Andrew Leigh and Glenn Withers question why Australia has stopped investing in its future. They identify four reasons and propose policy solutions. This week they look at short-termism and the divided responsibility. Short-termism afflicts both the public and private sector and must be countered by our approach to policy development as well as specific policies relating to superannuation, R&D, investment and Reconciliation. Divided responsibility refers to the interminable buck-passing between federal and state governments which will only be resolved by a back to basics rethink of our system.