Today, I’m joined by Anup Malani. He’s a professor of law at the University of Chicago, currently on leave, serving as the first Chief Economist at the Centers for Medicare & Medicaid Services. This means he oversees economic analysis for the agency managing $2 trillion in annual healthcare spending — 23% of the entire federal budget. CMS runs Medicare for 70 million elderly Americans, Medicaid for low-income families, and the health insurance exchanges where millions buy coverage.Malani answers a lot of questions I have about American healthcare policy:* The US spends 20% of GDP on healthcare. Why is our life expectancy so bad?* How do you crack down on Medicare fraud without hurting patients who need care?* What incentives do private insurers like UnitedHealth have to make patients look sicker than they are?* What do academic economists get wrong about policy?The full transcript for this conversation is at www.statecraft.pub. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.statecraft.pub
This episode was originally recorded on September 4th at the Abundance Conference in DC."Zach Liscow, my guest today, is a professor of law at Yale Law School. In 2022-2023, he was the Chief Economist at the Office of Management and Budget. He's also now my colleague at IFP, as a non-resident senior fellow.I have a bit of a problem today, which is that while Zach may not be a national household name, he might as well be in this audience. As most of you are aware, Zach has worked on many interesting economic topics, but especially on infrastructure costs: why it costs so much to build in the US, what the inputs are, and cross-cutting comparisons.The challenge for me today as an interviewer is that, in part because of Zach’s work, everyone here now knows that infrastructure in the US costs a huge amount to build. I recently reviewed some submissions for a project on transit at IFP, and every other submission referenced the fact that the cost per mile to build a subway in New York is something like eight times more than the equivalent project in Paris.These stylized facts are now embedded in our discourse. And my problem is that this makes it a little hard to figure out how to have a conversation that isn't just all of us nodding in agreement. I'm going to try to tackle that problem, but I just want to lay my cards on the table. This is my fear, and we’ll try to avoid it."The full transcript for this conversation and many others is at www.statecraft.pub. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.statecraft.pub
The full transcript for this conversation is at www.statecraft.pub. When I started this podcast a couple years ago, the idea was more constrained than it is today. We wanted to do exit interviews with civil servants, who were newly free to speak about their experiences and their learnings. The project has expanded: we talk to political scientists, economists, DC wonks, elected officials and people currently in government. But the core value of this project is in that original idea of getting a hold of people as they're leaving the government, pinning them to the wall, and making them reveal their secrets.Today's guest is in that mold. His name is Dean Ball. If you follow AI policy, you already know who he is. Until a couple of weeks ago, Dean was a senior policy advisor for artificial intelligence and emerging technology at the White House Office of Science and Technology Policy (OSTP).Dean and I go back a little while. Most notably, we’ve serve together on one of the most dominant trivia teams DC has seen. But that's not why Dean's important. Dean's had a whirlwind tour over the past few months in the federal government. During that time, he was the organizing author of the Administration's AI Action Plan, a comprehensive roadmap from the White House on federal AI policy.Today, we caught up to talk about that Action Plan, what it takes to write a strategy document for the federal government, and the challenges of implementing that strategy in the face of political, personal, and bureaucratic opposition.I've said in the past that Dean thinks more clearly about the near-term future than most people. I still think that's true, though I don't agree with him on everything here. He's an incredibly sharp thinker and I benefit from talking to him.We discuss:* How to gain influence in the White House* Navigating the interagency process efficiently* Whether the deep state is real* The AI Action Plan* How to implement change across the federal government* The complexities of export controls on AI Chips* Why Dean left the White House after six monthsThanks to Harry Fletcher-Wood for his transcript edits, and to Katerina Barton for her audio edits. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.statecraft.pub
Today I'm talking to Dan Wang. He has a great new book, Breakneck: China's Quest to Engineer the Future. Dan spent the better part of the last decade in China and published a yearly letter summarizing his thoughts, explorations, and eating.Breakneck is like those letters: it goes all over the place, as does our conversation. Topics include:* America's overabundance of lawyers* Whether our ruling class should be all economists* Stylish propaganda* The book collections of Yale professors* iPhone manufacturing* Forced sterilization* Planting cassavaOne of the things I like most about Dan's work is that he's comfortable looking at China through multiple, very different lenses. Parts of Breakneck explicitly use China as a lens to think about the US and its political culture and institutions. Other parts of the book try very hard to take China on its own terms, without reading our own culture into it. It’s that mix that made the book so enjoyable for me, and I hope you enjoy it too.Thank you to Harry Fletcher-Wood for his judicious transcript edits, and to Katerina Barton for her audio edits. You can find the full, annotated transcript to this conversation at www.statecraft.pub. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.statecraft.pub
Today I'm talking to economic historian Judge Glock, Director of Research at the Manhattan Institute. Judge works on a lot of topics: if you enjoy this episode, I'd encourage you to read some of his work on housing markets and the Environmental Protection Agency. But I cornered him today to talk about civil service reform.Since the 1990s, over 20 red and blue states have made radical changes to how they hire and fire government employees — changes that would be completely outside the Overton window at the federal level. A paper by Judge and Renu Mukherjee lists four reforms made by states like Texas, Florida, and Georgia: * At-will employment for state workers* The elimination of collective bargaining agreements* Giving managers much more discretion to hire* Giving managers much more discretion in how they pay employeesJudge finds decent evidence that the reforms have improved the effectiveness of state governments, and little evidence of the politicization that federal reformers fear. Meanwhile, in Washington, managers can’t see applicants’ resumes, keyword searches determine who gets hired, and firing a bad performer can take years. But almost none of these ideas are on the table in Washington.Thanks to Harry Fletcher-Wood for his judicious transcript edits and fact-checking, and to Katerina Barton for audio edits.Judge, you have a paper out about lessons for civil service reform from the states. Since the ‘90s, red and blue states have made big changes to how they hire and fire people. Walk through those changes for me.I was born and grew up in Washington DC, heard a lot about civil service throughout my childhood, and began to research it as an adult. But I knew almost nothing about the state civil service systems. When I began working in the states — mainly across the Sunbelt, including in Texas, Kansas, Arizona — I was surprised to learn that their civil service systems were reformed to an absolutely radical extent relative to anything proposed at the federal level, let alone implemented.Starting in the 1990s, several states went to complete at-will employment. That means there were no official civil service protections for any state employees. Some managers were authorized to hire people off the street, just like you could in the private sector. A manager meets someone in a coffee shop, they say, "I'm looking for exactly your role. Why don't you come on board?" At the federal level, with its stultified hiring process, it seemed absurd to even suggest something like that.You had states that got rid of any collective bargaining agreements with their public employee unions. You also had states that did a lot more broadbanding [creating wider pay bands] for employee pay: a lot more discretion for managers to reward or penalize their employees depending on their performance.These major reforms in these states were, from the perspective of DC, incredibly radical. Literally nobody at the federal level proposes anything approximating what has been in place for decades in the states. That should be more commonly known, and should infiltrate the debate on civil service reform in DC.Even though the evidence is not absolutely airtight, on the whole these reforms have been positive. A lot of the evidence is surveys asking managers and operators in these states how they think it works. They've generally been positive. We know these states operate pretty well: Places like Texas, Florida, and Arizona rank well on state capacity metrics in terms of cost of government, time for permitting, and other issues.Finally, to me the most surprising thing is the dog that didn't bark. The argument in the federal government against civil service reform is, “If you do this, we will open up the gates of hell and return to the 19th-century patronage system, where spoilsmen come and go depending on elected officials, and the government is overrun with political appointees who don't care about the civil service.” That has simply not happened. We have very few reports of any concrete examples of politicization at the state level. In surveys, state employees and managers can almost never remember any example of political preferences influencing hiring or firing.One of the surveys you cited asked, “Can you think of a time someone said that they thought that the political preferences were a factor in civil service hiring?” and it was something like 5%.It was in that 5-10% range. I don't think you'd find a dissimilar number of people who would say that even in an official civil service system. Politics is not completely excluded even from a formal civil service system.A few weeks ago, you and I talked to our mutual friend, Don Moynihan, who's a scholar of public administration. He's more skeptical about the evidence that civil service reform would be positive at the federal level.One of your points is, “We don't have strong negative evidence from the states. Productivity didn’t crater in states that moved to an at-will employment system.” We do have strong evidence that collective bargaining in the public sector is bad for productivity.What I think you and Don would agree on is that we could use more evidence on the hiring and firing side than the surveys that we have. Is that a fair assessment?Yes, I think that's correct. As you mentioned, the evidence on collective bargaining is pretty close to universal: it raises costs, reduces the efficiency of government, and has few to no positive upsides.On hiring and firing, I mentioned a few studies. There's a 2013 study that looks at HR managers in six states and finds very little evidence of politicization, and managers generally prefer the new system. There was a dissertation that surveyed several employees and managers in civil service reform and non-reform states. Across the board, the at-will employment states said they had better hiring retention, productivity, and so forth. And there's a 2002 study that looked specifically at Texas, Florida, and Georgia after their reforms, and found almost universal approbation inside the civil service itself for these reforms.These are not randomized control trials. But I think that generally positive evidence should point us directionally where we should go on civil service reform. If we loosen restrictions on discipline and firing, decentralize hiring and so forth — we probably get some productivity benefits from it. We can also know, with some amount of confidence, that the sky is not going to fall, which I think is a very important baseline assumption. The civil service system will continue on and probably be fairly close to what it is today, in terms of its political influence, if you have decentralized hiring and at-will employment.As you point out, a lot of these reforms that have happened in 20-odd states since the ‘90s would be totally outside the Overton window at the federal level. Why is it so easy for Georgia to make a bipartisan move in the ‘90s to at-will employment, when you couldn't raise the topic at the federal level?It's a good question. I think in the 1990s, a lot of people thought a combination of the 1978 Civil Service Reform Act — which was the Carter-era act that somewhat attempted to do what these states hoped to do in the 1990s — and the Clinton-era Reinventing Government Initiative, would accomplish the same ends. That didn't happen.That was an era when civil service reform was much more bipartisan. In Georgia, it was a Democratic governor, Zell Miller, who pushed it. In a lot of these other states, they got buy-in from both sides. The recent era of state reform took place after the 2010 Republican wave in the states. Since that wave, the reform impetus for civil service has been much more Republican. That has meant it's been a lot harder to get buy-in from both sides at the federal level, which will be necessary to overcome a filibuster.I think people know it has to be very bipartisan. We're just past the point, at least at the moment, where it can be bipartisan at the federal level. But there are areas where there's a fair amount of overlap between the two sides on what needs to happen, at least in the upper reaches of the civil service.It was interesting to me just how bipartisan civil service reform has been at various times. You talked about the Civil Service Reform Act, which passed Congress in 1978. President Carter tells Congress that the civil service system:“Has become a bureaucratic maze which neglects merit, tolerates poor performance, permits abuse of legitimate employee rights, and mires every personnel action in red tape, delay, and confusion.”That's a Democratic president saying that. It’s striking to me that the civil service was not the polarized topic that it is today.Absolutely. Carter was a big civil service reformer in Georgia before those even larger 1990s reforms. He campaigned on civil service reform and thought it was essential to the success of his presidency. But I think you are seeing little sprouts of potential bipartisanship today, like the Chance to Compete Act at the end of 2024, and some of the reforms Obama did to the hiring process. There's options for bipartisanship at the federal level, even if it can’t approach what the states have done.I want to walk through the federal hiring process. Let's say you're looking to hire in some federal agency — you pick the agency — and I graduated college recently, and I want to go into the civil service. Tell me about trying to hire somebody like me. What's your first step?It's interesting you bring up the college graduate, because that is one recent reform: President Trump put out an executive order trying to counsel agencies to remove the college degree requirement for job postings. This happened in a lot of states first, like Maryland, and that's also been bipartisan. This requirement for a college degree — which was used as a very unfortunate proxy for ability at a lot of these jobs — is now being removed. It's not across the whole federal government
Today we're joined by Dr. Rob Johnston. He's an anthropologist, an intelligence community veteran, and author of the cult classic Analytic Culture in the US Intelligence Community, a book so influential that it's required reading at DARPA. But first and foremost, Johnston is an ethnographer. His focus in that book is on how analysts actually produce intelligence analysis.Johnston answers a lot of questions I've had for a while about intelligence and spying, such as:* Why do we seem to get big predictions wrong so consistently?* Why can't the CIA find analysts who speak the language of the country they're analyzing?* Why do we prioritize expensive satellites over human intelligence?We also discuss a meta-question I always come back to on Statecraft: is being good at this stuff an art or a science? By “this stuff,” I’m referring to intelligence analysis, but I think that the question generalizes across policymaking. Would more formalizing and systematizing make our spies, diplomats, and EPA bureaucrats better? Or would it lead to more bureaucracy, more paper, and worse outcomes? How do you build processes in the government that actually make you better at your job?You can find the full transcript for this conversation at www.statecraft.pub. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.statecraft.pub
We’ve covered the US Agency for International Development, or USAID, pretty consistently on Statecraft, since our first interview on PEPFAR, the flagship anti-AIDS program, in 2023. When DOGE came to USAID, I was extremely critical of the cuts to lifesaving aid, and the abrupt, pointlessly harmful ways in which they were enacted. In March, I wrote, “The DOGE team has axed the most effective and efficient programs at USAID, and forced out the chief economist, who was brought in to oversee a more aggressive push toward efficiency.”Today, we’re talking to that forced-out chief economist, Dean Karlan. Dean spent two and a half years at the helm of the first-ever Office of the Chief Economist at USAID. In that role, he tried to help USAID get better value from its foreign aid spending. His office shifted $1.7 billion of spending towards programs with stronger evidence of effectiveness. He explains how he achieved this, building a start-up within a massive bureaucracy. I should note that Dean is one of the titans of development economics, leading some of the most important initiatives in the field (I won’t list them, but see here for details), and I think there’s a plausible case he deserves a Nobel.Throughout this conversation, Dean makes a point much better than I could: the status quo at USAID needed a lot of improvement. The same political mechanisms that get foreign aid funded by Congress also created major vulnerabilities for foreign aid, vulnerabilities that DOGE seized on. Dean believes foreign aid is hugely valuable, a good thing for us to spend our time, money, and resources on. But there's a lot USAID could do differently to make its marginal dollar spent more efficient.DOGE could have made USAID much more accountable and efficient by listening to people like Dean, and reformers of foreign aid should think carefully about Dean’s criticisms of USAID, and his points for how to make foreign aid not just resilient but politically popular in the long term.We discuss* What does the Chief Economist do?* Why does 170% percent of USAID funds come already earmarked by Congress?* Why is evaluating program effectiveness institutionally difficult?* Why don’t we just do cash transfers for everything?* Why institutions like USAID have trouble prioritizing* Should USAID get rid of gender/environment/fairness in procurement rules?* Did it rely too much on a small group of contractors?* What’s changed in development economics over the last 20 years?* Should USAID spend more on governance and less on other forms of aid? * How DOGE killed USAID — and how to bring it back better* Is depoliticizing foreign aid even possible?* Did USAID build “soft power” for the United States?This is a long conversation: you can jump to a specific section with the index above. If you just want to hear about Dean’s experience with DOGE, you can click here or go to the 45-minute mark in the audio. And if you want my abbreviated summary of the conversation, see these two Twitter threads. But I think the full conversation is enlightening, especially if you want to understand the American foreign aid system. Thanks to Harry Fletcher-Wood for his judicious edits.Our past coverage of USAIDDean, I'm curious about the limits of your authority. What can the Chief Economist of USAID do? What can they make people do?There had never been an Office of the Chief Economist before. In a sense, I was running a startup, within a 13,000-employee agency that had fairly baked-in, decentralized processes for doing things.Congress would say, "This is how much to spend on this sector and these countries." What you actually fund was decided by missions in the individual countries. It was exciting to have that purview across the world and across many areas, not just economic development, but also education, social protection, agriculture. But the reality is, we were running a consulting unit within USAID, trying to advise others on how to use evidence more effectively in order to maximize impact for every dollar spent.We were able to make some institutional changes, focused on basically a two-pronged strategy. One, what are the institutional enablers — the rules and the processes for how things get done — that are changeable? And two, let's get our hands dirty working with the budget holders who say, "I would love to use the evidence that's out there, please help guide us to be more effective with what we're doing."There were a lot of willing and eager people within USAID. We did not lack support to make that happen. We never would've achieved anything, had there not been an eager workforce who heard our mission and knocked on our door to say, "Please come help us do that."What do you mean when you say USAID has decentralized processes for doing things?Earmarks and directives come down from Congress. [Some are] about sector: $1 billion dollars to spend on primary school education to improve children's learning outcomes, for instance. The President’s Emergency Plan for AIDS Relief (PEPFAR) [See our interview with former PEPFAR lead Mark Dybul] is one of the biggest earmarks to spend money specifically on specific diseases. Then there's directives that come down about how to allocate across countries.Those are two conversations I have very little engagement on, because some of that comes from Congress. It’s a very complicated, intertwined set of constraints that are then adhered to and allocated to the different countries. Then what ends up happening is — this is the decentralized part — you might be a Foreign Service Officer (FSO) working in a country, your focus is education, and you’re given a budget for that year from the earmark for education and told, "Go spend $80 million on a new award in education." You’re working to figure out, “How should we spend that?” There might be some technical support from headquarters, but ultimately, you're responsible for making those decisions. Part of our role was to help guide those FSOs towards programs that had more evidence of effectiveness.Could you talk more about these earmarks? There's a popular perception that USAID decides what it wants to fund. But these big categories of humanitarian aid, or health, or governance, are all decided in Congress. Often it's specific congressmen or congresswomen who really want particular pet projects to be funded.That's right. And the number that I heard is that something in the ballpark of 150-170% of USAID funds were earmarked. That might sound horrible, but it's not.How is that possible?Congress double-dips, in a sense: we have two different demands. You must spend money on these two things. If the same dollar can satisfy both, that was completely legitimate. There was no hiding of that fact. It's all public record, and it all comes from congressional acts that create these earmarks. There's nothing hidden underneath the hood.Will you give me examples of double earmarking in practice? What kinds of goals could you satisfy with the same dollar?There’s an earmark for Development Innovation Ventures (DIV) to do research, and an earmark for education. If DIV is going to fund an evaluation of something in the education space, there's a possibility that that can satisfy a dual earmark requirement. That's the kind of thing that would happen. One is an earmark for a process: “Do really careful, rigorous evaluations of interventions, so that we learn more about what works and what doesn't." And another is, "Here's money that has to be spent on education." That would be an example of a double dip on an earmark.And within those categories, the job of Chief Economist was to help USAID optimize the funding? If you're spending $2 billion on education, “Let's be as effective with that money as possible.”That's exactly right. We had two teams, Evidence Use and Evidence Generation. It was exactly what it sounds like. If there was an earmark for $1 billion dollars on education, the Evidence Use team worked to do systematic analysis: “What is the best evidence out there for what works for education for primary school learning outcomes?” Then, “How can we map that evidence to the kinds of things that USAID funds? What are the kinds of questions that need to be figured out?”It’s not a cookie-cutter answer. A systematic review doesn’t say, "Here's the intervention. Now just roll it out everywhere." We had to work with the missions — with people who know the local area — to understand, “What is the local context? How do you appropriately adapt this program in a procurement and contextualize it to that country, so that you can hire people to use that evidence?”Our Evidence Generation team was trying to identify knowledge gaps where the agency could lead in producing more knowledge about what works and what doesn't. If there was something innovative that USAID was funding, we were huge advocates of, "Great, let's contribute to the global public good of knowledge, so that we can learn more in the future about what to do, and so others can learn from us. So let's do good, careful evaluations."Being able to demonstrate what good came of an intervention also serves the purpose of accountability. But I've never been a fan of doing really rigorous evaluations just for the sake of accountability. It could discourage innovation and risk-taking, because if you fail, you'd be seen as a failure, rather than as a win for learning that an idea people thought was reasonable didn't turn out to work. It also probably leads to overspending on research, rather than doing programs. If you're doing something just for accountability purposes, you're better off with audits. "Did you actually deliver the program that you said you would deliver, or not?"Awards over $100 million dollars did go through the front office of USAID for approval. We added a process — it was actually a revamped old process — where they stopped off in my office. We were able to provide guidance on the cost-effectiveness of proposals that would then be factored
At the end of April, the Transit Costs Project released a report: it’s called How to Build High-Speed Rail on the Northeast Corridor. As the name suggests, the authors of the report had a simple goal: the stretch of the US from DC and Baltimore through Philadelphia to New York and up to Boston, the densest stretch of the country. It’s an ideal location for high-speed rail. How could you actually build it — trains that get you from DC to NYC in two hours, or NYC to Boston in two hours — without breaking the bank?That last part is pretty important. The authors think you could do it for under $20 billion dollars. That’s a lot of money, but it’s about five times less than the budget Amtrak says it would require. What’s the difference? How is it that when Amtrak gets asked to price out high-speed rail, it gives a quote that much higher?We brought in Alon Levy, transit guru and the lead author of the report, to answer the question, and to explain a bunch of transit facts to a layman like me. Is this project actually technically feasible? And, if it is, could it actually work politically?* How to cut time off the Northeast Corridor* Operations coordination as a time-saver* The move away from the Mad Men commuter* Was our episode on the Green Line extension wrong?The full transcript for this conversation is at www.statecraft.pub. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.statecraft.pub
Happy Fourth of July! I’m attending a wedding today, so this episode is from the vault, in a way, although it’s its first time on Statecraft. I originally published this essay in January of 2022 on Mirror, shortly after my wife had joined the core team of a DAO that was attempting to acquire a first-edition copy of the US Constitution. I had been reading a history of the constitutional convention, and it seemed fitting to write about it on a thematic site. Yes, July 4th is about the Declaration of Independence, not the Constitution. Cut me some slack, please!You can find the transcript for this episode and many others at www.statecraft.pub. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.statecraft.pub
The decisions that humans make can be extraordinarily costly. The wars in Iraq and Afghanistan were multi-trillion-dollar decisions. If you can improve the accuracy of forecasting individual strategies by just a percentage point, that would be worth tens of billions of dollars. Yet society does not invest tens of billions of dollars in figuring out how to improve the accuracy of human judgment. That seems really odd.That’s a quote from today’s interviewee, who has made his career helping the intelligence community predict the future better. In this interview, we discuss:* Which prediction methods perform the best?* How does IARPA create tech for American spies?* What technologies give democracies an advantage over autocracies?* Could the Internet have been designed better?Our interviewee, Jason Matheny, championed research into human judgment and forecasting at the R&D lab for the intelligence community: the Intelligence Advanced Research Projects Activity, or IARPA, which he directed from 2015-2018.[This interview was originally published in 2023, at this link, without the audio: Statecraft was still transcript-only then.]You can find the transcript for this conversation at www.statecraft.pub. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.statecraft.pub
There are many forces in policymaking (and in our lives generally) that push us towards the short term. Many of the most important measurements in political life are on extremely tight timelines: election cycles, monthly unemployment reports, even the President's daily intelligence briefing. The pressure to get results — and to show results — on a tight turnaround is incredible.One of my questions on Statecraft for a while has been: How do you build a machine to get long-term results? Whether it's a new agency or a new initiative, how do you set up a structure to work toward a goal that's 10, or 20, or 50 years away? And how do you protect that structure from short-term political pressures?Today's interviewee is Sir Rory Collins. Sir Rory has spent a full 20 years building and leading one of the most important scientific resources in the world: the UK Biobank.The Biobank represents a fascinating case study in long-term thinking. It's a database of half a million British participants whose health is being tracked longitudinally for the next 30 years. The Biobank was established with the knowledge that the upfront work, and the spending required, would only really start to pay off 15 years later. When Sir Rory went in for the 10-year review with funders, they asked what had been achieved so far. He said, “Nothing.”But today, UK Biobank is paying massive dividends: It's democratized access to population-scale data for researchers worldwide, and it's already yielding amazing insights into the causes of and cures for disease. I wanted to understand how he built the UK Biobank, and, just as importantly, how he managed to sustain it over a long period of time.We discussed* How to create long-term value in research* How to recruit half a million research subjects* Why the Biobank deferred so many decisions* How other countries’ prospective studies are learning from the UK BiobankThe transcript for this conversation and many others is at www.statecraft.pub. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.statecraft.pub
What can we learn from Estonia? It’s not a question you hear often — the nation of under two million residents doesn’t mean much to many. But for good governance advocates, it’s long been a touchpoint for its “e-government” model. The New Yorker wrote in 2017 that, “apart from transfers of physical property, such as buying a house, all bureaucratic processes can be done online.” Wired called Estonia “the world's most digitally advanced society.” On its “e-Estonia” site, the country itself brags, in a mod font, “We have built a digital society and we can show you how.”The Estonian model has a lot going for it from the perspective of a citizen. For example: Taxes take a few minutes to file, you can see every time the government looks at your data, and you never have to give the government a piece of information more than once. And it makes governance easier: the bureaucracy is leaner, information is shared across agencies, and data is more secure.But how much of this model could be adopted here in the US, or in the rest of the West? And how much is reliant on a cultural and societal context we just don’t have here? To get answers, I talked to Joel Burke, author of the new book Rebooting a Nation: The Incredible Rise of Estonia, E-Government and the Startup Revolution. Joel is an American who worked with the Estonian government, and I learned a lot from his book.For the full transcript of this conversation and others, visit www.statecraft.pub. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.statecraft.pub
Today we talked to Randy Clarke, the head of DC’s Metro system, WMATA. If you’re a transit nerd, you probably know about Clarke — he’s become something of a celebrity for his public presence and disciplined improvement of a transit system that was facing disaster in the aftermath of COVID (and the decision to allow large swathes of federal employees to work from home).I’ve been a regular WMATA rider for long periods of my life, and what Clarke has done over the last three years has been pretty remarkable. We’ll get into some of the details here, but what stands out to me — and why I so wanted to record this conversation — is that Clarke’s managed to advance a bunch of his priorities at once. From the outside, it can seem like he hasn’t had to make any tradeoffs at all: between safety and speed, catching fare evaders and keeping costs down, etc. How has he pulled it off?You can read the transcript for this conversation (and others) at www.statecraft.pub. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.statecraft.pub
Santi: Hi, this is a special episode of Statecraft. I've got a wonderful guest host with me today. Kyla Scanlon: Hey, I’m Kyla Scanlon! I'm the author of a book called In This Economy and an economic commentator. Santi: Kyla has joined me today for a couple reasons. One, I'm a big fan of her newsletter: it's about economics, among many other things. She had a great piece recently on what we can learn from C.S. Lewis’s The Screwtape Letters, which is a favorite book of mine.Kyla’s also on today because we're interviewing Wally Adeyemo, who was the Deputy Secretary of the Treasury in the Biden administration. We figured we each had questions we wanted answered.Kyla: Yeah, I've had the opportunity to interview Wally a couple times during the Biden administration, and I wanted to see where he thinks things are at now. He played a key role in implementing the Inflation Reduction Act, financial sanctions on Russia, and a whole bunch of other things.Santi: For my part, I'm stuck on Wally's role in setting up the IRS’s Direct File program, where you can file your taxes for free directly through the IRS instead of paying TurboTax a hundred bucks to do it. “Good governance types” tend to love Direct File, but the current admin is thinking of killing it. I wanted to understand how the program got rolled out, how Wally would respond to criticisms of the program, and what he learned from building something in government, which now may disappear.Kyla, you've talked to Wally before. How did that conversation go? Kyla: I actually was able to go to his office in D.C., and I talked to a couple of key people in the Biden administration: Jared Bernstein, the former chair of the CEA, and Daniel Hornung, who was at the National Economic Council.We're talking to Wally on the day that the House passed the one big beautiful bill. There's also so much happening financially, like the bond market is totally rebelling against the US government right now. I'm really curious how he thinks things are, as a key player in the last administration.Santi: Wally, you've spent most of your career in Democratic Party institutions. You worked on the Kerry presidential campaign in 2004. You served in the Obama admin. You were the first chief of staff to the CFPB, the president of the Obama Foundation, and, most recently, Deputy Treasury Secretary in the Biden admin.30,000ft question: How do you see the Democratic Party today?My view is that we continue to be the party that cares deeply about working-class people, but we haven't done a good job of communicating that to people, especially when it comes to the things that matter most to them. From my standpoint, it's costs: things in America cost too much for a working-class family.I want to make sure I define working class: I think about people who make under $100,000 a year, many of whom don't own homes on the coast or don’t own a significant amount of stocks (which means they haven't seen the asset appreciation that's led to a great deal of wealth creation over the last several decades). When you define it that way, 81% of Americans sit in that category of people. Despite the fact that they've seen their median incomes rise 5-10% over the last five years, they've seen the cost of the things they care about rise even faster.We haven't had a clear-cut agenda focused on the standard of living, which I think is the thing that matters most to Americans today.Santi: There are folks who would say the problem for Democrats wasn't that they couldn't communicate clearly, or that they didn't have a governing agenda, but that they couldn't execute their agenda the way they hoped to in the time available to them. Would you say there's truth to that claim?Most people talk about a communications issue, but I don't think it's a communications issue. There are two issues. One is an implementation issue, and the second is an issue of the actual substance and policy at the Treasury Department. I was the deputy secretary, but I was also the Chief Operating Officer, which meant that I was in charge of execution. The two most significant domestic things I had to execute were the American Rescue Plan, where $1.9 trillion flowed through the Treasury Department, and the Inflation Reduction Act. The challenge with execution in the government is that we don't spend a lot on our systems, on making execution as easy as possible.For example, the Advanced Child Tax Credit was intended to give people money to help with each of their children during the pandemic. What Congress called on us to do was to pay people on a monthly basis. In the IRS system, you pay your taxes mostly on an annual basis, which meant that most of our systems weren't set up to pay a monthly check to Americans. It took us a great deal of work to figure out a way to recreate a system just to do that.We've underinvested in the systems that the IRS works on. The last time we made a significant investment in the IRS's digital infrastructure was the 1960s; before we had an ATM machine, before we sent a man to the moon, before we had a personal computer. So that meant that everything was coded in a language called COBOL.So execution was quite hard in the American Rescue Plan. People were left out and felt that the government wasn’t working for them. If you called the IRS, only 13% of your calls were being answered. We got that back up to 85% before we left. Ultimately, I think part of this is an execution challenge. In government we want to spend money coming up with new policies, but we don't want to pay for execution, which then means that when you get the policy passed, implementation isn't great.When Jen Pahlka was on your show, she talked about the need to focus on identifying the enablers to implementation. Direct File was one of the best examples of us taking implementation very seriously.But also, on some policy issues that mattered most to Americans, we weren't advancing the types of strategies that would've helped lower the cost of housing and lowering the cost of medicine. We did some things there, but there's clearly more that we could have done, and more we need to do going forward to demonstrate that we're fighting to bring down those costs. It's everything from permitting reform — not just at the federal level, but what can we do to incentivize it at the state and local level — to thinking about what we can do on drug costs. Why does it cost so much more to get a medicine in America than in Canada? That is something that we can solve. We’ve just chosen not to at the federal level.At the end of the year, we were going to take action to go after some of the middlemen in the pharmacy industry who were taking out rents and large amounts of money. It dropped out of the bill because of the negotiations between the Republican Congress and then President-elect Trump. But there are a lot of things that we can do both on implementation, which will mean that Americans feel the programs that we're passing in a more effective way, and policy solutions that we need to advance as a party that will help us as well.Kyla: Some people think Americans tend to vote against their own self-interest. How can your party message to people that these sorts of policies are really important for them?Ultimately, what I found is that most people just understand their self-interest differently, and for them, a big part of this was, “Who's fighting for me on the issues that I care most about?”From my standpoint, part of the problem we had with Direct File, which I think was an innovative solution, was that we got to implementing it so late in the administration that we didn't have the ability for it to show the impact. I'm hoping future administrations will think through how to start their implementation journey on things like Direct File sooner in the administration, when you have a great deal of political capital, so people can actually feel the impact over time.To your question, it’s not just about the messaging, it's about the messenger. People tend to trust people who look like them, who come from the places they come from. When it came to the Child Tax Credit and also to Direct File, the biggest innovation wasn't the technology: the technology for Direct File has been used by the Australians, the British, and other countries for decades.The biggest innovation was us joining that technology with trusted people in communities who were going out to talk to people about those programs and building those relationships. That was something that the IRS hadn't done a great deal of. We invested a great deal in those community navigators who were helping us get people to trust the things the government was doing again, like the Child Tax Credit, like Direct File, so that they could use it.We often think that Washington is going to be able to give messages to the country that people are going to hear. But we're both in a more complicated media environment, where people are far more skeptical of things that come from people in Washington. So the best people to advocate for and celebrate the things that we're doing are people who are closer to the communities we're trying to reach. In product advertising today, more companies are looking to influencers to advertise things, rather than putting an ad on television, because people trust the people that they follow. The same is true for the things that we do in government.Santi: I’ve talked to colleagues of yours in the last administration who say things like, “In the White House, we did not have a good enough sense of the shot clock.” They point to various reasons, including COVID, as a reason the admin didn't do a good enough job of prioritization.Do you think that's true, that across the administration, there was a missing sense of the shot clock or a missing sense of prioritization? No, because I'm a Lakers fan. These are professionals. We're professionals. This is not our first rodeo. We know how much time is on the shot clock; we played
Today, we’re taking a look at a predecessor to DOGE: The Reinventing Government project (officially known as the NPR, for National Partnership for Reinventing Government). The NPR ran for almost the full duration of President Bill Clinton’s two terms, and led to the elimination of over 100 programs and over 250,000 federal jobs.Both NPR and DOGE are case studies in a long history of government reform efforts — some more successful than others. Our guest is John Kamensky, who served as Vice President Al Gore's deputy for the National Performance Review (NPR) for eight years. Kamensky was colloquially known as “Mr. Checklist” for his work organizing the Reinventing Government initiative.Kamensky is a clear-eyed observer, and he doesn’t hedge about NPR’s failures and missed opportunities. In some ways, the Reinventing Government Initiative was a once-in-a-lifetime opportunity to cut headcount, spending, and regulation at the end of the Cold War and change the way the government operated.We discuss:* Did the NPR actually work?* What was the Board of Tea Experts?* Why was the federal government subsidizing mohair?* NPR made the federal workforce older. Was that bad?* What doesn’t Elon understand about the federal government?You can find the transcript for this conversation at www.statecraft.pub. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.statecraft.pub
Last week, we talked to Stephanie Pollack about salvaging a transit project in danger of failure — it was the first in a set of interviews we’re running on transit. Today, we’re zooming out further, and looking at how the federal government funds local transit.Peter Rogoff spent 22 years as a staffer on the most powerful Senate committee, the Appropriations Committee (on the Democratic side). “Approps” determines discretionary spending for agencies, and for most of his time there, Rogoff was the most senior Dem staffer.Rogoff worked on three transportation reauthorization bills (in ‘95, ‘98, and ‘05), the bills that determine how money will be distributed to transit agencies across the country. In 2008, Rogoff was a key player in introducing the idea of making new funding available to “multi-modal” transportation projects — projects that benefit multiple types of transportation. The next transportation reauthorization process is coming up in 2026, and I thought it’d be valuable to better understand how that bill comes together.But Rogoff doesn’t just have experience budgeting: the following year, Rogoff was appointed as head of the Federal Transit Administration (FTA), where he served for five years. More recently, he’s been the CEO of Sound Transit, the Seattle transit agency.I didn’t agree with Peter on everything in this conversation (which was recorded in February), and he’s taken his fair share of criticism, but it’s hard to find a figure in American life who has spent more time thinking about federal transit policy.We discussed:* What does the FTA do?* Why don’t transit agencies control their spending?* How do you win Senate funding fights?* Why are streetcars terrible?The full transcript is available at www.statecraft.pub. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.statecraft.pub
This conversation, with transit guru Stephanie Pollack, is one of my favorite conversations we’ve recorded on here. For one, I had a blast recording — Stephanie’s funny, and she’s got a killer Boston accent. For another, she explains some of the ideas I care about incredibly well — how well-intentioned regulations turn bad, how political pressures make simple things hard to pull off, why building in the real world is so hard. She taught me a huge amount about building transit. And she’s a great storyteller.For context, Pollack was the deputy administrator of the Federal Highway Administration for the first half of the Biden admin. Before that, she served as the secretary of the Massachusetts Department of Transportation (DOT). And a while before that, before she was in the business of building stuff, she was an environmental activist who sued the the Massachusetts DOT for building stuff. We get into that evolution in her career here.This conversation is one of a series of conversations over the coming months about transit: why it’s gotten so hard to build, who fights over it, and what it takes to build something people love.We discuss:(00:00) Introduction (00:54) Federal vs. State Transit Funding Structure (02:58) Transit vs. Highway Agency Operational Differences (04:58) Stephanie’s Career and Perspective Changes(10:39) The Massachusetts Big Dig Project (11:34) Cost Overruns and Project Estimates (17:04) Inflation in Infrastructure Projects(18:28) The Four Ps of Project Delays (23:50) NEPA and Environmental Review(34:19) The Green Line Extension Project (43:39) Project Redesign and Procurement Innovation(58:20) Advice for Secretary DuffyThanks to Sofia Scarlat and Emma Hilbert for their audio and transcript edits. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.statecraft.pub
At the end of January, the Trump administration pushed out a top Treasury department official after he refused to give DOGE access to the government's vast payment system. We're talking to him today. It's one of his first public interviews since leaving the civil service.David Lebryk was the highest ranking civil servant in the Treasury Department, and one of the most senior civil servants in the federal government. He was responsible for overseeing the Bureau of the Fiscal Service, which. Puts out more than 90% of federal payments every year, more than a billion transactions, more than $5 trillion.One note for listeners: Lebryk did not want to go into the blow by blow of his leaving the administration early this year. Instead, we talk about a bunch of other things that I think you'll find highly relevant, how the Bureau of the Fiscal Service works, how it should work, and why Lebryk thinks DOGE’s plans for it won't work out the way they intend. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.statecraft.pub
Today we talked to Alex Jutca; he leads analytics and technology at the Allegheny County Department of Human Services, where his team’s mission is to build the country’s leading R&D lab for local government. Allegheny County is known for having the best integrated data of any state and local system in the country, and they’ve applied it effectively, like using predictive algorithms in child welfare.We discussed:* What issues are consistent across Pittsburgh, Philly, and Baltimore?* How does a local CPS actually work?* When shouldn’t you involuntarily commit people with severe mental disorders?* Why has anti-addiction drug development stalled out? This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.statecraft.pub
Today’s guest is Narayan Subramanian. Under the Biden administration, he was a legal advisor, and then an advisor to the Secretary at the Department of Energy (DOE). Later, he was the Director for Energy Transition at the White House National Security Council.We’ve talked to previous guests about how to ensure government money flows fast and effectively. At the DOE, Subramanian helped ensure that a big influx of money could best be used to support innovative energy projects. If you’ve followed Statecraft a while, you know we’re very interested in how to actually deploy taxpayer dollars most effectively. Narayan played a key role in making sure that DOE could do just that.We Discuss:* How the DOE took its modern form* Why don’t tools for funding R&D work for funding deployment?* Does the federal interest in IP stop banks from supporting new tech?* What kinds of technologies can you support with “other transactions authority”?The full transcript is available at www.statecraft.pub. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.statecraft.pub