Rapid results for usa jobs and child family wellbeing

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Imagine US Corporations repatriated and invested their $1.5 trillion overseas profits back into the use to increase employment in the nation's 4.6 million small businesses, reduce and prevent the nation's epidemic of mental, emotional, and behavioral disorders among our young people, and improved the health of the country and radically reduced the burden of our prisons on the taxpayers while improving public safety. Impossible? Hardly. The US tax code enables this to happen, and the US companies will only pay interest on their investments in the US—not the repatriated funds. This can happen through the vehicle of Social Impact Bonds, and the world-class prevention science of the United States. Please read and help us make this idea happen.

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Rapid results for usa jobs and child family wellbeing

  1. 1. Rapid  Results  for  USA  Jobs,  Health  &  Wealth:   Restoring  Our  Futures  With  Low-­‐Cost  Strategies   Funded  by  Repatriated  Overseas  Corporate  Funds   Prepared  by:  Dennis  D.  Embry,  Ph.D.   President/Senior  Scientist,  PAXIS  Institute,  Tucson,  AZ  •  1-­‐520-­‐299-­‐6770  •  dde@paxis.org  Abstract   Additionally,  the  Our  Futures  Fund  would  invest   in  expanding  the  implementation  across  the  Reuters  News  Service  estimates  that  $1.5   country  of  previously  proven  and  tested,  very  trillion  in  profits  are  held  overseas.    Pressure   cost-­‐efficient  strategies  that  can  significantly  has  been  increasing  to  repatriate  those  funds,   reduce  current  Medicaid  and  healthcare  costs,  but  not  to  repeat  the  failure  of  the  2004   future  health-­‐care,  improve  public  safety,  and  repatriation  that  experts  claim  did  not  lead  to   improve  our  global  competitiveness.  an  increase  in  domestic  investment,   Individual,  business,  organizational  and  employment  or  R&D.     government  beneficiary  entities  will  have  a  Existing  law  plus  innovations  in  “Pay  for   contract  to  pay  back  the  Our  Futures  Fund  based  Success  Contracts”  (aka  Social  Impact  Bonds),   on  careful  measures  of  success  and  principles  however,  provides  a  pathway  for  repatriating   established  by  previous  successful  experiments  those  pent  up  profits  as  USA  investments.    In   in  the  US  and  other  countries  involving  Social  turn,  those  funds  can  be  used  to  increase   Impact  Bonds.    Thus,  the  success  of  new  employment  by  the  nation’s  4.6  million  small   employees,  businesses,  and  reductions  of  businesses  (<25  employees)  plus  rapidly   crushing  costs  to  local,  state  and  federal  reduce  major  costly  health,  educational,  and   governments  (e.g.,  Medicaid,  unemployment  safety  problems  harming  the  global   payments,  crime,  etc.)  would  payback  the  Our  competitiveness  of  the  United  States.   Futures  Fund  and  its  investors  both  principle   and  interest—the  companies  repatriating  Current  law  allows  American  businesses  to   overseas  corporate  profits.  A  sweetener  could  repatriate  overseas  profits  by  purchasing  US   be  added  to  the  existing  law:  Interest  payments  investments  (e.g.,  T-­‐bills),  and  only  paying  tax   from  the  Our  Futures  Fund  would  be  non-­‐on  the  interest.  This  is  already  happening,  in   taxable.  part  because  of  the  instability  of  the  European  Union.    By  tweaking  this  law,  we  can  create  a   In  theory,  if  US  corporations  repatriated  the  new  investment  mechanism,  tentatively  called:   same  profits  as  they  did  in  2004  of  $360  billion  “Our  Futures  Fund:  An  American  Families  &   to  the  Our  Futures  Fund,  millions  of  new,  Employment  Impact  Bond.”   sustainable  jobs  could  be  created  across  every   American  community;  and  hundreds  of  billions  The  Our  Futures  Fund  would  then  invest  in   of  dollars  of  crushing  health,  welfare,  and  staking  “no-­‐risk”  hires  of  unemployed  by   prison  costs  would  be  averted  at  a  local,  state  qualified  small  businesses  (<25  employees)  to   and  federal  level.  The  US  economy  would  ramp  up  products,  services,  marketing  and   rebound,  and  our  global  competitiveness  would  sales.   be  increased  for  all  our  futures.   1  
  2. 2. Predicting  America’s  Future  from  Current  Facts  Unless  current  FACTS  are  altered,  multiple   job  loss  increases  youth  smoking,  adverse  trends  can  be  predicted  for  America.     forecasting  many  lifetime  health  problems.9  Current  FACTS  predict  a  perfect  storm  of   • A  longitudinal  study  of  9,500  persons  shows  worsening  problems  for  our  economy,  our   that  unemployment  most  adversely  affects  public  safety,  our  health,  our  economy,  our   the  most  conscientious,  good  employees  for  global  competitiveness,  and  our  national   future  employment.10  security.  Fortunately,  the  United  States  actually   • Two  population-­‐based  longitudinal  studies  possesses  the  best  science  to  alter  these  trends.     of  U.  S.  workers  show  that  involuntary  job  Applying  this  world-­‐class  science  can  save  Our   loss  causes  serious  cognitive  depression  and  Futures  in  America.   poorer  overall  health.11  Another   longitudinal  study  of  unemployed  workers   shows  that  symptoms  of  common  mental   disorders  then  cause  greater  time  in   unemployment  over  four  years.12  Increased   psychiatric  hospitalization  follows   unemployment  in  another  12-­‐year  study.13   The  mental  health  effects  of  unemployment   cause  many  more  persons  to  migrate  to   disability  benefits.14       • Poor  mental  health  caused  by  becoming   unemployed  cause  parents  to  be  more     negative  and  punishing  to  their  children.15   Becoming  unemployed  as  mothers  increases  FACT:  Unemployment  has  profound  physical   ADHD  among  dependent  children,16  which  and  behavioral  impact  on  adults,  their   in  turn  predicts  unemployment  for  those  current  children,  and  their  future  children   children  as  they  age.17   • Losing  employment  causes  subsequent  Unemployment  has  one  of  the  most  devastating   infants  born  to  be  more  premature  and  impacts  on  persistent  mental  and  physical   unhealthy.18  health  on  adults  and  their  dependent  children.   • Fathers’  job  loss  increases  suicide  among  Consider  a  few  examples:   their  dependent  children.19  • The  US  National  Longitudinal  Survey  of   • Increases  in  community  unemployment,   Youth  shows  girls  tend  to  become  obese  in   mortgage  delinquency,  and  foreclosure   periods  of  local  and  national   predict  future  hospitalizations  for  serious   unemployment,1  which  then  predicts  future   child  maltreatment,20  including  traumatic   disability  pension  status2  and  long-­‐term   brain  injuries.21    In  turn,  this  predicts   health  costs  for  both  young  woman,  lower   lifetime  employment  problems  by  the   fertility,  and  unhealthy  future  offspring.3-­‐6   child.22  • The  US  National  Longitudinal  Survey  of   Re-­‐employment,  however,  typically  improves   Youth  shows  that  unemployment  increases   health  indicators  quickly.23    And  a  warm  family   risky  sexual  behavior  and  risk  of  sexually   environment  protects  a  child  from  future   transmitted  diseases.7    The  same  survey   unemployment  as  an  adult.24-­‐26     shows  higher  risk  of  serious  lifetime   substance  abuse  or  alcohol  abuse.8  Parental     2  
  3. 3. FACT:  American  Children  Have  the  Highest   The  Mission  Readiness  Group  (Retired  4-­‐Star  Rate  of  Mental,  Emotional,  Behavioral  and   Generals)  finds  that  3-­‐out-­‐of-­‐four  17  through  24  Related  Physical  Illnesses  Among  Rich   year-­‐old  youth  in  America  are  not  eligible  for   military  service,  based  on  national  Democracies.   epidemiological  data—not  entrance  exams.  The  evidence  for  this  sorry  state  comes  from  multiple  studies,  sources  and  indicators  cited  in  the  2009  Institute  of  Medicine  Report.27  The  trends  have  been  worsen  for  at  least  the  past  20  years,  and  now  it  appears  that  our  current  children  may  have  a  short  lifespan  than  current  adults  as  a  consequence  of  multiple  underlying  connected  factors  from  adverse  childhood  experiences,  violence,  suicide,  injuries,  plus    related  metabolic  disorders.   The  Great  Smokey  Mountains  Longitudinal   Study  finds  that  ever  two  years,  young  people  For  example,  the  National  Longitudinal  Study  of   are  having  earlier  and  earlier  onset  of  mental,  Adolescence  (see  below)  shows  that  one-­‐out-­‐of-­‐ emotional,  and  behavioral  disorders,  and  the  two  18  year  olds  in  America  will  meet  an   percentage  with  the  disorders  is  rising  with  objective  diagnoses  of  one  major  mental  health   each  younger  cohort.  problem  that  impair  work  performance,  educational  attainment,  compromise  health,  and  increase  risk  of  criminal  offenses.       The  Wall  Street  Journal  did  independent   analyses  of  prescription  drug  use  among     America’s  children  and  youth.  Their  December  The  National  Co-­‐Morbidity  Study  shows  that  the   28,  2010  report  notes  that  40.4  million  of  our  onset  and  proportion  of  birth-­‐cohorts  having  a   young  people  received  at  least  one  prescription  major  depression  has  been  steadily  increasing,   for  a  psychotropic  medication  in  2009.  as  shown  below.  This  is  not  the  result  of  over-­‐diagnoses,  which  is  filtered  out  of  the  study.         3  
  4. 4. The  2009  Institute  of  Medicine  Report  on  the   there  are  fewer  new  companies  making  any  Prevention  of  Mental,  Emotional,  and  Behavioral   hires  at  all.  Disorders  Among  Young  People  (go  to  http://bit.ly/IOM2009)  finds  that  most  of  these   FACT:  US  Small  Business  Is  Smaller  Than  Most  problems  are  preventable  at  a  public-­‐health   Other  Rich  Democracies1  programmatic  level,  based  on  funded  science  in   The  United  States  has  among  the  lowest  shares  the  United  States.  Other  rich  democracies  are   of  employment  in  small  businesses  in  using  this  science,  but  the  federal,  state  and   manufacturing.  Only  11.1  percent  of  the  U.S.  local  governments  of  America  are  not.   manufacturing  workforce  is  in  enterprises  with  FACT:  US  Small  Business  Is  Smaller  Now   fewer  than  20  employees.  Eighteen  other  rich   countries  have  a  higher  share  of  manufacturing  Virtually  every  elected  official  in  the  United   employment  in  enterprises  of  this  size,  as  States  concurs  that  small  business  is  the   shown  in  the  figure  on  the  next  page.  backbone  of  our  economy  and  our  communities.  Across  the  country,  there  are  nearly  4.8  million   What  if  the  cut  off  is  put  higher,  say  firms  with  businesses  that  employ  25  or  fewer  workers.       less  than  500  employees  in  manufacturing?    The   United  States  is  at  the  bottom  (no  data  available  Just  imagine  if  each  one  of  those  small   on  Luxembourg  or  Switzerland).  businesses  took  on  one  new  employee  this  year.    That  would  reduce  unemployment  from  about   Similar  trends  hold  true  for  firms  involved  in  12.7  million  people  to  7.9  million—a  38%   research  and  development,  computer  services,  reduction.  Think  what  that  would  do  for   and  even  low-­‐tech  services.  confidence  in  the  future,  our  jobs  report,  the   What  Keeps  Small  Firms  from  Hiring?  mood  of  the  country,  and  our  overall  economic  security.  Let’s  consider  how  to  jump  start  hiring   Various  polls  suggest  that  small  businesses  by  very  small  businesses  of  25  or  fewer   (<25  to  50  employees)  are  not  in  a  hiring  mood.  employees.  First,  consider  some  facts.   Mostly  this  is  about  confidence  in  the  future  to   make  a  profit  from  the  investment  new  Small  Business  today  is  getting  smaller  in  many   employees.    If  you  are  a  small  business,  adding  ways:   one  employee  is  a  big  deal.  If  you  are  a  large  • Online  payroll  services  company,   business,  a  few  more  or  less  employees  are   SurePayroll,  found  that  50  percent  of  the   marginal  costs.       surveyed  small-­‐business  owners  are   "experiencing  increased  revenue  and   growth  in  their  business,"  but  those  same   business  owners  aren’t  hiring.  • A  recent  Kaufman  Foundation  study  found   the  average  new  business  establishment   opened  its  doors  with  about  7.5  employees   in  the  1990’s—compared  to  about  4.9  jobs   per  startup  today.  • Additionally,  the  Kaufman  study  reports   that  the  number  of  new  businesses  hiring   employees  has  contracted  by  more  than  27   percent  since  2006.  So  not  only  are  there                                                                                                                   fewer  employees  per  new  company,  but   1http://www.cepr.net/documents/publications /small-­‐business-­‐2009-­‐08.pdf     4  
  5. 5.  It  cannot  be  just  an  issue  of  “government   care  reforms  in  the  US.  Virtually  every  one  of  regulation,”  as  the  fundamental  regulations   the  countries  with  higher  percentages  of  small  related  to  employees  today  are  about  the  same   business  actually  have  single-­‐payer,  health-­‐care  as  two  decades  ago:  pay  all  the  payroll  taxes,   systems.  don’t  endanger  your  employees,  and  don’t  engage  in  egregious  discrimination  or   The  real  issue  for  small  business  of  new  hires  is  harassment.  These  are  fair  play  rules.       the  fear  of  not  making  return  on  the  investment.   “Maybe  it  won’t  pay  off”.  “Maybe  I  would  do  It  is  also  important  to  note  that  regulations   better  to  save  the  dollars  or  invest  in  governing  small  businesses  are  more  strict  and   marketing.”  Or,  “What  if  I  hire  the  wrong  difficult  in  most  of  the  other  countries  with   person?”  Or,  “What  if  cash  flow  goes  down?”  higher  percentages  of  small  businesses.    It  is  also  questionable  that  the  issue  is  taxation   These  are  not  abstractions  for  us  at  PAXIS  rates,  as  most  of  the  other  countries  have   Institute.  We  are  a  small  business.  actually  higher  marginal  taxes  (fewer   If  the  relative  risk  of  a  new  hire  were  reduced,  deductions),  excluding  VAT  or  GST  compared  to   small  business  owners  would  hire  more  the  United  States.   employees.    How  might  that  happen?    It  is  noteworthy,  too,  that  this  difference  is  not    likely  to  be  because  of  newly  enacted  health       5  
  6. 6. Our  Futures  Fund:  An  American  Families  &  Employment  Impact  Bond      Corporations  are  able  to  invest  their  foreign   which  is  a  specially  constructed  public-­‐earnings  in  U.S.  assets  without  treating   private  partnership.  them  as  “repatriated”  and  subject  to   Here  is  a  broad-­‐brush  idea  to  increase  taxation,  because  the  federal  tax  code,  specifically  Section  956(c)(2),  already   repatriated  funds,  and  improve  allows  U.S.  corporations  to  use  foreign   employment.  funds  to  make  a  wide  range  of  U.S.   A  public  investment  fund  might  be  created,  investments  without  incurring  tax  liability.     called  “Our  Futures”  as  a  Families  and  If  those  U.S.  investments  then  produce   Employment  Impact  Bond.    This  could  be  income,  that  additional  income  may  be   done  in  states  or  nationally  or  both.    The  subject  to  taxation.     talent  to  create  such  Social  Impact  Bonds  Legislation  could  be  introduced  to  waive   clearly  exists  in  the  state  of  Connecticut.     This  public  investment  fund  would  be  the  tax  on  investment  income,  providing  that  investment  was  in  a  qualified  Social   aimed  at  expanding  employment  in  the  4  Impact  Bond  or  Fund  to  improve  jobs  and   million  plus  small  businesses  under  25   employees  in  the  US.      The  fund  would  also  the  wellbeing  of  children  and  families—   6  
  7. 7. be  aimed  at  reduce  mental,  emotional,   • A  study  funded  by  the  Centers  for  behavioral  and  related  physical  illnesses   Disease  Control  and  Prevention  proved  among  children  and  families.   that  Triple  P  can  prevent  multiple   indicators  of  child  maltreatment  for  Local  public  entities  and  local  small   whole  counties,  at  the  cost  of  $15  per  businesses  will  form  an  Our  Futures   child  in  the  county.28  partnership,  and  local  folks  seeking   • Triple  P  can  be  delivered  effectively  via  employment  may  become  members  of  this   mass  media.29-­‐31  effort.    They  will  prepare  a  charter  that  embraces  specific  actions  in  their  settings   • Triple  P  can  be  delivered  via  phone  to  to  become  beneficiary  partners  in  local  or   remote  areas.32  regional  American  Employment  Impact   • Triple  P  averts  or  prevents  serious  Bonds   problems  like  oppositional  defiance  or   conduct  disorders.33  This  investment  fund—The  American   • Triple  P  reduces  parental  depression.34  Families  and  Employment  Impact  Bonds— 35  would  do  several  types  of  investments  in   • Triple  P  improves  marital  and  step-­‐increasing  health  and  wellbeing  for  the   family  relationships.36  population  of  children  and  families  as  well   • Triple  P  reduces  obesity.37  38  as  employment  in  targeted  political  jurisdictions—e.g.,  municipalities,  counties,   Multiple  projects  and  studies  show  that  and  states.   Triple  P  works  well  in  America.  Example  Children  and  Families  Investments:   A  recently  published  cost-­‐savings  estimator   shows  how  many  cases  of  child  The  fund  would  invest  in  two  of  the  most   maltreatment  might  be  saved  in  each  state  highlighted  strategies  in  the  IOM  Report   and  how  much  money  would  be  saved  as  a  with  a  potential  to  rapidly  improve  health   consequence.39    The  estimator  may  be  and  safety  indicators  among  children  and   downloaded  at  families  at  a  population,  public-­‐health  level:   http://paxis.org/triplep/Default.aspx  Triple  P  and  the  Good  Behavior  Game.  These  two  interventions  have  evidence  for   A  video  about  the  study  and  results  may  be  being  population  level  approaches  with   viewed  http://slidesha.re/triplepvideo  cost  effective  outcomes  across  many   Proven  Good  Behavior  Outcomes  problems.   The  Good  Behavior  Game40  is  a  “behavioral  Proven  Triple  P  Outcomes   vaccine”  used  everyday  in  a  classroom,  and  Triple  P  is  a  system  of  parenting  supports   can  be  implemented  in  a  public-­‐health  from  which  parents  can  choose.  Various   model.39  studies  show  that  these  parenting  supports   The  Game  is  used  during  any  instructional  can  be  delivered  by  many  different  types  of   activity,  by  dividing  the  class  into  teams  people  and  via  many  different  media,  all   who  may  work  together  to  earn  simple,  with  proven  effects  via  many  randomized-­‐ brief  activity  rewards  like  a  “giggle  fest.”  control  trials  around  the  world,  including   The  Game  teaches  children  how  to  pay  the  US.  Many  of  those  studies  can  be  seen   attention  voluntarily,  and  ignore  the  at:  http://bit.ly/TRIPLE-­‐P-­‐CITES  .   misbehaviors  of  other  students.  The     7  
  8. 8. children  learn  that  they  can  “better  their   results.  The  Substance  Abuse  and  Mental  world,  and  better  themselves.”   Health  Administration  has  20  sites  using   the  Game,  showing  that  it  is  widely  One  can  view  videos  about  the  province-­‐ replicable  in  America.  wide  launch  of  the  Good  Behavior  Game  (commercially  branded  as  PAX  GBG)  in   Using  economic  data  from  the  Washington  Manitoba  and  an  earlier  pilot  here:   State  Institute  for  Policy  Research  (WSIPR),   it  is  possible  to  estimate  the  impact  of  the  http://bit.ly/ManitobaPAXLaunch   Good  Behavior  Game  if  it  were  provided  to  http://bit.ly/ManitobaPAXGBGPilot   every  first  grader  in  America.    WSIPR   estimates  the  Game  saves  $4,637  for  each  The  Game  has  been  repeatedly  tested  with   student.    Assuming  4,000,000  First  Graders  randomized  studies  with  very  long-­‐term   each  year  in  the  US,  this  saves  $18  billion  follow-­‐up  (20+  years)  after  just  using  the   every  1st  Grade  cohort  by  age  21.    game  in  First  Grade.    A  recent  publication  summarized  many  of  the  key  findings.41    The  table  on  the  next  page  shows  those      Incentivizing  Providers  and  Organizations  to   My  colleagues  and  I  have  demonstrated  Implement  Proven  Practices  for  Population-­‐ that  large  numbers  of  American  providers  Level  Prevention  Results   can  be  incentivized  and  organized  to  To  achieve  the  results  needed  to  “bend   deliver  a  previously  proven  prevention  the  curve”  for  improving  the  condition  of   strategy  and  achieve  cost  effective  change  America’s  children  and  families,  many   for  whole  states,  using  standardized  organizations  must  be  recruited  across   federally  mandated  and  collected  health  the  community  implement  the  same   and  policy  indicators.  strategies—just  like  has  been  pioneered   This  example  can  be  found  at  the  National  when  America  faced  other  epidemics  such   Registry  of  Effective  Programs  and  as  polio  or  other  diseases.     8  
  9. 9. Practices,  see   everyday  tobacco  use  as  measured  by  the  http://bit.ly/rewardandreminder   Centers  for  Disease  Control.  This  strategy  quickly  achieved   We  have  outlined  an  implementation  and  compliance  with  federally  mandated   monitoring  logic  model  for  achieving  policy  requirements,  and  the   population-­‐level,  public  health  outcomes,  implementation  also  significantly  reduce   which  appears  next.any  tobacco  use  in  the  last  30  days  and      Employment  and  Job  Creation  InvestmentsEmployment  Investment  #1:       additional,  monthly  incentive  for  their  work  We  propose  incentives  for  employing   efforts,  and  the  business  would  receive  a  persons  receiving  unemployment   small  placement  incentive.  Something  like  insurance.    Small  businesses  could  “hire”   was  successful  in  New  Zealand,  when  it  the  unemployment  insurance  recipient  of   faced  a  serious  economic  downturn  in  the  their  choice,  and  the  employment  insurance   1980s.  would  continue  for  the  individual.  The  “hire”  would  also  receive  a  significant     9  
  10. 10. Employment  Investment  #2:     along  with  the  boundaries  of  the  funds  In  this  track,  an  existing,  credit  worthy   or  resources  being  managed.  small  businesses  would  submit  a  brief   2. Proportional  costs  and  benefits.  business  plan  to  expand  their  business  for  a   Everyone  is  expected  do  their  fair  share  subsidized  new  hire  who  is  no  longer   and  those  who  go  beyond  the  call  of  eligible  for  unemployment  yet  wish  to  get   duty  are  appropriately  recognized.  employment.    The  small  business  would   3. Consensus  decision-­‐making:  Participants  have  to  commit  to  providing  health   will  work  hard  to  implement  a  insurance  for  the  new  employee,  the  space,   consensus  decision—to  do  what  “we”  in  etc.    The  investment  for  such  an  employee   the  group  want,  not  what  they  want.  In  would  be  for  12  months  to  jumpstart   addition,  the  best  decisions  often  business  expansion.   require  knowledge  of  local   circumstances  that  we  have  and  they  Repayment  of  Investors   lack,  making  consensus  decision-­‐making  As  significant  beneficiaries,  municipal,   doubly  important.  county  and/or  and  state  governments   4. Monitoring:  Since  individuals,  groups  would  have  a  binding  agreement  to   businesses,  or  public  beneficiaries  payback  pro-­‐rata  funds  to  the  Social  Impact   might  try  to  actively  game  the  system,  a  Bond  based  on  designed  criteria  related  to   system  of  monitoring  desired  outcomes  reduced  mental,  emotional,  behavioral,  and   and  transgressions  would  agreed  upon  related  physical  health  outcomes  as  well  as   5. Graduated  sanctions:  The  local  groups  unemployment,  using  economic  modeling.       often  can  be  self-­‐correcting,  but   stronger  sanctions  need  to  be  provided  Also  as  beneficiaries,  contracted  businesses   from  punishments  to  exclusion.  would  agree  to  pay  pro-­‐rata  funds  into  the   6. Fast  and  fair  conflict  resolution:    When  Social  Impact  Fund,  based  on  a  reasonable   conflicts  arise,  they  must  be  resolved  formula  of  impact  on  their  increased   quickly  and  in  a  manner  that  all  parties  business  (if  any)  over  a  specified  time.   consider  fair.  This  typically  involves  a   hearing  in  which  respected  members  of  Finally,  the  hired  person  would  agree  to   the  group,  who  can  be  expected  to  be  make  pro-­‐rata  payments  back  to  the  Impact   impartial,  and  make  an  equitable  Fund  based  on  federally  reported  taxes   decisions.  over  a  period  of  time,  for  W2  wages.   7. Local  autonomy:  Many  smaller  groups  of  Fund  Integrity   beneficiaries  will  be  nested  in  larger   groups.  They  will  need  to  have  some  A  series  of  checks  and  balances  would  be   powers  to  make  local  decisions.  established  for  this  fund,  based  on  the  well   8. Nested  governances:  When  a  group  proven  principles  from  the  Nobel  Prize  in   beneficiaries  is  nested  with  a  larger  Economics  for  Common  Pool  Resources  to   society,  relationships  among  groups  and  Elinor  Ostrum  and  colleagues.  There   higher-­‐level  entities  (such  as  state  and  proven  principles  include:   federal  regulatory  agencies)  must  1. Group  Identity:  all  parties  have  a  strong   reflect  the  same  principles  outlined   sense  of  group  identity  and  know  the   above  for  single  groups.   rights  and  obligations  of  membership,     10  
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