The key risk facing business – uncertain, volatile economic growth – is now integrally linked with the challenge to governments, mainly in the 'West', of stabilising their economies by dealing with fiscal deficits and scaling back government debt whilst avoiding punitive increases in tax.
How should governments respond? In our view, governments must rethink the role of the state in the 21st century, develop policies to achieve 'good growth' and tackle their deficits by doing things very differently, as well as doing fewer (and different) things. Governments subject to less immediate budgetary pressure will also benefit from taking a fresh look at future proofing their activities in order to reduce the risk of facing these types of problems in years to come.
Accompanying material: Rethinking government - Interviews
Accompanying material: Rethinking government - Executive summary