The Princeton Lecture is part of the FT Weekend Oxford Literary Festival, the Oxford Martin School is the Festival Ideas Partner

Speaker: Professor Ian Goldin, Director, Oxford Martin School and Author

Globalisation has brought us vast benefits including growth in incomes, education, innovation and connectivity. Professor Ian Goldin, director of the Oxford Martin School, argues that it also has the potential to destabilise our societies. In The Butterfly Defect: How globalisation creates systemic risks, and what to do about it, to be published in May, he and co-author Mike Mariathasan, Assistant Professor of Finance at the University of Vienna, argue that the recent financial crisis is an example of the risks that the world will face in the coming decades. The risks spread across supply chains, pandemics, infrastructure, ecology, climate change, economics and politics. Unless these risks are addressed, says Goldin, they could lead to greater protectionism, xenophobia, nationalism and to deglobalisation, rising conflict and slower growth.

Please note this is a ticketed event and the tickets for this event are £11 and available from the Festival website: http://www.wegottickets.com/oxfordliteraryfestival/event/259624

About the Book

Global hyperconnectivity and increased system integration have led to vast benefits, including worldwide growth in incomes, education, innovation, and technology. But rapid globalization has also created concerns because the repercussions of local events now cascade over national borders and the fallout of financial meltdowns and environmental disasters affects everyone. The Butterfly Defect addresses the widening gap between systemic risks and their effective management. It shows how the new dynamics of turbo-charged globalization has the potential and power to destabilize our societies. Drawing on the latest insights from a wide variety of disciplines, Ian Goldin and Mike Mariathasan provide practical guidance for how governments, businesses, and individuals can better manage risk in our contemporary world.

Goldin and Mariathasan assert that the current complexities of globalization will not be sustainable as surprises become more frequent and have widespread impacts. The recent financial crisis exemplifies the new form of systemic risk that will characterize the coming decades, and the authors provide the first framework for understanding how such risk will function in the twenty-first century. Goldin and Mariathasan demonstrate that systemic risk issues are now endemic everywhere in supply chains, pandemics, infrastructure, ecology and climate change, economics, and politics. Unless we are better able to address these concerns, they will lead to greater protectionism, xenophobia, nationalism, and, inevitably, deglobalization, rising conflict, and slower growth.

The Butterfly Defect shows that mitigating uncertainty and systemic risk in an interconnected world is an essential task for our future.