Decoding Complexity [video]: The Organizing Principles Behind our Economy
Tuesday, 4 December, 2012 Leave a comment
More ‘inconvenient truths’ for the financial sector to attempt to sweep under the proverbial carpet!
But hiding the truth changes nothing and the problem will only get worse. It may be easy to ignore the facts when they fit under the carpet but NOT when they take on the scale of an elephant in the room!
It sounds paradoxical, but today it appears that we understand more about the universe than our society. We have created systems that have outgrown our capacity to genuinely understand and control them. Just think about the ongoing financial crisis. But recent advancements in the study of complex systems are able to offer new insights into the workings of many real-world systems.
While our traditional ways of thinking and problem solving have been strongly shaped by the success of the reductionist approach taken in science, the new science of complexity focuses on interconnection and co-dependence. It is a paradigmatic shift away from analysing the nature of “things” to uncovering and understanding the network of interdependence lying behind and influencing the “things” themselves.
As a prominent example, the first global economic network analysis is discussed, offering a new perspective on some relevant issues. For instance, how unequal and unstable is our economy really? And is this the result of a few puppet masters orchestrating the developments behind the scenes?