COMMITTEE FOR ECONOMIC DEVELOPMENT 22003003 AANNUALNNUAL RREPORTEPORT Trade Globalization Economy and the Federal Budget Early Childhood Education Math and Science TThehe Excellence Campaign Finance Reform BBusinessusiness Judicial Selection ooff RReformeform The Best of Business Thinking In The Nation’s Interest 2226952695 CCEDED RREPORT.inddEPORT.indd 1 55/12/04/12/04 112:06:422:06:42 PPMM THE BUSINESS OF REFORM – IN THE NATION’S INTEREST During 2003, the Committee for Economic Development ing retirement of the baby boom generation. CED’s work enjoyed considerable success in three important areas: was featured in two Washington Post columns by David campaign fi nance reform, universal pre-kindergarten Broder and received hundreds of mentions around the education, and the federal budget defi cit. country. In campaign fi nance reform, the United States Supreme Throughout the year, CED also continued to promote Court upheld the constitutionality of the McCain/Fe- other domestic policy issues which are priorities for its ingold legislation. CED was specifi cally cited in the Trustees. With support from the Open Society Institute, Supreme Court’s opinion for our amicus brief and the CED pressed for reforms around the country in the way declaration by CED supporters from the business com- state judicial candidates are elected. We were proud to munity who described the problems with “soft” money. partner in this work with the Justice at Stake Coalition and the American Bar Association. Our early education work helped turn the tide in New York State to restore funding for early childhood educa- Since CED was founded in 1942, there has always been tion at a time when the governor had initially proposed a signifi cant international aspect to our policy work. eliminating all In 2003, we released funding. We were reports on the role of also active on early women in development education projects and the rationale behind in Florida, Illinois, corporate engagement and New Jersey. in public policy issues that are vital to devel- CED’s landmark oping nations. Those work on the federal budget defi cit in March 2003, and two reports complemented our 2002 report on global again in September 2003, has infl uenced the media and poverty, A Shared Future: Reducing Global Poverty, the Congress in ways that continue to shape this critical which articulated strategies that American companies debate. We were proud to have partnered on this issue could follow in addressing poverty in countries where with the Concord Coalition and the Center on Budget they have a presence. Policy and Priorities. CED Trustee and Concord Coali- tion co-founder Pete Peterson joined us for both events, With our network of counterpart organizations located and we were especially honored to share the September on fi ve continents, we produced a joint study entitled podium with CED Trustee Bill Lewis, Urban Institute Addressing Global Poverty: Perspectives of the World President Robert Reischauer, former Treasury Secretary Business Community. With contributions from our Robert Rubin, and former Senator Warren Rudman. counterpart members in Australia, China, Finland, France, Germany, Japan, Mexico, the Netherlands, Our budget report warns about the resurgence of a Spain, Sweden, and South America , we addressed long-term structural budget defi cit in the context of the issues such as foreign investment, education policy, looming demographic challenges posed by the forthcom- corporate social responsibility, and the role of women in development. 2 CED Annual Report 2003 2226952695 CCEDED RREPORT.inddEPORT.indd 2 55/12/04/12/04 112:06:492:06:49 PPMM We remain George Rupp deeply concerned to review issues about the fraying related to Mc- consensus in the Cain/Feingold United States implementation, that supports an the role of Sec- open, free trading tion 527 politi- system. For more cal committees, than six decades, the fi nancing of CED has been the presidential a strong voice election system, championing free and ways to trade, and this strengthen the work continued Federal Elec- in 2003 under tions Commis- the leadership of CED Chairman Roy J. Bostock and President Charles E.M. Kolb. sion. We have Trustee James also launched D. Robinson, new subcommit- III who chaired our Subcommittee on Expanding World tees to consider corporate governance, job outsourcing, Trade. That group produced a policy statement entitled higher education, and tax reform. Promoting U.S. Economic Growth and Security Through Expanding World Trade: A Call for Bold CED has an ambitious and important agenda for the American Leadership, which was released on the eve months ahead. We express our deep appreciation to our of the Doha Round’s Cancun meeting in September Trustees who direct our work and to our many friends, 2003. CED’s report urged the United States to demon- supporters, and funders who sustain CED throughout strate global leadership by “going fi rst” in dismantling the year. CED’s success is the direct consequence of your our own system of export subsidies. Following the engagement with our great organization. release of this report, in November, CED sponsored a background briefi ng for key Washington-based trade reporters who met with Mr. Robinson and three former U.S. Trade Representatives: Carla Hills, Mickey Kantor, and Clayton Yeutter. Roy J. Bostock Chairman Committee for Economic Development As CED moves forward in 2004, we expect that much of Chairman (Retired) our work will help inform the American public during Bcom3 Group, Inc. this election year. Our reports on Social Security reform, the budget defi cit, K-12 education measurement and as- sessment, and globalization already touch on important issues facing the country. Charles E.M. Kolb President Our Campaign Finance Reform Subcommittee has recon- Committee for Economic Development vened under the continued leadership of Ed Kangas and CED Annual Report 2003 3 2226952695 CCEDED RREPORT.inddEPORT.indd 3 55/12/04/12/04 112:06:502:06:50 PPMM Economy and the Federal Budget CED Leads on Major 2003 Economic and ciples for responsible national budget policy and stresses Budget Issues that “any tenable budget program must address the budget defi cit on every front, including both comprehen- Concern about the rising federal budget defi cit prompted sive spending reductions and alternative or additional CED to release Exploding Defi cits, Declining Growth: revenues.” Ten specifi c policy recommendations cover- The Federal Budget and the Aging of America in ing Medicare, Social Security, discretionary spending, March 2003. CED has a strong record of promoting fi scal and other budget areas are also outlined in the report. responsibility and federal budget policy with a long-term The March release of Exploding Defi cits, Declining focus. The report became a key document in the budget Growth: The Fed- debate on Capitol Hill, with the media, and among policy eral Budget and the leaders. CED and the Concord Coalition jointly spon- Aging of America sored a March 5th luncheon forum that focused on the received extensive long-term dangers of sustained, structural budget defi - media coverage, in- cits. Peter G. Peterson, President of the Concord Coali- EXPLODING DEFICITS,DECLINING GROWTH: cluding a column on THE FEDERAL BUDGET AND tion, a former U.S. Secretary of Commerce, and a CED THE AGING OF AMERICA A Policy Statement by the Research and the day of release by Policy Committee of the Committee for Trustee, outlined the work of the Concord Coalition in Economic Development the Washington Post’s advocating responsible spending policies for the federal David Broder (“The government. CED Trustee Josh S. Weston, the former CEOs’ Dim View of CEO of Automatic Data Processing, Inc., presented the March 2003 Defi cits” – March 5, fi ndings of Exploding Defi cits, Declining Growth: CED is a nonprofit, nonpartisan organization of business leaders and educators that has worked 2003) that used the for sixty years to address the The Federal Budget and the Aging of America. Both critical economic and social CED report to outline issues facing American society. Peterson and Weston urged a more responsible budget the scale of future policy and stressed the dangers growing defi cits pose for federal budget defi cits future economic growth. The report sets forth key prin- if steps are not taken now to address the problem. On Capitol Hill, several Members of Congress, both Republicans and Democrats, used the CED report in offi cial proceedings to buttress their efforts to control defi cit spending (more on the 2003 budget debate below). Hundreds of news stories have cited CED on the budget issue since early March 2003. More than half of the top 100 U.S. newspapers (by circulation) have mentioned CED’s defi cit warning in editorials written since that time. A March 6, 2003, Financial Times story referred to CED as “a highly regarded group of business and university leaders.” That citation was typi- cal of the many references to CED during the budget debate. Concord Coalition President and CED Trustee Peter G. Peterson speaks at the joint CED/Concord Coalition budget forum at the National Press Club. The CED Report, Exploding Defi cits, Declin- ing Growth: The Federal Budget and the Aging of America, was released at the event. 4 CED Annual Report 2003 2226952695 CCEDED RREPORT.inddEPORT.indd 4 55/12/04/12/04 112:06:542:06:54 PPMM CED’s Efforts Impact the 2003 Chairman of the Executive Committee of Citigroup, Inc.; Congressional Budget Debate Warren Rudman, former Republican Senator from New Hampshire and Founding Co-Chairman of the Concord The struggle in Congress over the FY 2004 federal Coalition; Robert D. Reischauer, former Director of budget and a substantial tax cut proposed by the Bush the Congressional Budget Offi ce and the current Presi- Administration was perhaps the most signifi cant domes- dent of the Urban Institute; and Pete Peterson, also tic policy debate on Capitol Hill in 2003.