Drucker's vision of a "post-capitalist society"--one in which knowledge is the basic resource and nation-states compete with transnational, regional and tribal structures--is hardly original. What is new in this invigorating essay is his far-reaching analysis of the economic crisis of militarized, wasteful "megastates" like the United States and the former Soviet Union, which have failed to bring about a meaningful redistribution of income. Improving American productivity, he writes, will require investment in human resources and infrastructure (as Japan, Germany, Korea and Taiwan have done) and a drastic restructuring of organizations, including the elimination of most management layers. The federal goverment, Drucker asserts, should contract out tasks in the social sphere, confining itself to the role of policymaker. Among his other provocative proposals: jettison military aid to other countries; create a public audit agency to eliminate pork-barrel deals and special-interest politics; and hold schools accountable for students' performance. He also urges the creation of transnational institutions to cope with the environment, terrorism and arms control.