State Reform as a Result of Impacts of the Economic Crisis

The present article deals with the impact of the current economic and financial crisis on the organization of the State. It starts from the presupposition, that every economic crisis ends up having political consequences and creates the conditions for a deep reorganization of the State. The question is how to identify those consequences, considering how indispensable this institution became in coping with its early effects, while at the same time recognizing its limits in an increasingly interconnected and interdependent world. This crisis has therefore strengthened the State, even though, paradoxically, it has also diminished the autonomy of politics. In many places we have a bigger State, more present in the life of society, but a less powerful one. This is the contradiction of our historical times, which it will be followed up as analytically as possible. In order to do this, the document will focus on the two main dimensions of State action, the external -the State as an international actor-, and the internal one. Regarding the first, it has been detected that the State has rehabilitated itself as a fundamental institution in the international arena, mainly through its key protagonist role -at least for the powerful ones- in the G-20, and the declining position of traditional western powers, which contrasts with the parallel expansion of powers such as China, India and Brazil. The point here is how to evaluate this issue within the framework of effective global governance. Is the State now the solution for this problem or an obstacle for a better political action within a globalised world? Regarding internal governance, the crisis has uncovered certain protectionist temptations and, in general, efforts directed at increasing the means for a more effective governance. This contrasts with a parallel pressure to cut budget deficits and achieve fiscal stability. Within the European political space, it is perceived a weakening of the project of the EU while at the same time a strengthening of the different member states. This coincides with other social and ideological trends, which are briefly analyzed in this paper, all of which witness a changed political atmosphere. In sum, the crisis has fostered a more defensive social and political attitude, which demands "more State" in order to face the new problems. Paradoxically, and considering recent events such as the increase in the power of financial markets, only a resolute strategy of co-operation beyond the nation-State will be capable of solving most of the pressing problems that haunt the majority of world societies.