Roll back of state

Question 2- 15/08/2011
"State backlash is an evident proof that roll back of state is not an all encomposing solution to state's legitimacy crisis. discuss"


I would answer this question in the following format:

1. Why was there a Legitimacy crisis for the state - Inefficiency, Corruption, red tapism, inordinate delays, poor service delivery, nepotism due to high discretion...

2. Roll back of state - State reduced its public sector functions, Market took on more roles with State facilitating, disinvestment, privatization....

3. State Backlash - Market failure evident in Recession of 2008, general failure of market to cater to backward regions, deprived sections of society etc mandated necessary interventions by the state.

Would love to know the shortcomings in the approach.