Policymakers face a number of profound developments in the world economy whose significance is certain to increase over coming years, such as demographic changes and an ageing population, climate change and the scarcity of natural resources, rapid technological change, globalisation, the growing divergence in the wealth of developed and developing countries, and geopolitical aspects such as global terrorism. This book examines the long-term fiscal planning implications of these factors for managing public sector budgets and highlights the fact that governments need to enact policy changes now in order to take account of the long term challenges involved.