AS Bermuda - along with the rest of the world - finds itself operating in the most profoundly changed political and economic climate since the Industrial Revolution, the present generation of Government, politicians, business and trade union leaders have so far shown little awareness of how deeply these changes will affect the future of the island.

Vast and rapid technological changes are transforming the world almost instantly into what is now virtually a global village where traditional barriers and methods of doing business are being swept away so it is imperative, former Premier Sir John Swan urged this week, that Bermuda embrace these re-developments with civility and open minds "unencumbered by worn-out ideology, bureaucracy, bias and prejudice." Sir John said Bermuda had to face up boldly to the new reality now affecting just about every corner of the globe: "We cannot afford to stay aloof from the problems and challenges that arise from economic and social changes, or to ignore their effects on our country," he commented. "Our politicians, business and trade union leaders must become the instruments of genuine dialogue, without rancour, together with action, policy and, where necessary, law to bring about vital changes in the way the country is run."

In just over ten years, said Sir John, the collapse of the Berlin Wall that heralded the end of the Cold War, together with the development of new information technologies - especially the internet - have allowed companies to locate certain parts of their production, research, accounting and marketing in different countries: the speed and low cost of moving goods, services, money and information has therefore virtually eliminated distance as an economic factor."But the events of 9/11 have led to a monumental disruption in economics around the world," said the leading Bermuda businessman. "The shock-waves resulting from the outrages of that day have had catastrophic effects on companies around the world such as national airlines and reinsurance companies, as well as energy-producing companies such as Enron and other start-up businesses, pushing them into bankruptcy.

"I believe, therefore, that there's now a real need - before it is too late - for Bermuda to review, adopt, and even eliminate some areas of our political, social and economic policies that have perhaps been considered unique and sacrosanct - and served us well enough in the past - but which are now out-of-step with the new global reality that confronts us."

Boldness of action is essential, the former Premier said, because social justice cannot prosper without economic success: "If we are to continue the unprecedented and social success we have enjoyed until now, we must ensure that social justice is founded on economic growth."

And, he said, the four areas urgently requiring change are:

l. Public education

2. Attitude, not aptitude, determining our altitude

3. Challenges for the City of Hamilton

4. Relaxation of the 60/40 ownership rule.

"I have voiced my views on these four areas in the past but, at this critical stage in Bermuda's development, I believe they bear repeating.

"On the subject of public education, I would reiterate that we cannot ensure sustained economic growth and prosperity unless we build Bermuda's future with a sound system of quality education which keeps up with the pace of change. Education, therefore, is our number one national priority. It is a Bermudian problem which requires a Bermudian, not a partisan, response.

"The most urgent task now facing our generation is to reinvent our public education system by establishing a more coherent quality curriculum for our schools and a more precise system of evaluation of our students."

Sir John said there was a need to pause and acknowledge that the overwhelming majority of Bermudian professional, politicians and leaders of our various institutions went through the Bermudian public education system.

"We shouldn't lose track of those accomplishments. I believe that, given the right learning environment, every child can be educated. Many of my contemporaries," he recalled, "came from tough backgrounds. There were no books at home, their parents could barely read or write, most did not have parents or siblings who had been to college and many were from single parent homes. Yet, in spite of these handicaps, we got a good education.

"That's because we had good teachers. I never stop being amazed and I'm filled with pride that so many of my own schoolmates from Central School (now Victor Scott) who, sadly, had to leave school at the tender age of 13, have gone on to make good lives for themselves. This tells us, therefore, that good teachers make the difference!

"Unfortunately, however, our public education system has not kept up with the pace of change and there is now an urgent need for us to preserve the best of our system while reinventing the rest. Indeed, the rapid pace of change in our society leaves us with little option but to embrace change instead of reverting to defensive mode, blaming outside forces and make some hard decisions, not on what is wanted but what is required. The business of education must be open and transparent, making our schools and teachers accountable, with the system being focused on attention to performance. Benchmarks must be set, with outcomes evaluated and publicly reported."

Noting that Bermuda's public schools cater to 65 percent of the school population of whom more than 90 percent are black, Sir John further commented: "Too many of these children, especially black males, are still falling through the cracks. And," he added, "too many black people continue to embrace a culture of victimisation and entitlement based on past injustice instead of pushing for equality of opportunity, standards and accountability. These are the scars we carry. And these are the scars that continue to hold us back."

Addressing his second point, the former Premier said, "The longer I live, the more I am convinced of the impact of attitude on life! It will make or break personal relationships, companies, homes, political parties, churches - and even governments. Let's face it - we cannot change our past, we cannot change the inevitable, nor change the fact that people will act in a certain way: the only thing we can do it to rely on the one source of strength we all have - and that is, our attitude. I am convinced," added Sir John, "that life is 10 percent what happens to people and 90 percent how we react to it. It's all a matter of attitude.

"A positive attitude is of primary importance in dealing with life's challenges. Such people have a clear focus, well-defined objectives and enthusiasm for life. This, I would say, has nothing to do with their aptitude, or how bright they are - it is attitude, and how smart they are!

"I have found there is a major difference between winners and losers. Losers do what is required of them - or less - while winners always do what is required - and then some. People," he added, "with the loftiest goals and ideals, noblest dreams and richest ideas will find that without a clear focus and a willingness to work hard, will not achieve their goals."

Turning to his well-publicised plan for the future of the City of Hamilton, Sir John, who is one of Bermuda's most successful business leaders, accepted that some of his proposals had not been politically popular in some areas: "However, if we don't make the City the hub of entertainment, the City will die because there appears to be no likelihood of our present central government being of any financial assistance in the future, and the Corporation will find itself without the tax revenue to even sustain itself in its present condition - let alone produce cash for future development.

"I believe we therefore urgently need to adopt strategies for transportation, retail business, city hotels and apartment living, cruise ships, Hamilton's docks, the development of North Hamilton from Dundonald Street to North Street, as well as develop casinos and other entertainment.

"In today's rapidly-changing world, municipalities around the world are finding it impossible to meet the demands of the public through traditional taxing policies. That is why progressive cities are turning to casinos to supplement general taxation. A state-of-the-art casino in Hamilton, owned by the Corporation would provide funds for the overall development and improvement of the city.

"Hamilton needs to reinvent itself and, referring to the idea of Hamilton becoming 'the Monte Carlo of the Atlantic', we should certainly be aiming to attract fewer people with greater spending power. This will put less strain on our infrastructure, environment and social well-being."

Referring to the 60/40 question, Sir John commented that there could be no doubt that, in the context of globalisation, economic integration is now a reality, with protectionist policies and other barriers to trade and investment fast disappearing: "Goods, services and capital flow around the world, making countries truly interdependent. Governments may well try to control the mass media but they cannot stop individuals from using the internet. Consequently, one of the most powerful tools driving the borderless economy is the internet - and this is as true of Bermuda as anywhere else.

"It is imperative, therefore, that we hold a healthy debate on the benefits and disadvantages of the 60/40 rule which, of course, has already been relaxed in the case of the island's banks." Voicing his concern that Bermuda apparently feels little urgency in addressing the very real problems confronting the country in rapidly changing times, Sir John called for increased public discussion: "Bermuda is certainly not immune from the vast changes taking place - especially since 9/11 - and yet the implications have barely been exposed to any kind of serious public scrutiny. I would suggest that Bermuda embraces change with vision, and makes change our friend. It is no use looking at the situation through a rear view mirror: we must focus on the future."