The postman and the local post office have been part of the landscape for more than a century. Even in the world's remotest areas, national postal operators have guaranteed—in return for an almost total monopoly—an affordable service for all.

But in the 1990s, the service on which Western economies in particular have grown to depend has become embattled, and threatens to turn into a liability. Complaints are rife—the post is variously held to be "unfriendly," slow, unreliable, and costly—and technology is eroding the market. Electronic mail has slowed the steady rise in business mail over the years, and the Internet will take yet more of this bread-and-butter business. To make matters worse, express operators and low-cost distribution networks have begun to capture a share of unprotected business, while regulators may end the post's monopoly in other areas. Hungry new competitors are baying at the door.

Some postal operators have responded pragmatically. They understand that their business is bound to shrink, and are therefore focusing on core activities such as business mail or consumer parcel deliveries. They have started to reduce costs, and are lobbying to raise public concern about the possible loss of the local postman and post office....