ABSTRACT
Government services are coming under strain in the West and will continue to do so as the financial resources required to run social democrat programmes starts to dry up as cash is taken by ageing populations and tax takes reduce in response to competition from the South and East, from globalisation, and from the Internet. In the South and East governments will have different problems: how to have an effective legal system, controlling growth, encouraging social justice on the back of tax returns which will be insufficient because there is no traditional understanding of the payment for, or the reasons for the payment of, tax. Capital may continue to be tight in the North and West for some time as the consequences of the 2007 crash continue to be felt across all countries in Europe and North America. Manufacturing's move to the South and East from the North and West will slow as costs in the South and East rise.
