Viewing Economy From a Summit : Clinton meeting could revamp executive branch

President-elect Bill Clinton’s decision to convene an economic summit soon is welcome news. Though the summit will be strictly a domestic affair, the unusual gathering will no doubt be closely monitored around the world.

U.S. business and economic leaders will meet in Little Rock, Ark., to help Clinton flesh out his intriguing idea of establishing an Economic Security Council once he’s in the White House.

The effort reflects a new reality: In the post-Cold War period, a coherent, coordinated economic policy is as necessary to the United States as national security.

That’s why Clinton’s advisers have described the proposed Economic Security Council as having power and authority parallel to the National Security Council. If that proves to be true, the executive branch could undergo the most significant changes since the National Security Council was created 44 years ago.

The economic council could become the centerpiece for Clinton’s plans to make good on his campaign promises on the economy. But the President-elect faces many challenges on the economic front. He has to build consensus among business, labor and consumers. He must craft economic programs that are mindful of the huge deficit, sensitive interest rates and inflation jitters. He must come up with doable programs in a variety of areas--from rebuilding infrastructure to reforming health care--that financial markets do not interpret as reckless government spending.

The Clinton team must make sure that what is good for the domestic economy works in the global marketplace as well.

That is a daunting task, more so because Clinton would set a new course for a nation sailing for more than a decade on the hands-off, laissez faire compass of the Bush and Reagan administrations. If President Bush had been willing to call for a similar summit last year--or even early this year--when it became clear how severe the current recession was, he might not have lost the election.

Apart from helping Clinton reorganize the White House’s economic policy staff, an economic summit should also bring together the best minds, with the most creative ideas about how to jump-start the faltering economy in the short term.

Restructuring the White House would be only a prelude to the restructuring that awaits America as this country seeks ways to hold its own in the rapidly expanding global marketplace. That is a long-term challenge, of course, but Clinton has shown that it will get high priority in the next Administration.

Hard Times California’s unemployment rate over the last 12 months: 1991 Nov: 7.4% 1992 Oct.: 9.8%