a metaphor to describe the process and consequences of excessive government contracting. Examples of modern Hollow State iterations include: China, though often in rural areas as opposed to on a national scale South Africa has been trending toward a Hollow State for years with moves empowering business over people Zimbabwe is an example of current Hollow State. Infrastructure The primary purpose of the hollow state is to function as a multi-organizational structure through which policy is designed and executed. The metaphor "Hollow State" is meant to be understood as a system consisting of units of government separated from their outputs but still linked by negotiation or contract. When nonprofit organizations receive contracts or grants to deliver public goods or services, the delegating agency assumes a sufficient level of capacity to implement the project or deliver the service. However, if the nonprofit community-based organizations are too limited in capacity to carry out their grants or contracts, then a disconnect occurs in the hollow state. One of the primary reasons privatization occurs is because of the severe capacity that limitations force the government to contract for services it does not have the ability to provide. Usually this would involve a private development network supported by a public administration like the Chamber of Commerce and several private businesses. There are 2 types of networks that exist in the hollow state: horizontal and vertical. Horizontal networks consist of 3 types, policy making, resource exchange, and project based, all of which are between governments and non-governmental organizations. Vertical networks are the collaborations that occur between federal, state, and local governments. The purpose of this collaboration is to devise strategy for business retention, expansion, or recruitment. The reason city economics developers reach out to surrounding organizations and become multiple networks is due to the fact economic policy is designed and implemented under ambiguity and uncertainty. As complexities increase, grassroots initiatives become more sought after. Most nonprofit organizations are started with passion and enthusiasm for resolving a particular issue. Many of these are the small grassroots or community-based nonprofits that meet important human service needs for a specific geographic area or population. Furthermore, the need for more nongovernmental actors to deliver local services hence more actors equates to more hollowing of the state. In fact publicly funded social services are an increasingly important component of social provision spending and accounft for approximately one-fifth to today's welfare state