The Changing Role of the State in the Economy: A Historical Perspective

IMF Working Papers, September 1, 1997

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This paper discusses the role of the state from a historical perspective.
It outlines how that role has changed over the past hundred years and discusses the forces that have promoted the changes.
In the period between 1913 and 1980, there was a large increase in public spending in industrial countries and a considerable expansion in the role of the government in the economy in all countries.
The paper also outlines the intellectual developments that, starting in the 1970s, have brought about a reaction to the large role that the state has come to play in the economy.

Large increase in public spending in industrial countries between 1913 and 1980.
Considerable expansion in the role of the government in the economy in all countries during the same period.

Intellectual shifts beginning in the 1970s are identified as producing a reaction to the large role of the state in the economy.

Subject: Economic sectors, Expenditure, Income, Labor, National accounts, Public enterprises, Public sector
Keywords: country, Eastern Europe, Europe, government, government activism, government bureaucrat, government employee, government policy, government provision, government regulation, government role, Income, policy, Public enterprises, Public sector, role of the State, Southeast Asia, state intervention, WP

Source: The Changing Role of the State in the Economy: A Historical Perspective, Vito Tanzi, IMF Working Papers, September 1, 1997.

The Changing Role of the State in the Economy: A Historical Perspective - WP/97/114
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