Socio-economic Resilience: What is it and how can it be enhanced?
SOCIO-ECONOMIC RESILIENCE: WHAT IS IT, AND HOW CAN IT BE ENHANCED?
The Covid 19 pandemic illustrates the tight interconnectedness of our social and economic systems. As communities strive towards a more optimistic future, one core question has emerged: how can the recovery be supported, while at the same time safeguarding our social and economic systems against future stresses that will inevitably occur? Stabilisation measures are very necessary, but they can become permanent and may even obscure the need for deeper and more complex underlying changes. This may leave economies more, rather than less, vulnerable and with less capacity to respond to future shocks.
This inter-disciplinary panel discusses how to build and manage more resilient systems: one that places economics in relation to other critical fields such as the environment, engineering, science and politics. Fundamental uncertainty has to be embraced if we are to truly build capacity to anticipate, absorb, recover from, and adapt to a wide array of systemic threats. Some uncertainties can be managed by building pre-emptive buffers, monetary and fiscal policies and government support programmes. Deeper uncertainties require recognising that the social system underpins our economic system and must have the institutional capacity to respond accordingly.