What the world needs now is… efficiency plus resilience

Economist Bernard Lietaer has an interesting paper on handling the current financial crisis. It’s based on the interplay between efficiency and resilience.

http://www.lietaer.com/images/White_Paper_on_Systemic_Bank_Crises_December.pdf

Lietaer’s main point is that in going all out for efficiency, economic managers have failed to pay attention to the importance of resilience, which requires such seemingly ‘inefficient’ features such as redundancy.

He is also concerned with the very idea of a general equilibrium theory in economics, when financial systems are, for him, better seen as being in dynamic disequilibrium.

As Lietaer notes,

“The misclassification of economics as a system in equilibrium is brilliantly explained in chapters 2 and 3 of Beinhocker, Eric The Origin of Wealth: Evolution, Complexity, and the Radical Remaking of Economics (Cambridge, Mass: Harvard Business School Press, 2006)” (Lietaer 2008:15)

Competely independently of this, but on a related topic, the Association of American Geographers has a session at its Annual conference in March entitled:

From Growth to Resilience – Changing Perspectives on Regional Development.


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