The Crisis of the Social-Democratic State

Luiz Carlos Bresser-Pereira

in Democracy and Public Management Reform

Published in print August 2004 | ISBN: 9780199261185
Published online November 2004 | e-ISBN: 9780191601507 | DOI:
 The Crisis of the Social-Democratic State

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The size of the state increased continuously since late nineteenth century, if we measure it by expenditures in relation to GDP. Growth leads cyclically to crisis. State intervention or regulation takes place according to a cyclical pattern. The social-democratic state was successful in promoting economic growth and social justice in the developed countries between the 1930s and the 1970s. In this last decade, however, three different, though related, historical processes–the neo-liberal ideological wave, globalization, and the fiscal crisis of the state–gained momentum and led the social-democratic state into crisis, aiding the transition to the social-liberal state. The fiscal crisis evolved from a distorted and excessive growth of the state; the other two factors were exogenous to the state organization.

Keywords: cycles of the state; fiscal crisis; globalization; neo-liberal wave; state growth

Chapter.  5057 words. 

Subjects: Politics

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