Project USA: American competitiveness and what must be done to restore it

The United States today faces a loss of influence as a world power, a reduction in American independence as a policymaker, and a decline in the standard of living on which Americans have come to depend. History teaches that nations weaker and less productive than the United States can rise to become economic powerhouses and rapidly increase their standards of living. History also teaches that nations failing to recognize their fundamental problems will inevitably decline. American politicians must face what is abundantly clear: the United States is losing ground and must act quickly to reverse its course. This White Paper outlines what must be done. Information about the nation's current status must be analyzed and communicated. Incentives to improve the level of competence in government must be provided and maintained. The emphasis of government policy must be changed to reflect broad economic and technological interests as opposed to special interests. Savings must be encouraged and increased. Infrastructure must be improved Tax laws must be modified to help bring these changes about. Economic and technological issues must be elevated to the importance they require. American thinking must reflect the new realities: that the age of leadership through military power is over, that the requirements for success in the world of the 1990s and beyond require a sound and growing economy that is internationally competitive. The US can accomplish these goals only through foundation-shaking, comprehensive, fundamental changealong the lines we propose herein.This paper is the executive summary (with minor editing modifications) of a white paper that is available from Cornell University's Johnson Graduate School of Management.     

Reviews

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Unclogging Courts by Targeting Litigant Incentives: The Case of the Brazilian Labour Justice Reform

Overburdened courts hinder economic and social progress, yet successful court reforms are rare. Instead of boosting judicial resources or adapting procedure, Brazil tackled persistent backlogs and delays in its labour courts by replacing the pre-existing each-pays-their-own-costs (American) rule for allocation of litigation expenses with an alternative loser-pays-all (English) rule. Using a newly assembled court-level panel dataset and difference-in-differences approach, we show that the reform alleviated the courts' demand pressures and, most importantly, increased court efficacy in both adjudication and enforcement. The Brazilian experience offers valuable policy lessons about viable court reforms for other jurisdictions.     

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