The Butterfly Defect: How Globalization Creates Systemic Risks, and What to Do about it

Ian Goldin and Mike Mariathasan argue that systemic risk is endemic to globalization that cannot be removed. “It is a process to be managed rather than a problem to be solved” (p. xiii). But rather than retreat from globalization and forfeit its considerable benefits, the authors argue that systemic risk requires global governance reforms to manage global systemic risks with greater resilience and fairness. They explore case studies of global systemic risks in finance, supply chains, infrastructure, ecology, health, and unequal social systems.