Long before governments around the world faced the current economic crisis, they wrestled with many difficult, complex challenges—health care, social security, education, national security, crime, and critical infrastructure. The demands on public services were growing, along with the burden on taxpayers, and there was no long-term certainty about how to pay the bill. Several countries ran large budget deficits, raising already high levels of public debt.

In recent months, the pressures on governments have multiplied further as a result of a potent cocktail of interlocking emergencies—the financial and economic crises, major shifts in energy prices, climate change, food supplies, and natural resources. The combined effects threaten economic and social breakdown as consumers suffer and unemployment and poverty rise. Even the viability of capitalism has been questioned.