State substitution.

'Weak states have been further weakened by an inability to deal with the political and social turmoil and rebellion resulting from globalization. Often economic liberalization and deregulation have been accompanied by a reduction in the role of the state - in both the economy and society, in the developing world (whilst in industrialized countries over the past two decades of globalization, a solid core of governmental activity has remained untouched - and untouchable such as the National Health Service in the United Kingdom). In developing countries where governments were often weak to begin with, `rolling back the state' in order to enhance global competitiveness has left a vacuum of political authority. This has been clearly demonstrated around the Southern and Eastern Mediterranean where after state subsidies and basic services were cut back during the 1980s, Islamic groups and other non-state actors quickly stepped in to substitute for the government: providing health care, soup kitchens, education and other social services. The substitution, however, had deeper implications for the state since many non-state actors did not just provide social goods, rather they mounted a direct challenge to the authority and legitimacy of the state.'

- The Political Economy of Globalization (By Ngaire Woods)