Governments must recognize that their institutions, bureaucracies and policy frameworks designed for the 19th and 20th centuries are no longer meeting the needs of the 21st. The digital era represents an exponential shift in the pace of social, political and economic transformation. How governments respond to the radical changes brought on by the sharing economy and other digital age innovations will be a litmus test for the continued relevance of governing institutions, as well as their legitimacy and authority in a networked era where no single actor has an undisputed monopoly on public trust. Governments must rise to the challenge or become increasingly irrelevant to their citizens.
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