WATCHING OTHER PEOPLE WORK, volume three of an autobiography by Peter Carnahan, covers the 18-plus years the author worked as Director of the Theatre and Literature Programs of The Pennsylvania Council on the Arts. This time, from 1972 to 1991, was a period of enormous growth for the arts in Pennsylvania and the nation. Reflecting that growth, the PCA budget grew from $286,000 to $12 million during the period. During the second decade covered by this volume, Carnahan began his next career, as a writer, publishing his first nonfiction book in 1989.