The butterfly defect: how globalization creates systemic risks, and what to do about it
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, 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.