Systemic Thinking for Policy Making
The Potential of Systems Analysis for Addressing Global Policy Challenges in the 21st Century
We live in a period of profound systemic change, and as in similar periods in the past, there is bound to be considerable instability and uncertainty before the new society and economy take shape. We have to identify actions that will shape change for the better, and help to build resilience to the inevitable shocks inherent in, and generated by, the complex system of systems constituted by the economy, society and the environment. These challenges require updating the way policies are devised and implemented, and developing more realistic tools and techniques to design those policies on the basis of appropriate data. In Systemic Thinking for Policy Making world experts from the OECD and International Institute for Applied Systems Analysis (IIASA) pool their expertise and experience to propose new approaches to analysing the interconnected trends and issues shaping today’s and tomorrow’s world. The authors argue that to tackle planetary emergencies linked to the environment, the economy and socio-political systems, we have to understand their systemic properties, such as tipping points, interconnectedness and resilience. They give the reader a precise introduction to the tools and techniques needed to do so, and offer hope that we can overcome the challenges the world is facing.
New Paradigms and Approaches for Economic Growth and Well-being
It is argued that economics needs to change radically since the socio‑economic system is changing and self-organising itself in a way which is difficult, if not impossible, to reconcile with existing theory. In an increasingly complex and interdependent system, the aggregate phenomena that emerge do so as a reflection of the interaction between all the participants. The system is constantly evolving and is neither in, nor converging towards, a steady state. Thus, forecasting cannot be based on extrapolations from the past or analysis of the behaviour of an isolated individual. To position economic growth and analysis in a wider systems perspective requires both innovation of economic tools, methodology and policy, and the repositioning of the field of economics in relation to other critical fields such as the environment, society, and politics at the analytical and rhetorical levels and through the integration of policies in practice.
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