Government agencies are starting to face some serious competition, on a variety of fronts. First of all, there is global tax competition. Next, the value of a country's currency plays a major role in the prosperity of its citizens. Then there's the old notion of customer satisfaction. The message is clear: Government needs to do more, and better, with less. Now for the good news. A government agency is a true knowledge enterprise. The majority of its assets are intangible, including human, social, organizational and structural capital. Successful government requires all four asset types working together. Government has already made excellent progress in some areas, such as e-gov. Enlightened governments see the need for creating an environment that attracts, retains and grows human and financial capital, for the benefit of its citizens, its regional neighbors, its trading partners and all of humankind.