Governor's Global Competitiveness Council

Rising to the Challenge of Global Competition, the report of Gov. Chris Gregoire's Global Competitiveness Council was released by the governor March 24. (The press release can be found here.)

The report, which received scant media attention, broke little new ground, basically reframing themes sounded previously by the governor and others who have looked at the state's business climate. (For examples, see WashACE, Gov. Gary Locke's Competitiveness Council, and the Prosperity Partnership.)

One difference: This report focuses primarily on increasing state spending (investment) in education, infrastructure, research and development and marketing. Cost factors, like taxes and regulations, that influence the competitiveness of Washington businesses were not addressed in any depth. Previous studies, working with broader missions, took a more critical look at the existing business climate, working to reduce business costs through regulatory and tax reform while acknowledging the importance of strategic investments in human and physical capital.

At 100+ pages, it's a tough read, but rewarding as a glimpse into the administration's view of state government's role in shaping the business climate.

The Council chose to "...[concentrate] on the kinds of investments we, as a state, need to make in our most precious commodities: human capital, physical capital and intellectual capital."

Relatively little attention was paid to tax policy and regulation. (The Political Environment Committee did say that "the state's tax structure must remain competitive locally, statewide, nationally and internationally." They seem to assume we're currently competitive.)

Overall, the report is heavily boosterish:

"Washington State has much to brag about and in this newly flat world; (sic) we must shout about our assets at the top of our lungs ... Washington is duty-bound to paint its own image in the market with bold innovative strokes."

Nothing wrong with accentuating the positive, so long as the state works equally diligently to eliminate the negative.

And that will require a strong focus on the unfinished tax, budget, and regulatory business of previous competitiveness efforts.