Governments today operate in a high-stakes environment marked by profound demographic, environmental and digital shifts compounded by relatively low levels of trust. Economic issues are at the forefront of citizens’ minds, yet governments must respond in the face of a challenging fiscal landscape: in 2023, average fiscal deficits in OECD countries reached 4.6% of GDP, a sharp rise from 2.9% in the years preceding the COVID-19 pandemic.
Navigating these issues will require governments to focus on three fronts: enhancing individuals’ sense of dignity in their interaction with governments, restoring individual and collective sense of security in the face of rapid societal and economic changes, and improving the efficiency and effectiveness of government to boost productivity, while restoring public finances. At the intersection of these three fronts lies the long-term governance of the green transition.