Media Coverage Sep 2014
Globalisation has created substantial benefits, but global governance must evolve to meet the challenges posed by new systemic risks
Professor Ian Goldin, Director of the Oxford Martin School and Oxford Professor of Globalization and Development writes on globalization following his recent book The Butterfly Defect
The 2007-08 financial crisis highlighted the potential for negative economic developments to spread quickly across the world’s interconnected economies. Ian Goldin writes that this constituted the first example of a truly systemic crisis, where risks that pooled in a relatively small market in the American Midwest (the sub-prime mortgage market) cascaded to all corners of the global economy. He argues that new insights are required to restructure globalization in a manner which allows us to harvest the benefits of closer integration, while also reducing harmful and dangerous spill-overs.