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Remarks
by
Secretary of Commerce Donald L. Evans
Before the Global Internet Summit
March 7, 2001
Reston, Virginia
(As prepared
for delivery.)
It's a pleasure
to be here with you this afternoon - and with this distinguished
audience, including Governor Gilmore, John Chambers (Cisco Systems
CEO), Allen Merten (President of George Mason University), Mark
Grady (Dean of George Mason Law School) and Chairman Bradford Brown
(GMU Law School's National Center for Technology and Law).
For the past
number of weeks I've been introducing myself and my plans for approaching
my job at the Department of Commerce. I welcome these opportunities
to share thoughts on how I see this administration working with
you to create an environment in which American businesses and American
capital can thrive at home and abroad.
As you heard,
I spent my formative years in business working in the oil fields
of west Texas, where I did everything from laboring as a roughneck
on drilling rigs to working as an engineer and manager, and running
a multi-billion dollar oil and gas company at 33 years old. Not
surprisingly, I bring the instincts of business to Washington.
Our Mission
I believe our
energies must always be focused on creating an environment that
provides the incentives that encourage America's entrepreneurs and
the American worker to do what they do best - innovate, grow the
economy and create jobs and wealth. In other words, allow the miracle
and genius of the free enterprise system to flourish.
I think it's
important to remember that since our founding days, we have been
a nation of free men and free markets. America's entrepreneurs and
workers created the strongest and most progressive economy the world
has ever known - not government. Whenever the hand of government
has fallen too heavily on the free marketplace, the economy faltered.
The better job we do of keeping government out of the way - the
better job American business will do...at home and abroad.
And the best
way we in government can do that is by removing barriers that prevent
or hinder innovation and economic growth. Government should not
be in the business of
picking winners and losers. I'm talking here about getting rid of
unnecessary regulations;
making sure the conditions are right for the most effective deployment
of capital; and,
perhaps most important, providing you with a government you can
trust to do exactly what it says it will do.
My basic philosophy
can best be described by something President Bush said the other
night when he was delivering his budget message to Congress. He
noted that, "Our governing vision says government should be
active, but limited, engaged, but not overbearing."
Evolution
of the American Economy
In my opinion,
never has this approach been more important than it is today. We
mustn't erect roadblocks to progress along the information highway.
Our economy is evolving in ways that rival the changes that took
place 200 years ago when this nation transformed itself from an
agricultural economy into an industrial economy. And 200 years ago
our ancestors grappled with how to cope with the changes; how to
make certain that prosperity and progress were promoted and that
opportunities existed in all sectors of our society.
Consider the
stakes we are dealing with today. IT industries have contributed
30 percent of U.S. growth since 1995 - growth that is evident right
here in Northern Virginia, where we have the headquarters of AOL/Time
Warner, Teligent, XO Communications, BTG, Inc. and UUNet/MCI. Governor
Gilmore and former governor and current Senator George Allen should
be congratulated for their work that has helped make Virginia the
"Digital Dominion."
As to the future,
worldwide Internet commerce -- both business-to-businessand business-
to-consumer -- will reach almost $7 trillion by 2004. By 2005, 1
billion people will be connected to the Internet and more than 75
percent will be outside the United States.
Just this morning,
my Department released the latest figures on sales made online.
These are 1999 numbers and a sampling shows that 12 percent -- or
$485 billion in sales -- were made online in the manufacturing sector;
and more than 5 percent of all sales by merchant wholesalers were
made online accounting for about $134 billion. Keep in mind that
these are 1999 figures and we all know they've grown tremendously
since then. This growth and the prosperity it will bring in its
wake are almost incomprehensible -- if we act wisely.
But we're dealing
with much more here than material wealth. We're dealing with knowledge
and the benefits that accrue to those who gain knowledge. I'm talking
about the desire for freedom that inevitably results when people's
horizons are broadened -- when they discover the endless possibilities
that life offers.
And that brings
us full circle and punctuates the tremendous importance of creating
the conditions that will permit you to innovate and grow within
an economy that appreciates and encourages your contributions.
Building
the Framework
These are very
powerful forces that we are all being asked to steward reasonably
and for the benefit of all people. It can be a frightening responsibility
-- but I prefer to accept the task as an exciting opportunity to
create the conditions for economic growth and broadening people's
horizons.
And one of the
best ways to get the most out of this opportunity is to listen to
what you have to say -- find out how you see the future developing
in your industry. Here in the Reston-Dulles corridor, you have come
to count on Don Upson. He listens to your ideas, lends his voice
to your cause, offers counsel in times of challenge. What he has
done for the Digital Dominion, I will look to do for America.
The high-tech
community needs a champion in Washington -- a single point of contact
to help you plot a course in the Nation's Capital and to promote
opportunities in the global marketplace. And you're looking at him
-- at least until I get a call from the White House after this speech.
For instance,
when you talk about the concept of "networked communities,"
you're talking beyond what we've been concentrating on in government
and I want to be your advocate for these kinds of issues. And I'm
looking forward to working with you to protect your infrastructure.
I appreciate how important this is not only to you but to the American
economy.
It's also my
understanding that your industry will be forming an advisory council
that will offer recommendations to policy makers. This forum should
be a very effective arm of communication. And I look forward to
working with them on our shared agenda.
During the next
few months, I will be meeting with my counterparts in three important
economic conferences and I would like to take them our message that
this administration will champion free and open markets, and provide
strong advocacy for your industry in your own words.
Also, we have
a number of important issues to grapple with -- I refer to such
considerations as deregulation in the telecommunications market;
speeding broadband deployment, including wireless as well as landline;
finding ways to close the gap that currently exists in high-speed
Internet access between those living in rural areas and those living
in suburban areas; the disposition of the Internet Tax Freedom Act;
the issue of technology transfer and much more.
New Day in
Washington
As I wind down
today, I'd like to spend a minute of so to review other steps being
taken
by this administration that are important to you not only in your
professional lives but in your roles as parents and concerned citizens.
First, there
is the budget President Bush proposed last week. A broad look reveals
a budget focused on government programs that most directly improve
the lives of average Americans: excellent schools, quality health
care, a cleaner environment and a stronger defense.
And this budget
will allow us to pay down almost two-thirds of the debt; create
a contingency fund for unexpected needs; and cut taxes by $1.6 trillion.
You create the wealth of this nation -- you create the jobs and
innovations. The more money we can leave in your pockets, the better.
This is what I mean about creating an environment that allows the
economy to grow and prosper.
Within this
budget are also education reforms proposed by the President. His
program calls for tying funding to higher standards and to accountability
for results. His program also promotes local control of schools.
Washington cannot do the job that you as parents and teachers can
do in the neighborhoods and communities where your schools are located.
These are common
sense proposals and they will close the achievement gap between
rich and poor students, support teachers and empower parents with
more choices. Here, again, we are promoting conditions that will
help us grow and prosper. An educated workforce is a productive
workforce.
As expected,
we are hearing from those who are picking at bits and pieces of
the budget and would tinker with it here and alter it there. That
would be a mistake. It addresses the needs of our economy and of
our people in a responsible and effective way. And we sure don't
want to see any "ornaments" attached to the tax reforms
that will dilute or distort them.
Final
Thoughts
In closing,
I'd like to leave you with a few thoughts.
We in Washington
will be looking to you for guidance on how to proceed to make sure
that not only industry but also society benefit from the developments
you are engineering in your industry. Together, we must create an
environment that enables high tech businesses to flourish guided
by the hand of free enterprise, free markets and faith in the American
people.
Those are age-old
truths that should be embraced as we head in new directions. We
will look to you, not government, to take us in the right direction.
Thank you for
allowing me to spend time with you today.
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