When Marx prophesized the withering away of the state, I doubt he could have imagined the vacuum would be filled by the private sector. Yet as governments have recoiled from their traditional activist role, the private sector has assumed ever more responsibility, not only for economic prosperity but also for “the social good.” McDonald’s is now one of the world’s main providers of playground space. Coca-Cola has emerged among the largest benefactors of scholarships for Hispanics in the U.S. Business figures like Anita Roddick have taken on iconic status as a model of modern-day virtue, by merging the interests of her Body Shop chain with the welfare of Indians in the Amazon rain forest.

In fact, over the past two decades, we have witnessed the systematic blurring of the traditional roles of the public and private sectors. Today, governments are primarily consumed with facilitating initiatives needed to spawn more private-sector productivity, competitiveness and expansion. In the process, the public becomes convinced of government’s irrelevance as it seems to be little more than the handmaiden of business.
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