The vitality of our democracy is being sapped by a rising tide of political spending and a pervasive emphasis on money in the political process. Our political system has taken on the character of a permanent campaign in which elected officials are engaged in a continual chase for campaign dollars and interest groups raise and spend increasingly large sums to gain policy influence. The result is a political environment in which electoral concerns are predominant in policy deliberations and the need for campaign money too often shapes policy actions. Such a system does not serve the best interests of the nation or the business community.

Elected officials spend increasing amounts of their time and energy raising money, which distracts them from the public's business and enhances the opportunities for access and influence on the part of monied interests. Interest groups and other organizations with a stake in policy decisions are encouraged to spend more of their own resources in hopes of achieving their legislative preferences. Politicians who hope to be reelected in this environment are compelled to focus on the political consequences of their actions more than the soundness of the proposals before them when making policy decisions. And they are driven to raise more money.

CED is deeply concerned about the changes taking place in political finance. Current practices promote a culture in which money is considered a requisite for political influence. They also undermine accountability, transparency and adherence to the rule of law, all of which diminishes essential safeguards against corruption and abuse in the political process. Furthermore, the use of corporate resources to promote a company's objectives raises fundamental governance issues for public and private companies, as well as for nonprofit organizations, labor unions, and other entities involved in efforts to influence elections. In our view, reform initiatives are needed to address the problems that plague the system and manage the risks inherent in the changing environment of political finance. Complete info »

This report focuses on basic research -- the experimental or theoretical work intended to advance science and engineering knowledge rather than develop a specific product or process. CED recommends policy reforms to ensure that tomorrow's basic research can be as productive and effective as possible. The recommendations address Congress' procedures for allocating funds for basic research, the central role of the research university and the individual scientific investigator, the critical importance of peer review, the need to sustain the pipeline of high-quality scientists and engineers for the long-term, and the implications of an increasingly global research enterprise. Complete info »

The example of how the Austin (TX) Chamber of Commerce has worked over several years with the Austin Independent School District (AISD) to plan and implement a new strategic compensation plan demonstrates how collaboration can help the two sectors better understand each other and work together to develop an important new policy initiative and build public support for it. It illustrates how a community of concerned stakeholders can work together to accomplish the common goal of ensuring that all AISD's students are successful. Complete info »

CED's report, Breaking the Litigation Habit calls our litigation system "too intrusive, too slow, and too expensive." The current system does not adequately or fairly compensate people for injuries; it imposes costs that threaten to impair economic innovation; and it undermines the trust and civility among our citizens that are essential to a well-functioning, democratic society. Complete info »

In this report that follows the 1999 report Investing in the People's Business, CED makes three categories of recommendations: FEC reform, strengthening the soft-money ban by closing the so-called '527 committee" loophole, and strengthening the presidential public funding system in both the primary and general election. These reforms are vital if we are to fashion a campaign finance system that protects free speech, encourages debate, and elects candidates based on ideas, not dollars.

The subcommittee that oversaw this project was co-chaired by Edward A. Kangas, Chairman, Global Board of Directors, Deloitte Touche Tohmatsu, and George Rupp, President, Columbia University. Professor Anthony Corrado of Colby College served as project director. Complete info »

A Committee for Economic Development newsletter. Complete info »

This report addresses the increasingly short-term focus by many business leaders that is damaging the ability of public companies to sustain long-term performance. This trend is hampering growth in the American economy. The report offers recommendations for corporations to improve performance by focusing on long-term goals. "Short-termism" is defined as an undue focus on meeting quarterly forecasts and a lesser emphasis on long-term planning. Complete info »

This program statement was developed to influence the important debate on U.S.-China economic relations. The statement presents a clear and simple case for Congressional approval of the PNTR legislation, which would benefit U.S. exporters and help foster long-term political and social change in China. It argues that China's entry into the WTO will require policy changes within China that will support the country's economic and social advancement, including its attitudes towards human rights, political liberalization, and environmental protection. A failure to undertake permanent normal trade relations, however, would impose economic costs on the United States, as other WTO members displace U.S. investment and trade in China. The statement was approved by CED's Program Committee Complete info »