The Australian policy of reconciliation between indigenous people and non-i
ndigenous settlers is seen as a precursor to recent American efforts to sol
ve its race relations problems via a policy of racial reconciliation. The e
mpirical context of the problem of racial inequality in Australia is presen
ted and the theoretical context of the Australian reconciliation process is
discussed. Described is the concept of white privilege and explained is a
context that views American policies on race relations as largely lacking n
ew ideas and viable strategies for remedying racial and ethnic economic ine
quality. Qualitative findings are discussed based on interviews of Aborigin
al and white intellectuals inside and outside Australian universities suppo
rting an optimistic assessment of the likely success of racial reconciliati
on as a policy instrument in Australia. Less optimism is expressed for the
success of that policy in the United States.