This book discusses the changing role of government finance in the
twentieth century. It documents the enormous increase in government
spending throughout the 1900s across all industrialized countries.
However, the authors find that the growth of the welfare state over
the past thirty-five years has not brought about much additional
social and economic welfare. This suggests that public spending in
industrialized countries could be much smaller than today without
sacrificing important policy objectives. For this to happen,
governments need to refocus their role on setting the 'rules of the
game', and the study provides a blueprint for institutional and
expenditure policy reform. After a detailed account of reform
experiences in several countries and the public debate regarding
government reform, the study closes with an outlook on the future
role of the state, which is crucial in that globalization may
require and people want much 'leaner' but not 'meaner' states.
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