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Transforming American Governance

AOL Government published an article written by ECI board member, Alan Balutis. Transforming America Governance discusses trends that are transforming the government to reconfigure itself to serve the needs of its citizens in the twenty-first century. The article also discusses the challenges faced by the government to make this transformation. Through the adoption of these changes, the government might deliver services by three different approaches to policy implementation: reinvented government, government by network, and government by market.The following is an excerpt of the article:

Our nation faces a large — and growing — long-term fiscal imbalance driven by an aging population, which will dramatically increase health care and retirement costs. And while it is just one of many challenges, it is central to a question of whether the nation’s government will adapt new approaches to the management of government itself.

“The government is on an unstable path,” says the recently released Federal Government’s Financial Health. This report, prepared by the U.S. Department of the Treasury and Office of Management and Budget (with the assistance of the Government Accountability Office), puts the challenge in stark terms:

“This … is the year in which the first of the approximately 80 million baby boomers – those born between 1946 and 1964 – become eligible to draw Social Security benefits. Scheduled Social Security and Medicare benefits together with other federal programs projected long-term costs are much greater than the resources (revenue and borrowings) available to pay for them. Unless action is taken to bring program costs in line with available resources, the coming surge of entitlement spending will end in a fiscal train wreck that will have an adverse effect on the U.S. economy and on virtually every American.”

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