SOURCE: Milken Institute

January 22, 2008 12:00 ET

No Child Left Behind Discourages Investment in Neediest Students, Experts Report in the Milken Institute Review

LOS ANGELES, CA--(Marketwire - January 22, 2008) - The Bush Administration's No Child Left Behind law was designed to force public schools to meet higher standards, or lose federal aid. But research by Diane Schanzenbach and colleagues at the University of Chicago shows that the law undermines efforts to bring many students up to snuff.

"The system is grounded on testing that rewards schools based on the fraction of their students that pass," she writes. "As a result, teachers have a perverse incentive to focus their efforts on students who are very close to the pass-fail threshold at the expense of their worst-performing students."

Also in this issue of the Milken Institute's quarterly journal:

Robert Looney of the Naval Postgraduate School in Monterey, recounts the rise and fall of Thailand's colorful prime minister Thaksin Shinawatra -- and with him, his effort to give the country's poor a stake in export-led economic growth.

Jeffrey Frankel, former economic advisor to President Clinton, offers a primer on the latest threat to the stability of the international capital flows that power globalization.

Barry Eichengreen analyzes Europe's efforts to regain economic leadership after decades of stop-and-go growth and chronically high unemployment.

Greg Sidek and Hal Singer of the Criterion Economics consulting firm examine the Federal Communications Commission's disturbing inclination to micromanage mergers in the telecom industry and its increasing preference for conduct-based merger remedies as opposed to structural remedies or divestiture.

Margaret Anderson, Greg Simon and Melissa Stevens of FasterCures, the Milken Institute's medical solutions innovation center, report on the creation of a new service designed to point philanthropists in the right directions.

Jim Leitzel of the University of Chicago explains how "self-exclusion" offers a novel way of containing addiction problems without undermining personal freedom.

The Milken Institute Review is sent quarterly to the world's leading business and financial executives, senior policy makers and journalists. Its editor is Peter Passell, former economics columnist for The New York Times. All of the articles are available online at

About the Milken Institute: The Milken Institute is a nonprofit, independent economic think tank whose mission is to improve the lives and economic conditions of diverse populations around the world. (

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