Responding to Complexity in Socio-­Economic Systems: How to Build a Smart and Resilient Society?

Abstract

The world is changing at an ever-increasing pace. And it has changed in a much more fundamental way than one would think, primarily because it has become more connected and interdependent than in our entire history. Every new product, every new invention can be combined with those that existed before, thereby creating an explosion of complexity: structural complexity, dynamic complexity, functional complexity, and algorithmic complexity. How to respond to this challenge?

Keywords: complex dynamical systems, smart society, digital society, modularization, distributed control, self-organization, Internet of Things, externalities, multi-dimensional finance

JEL Classification: A00