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A paper prepared for the National Commission on Coping with Interdependence. Analyzes the deficiencies and potentials of American government to cope with growing interdependence. Suggests a total restructuring of government) the 'domestic' agencies, the foreign policy establishment, the role of the Congress, and the role of state and local government. Examines the 'worn-out' assumptions the U. S. government makes about the rest of the world, suggests that the 'foreign') 'domestic' distinction be erased since every 'domestic' governmental decision has international implications, and every 'foreign' development has a ripple effect in our national economy and politics. Co-published with the Aspen Institute.