Part I.: 1. Introduction; 2. Early views on the economic role of the state; 3. Laissez faire and the industrial revolution; 4. The Beginning of economic reforms; 5. On resource allocation, optimality and equity; 6. On beginning of changes in the activities of governments; 7. Toward larger government roles; Part II.: 8. The Growing importance of equity and safety nets; 9. The creation of welfare states; 10. The conservative counterrevolution; 11. Different approaches to social protection; 12. The economy in the 1970s; Part III.: 13. A return to 'laissez faire'?; 14. The policies of market fundamentalism: tax reforms, globalization and deregulation; 15. The growing importance of monetary policy; 16. Equity aspects of market fundamentalism; 17. Other aspects of market fundamentalism; 18. Cultural aspects of fundamentalism; 19. Growing conflict between efficiency and equity; 20. Intellectual property and venture capitalists; 21. The world in the 21st century; 22. Impact of new economic developments on market and democracy; 23. More on economy and culture in the present time; 24. Summing up and general conclusions.