"Costly though it has been, the financial crisis has merely brought forward a fiscal reckoning. In most of the rich world ageing populations have been driving up the cost of public health care and state pensions. Emerging countries that are becoming richer, such as China and India, are now wondering what sort of state they need to meet their citizens’ demands for better schools, health care and infrastructure. Indeed, the fiery argument about capitalism prompted by the credit crunch has obscured a nascent, and much broader, debate about the nature of government. The future of the state is likely to dominate politics for the next decade at least. How can government be made more efficient? What should it do and not do? To whom should it answer? Ms Ma is one voice in this, but so are the anti-tax tea-party activists in America, French workers protesting against later retirement and British parents trying to set up independent schools with state money. This special report’s central argument is that Leviathan can be made far more efficient. The state has woefully lagged behind the private sector. Catching up is not just a case of nuts-and-bolts productivity improvements but of liberal principle: too often an institution that, at least in a democracy, was supposed to be the people’s servant has become their master. But nobody should expect that to be easy. The vested interests opposing change are huge: the state’s growth has been encouraged by the right as well as the left, by favour-seeking companies as well as public-sector unions, by voters as well as bureaucrats. Indeed, given the pressures for ever larger government, many reformers feel they will have to work hard just to keep it at its present size." Read more. "Taming Leviathan" John Micklethwait The Economist, March 17, 2011. H/T to Peter Boettke.