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.
Strategies to Govern Systemic Risks
Strategies to govern systemic risk are reviewed and the potential of systems analysis to address these challenges is assessed. OECD and IIASA’s approaches are described. A fundamental challenge to governing systemic risk is understanding the system as a complex network of individual and institutional actors with different and often conflicting interests, values and worldviews. Superimposed on this governance network are the potential risk events with ill-defined chains or networks of interrelated consequences and impacts. The importance of applying a systems approach to both the system to be governed and the governance system is emphasised. The OECD’s ‘whole of society’ approach for managing risk could incorporate IIASA’s suggestions for establishing learning loops to reframe or enable transformative changes and focus attention on the critical nodes that are key to ensuring resilience of economies and societies.
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