ABSTRACT
Governments have long pursued policies that determined the degree to which markets have been permitted to operate. Business people know very well that market forces do not treat kindly companies that fail to satisfy their customers. Politicians also are learning that global capital markets treat harshly governments whose policies fail to enhance the living standards of their people. Good business practices and good government policies both are essential to sustained prosperity. But there is an important division of labor. During the twentieth century there was a massive increase in the intrusion of governments into economic affairs, but it is becoming increasingly clear that this wave has crested; the role of the state in economic affairs has begun to diminish. The crumbling of the barriers that have corralled the movement of goods, labor, and capital tells us that the role of government in economic affairs continues to ebb.
