The global financial crisis has created a new vogue for state intervention
- One of the avowed aims is to combat inequality of income and wealth
- But big government creates its own inequalities of privileged access, or cronyism
GIS “Dossiers” aim to give our subscribers a quick overview of key topics, regions or conflicts based on a selection of our experts’ reports since 2011. This survey is devoted to accumulating pressures in developed countries, especially in Europe, to centralize economic and political decision-making – often in the name of security. While consolidation of power seems to be unavoidable as a response to global networks of trade, finance, communications and information, going down the path of centralization exacts an extremely high economic and political price.
The global financial crisis of 2008-2009 ushered in a period of slow growth and fiscal stress in the euro area. Inevitably, these economic hardships bred a political backlash, which took the form not only of populist movements against the mainstream parties, but also a revival of interventionist arguments for more direct government involvement in the economy.