they export were hurt by the recession. Protectionism and nationalism are on the rise as various countries attempt to redress their balance of payments. But today competition, capital, and markets know no national boundaries. It's a different world. And it's going to call for a higher caliber of management than could get by in the past. This is true both for the private and the public sectors. Let me single out as one example out of many the kind of ineptitude we cannot afford. At the end of World War II the steel industry in the United States emerged as virtually the only really viable steel industry among the major industrialized nations. But a complacent management stayed home, allocated supplies to steel- hungry customers, let their technology stagnate, their plants grow obsolete, and their labor costs soar 50% above the wage rates of the rest of the U. S. manufacturing industry. Today U. S. steel companies cannot compete abroad and are pleading for protection in the home market - protection that can only be provided at a cost to the U. S. consumers, U. S. taxpayers, or both. European steel companies did no better. Much of this scenario took place when world development was proceeding at a fast pace but now the painful but necessary adjustment process must go forward against a declining use of steel 6