Tuesday, January 22, 2013

South Carolina #1 in Attracting International Investment

South Carolina is ranked first in the U.S. in attracting international companies, boosting job opportunities in the state.

IBM-Plant Locations International -- which advises companies on where to locate -- tracks company announcements and ranks states on their success.  Its most recent rankings put South Carolina #1.

South Carolina Commerce Secretary Bobby Hitt said,

“South Carolina is just right for business, and plenty of international companies know it. Hundreds of foreign firms employ tens of thousands of residents throughout our state, creating wealth and helping make the communities they’re in sustainable. The IBM-PLI report’s ranking is another confirmation that people are sitting up and taking notice of the economic development successes we’ve had here in the Palmetto State.”


Congratulations to South Carolina for forward thinking on foreign investment.






Tuesday, January 15, 2013

Advice for the Next WTO Director-General



Nine candidates are vying to succeed World Trade Organization Director-General Pascal Lamy when he retires this year.  As the next Director-General knows, the WTO does three things:

  • establishes and enforces global rules for trade among nations,
  • serves as an impartial forum for resolving disputes, and
  • facilitates negotiation of global trade agreements to boost economic growth.

The WTO is doing fine on the first two duties, but has failed on the third.

The WTO’s Doha Development Agenda is all but dead.  Why?

  • Perhaps it was doomed from the start by the WTO’s all-or-nothing approach where nothing is agreed until everything is agreed – enabling small groups of countries to prevent progress if they didn’t get what they wanted. 
  • Perhaps the world has changed in the dozen years since the Doha Round was launched and countries then seen as developing – such as China and India – now are global economic powers who no longer deserve “developing” status.
  • Perhaps the final nail in the coffin, so to speak, was the rise of bilateral and multilateral agreements among nations willing to more forward when the WTO couldn’t – such as the Trans-Pacific Partnership and the potential new agreement between the United States and the European Union.

Willing countries are attempting to build on the progress made during the failed Doha Round and soon will launch negotiations toward a global services agreement and a global trade facilitation and customs agreement.  These agreements will call into question a fundamental WTO mission.

What should the WTO do?

We expect the new Director-General to continue to strengthen the WTO’s rulemaking and dispute resolution systems.  But what about trade?

One suggestion: Abandon the all-or-nothing requirement for progress on global trade deals. 

Allowing the majority of countries to agree on terms and move forward would be a good start.  Doing so with the next WTO agreement would help boost economic activity and would strengthen the WTO’s role as a global venue for enhancing trade.

Monday, January 7, 2013

State Legislatures' Education Focus: Funding, Standards, Security



State government is more polarized than ever.  Only 14 states have divided governments with the governor’s office and at least one branch of the legislature controlled by different parties.  And half the states have veto-proof majorities in their legislatures.  Bipartisan cooperation likely will be even tougher to reach.

A wide variety of legislation will be introduced.  We’ll likely see a focus on funding, the new Common Core state standards, and school security.

  • Earlier this month, Congress decided on a two-month delay in dealing with spending issues as part of the deal to avoid the “fiscal cliff” tax increases and across-the-board spending cuts.  As a result, states are having difficulty drafting budgets and are less likely to spend money on anything not absolutely necessary.  Expect Congress to continue to kick the can down the road, as the saying goes, leaving states in a financial bind.
  • The vast majority of states adopted the Common Core standards – 46 for English/language arts; 45 for math.  Some Tea Party conservatives, who see the state-developed standards as a federal mandate, will call for opting out.  But increasingly, states are looking for ways to help students meet the new standards.  Formative assessments and adaptive learning programs will see increased attention.
  • In the wake of the tragic shootings in the Newtown, Connecticut elementary school, some state legislatures will see bills to boost school security, and in some cases to allow teachers to carry guns. Indeed, half a dozen states already are looking at such legislation.  Few of these bills likely will become law, but a good deal of attention will be focused on the guns in schools.

 Two other issues likely will see attention by the states this year:

  • Technology will continue to attract interest – not only for its improvement of the education experience, but because many policymakers see laptops and tablets merely as cheaper alternatives to traditional textbooks.
  • State anti-union legislation will continue.  Some of it will impact teachers.


Friday, January 4, 2013

U.S. Education Policy: Seven Things to Watch in 2013

2013 will see state and national policymakers of all political views looking to shape and fund education programs for our nation.  Stakeholders will want to stay involved to make sure issues of importance are addressed.

Seven predictions:
  • Congress will talk about reforming the Elementary and Secondary Education Act, now in the form of No Child Left Behind, but won't be able to act.  Today's highly partisan atmosphere and strong feelings about the role of government in education make the compromises required to pass significant legislation difficult to reach.
  • The US Department of Education will continue to drive federal education policy.  Its financial incentives to states in return for implementing its preferred policies have resulted in broad adoption of the Common Core standards, more support for charter schools and stronger teacher evaluations.  The Department currently is offering waivers from certain NCLB accountability requirements, which three dozen states already have taken advantage of.  Expect more such programs as the Department acts while Congress can't.
  • States increasingly will seek exemptions from No Child Left Behind's testing requirements.  Expect Congressional and state hearings seeking to discredit testing.  Formative assessments and adaptive learning systems increasingly will be seen as smarter alternatives to once-a-year "high stakes" tests.
  • Federal funding for education will be reduced as a result of the "fiscal cliff" issues, perhaps by as much as 8%.  States are in no shape to make up the difference.  Cuts are likely, so sales and influencer relationships will be very important.
  • Technology will continue to attract interest -- not primarily for its improvement of the education experience, but because policymakers too often see laptops and tablets merely as cheaper alternatives to traditional textbooks.  This will present pricing challenges and growth opportunities for content providers.
  • The Common Core standards will come under fire from Tea Party conservatives who see them as an Obama program, despite the fact they were developed by the National Governors' Association and the Council of Chief State School Officers.  Some states will delay implementation, raising questions about alignment of instructional materials.
  • State anti-union legislation will continue.  Some of it will impact teachers.


U.S. Trade Policy: Seven Things to Watch in 2013


The new year should see a good bit of activity on trade policy issues as policymakers look for ways to boost economic opportunities for companies, workers and farmers in their countries.

Seven predictions for 2013: 
  • The Trans-Pacific Partnership negotiations will conclude in 2013.  When enacted, TPP will create a significant trading bloc among key countries touching the Pacific Ocean.
  • The United States and the European Union will formally launch negotiations for a US-EU trade agreement.  The resulting deal won't likely be in the form of a regular, high-standard, US free trade agreement, but nevertheless will further expand and improve trans-Atlantic trade. 
  • The United States will launch formal Bilateral Investment Treaty negotiations with China and India.  The process will take several years, but will strengthen relationships in the meantime. 
  • The new global agreement on services among willing nations, to be launched this Spring, will build on the progress made in the WTO's stalled Doha Round and further boost this vibrant sector of the global economy. 
  • Negotiations toward a global trade facilitation and customs agreement building on work done during the Doha Round will be launched. 
  • Progress will be made on China's accession to the WTO's Government Procurement Agreement. 
  • Congress will look at new "fast track" legislation.  Such legislation, which expired several years ago, allows the Administration to negotiate trade agreements in consultation with Congress and submit them for an up or down vote with no possibility for amendments.  This assures US counter-parties that Congress won't add additions requirements after the agreement is finalized.