THROUGHOUT MOST OF THE LAST CENTURY,

the American system of higher education was revered both here and throughout the world. But the impact of expanding global competi-tion, changes in American labor markets, the exploding growth of knowledge, innova-tions in technology, and the resulting in-creased demands for higher skills are creating significant new challenges for higher educa-tion. Further, the dra-matic impacts of these forces on our economy, on our education sys-tem, and indeed, on our quality of life are pro-jected to significantly accelerate in the near future. These changes will require ever more intimate connections between higher educa-tion and the larger society. Higher education, business, and public policy makers will need to turn their attention to efforts of aligning higher education curricula and outcomes with the escalating demands of the surrounding environment. This should not be taken as a signal that broad support for lib-eral education has waned. To the contrary, the value and benefits of a liberal education will be more respected and in greater demand as the world becomes increasingly complex. But we will all need to work hard to support this case. The primary question posed by this paradox is not whether the traditional framework of liberal education is effective, but whether it is calibrated to the demands of the changing world. Institutions will be increasingly pres-sured to ensure that, in addition to the tradi-tional components of broad cultural, political, social, and scientific learning, liberal educa-tion also contains the specific skill sets that enable students to navigate the growing de-mands of the occupational world. Neither the degree nor the institution nor even the reputation of the American system of higher education itself is any longer suffi-cient to ensure the successful transition of stu-dents into the workplaces of the twenty-first century. Upon leaving college and entering the workplace, students are increasingly fac-ing tests and assessments of their basic knowl-edge and skills and their aptitude for continuous learning. Employers are less con-cerned with transcripts than the demonstra-tion of achievement and competency across a variety of general and specialized skills. External pressures The rest of the world is catching up! Literac