Everyone around the table - and everyone in political Washington - knows the kind of deal that would avert the fiscal cliff: some tax rises, some tax reform, some spending cuts, and some reform to the giant social programmes to trim future spending.

BBC: Fiscal cliff: Simpson and Bowles gloomy on deal chances

Although governments have increased spending on social programmes, they have done little to improve their effectiveness.

ECONOMIST: Peru: Suffer the children | The

There will be fewer public works, but more spending on social programmes and security.

ECONOMIST: New rum in old bottles

Chile will then be able to maintain its social programmes by spending what it has saved from its copper windfall.

ECONOMIST: A fight between democrats and populists

Ballooning prison budgets have squeezed out spending on education and other social programmes in states throughout the country.

ECONOMIST: Prisoners

Instead, the House passed a bill that failed to cut subsidies significantly and bought off potential opposition from urban Democrats with spending on a range of social and environmental programmes.

ECONOMIST: The farm bill

Mr Zedillo's government is proud of having spent a bigger slice of its budget on social programmes than any other, and of spending it more wisely.

ECONOMIST: The beginning of the end of the longest-ruling party | The

The 1999 budget reduces social and environmental spending, including health, education, sanitation, water supply, land reform and welfare programmes.

ECONOMIST: Poor Brazil