Much has been said lately about social contracts — or “social compacts” in the parlance of the president’s state of the nation address.

Social contracts embody state-society relations broadly, and rather abstractly. The reality is that the ways in which states and societies interact matter hugely for societal outcomes. This can be witnessed from the experience of Denmark and Singapore, but also from Syria, Afghanistan and Myanmar. As the notion of a contract implies, it is very much about mutuality. The national budget is a concrete manifestation of this mutual give-and-take between state and society...

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