Competitiveness Policy Council
Encyclopedia
The Competitiveness Policy Council was an independent federal advisory committee chartered in 1988 to advise the President and the Congress on more effective policies to promote U.S. competitiveness
. The Council had a unique quadrapartite membership composed of representatives from business, labor, government, and the public.
The Council began operation in 1991,
The Competitiveness Policy Council was an independent federal advisory committee chartered in 1988 to advise the President and the Congress on more effective policies to promote U.S. competitiveness
. The Council had a unique quadrapartite membership composed of representatives from business, labor, government, and the public.
The Council began operation in 1991,
The Competitiveness Policy Council was an independent federal advisory committee chartered in 1988 to advise the President and the Congress on more effective policies to promote U.S. competitiveness
. The Council had a unique quadrapartite membership composed of representatives from business, labor, government, and the public.
The Council began operation in 1991,Bruce Stokes, "Is Industrial Policy Now Mentionable," The National Journal, March 7, 1992, p. 576. and ceased operation in 1997 after the Republican-led Congress failed to continue funding, and after Council members decided to close out this successful experiment in the independent advisory function.
The Council adopted a broad approach to American competitiveness defining it as the ability of the United States to produce goods and services that meet the test of international markets while its citizens earn a standard of living that is both rising and sustainable over the long run. Competitiveness Policy Council, "Building A Competitive America," First Report to the President and Congress, March 1992 (page 2). This definition differed from others in that era which emphasized the trade balance rather than the overall impact of governmental policies on national economic prosperity. The Council's first report, "Building a Competitive America" (March 1992) explained that "three elements permeate our society and most directly hurt our competitive position: short-termism, perverse incentive
s, and absence of global thinking."Competitiveness Policy Council, "Building A Competitive America," First Report to the President and Congress, March 1992 (page 11). The Council's first Report was reviewed in Michael Prowse, "US 'needs new vision' to hone competitive edge: A federal advisory council, is calling for a radical reappraisal for industry," Financial Times, March 5, 1992, p. 6.
To help analyze the problems of faltering U.S. competitiveness, the Council in its first year, established eight Subcouncils to study and recommend solutions for the most critical problems hindering U.S. competitiveness.Competitiveness Policy Council, "Building A Competitive America," First Report to the President and Congress, March 1992 (pages 35-36). These Subcouncils were: capital formation, education, training, public infrastructure, corporate governance and financial markets, trade policy, manufacturing, and critical technologies. Additional Subcouncils were established in later years.
, then the Director of the Institute for International Economics
(now the Peterson Institute).The full name is the Peter G. Peterson Institute for International Economics. Chairman Bergsten was elected by nongovernmental Council members at the first meeting. The Council was composed of 12 members who were appointed through a well-crafted process dictated by statute that provided for quadrapartite and bipartisan representation. Specifically, there were three members from the business community, three from organized labor, three from federal or state government, and three from academia and public interest. Four members were appointed by the President, four by the Speaker of the U.S. House of Representatives and the Minority Leader acting jointly, and four by the Majority and Minority leaders of the U.S. Senate acting jointly.
Both Presidents George H.W. Bush and Bill Clinton
made appointments. The appointments process for the Council was unusual, in providing for equal weight to representatives from business and labor.
Over its life, the members of the Council included:
The establishment of the Competitiveness Policy Council (CPC) was inspired, in part, by the favorable reception to the 1985 Report of the President's Commission on Industrial Competitiveness (chaired by John A. Young
). A year following the Young Commission Report, a private sector Council on Competitiveness was set up, which remains in existence. The CPC developed a cooperative relationship with the Council on Competitiveness which enhanced the CPC's work product. The two Councils were easily distinguishable, however, in that the membership of the federally-established CPC included a federal cabinet level official and s state elected official. Thus, the deliberation of the CPC was able to benefit from the input of governmental members. By contrast, the private-sector Council on Competitiveness lacks governmental members.
Some of these experts included:
Competitiveness
Competitiveness is a comparative concept of the ability and performance of a firm, sub-sector or country to sell and supply goods and/or services in a given market...
. The Council had a unique quadrapartite membership composed of representatives from business, labor, government, and the public.
The Council began operation in 1991,
The Competitiveness Policy Council was an independent federal advisory committee chartered in 1988 to advise the President and the Congress on more effective policies to promote U.S. competitiveness
Competitiveness
Competitiveness is a comparative concept of the ability and performance of a firm, sub-sector or country to sell and supply goods and/or services in a given market...
. The Council had a unique quadrapartite membership composed of representatives from business, labor, government, and the public.
The Council began operation in 1991,
The Competitiveness Policy Council was an independent federal advisory committee chartered in 1988 to advise the President and the Congress on more effective policies to promote U.S. competitiveness
Competitiveness
Competitiveness is a comparative concept of the ability and performance of a firm, sub-sector or country to sell and supply goods and/or services in a given market...
. The Council had a unique quadrapartite membership composed of representatives from business, labor, government, and the public.
The Council began operation in 1991,Bruce Stokes, "Is Industrial Policy Now Mentionable," The National Journal, March 7, 1992, p. 576. and ceased operation in 1997 after the Republican-led Congress failed to continue funding, and after Council members decided to close out this successful experiment in the independent advisory function.
Authority
Authority for the Council is found in the Competitiveness Policy Council Act, 15 U.S.C. §4801 et seq. This Act was part of the larger Omnibus Trade and Competitiveness Act of 1988. The authorization of appropriations for the Council expired in Fiscal year 1992, but otherwise the statutory underpinnings for the Council remain intact, and the Council could be revived by a future President with a pro-competitive agenda.Notable Accomplishments
During its years in operation, the Competitiveness Policy Council prepared and issued four Reports to the President and Congress. They were:- Building a Competitive America (1992)
- A Competitiveness Strategy for America (1993)
- Promoting Long-Term Prosperity (1994)
- Saving More and Investing Better (1995)
The Council adopted a broad approach to American competitiveness defining it as the ability of the United States to produce goods and services that meet the test of international markets while its citizens earn a standard of living that is both rising and sustainable over the long run. Competitiveness Policy Council, "Building A Competitive America," First Report to the President and Congress, March 1992 (page 2). This definition differed from others in that era which emphasized the trade balance rather than the overall impact of governmental policies on national economic prosperity. The Council's first report, "Building a Competitive America" (March 1992) explained that "three elements permeate our society and most directly hurt our competitive position: short-termism, perverse incentive
Perverse incentive
A perverse incentive is an incentive that has an unintended and undesirable result which is contrary to the interests of the incentive makers. Perverse incentives are a type of unintended consequences.- Examples :...
s, and absence of global thinking."Competitiveness Policy Council, "Building A Competitive America," First Report to the President and Congress, March 1992 (page 11). The Council's first Report was reviewed in Michael Prowse, "US 'needs new vision' to hone competitive edge: A federal advisory council, is calling for a radical reappraisal for industry," Financial Times, March 5, 1992, p. 6.
To help analyze the problems of faltering U.S. competitiveness, the Council in its first year, established eight Subcouncils to study and recommend solutions for the most critical problems hindering U.S. competitiveness.Competitiveness Policy Council, "Building A Competitive America," First Report to the President and Congress, March 1992 (pages 35-36). These Subcouncils were: capital formation, education, training, public infrastructure, corporate governance and financial markets, trade policy, manufacturing, and critical technologies. Additional Subcouncils were established in later years.
Leadership, Composition, and Appointments
The Council was led by Dr. C. Fred BergstenC. Fred Bergsten
C. Fred Bergsten is an American economist, author, and political adviser. He has served as Assistant Secretary for International Affairs at the U.S. Treasury Department and has been director of the Peterson Institute for International Economics, formerly the Institute for International Economics,...
, then the Director of the Institute for International Economics
Institute for International Economics
The Peter G. Peterson Institute for International Economics , formerly the Institute for International Economics, is a private, non-profit, and nonpartisan think tank focused on international economics, based in Washington, D.C. It was founded by C...
(now the Peterson Institute).The full name is the Peter G. Peterson Institute for International Economics. Chairman Bergsten was elected by nongovernmental Council members at the first meeting. The Council was composed of 12 members who were appointed through a well-crafted process dictated by statute that provided for quadrapartite and bipartisan representation. Specifically, there were three members from the business community, three from organized labor, three from federal or state government, and three from academia and public interest. Four members were appointed by the President, four by the Speaker of the U.S. House of Representatives and the Minority Leader acting jointly, and four by the Majority and Minority leaders of the U.S. Senate acting jointly.
Both Presidents George H.W. Bush and Bill Clinton
Bill Clinton
William Jefferson "Bill" Clinton is an American politician who served as the 42nd President of the United States from 1993 to 2001. Inaugurated at age 46, he was the third-youngest president. He took office at the end of the Cold War, and was the first president of the baby boomer generation...
made appointments. The appointments process for the Council was unusual, in providing for equal weight to representatives from business and labor.
Over its life, the members of the Council included:
- Rand AraskogRand AraskogRand Vincent Araskog is a prominent U.S. businessman and an ex-CEO of ITT Corporation. Araskog is of Scandinavian origin; his grandfather emigrated from Sweden to Minnesota....
(ITT CorporationITT CorporationITT Corporation is a global diversified manufacturing company based in the United States. ITT participates in global markets including water and fluids management, defense and security, and motion and flow control...
) - John J. Barry (IBEW)
- Donald V. Fites (Caterpillar, Inc.)
- Barbara Hackman Franklin
- Bill GravesBill GravesWilliam Preston "Bill" Graves , was the 43rd Governor of Kansas from 1995 until 2003.Graves was born in Salina, Kansas in 1953 to parents who owned a trucking firm...
- John J. Murphy (Dresser IndustriesDresser IndustriesDresser Industries was a multinational corporation headquartered in Dallas, Texas, United States, which provided a wide range of technology, products, and services used for developing energy and natural resources...
) - Robert E. Nelson (Nelson Communications)
- Edward Regan
- Claudine SchneiderClaudine SchneiderClaudine Schneider is a former Republican U.S. Representative from Rhode Island. She was the first and to date only woman elected to Congress from Rhode Island....
(former Member of Congress from Rhode Island) - Bruce Scott (Harvard Business SchoolHarvard Business SchoolHarvard Business School is the graduate business school of Harvard University in Boston, Massachusetts, United States and is widely recognized as one of the top business schools in the world. The school offers the world's largest full-time MBA program, doctoral programs, and many executive...
) - Albert ShankerAlbert ShankerAlbert Shanker was President of the United Federation of Teachers from 1964 to 1984 as well as President of the American Federation of Teachers from 1974 to 1997.-Early life:...
- Alexander B. Trowbridge
- Laura D. Tyson
- Edward Vetter (Vetter and Associates)
- Lynn R. WilliamsLynn R. WilliamsLynn Russell Williams, OC is a former American labour leader that became a U.S.W.A. member in 1947 while employed by John Inglis Co. Local 2900 in Toronto Ontario and rose through the ranks to become International President of the United Steelworkers from 1983 to 1994...
Charter
The Council's statutory legislative charter contains a number of innovative administrative features. For example, one duty of the Council is to create a "forum" where national leaders with experience could identify and development recommendations to address actual problems facing America. See 15 U.S.C. § 4803(4) The Council is empowered to hold hearings and to establish Subcouncils on any issue. An unusual provision of the CPC Act provides that any discussion a the Subcouncil shall not be considered to violate any Federal or state antitrust law.See 15 U.S.C. § 4806(g)(5)The establishment of the Competitiveness Policy Council (CPC) was inspired, in part, by the favorable reception to the 1985 Report of the President's Commission on Industrial Competitiveness (chaired by John A. Young
John A. Young
John A. Young is an American business executive. He was chief executive officer of Hewlett-Packard from 1978 to 1992. He also formerly served as a director of Wells Fargo & Company.-Biography:Young was born in 1932 in Nampa, Idaho...
). A year following the Young Commission Report, a private sector Council on Competitiveness was set up, which remains in existence. The CPC developed a cooperative relationship with the Council on Competitiveness which enhanced the CPC's work product. The two Councils were easily distinguishable, however, in that the membership of the federally-established CPC included a federal cabinet level official and s state elected official. Thus, the deliberation of the CPC was able to benefit from the input of governmental members. By contrast, the private-sector Council on Competitiveness lacks governmental members.
Important Recommendations
The Council made a number of important recommendations during its years of operation regarding pensions, education, public investment, trade negotiations, and many other issues.See "American Competitiveness," The Washington Post, March 5, 1992, Editorial, p. A22. Some of the recommendations by the Council were not adopted. For example, the Council recommended an immediate implementation of the provision in federal law calling for the Executive Branch to attach a "competitiveness impact statement" to any new legislative proposal to the Congress which may affect U.S. competitiveness.See 2 U.S.C. § 194(b) "Competitiveness Council Reports." Facts on File World News Digest, March 19, 1992 (page 192 C1). This recommendation was not adopted. The Council also championed the centrality of manufacturing in any national competitiveness strategy. The Obama Administration picked up on this recommendation in September 2009 when the President appointed the first White House counselor for manufacturing. Jon Schmitz, "Former USW Official Joins White House as Manufacturing Counselor," Pittsburgh-Post Gazette, Sept. 7, 2009.Notable Experts
Over a hundred individuals assisted the Council's efforts by serving in the Subcouncils.Some of these experts included: