Is There a Management Crisis?

I am from Ohio, here is a snapshot of life here. Governments at all levels are struggling, business is not far behind. The state lost 240,000 jobs since 2000, what is the problem?
The one thing no one every points out is that it could be the lack of management and leadership competencies. It is always someone or something elses fault, it couldn't be that those tasked with managing maybe just don't have the right skills could it?
I attended a mayor candidate forum last fall before the election for the Mayor of Cleveland. My one question was; what is your experience leading an organization of several thousand employees? Or, in other words what is the largest organization you have led or managed? The answers for I think all of the candidates was under 100 employees. If that is the case then how in the world would they know how to manage a much larger organization?
Business is much the same but from a different perspective. How many business managers have managed under today's market reality? Globalization, rapid technology changes, health care cost crisis, fewer barriers to new market entrants, China, India and the list goes on…
I think the first thing all of us who consider ourselves leaders in this area need to admit is that we need personal and individual development in our leadership and managerial capabilities. Will it happen, I am skeptical. What are your thoughts?