What Role for the State?

What will states look like in 50 years if greater interconnectedness continues?

Increased economic integration is not certain. Previous peaks of globalization ended in protectionism and war. And over the last few years, we have witnessed political backlash against different forms of globalization, such as Britain’s exit from the European Union and the return to protectionism in several economies. One school of thought is that deeper integration of the world economy would require either dismantling the nation state or weakening democracy. But we have also seen democratic persistence and states' capacity to respond to global crises. There is margin for choice. Research has revealed a menu of policies that leave fewer people behind in global competition. Perhaps democracy can help to make globalization more equitable and sustainable. This requires countervailing powers that give voice and political representation to people adversely affected by economic transformations and thus prevent a winner-take-all globalization.

What will be the redistribution of responsibilities between the public and private sector?

The balance of responsibility between the public and the private sector is in permanent renegotiation and has subsequently transformed over the past decades. The 20th century saw the consolidation of the welfare state in many countries, but also its questioning due to shortcomings and the perceived greater efficiency of the private sector as a provider of certain goods and services. Recent crises and systemic shocks have called renewed attention to the role of the state in an age of greater insecurity, including the return of industrial policies. Our societies are still finding the adequate balance between the role and size of both the public and private sector, but at the same time they are beginning to understand than rather than competing or cancelling each other, they need to work hand in hand drawing on their respective strengths, competitive advantages and synergies to be exploited. PPPs will be on the rise. As our world changes and new challenges emerge, our citizens seek more and more practical solutions to their everyday problems that can only be brought about if the public and the private sector work together in the definition and implementation of societal needs.

How might emerging technologies reshape the relationship between the state and citizens?

There is nothing automatic about the political impact of technology. Technological change is not a new phenomenon, and the consequences of technological progress are not set in stone. There are many ways to use technological innovation to improve production and make people better off without undermining – and perhaps even strengthening – political freedom and equality, two cornerstones of democracy. The direction of technological change depends on our choices, which are structured by political institutions. Will we mainly use technology to make workers more productive and create new tasks or to replace humans with machines? Will we employ technology to enable broader and deeper citizen participation in collective decision making? To tap into and connect local knowledge? If governments are keen to use digital tools for surveillance, will we let them?