List of Boxes, Illustrations, and Tables ix
Preface xiii
Acknowledgments xvii
Introduction 1
1. Globalization and Risk in the Twenty-First Century 9
Globalization and Integration 10
Global Connectivity and Complex Systems 13
Globalization and the Changing Nature of Risk 23
Globalization: A Double-Edged Sword 30
The Way Forward 33
2. The Financial Sector with Co-Pierre Georg and Tiffany Vogel 36
The Financial Crisis of 2007/2008 37
Financial Globalization in the Twenty-First Century 39
Complexity and Systemic Risk 54
Global Financial Governance 60
Lessons for the Financial Sector 64
3. Supply Chain Risks 70
Global Supply Chains 72
Supply Chain Risk 79
From Management of Risk to Risk Management 90
Lessons for Supply Chain Management 95
4. Infrastructure Risks 100
Transportation 101
Energy 105
The Internet 112
Lessons for Global Infrastructure 120
5. Ecological Risks 123
The Nature of Environmental Risk 124
Risks from the Environment 129
Risks to the Environment 133
Can Globalization Be Good for the Environment? 138
The Export of Pollution 139
Lessons for Managing Environmental Risk 141
6. Pandemics and Health Risks 144
Pandemic Risk 145
Globalization and Health Risks 147
Case Studies 150
Noninfectious Diseases 159
Global Cooperation and Disease Control 160
Lessons from Pandemic Management 164
7. Inequality and Social Risks 168
Global Integration and Inequality 169
The Channels of Inequality 180
The Risks of Inequality 181
Lessons for Challenging Global Inequalities 195
8. Managing Systemic Risk 198
Moving Forward, Not Backward 200
Confronting a New Challenge? 202
The Need to Reform Global Governance 206
Why Reform Has Been So Sluggish 209
Lessons for Global Policy Reform 212
Managing Systemic Risk 219
Notes 221
References 257
Index 285