Governing Economy

Harrison, Neil E. and Geyer, Robert (2021) Governing Economy. In: Governing Complexity in the 21st Century :. Routledge, London, pp. 124-148. ISBN 9780367276263

Abstract

This chapter considers governance of dynamic economies and their complex entanglements with social and ecological systems. It begins by briefly summarising the defects of conventional economics and then compares its ability to comprehend dynamic systems with that of an economics founded in complexity thinking. It illustrates this with a discussion of the ways that social and economic systems interact, especially through technological innovation. While complex systems usually cannot be steered to a specific goal, it is relevant to question the social purpose of economies. The chapter then suggests a social goal as a principle which economic governance can use to guide economic policy and how this may be best achieved by devolving governance to lower scales. A short conclusion summarises the governance of economic complexity.