Competitiveness Policy Council
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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 In economics, competition is a scenario where different economic firmsThis article follows the general economic convention of referring to all actors as firms; examples in include individuals and brands or divisions within the same (legal) firm ...
. The council had a unique quadrapartite membership composed of representatives from business, labor, government, and the public. The council began operation in 1991, 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 The Omnibus Foreign Trade and Competitiveness Act of 1988 is an act passed by the United States Congress and signed into law by President Ronald Reagan. History During the 1970s, the U.S. trade surplus slowly diminished and turned into an incr ...
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)Competitiveness Policy Council, "Building A Competitive America," First Report to the President and Congress, March 1992. *A Competitiveness Strategy for America (1993)Competitiveness Policy Council, "A Competitiveness Strategy for America," Second Report to the President & Congress, March 1993. *Promoting Long-Term Prosperity (1994)Competitiveness Policy Council, "Promoting Long-Term Prosperity," Third Report to the President & Congress, May 1994. *Saving More and Investing Better (1995)Competitiveness Policy Council, "Saving More and Investing Better: A Strategy for Securing Prosperity," Fourth Report to the President & Congress, September 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. 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 A perverse incentive is an incentive that has an unintended and undesirable result that is contrary to the intentions of its designers. The cobra effect is the most direct kind of perverse incentive, typically because the incentive unintentional ...
s, and absence of global thinking." 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. 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 Bergsten C. Fred Bergsten (born April 23, 1941) is an American economist, author, think tank entrepreneur, and policy adviser. He has served as assistant for international economic affairs to Henry Kissinger within the National Security Council and as a ...
, then the Director of the
Institute for International Economics The Peterson Institute for International Economics (PIIE), known until 2006 as the Institute for International Economics (IIE), is an American think tank based in Washington, D.C. It was founded by C. Fred Bergsten in 1981 and has been led by ...
(now the
Peterson Institute The Peterson Institute for International Economics (PIIE), known until 2006 as the Institute for International Economics (IIE), is an American think tank based in Washington, D.C. It was founded by C. Fred Bergsten in 1981 and has been led by ...
). 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 statuteSee 15 U.S.C. § 4804 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 The speaker of the United States House of Representatives, commonly known as the speaker of the House, is the presiding officer of the United States House of Representatives. The office was established in 1789 by Article I, Section 2 of the U ...
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 William Jefferson Clinton ( né Blythe III; born August 19, 1946) is an American politician who served as the 42nd president of the United States from 1993 to 2001. He previously served as governor of Arkansas from 1979 to 1981 and agai ...
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 and key staff included: *
Rand Araskog Rand Vincent Araskog (October 31, 1931 – August 9, 2021) was an American manufacturing executive, investor, and writer who served as the CEO of ITT Corporation. During his time as the CEO between 1979 and 1998 he was known for divesting the ...
( ITT Corporation) *John J. Barry (
IBEW The International Brotherhood of Electrical Workers (IBEW) is a labor union that represents approximately 775,000 workers and retirees in the electrical industry in the United States, Canada, Guam, Panama, Puerto Rico, and the US Virgin Islands; ...
) *
Steve Charnovitz Steve Charnovitz (born 1953) is a scholar of public international law, living in the United States. He teaches at the George Washington University Law School in Washington, D.C., and is best known for his writings on the linkages between trade and ...
* Donald V. Fites (
Caterpillar, Inc. Caterpillar Inc. (stock symbol CAT) is an American ''Fortune'' 500 corporation and the world's largest construction-equipment manufacturer. In 2018, Caterpillar was ranked number 65 on the ''Fortune'' 500 list and number 238 on the Global ''Fo ...
) *
Barbara Hackman Franklin Barbara Hackman Franklin (born March 19, 1940) is an American government official, corporate director, and business executive. She served as the 29th U.S. Secretary of Commerce from 1992–1993 to President George H. W. Bush, during which she le ...
*
Bill Graves William Preston Graves (born January 9, 1953) is an American former politician who was the 43rd governor of Kansas from 1995 until 2003. Career Graves was born in Salina, Kansas to parents who owned a trucking firm. After graduating from Kans ...
*John J. Murphy (
Dresser Industries Dresser 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. In 1998, Dresser merged with its ...
) *Robert E. Nelson (Nelson Communications) *
Edward Regan Edward Van Buren Regan (May 14, 1930 – October 18, 2014) was an American politician and public figure from New York State. He was a member of the Republican Party. Regan's political career began on the Buffalo Common Council. He rose to pr ...
*Howard Rosen *Richard Samans *
Claudine Schneider Claudine Schneider (née Cmarada; born March 25, 1947) is an American economist and former politician who served as a Republican U.S. representative from Rhode Island. She was the first, and to date only, woman elected to Congress from Rhode Isl ...
(former Member of Congress from Rhode Island) *Bruce Scott ( Harvard Business School) * Albert Shanker *
Alexander B. Trowbridge Alexander Buel (Sandy) Trowbridge III (December 12, 1929April 27, 2006) was an American politician and businessman. He was the United States Secretary of Commerce from June 14, 1967, to March 1, 1968, in the administration of President Lyndon B. ...
* Laura D. Tyson *Edward Vetter (Vetter and Associates) *
Lynn R. Williams Lynn Russell Williams (July 21, 1924 – May 5, 2014) was a Canadian labour leader best remembered as the International President of the United Steelworkers union (USW) from 1983 until his retirement in 1994. Williams was the first Canadian to h ...


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. 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 at the Subcouncil shall not be considered to violate any Federal or state antitrust law. 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.


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. 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. 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.


Notable experts

Over a hundred individuals assisted the council's efforts by serving in the subcouncils. Some of these experts included: * Gerald L. Baliles *
Jeff Bingaman Jesse Francis "Jeff" Bingaman Jr. (born October 3, 1943) is an American politician who served as a United States Senator from New Mexico from 1983 to 2013, for 5 terms. A member of the Democratic Party, he served as Chairman of Committee Outrea ...
* Erich Bloch *
Sherwood Boehlert Sherwood Louis Boehlert (September 28, 1936September 20, 2021) was an American politician from New York. He represented a large swath of central New York in the United States House of Representatives from 1983 until 2007. Boehlert, a Republican, ...
*
Rick Boucher Frederick Carlyle Boucher (; born August 1, 1946) is an American politician who was the U.S. representative for from 1983 to 2011. He is a member of the Democratic Party. He was defeated in his bid for a 15th term by Republican Morgan Griff ...
*
Richard C. Breeden Richard C. Breeden (born December 6, 1949) is a former chairman of the U.S. Securities and Exchange Commission, hedge fund manager, and corporate chairman. Early career Breeden began his career practicing corporate and securities law in New York C ...
*
Conrad Burns Conrad Ray Burns (January 25, 1935 – April 28, 2016) was an American politician who served as a United States Senator from Montana and later was a lobbyist. He was only the second Republican popularly elected to represent Montana in the Senat ...
*
Pat Choate Pat Choate (; born April 27, 1941) is an American economist who is most known for being the 1996 Reform Party candidate for Vice President of the United States, the running-mate of Ross Perot. Following the 1996 election, the Federal Election Co ...
*
William F. Clinger, Jr. William Floyd Clinger Jr. (April 4, 1929 – May 28, 2021) was an American attorney and Republican politician who represented northwest and north-central Pennsylvania in the U.S. House of Representatives from 1979 to 1997. Early life and educ ...
* John M. Deutch * William H. Donaldson * Martin Feldstein * Joseph T. Gorman * William H. Gray *
Maurice R. Greenberg Maurice Raymond “Hank” Greenberg (born May 4, 1925) is an American business executive and former chairman and chief executive officer of American International Group (AIG). Early life Greenberg was born into a Jewish family in Greenwich Vil ...
*
George Hatsopoulos George Nicholas Hatsopoulos (January 7, 1927 – September 20, 2018) was a Greek American mechanical engineer noted for his work in thermodynamics and for having co-founded Thermo Electron. Early life Hatsopoulos was born in Athens, Greece in 192 ...
* Amo Houghton *
Herbert Kelleher Herbert David Kelleher (March 12, 1931 – January 3, 2019) was an American billionaire airline businessman and lawyer. He was the co-founder, later Chief executive officer, CEO, and chairman emeritus of Southwest Airlines until his death in 201 ...
*
John J. LaFalce John Joseph LaFalce (born October 6, 1939) is an American politician who served as a Congressman from the state of New York from 1975 to 2003. He retired in 2002 after his district was merged with that of a fellow Democrat. LaFalce was first e ...
* Carl Levin *
Arthur Levitt Arthur Levitt Jr. (born February 3, 1931) is the former Chairman of the United States Securities and Exchange Commission (SEC). He served from 1993 to 2001 as the twenty-fifth and longest-serving chairman of the commission. Widely hailed as a c ...
*
Martin Lipton Martin Lipton (born June 22, 1931) is an American lawyer, a founding partner of the law firm of Wachtell, Lipton, Rosen & Katz specializing in advising on mergers and acquisitions and matters affecting corporate policy and strategy. From 1958–1 ...
*
Trent Lott Chester Trent Lott Sr. (born October 9, 1941) is an American lawyer, author, and politician. A former United States Senator from Mississippi, Lott served in numerous leadership positions in both the United States House of Representatives and the ...
* John D. Macomber *
Ray Marshall Freddie Ray Marshall (born August 22, 1928) is an American economist who is the professor emeritus and Audre and Bernard Rapoport Centennial Chair in Economics and Public Affairs at the University of Texas at Austin. Early life and education ...
*
Ray Mabus Raymond Edwin Mabus Jr. (; born October 11, 1948) is an American politician and lawyer. A member of the Democratic Party, he served as the 75th United States Secretary of the Navy from 2009 to 2017. Mabus previously served as the State Auditor ...
* Paul H. O'Neill *
Donald J. Pease Donald James Pease (September 26, 1931 – July 28, 2002) was an American politician. He served eight terms as a member of the United States House of Representatives from Ohio's 13th District, an area in northeast Ohio. He was a Democrat. Edu ...
* Peter G. Peterson *
Michael Porter Michael Eugene Porter (born May 23, 1947) is an American academic known for his theories on economics, business strategy, and social causes. He is the Bishop William Lawrence University Professor at Harvard Business School, and he was one of t ...
*
Robert Pozen Robert Charles Pozen known as "Bob" (born 1946) is an American financial executive with a strong interest in public policy. Pozen currently teaches executives about how to be more productive and serves as an executive coach and mentor, www.bobpozen ...
* Clyde V. Prestowitz Jr. *
Jay Rockefeller John Davison "Jay" Rockefeller IV (born June 18, 1937) is a retired American politician who served as a United States senator from West Virginia (1985–2015). He was first elected to the Senate in 1984, while in office as governor of West Virg ...
*
Felix Rohatyn Felix George Rohatyn ( ; May 29, 1928 – December 14, 2019) was an American investment banker and diplomat. He spent most of his career with Lazard, where he brokered numerous large corporate mergers and acquisitions from the 1960s through ...
*
Isabel Sawhill Isabel Van Devanter Sawhill is a senior fellow at The Brookings Institution, where she formerly held the position of vice president and director of Economic Studies, among other duties. She has authored or co-authored many books, including ''Gene ...
*
Kurt Schmoke Kurt Lidell Schmoke (born December 1, 1949) is an American politician and lawyer who was the 47th mayor of Baltimore, Maryland, from 1987 to 1999, the first African American to be elected to the post. He is the current president of the University ...
*
Susan Schwab Susan Carol Schwab (born March 23, 1955) is an American politician, who served under President George W. Bush as United States Trade Representative from June, 2006 to January, 2009. She is not related to Charles R. Schwab Sr., founder of the Cha ...
*
Lawrence Summers Lawrence Henry Summers (born November 30, 1954) is an American economist who served as the 71st United States secretary of the treasury from 1999 to 2001 and as director of the National Economic Council from 2009 to 2010. He also served as pres ...
*
James R. Thompson James Robert Thompson Jr. (May 8, 1936 – August 14, 2020), also known as Big Jim Thompson, was an American attorney and politician who served as the 37th governor of Illinois from 1977 to 1991. A moderate Republican who sometimes took more ...
*
Harold M. Williams Harold Marvin Williams (January 5, 1928 - July 30, 2017) served as chairman of U.S. Securities and Exchange Commission between 1977 and 1981. Williams was engaged in extensive public service and support of arts and education. UCLA When Willia ...


Demise of the council

In April 1996, the U.S. Congress approved a $50,000 appropriation for the council, but also provided that "this shall be the final Federal payment to the Competitiveness Policy Council." In July 1996, a Report of the House Appropriations Committee withheld new funding for the council for FY1997, and noted that "the Committee believes that the Council is duplicative of private sector organizations, such as the Council on Competitiveness, which focus on the same issues without the use of Federal funds."House Report 104–676, Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Bill, Fiscal year 1997.


References

{{reflist, 30em United States federal boards, commissions, and committees United States economic policy Foreign trade of the United States Political science organizations Competition (economics) Political history of the United States 1988 establishments in the United States United States national commissions