Last week, US President Obama defended government intervention in GM, the ailing automotive giant, as the company was filing for Chapter 11 bankruptcy protection. The US Government plans to own a 60 per cent stake in the company, something inconceivable in the past three decades.

Given the protagonist role of governments in business today and the foreseeable structural and cultural changes of the management landscape, business schools must adjust and explore a new paradigm for their relationship with government.