The world will need smart government more than ever in 2010. The state is becoming bigger, thanks in large part to the emergency measures taken to avert economic collapse. But the resources to support the Leviathan are limited, with tax revenues shrinking and public debt ballooning. This is raising a question with increasing urgency: can governments learn to do more with less? Can they, in other words, become smarter?
Their expansion has been dramatic. Governments intervened to prop up capitalist Goliaths, such as Citigroup and General Motors, and to boost falling demand. The American Recovery and Reinvestment Act represents 5.4% of GDP, 70% of which remains to be spent. Fourteen years after Bill Clinton announced that the “era of big government is over”, big government is back with a vengeance.
The world will need smart government more than ever in 2010. The state is becoming bigger, thanks in large part to the emergency measures taken to avert economic collapse. But the resources to support the Leviathan are limited, with tax revenues shrinking and public debt ballooning. This is raising a question with increasing urgency: can governments learn to do more with less? Can they, in other words, become smarter?
Their expansion has been dramatic. Governments intervened to prop up capitalist Goliaths, such as Citigroup and General Motors, and to boost falling demand. The American Recovery and Reinvestment Act represents 5.4% of GDP, 70% of which remains to be spent. Fourteen years after Bill Clinton announced that the “era of big government is over”, big government is back with a vengeance.
From. Leaders: Smart States. The Economist. The World In 2010
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