President Havel began his remarks by asserting that although the globalization of information transfer is neutral, the ideas and messages being transmitted may not be. One must thus question the nature of the ideas being disseminated rather than the process of globalization. "We are now in the age of an information revolution, when hundreds of thousands or millions of pieces of information crisscross the globe every second at a frantic speed, spanning our planet with an all-embracing coat of communication. This is undoubtedly a marvelous achievement, to which I have no objection whatsoever. However, it seems to me—especially after this global breakthrough in the field of information—that it is of paramount importance to understand the fine difference between information and truth," Havel said.

The second issue raised by President Havel was his perception of globalization as a process that reduces variety and quality. In the Czech Republic the 1989 revolution replaced the gray and monotonous landscape of half-empty state shops with a rich variety of small and colorful shops throughout Prague and other cities. By the late 1990s, however, this variety had been dramatically reduced, as hypermarkets established themselves at the outskirts of the cities, driving many downtown merchants out of business. At the same time, the quality and diversity of products diminished.

Following on Havel’s remarks, Lee Bollinger, the President of the University of Michigan, outlined the challenge the University of Michigan and other leading universities face of providing a globally oriented education. American students require more effective language instruction and greater possibilities for studies abroad. To increase its own global focus, the University of Michigan will consider doubling its number of international students, increasing the percentage of foreign students from 4 percent of the student body now to 8–9 percent within a few years. The increase will be facilitated by an expected increase in financial aid to foreign students.

Related challenges include increasing the use of modern technology in the delivery of education and increasing coordination and cooperation between universities in the United States and abroad. President Bollinger noted that the 62 leading American research universities meet regularly within the framework of the Association of American Universities, but no such information exchange exists with foreign universities.

In my presentation, I focused on two major problems associated with globalization, namely, that people around the world do not understand it and therefore fear it and that the benefits of globalization have so far been very unequally distributed across countries. These problems present a fundamental challenge for institutions such as the University of Michigan as well as for governments and intellectuals in developing and transition economies. Leading American universities provide the type of educational and intellectual environment that enables graduates to enter the highly rewarding sectors of the global economy. Two important elements of the American system are absent in most other countries: wide access to college education and intense competition among universities in research and dissemination of new knowledge to students, faculty, and society at large. This system ensures that new intellectual developments are rapidly incorporated into the process of higher education and benefits are passed on to society.

An important challenge of globalization is eliminating this gap. Governments and intellectuals must work to increase the quality and impact of universities and other educational institutions. Funding of universities needs to be tied to performance, and significant resources need to be allocated to higher education so that it becomes accessible to more students. Globalization accentuates differences. Unless countries such as the Czech Republic make these types of adjustments, they will not reap the benefits of globalization but will instead be left out.

The challenge for the University of Michigan and other leading universities is to become truly global in the delivery of education, in part by establishing alliances with institutions abroad. The William Davidson Institute and the Business School at the University of Michigan have already made important strides toward globalization. The vision and financial support of people like Bill Davidson have enabled us to involve thousands of students, faculty, managers, government officials, and journalists from other countries in our educational programs. Over the past decade the Institute and the Business School have sent thousands of students to work with hundreds of companies all over the world. In these and other initiatives, the university community can be a vital force in ensuring that globalization improves welfare around the world and provides benefit to our own community.