In this speech, then President of the European Commission Jean-Claude Junker uses the term polycrisis (albeit only once) to refer to the combined migration, financial, and Brexit crises facing Europe. He proposed: “It is not so long ago that our Union was in danger of sleepwalking from one crisis to another without waking up… Since […]
The authors clarify the systemic risk concept using the Global Financial Crisis as an example. They explain how global systems involve micro and macro-dynamics interacting with each other and their environment, leading to stable periods and multiple possible future scenarios. Some of these scenarios may pose catastrophic risks, so that agents must confront systemic risk.
Things are Different Today: The Challenge of Global Systemic Risks Read More »
European Commission President Jean-Claude Juncker uses the term polycrisis to describe Europe’s governance challenges amidst the Greek debt crisis, Russia’s annexation of Crimea, the surge of Syrian refugees into Europe, and the pending Brexit vote. These problems “have not only arrived at the same time. They also feed each other, creating a sense of doubt
The authors argue that the world constitutes a tightly coupled, global complex system that endogenously generates systemic risks and vulnerabilities as it grows more complex. After discussing complexity, risk, and networks as key elements of their framework, they provide case studies of global systemic risk in trade, finance, infrastructure, climate change, and public health. The
The Emergence of Global Systemic Risk Read More »
The authors argue we are increasingly witnessing a new form global crises they characterize as “synchronous failure.” This form of crisis “is more biophysical in origin, more inter-systemic in manifestation, more global in scope, and more rapid in development” (5). The deep cause of synchronous failure are increases in energy throughput, heightened global connectivity, and
Synchronous Failure: The Emerging Causal Architecture of Global Crisis Read More »
Mark Swilling analyzes economic crises from both a global and a more regional (global south/South African) perspective, examining sociological and technological changes from the post-WWII era into the future green economy. He notes that “a growing body of popular and academic literature has turned to long-wave theory to contextualise the crisis and predict the system
Economic Crisis, Long Waves and the Sustainability Transition: An African Perspective Read More »
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
The Butterfly Defect: How Globalization Creates Systemic Risks, and What to Do about it Read More »
The authors argue that the world faces an increasing concatenation of crisis in time and space due to “the increased strength of global vs. local drivers of change, so that changes become increasingly synchronized”, and dense global connectivity, which enables crises to propagate and sometimes sees risk management efforts in one region to become crisis
Are we Entering an Era of Concatenated Global Crises? Read More »
Writing in the immediate aftermath of the global financial crisis, Barry K. Gills argues that the world is actually in “a multidimensional set of simultaneous and interacting crises on a global scale” that he terms a “triple conjuncture.” It involves: A capitalist crisis of over-accumulation that includes the externalities of neoliberalism. A world system crisis
Going South: Capitalist Crisis, Systemic Crisis, Civilisational Crisis Read More »
George G. Kaufman and Kenneth E. Scott provide one of the most often cited definitions of systemic risk as “the risk or probability of breakdowns in an entire system, as opposed to breakdowns in individual parts or components, and is evidenced by co-movements (correlations) among most or all parts” (p. 371). They explain how systemic
What Is Systemic Risk, and Do Bank Regulators Retard or Contribute to It? Read More »
