Humans are not born resilient -- we learn, adapt, and improve upon our resilience. The same is true for organizations, systems, and societies. But what makes some people or organizations more resilient than others?
The lingering global crisis is forcing us to rethink the objectives and the tools of social policy. Past meltdowns in Asia, Eastern Europe and Latin-America provide us with some good hints on what to expect and how to respond.
"In this connected world, we are all in the same boat. If part of the boat has a hole in it you cannot say afloat." The words of the chief executive of Hong Kong SAR, Donald Tsang, spoken at the APEC CEO Summit, could be said to embody the preoccupations of APEC as a whole.
Governments have five tools to adjust to capital flows: monetary policy, fiscal policy, foreign exchange intervention, prudential tools, and capital controls. The challenge is to find, for each case, the right combination.
The world economy nearly failed and a global effort by governments and central banks has pulled the system back from the proverbial brink. That's why only a global solution going forward will save the day.