Governments today are caught in a painful squeeze. On one side are internal pressures such as the aging population, rising citizen expectations and a rapidly growing bill from entitlement spending. On the other side are external pressures such as global competition and the threat of terrorism. Today's leading governments are responding by rethinking the way they operate. They are offering more choices, channels and personalization for public services. They are focusing on outcomes and accountability. And they are collaborating with organizations in the commercial and non-profit sector for added flexibility.

This report examines some of the key issues facing municipalities, including:

• Aging populations
• Exploding entitlements
• Great expectations
• High security
• Full disclosure
• Non-stop globalization

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