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Democracy and Public Management ReformBuilding the Republican State$
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Luiz Carlos Bresser-Pereira

Print publication date: 2004

Print ISBN-13: 9780199261185

Published to Oxford Scholarship Online: November 2004

DOI: 10.1093/0199261180.001.0001

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The Crisis of the Social-Democratic State

The Crisis of the Social-Democratic State

(p.67) 6 The Crisis of the Social-Democratic State
Democracy and Public Management Reform

Luiz Carlos Bresser-Pereira

Oxford University Press

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

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