David Walker: The Mission Ahead | David Walker | Big Think

David Walker: The Mission Ahead

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The former United States Comptroller General outlines his action plan for America’s future.

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David Walker:

As President and CEO of the Foundation, The Hon. David M. Walker is now free to do what he wasn't able to do while running the Government Accountability Office: advocate for specific solutions, work proactively with grantees and other partners to build strong coalitions, and encourage and engage in grassroots efforts to bring pressure on Washington to act.

As Comptroller General of the United States and head of the Government Accountability Office (GAO) from 1998 to 2008, spanning both Democratic and Republican administrations, Dave served as the federal government's chief auditor. Appointed by President Bill Clinton and confirmed unanimously by the US Senate, he was an outspoken, nonpartisan advocate for addressing the major fiscal and other sustainability challenges facing the country. He also enacted transformational reforms at the agency and within the accountability profession.

Prior to his appointment to run the GAO, Dave served as a partner and global managing director of Arthur Andersen LLP and in several government leadership positions, including as a Public Trustee for Social Security and Medicare from 1990 to 1995 and as Assistant Secretary of Labor for Pension and Welfare Benefit Programs during the Reagan administration.

Although no longer the US government's chief auditor, Dave continues to serve as a global accountability expert as chairman of the United Nations Independent Audit Advisory Committee. He also serves on the boards of the Committee for a Responsible Federal Budget and the Partnership for Public Service. He has authored two books, is a regular commentator, and is the subject of the critically acclaimed documentary I.O.U.S.A., which arrives in theatres around the country in August 2008.

Dave holds a B.S. in accounting from Jacksonville University, a Senior Management in Government Certificate in public policy from Harvard University's John F. Kennedy School of Government, and several honorary doctorate degrees. He has won numerous leadership and other awards during his career. He and his wife Mary live in Alexandria, VA and have two children and three grandchildren.

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TRANSCRIPT:

David Walker: Dave Walker, President and CEO of Peter G. Peterson Foundation and former Comptroller General of the United States.

Question: What got us into this financial mess?

David Walker: There are a number of common denominators between the factors that led to the current mortgage based sub-prime crisis and the federal government’s own deteriorating financial condition. First, a disconnect between the players who benefit from current policies and practices and those who will bear the risk and pay the price if things hit the fan. Secondly, a lack of transparency about the nature and extent of magnitude of the real risk. Thirdly, too much leverage, too much debt. And, fourthly, a failure of both private sector and government risk management mechanisms in the case of the mortgage related sub-prime, a failure of those to act despite clear and compelling warning signals going off in order to prevent a crisis.

What we saw in the case of the mortgage based sub-prime is laggardship , not leadership, that’s a new word. What laggardship is, it’s a failure of leadership and its waiting [sic] ntil there is a crisis at your doorstep to act and then acting precipitously in the face of such a crisis. What we need is leadership both on the public sector and the private sector, and what that leadership means, it means looking ahead, seeing key trends, identifying challenges and opportunities, taking affirmative steps to be able to capitalize on those opportunities to meet those challenges and to avoid crisis that’s what we need. More leadership, less laggardship.

Question: What should President-elect Obama do immediately?

David Walker: A) focus on getting the economy turned around and restoring confidence in the short term, and B) putting processes in place like a fiscal future commission or something along those lines that would be able to do work for about a year and then make recommendations to the new president and the new Congress to get our own federal financial house in order so we can avoid a super sub-prime crisis that we don’t ever want to see.

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