"This book discusses the changing role of government finance in the 20th century. It documents the enormous increase in government spending in that century across all industrialized countries. However, the authors find that the growth of government spending over the past 35 years has not brought about much additional social and economic welfare. This suggests that public spending in industrialized countries could be much smaller than it is without sacrificing important policy objectives. For this to happen, governments need to refocus their role on setting the rules of the game. The study provides options 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, a period when globalization may require and people may want "leaner" but not "meaner" states."--BOOK JACKET.