ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Sunday, December 15, 1996 TAG: 9612140008
SECTION: BUSINESS PAGE: 3 EDITION: METRO
DATELINE: WASHINGTON
SOURCE: TOM RAUM ASSOCIATED PRESS
As he turns to completing his second-term economic team, President Clinton faces a difficult decision on his prized National Economic Council: Should it be a one-headed or two-headed beast?
His advisers are deeply divided. The outcome will have a strong bearing on how Clinton conducts economic policy in his second term.
Clinton created the council as one of his first acts in office in January 1993 to parallel the nearly 50-year-old National Security Council.
He said in his 1992 campaign it would be his principal instrument for fulfilling his promise to make the economy his top priority.
But the council, which got off to a good start under Robert Rubin - now Treasury secretary - has had some rocky times over its four-year history.
Now Clinton reportedly is weighing splitting its leadership into economic and international spheres, according to aides who spoke on the condition of anonymity.
The notion has the support of Rubin, but is generally getting negative reviews elsewhere, both inside and outside the White House.
``Not speaking to the particular people, I think it's very hard for any institution, any organization, to work effectively with divided leadership,'' said economist Robert Shapiro of the Progressive Policy Institute, a moderate Democratic research group with close ties to Clinton.
The current chief, Laura Tyson, is returning to California, where she was an economist at the University of California, Berkeley before joining the administration.
Specifically, Clinton is said to be considering splitting the job between deputies Gene Sperling and Daniel Turullo.
That would be driven, in large part, by a desire by Clinton to reward Sperling - one of his hardest working staffers and his top 1992 economic aide.
However, Sperling, 38, generally lacks the seasoning and experience of either Rubin or Tyson - and has had little experience in either management or international relations.
Turullo was economic assistant secretary of state and has been dealing with international issues since taking the deputy's job last February.
``It's a bad idea,'' said I.M. Destler, director for the Center for International and Security Studies at the University of Maryland, and author of a book on the NEC. ``One of the key purposes for the council was to connect domestic and international economic policy.''
The council got off to a good start under Rubin, who took over after a 26-year career with Goldman Sachs, the New York investment banking firm he co-chaired.
But when he went to Treasury in early 1995, Clinton waited nearly three months to name Tyson. The council languished. Tyson lacked Rubin's clout. Meanwhile, Republicans had seized Congress and, at least temporarily, the economic agenda.
However, Tyson became a forceful advocate for Clinton's policies during his re-election campaign and expanded the NEC's role in international trade issues, restoring much of its lost luster.
It's possible that Clinton may decide to award the post on a solo basis to Sperling.
Jeff Faux, president of the Economic Policy Institute, a research organization that gets funds from organized labor, said the NEC director need not be a strong personality.
``It's mainly a coordinating function. Whoever does it needs to be close to the president,'' Faux said. On that basis, Sperling would be ``a good choice,'' he said.
Sperling also has many boosters among senior White House advisers.
Aides said Clinton hadn't made up his mind yet, but was close to a decision - and hoped to be able to announce his full economic team either late this week or early next week.
Clinton has several other key economic jobs to fill: a commerce secretary to replace the departing Mickey Kantor; and a new chairman of the Council of Economic Advisers to replace Joseph Stiglitz, who submitted his resignation Tuesday.
He must also decide whether to give Charlene Barshefsky, who has been acting U.S. trade representative since April, the post permanently.
There is no shortage of other possible contenders for the NEC spot.
Commerce Undersecretary Stuart Eizenstat, who served as President Carter's chief domestic policy adviser, is being actively promoted by many economic-community interests. Former Federal Reserve Vice Chairman Alan Blinder and Deputy Treasury Secretary Lawrence Summers also have been mentioned.
LENGTH: Medium: 86 linesby CNB