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www.iiasa.ac.at summer 2018 â—Ľ options 11
Q What are the most pressing economic challenges facing OECD
member countries?
A One of the main economic challenges that OECD member countries are
facing today, is how to consolidate the economic recovery process, while
making it inclusive, resilient, and sustainable–both in terms of environmental
issues and making the recovery last. Perhaps the most pressing challenge for
our generation is how to achieve productivity and inclusivity simultaneously.
We need to make these aspects work together to avoid the increasing
backlash that will occur if governments only focus on economic growth,
which typically leaves many people behind. Similarly, if governments only
focus on redistribution, there will not be enough impetus for economies
to grow. Finding approaches that achieve both productivity and inclusivity
is key to ensuring our sustainable future.
Q Why do countries need to incorporate systems thinking when setting
their economic policies?
A The global economy now has an unprecedented number of links. For
example, we live in a world where workers in Kenya lose their jobs when a
volcano erupts in Iceland, because planes cannot fly the flowers they grow
to the Netherlands for distribution to other countries. Therefore, I would
argue that unless we adopt a systems approach, unless we employ systems
thinking, we will fail to understand the complex world we are living in.
Q How can countries adopt a systems approach to policymaking?
A At the OECD, we promote evidence-based decision making, but
of course there is no evidence about the future. We also know from
experience that simply extrapolating from the past can be misguided.
In the 1970s for instance, Ken Olsen, the President of Digital Equipment Corporation, famously stated that he could see no reason why
anybody would ever want a computer in their home. A systems
or complexity approach helps us to avoid such errors. A complex
world is nonlinear–anticipation is not extrapolation. We are dealing
with a world characterized by nonlinearities, tipping points, and
asymmetrical relations where a small cause can have a big effect.
To be able to tackle these issues, governments must change the
ways in which they make and implement policies. An acceptance
of complexity shifts governments from a top-down, siloed culture,
to an enabling culture where evidence, experimentation, and
modeling help to inform and develop stakeholder engagement
and buy-in.
Q What does the new OECD-IIASA strategic partnership
entail, and what do you hope it will achieve?
A The OECD and IIASA have been working together for many
years, but it is now time to strengthen this partnership as both
organizations can benefit from the others’ expertise. The economy
is not just about growth. It does not exist in a bubble isolated
from the hopes, stories, desires, and frustrations of the people it
is supposed to serve. The economy is political. It is social, historical,
and cultural. That is why we need systems thinking to understand
the issues, anticipate the consequences of our decisions, and
build resilience. Together we can shape a brighter future, for our
economies, our societies, and all of our citizens. â—Ľ
Further info www.iiasa.ac.at/events/OECD-18
Systems thinking
is central to
addressing global
challenges
In March, Secretary-General Angel
GurrĂa of the Organization for
Economic Cooperation and
Development (OECD) visited IIASA
to agree a strategic partnership
between the two institutions.
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book options, Volume summer 2018"
options
Volume summer 2018
- Title
- options
- Volume
- summer 2018
- Location
- Laxenburg
- Date
- 2018
- Language
- English
- License
- CC BY-NC 4.0
- Size
- 21.0 x 29.7 cm
- Pages
- 28
- Categories
- Zeitschriften Options Magazine