The Australian policy of reconciliation between indigenous people and non-indigenous settlers is seen as a precursor to recent American efforts to solve its race relations problems via a policy of racial reconciliation. The empirical context of the problem of racial inequality in Australia is presented 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 new ideas and viable strategies for remedying racial and ethnic economic inequality. Qualitative findings are discussed based on interviews of Aboriginal and white intellectuals inside and outside Australian universities supporting an optimistic assessment of the likely success of racial reconciliation as a policy instrument in Australia. Less optimism is expressed for the success of that policy in the United States.