War and Fragility: A Turning Point in Global Economic Dominance

The concept of antifragility, which was introduced by Nassim Taleb, argues that some systems benefit from stress while others lose value or utility when stressed. Fragility is not weakness but conservatism, rendering the system efficient if nothing changes and dreadfully inefficient if the world changes.

The dominant ones are often irrevocably fragile because their domination provides them with a rent, and they seek to protect it. Fragility is not good or bad, as it depends on the circumstances. Life has found its model of diversifying survival paths and risks to ensure its own long-term resilience.

The article discusses the case of the insurance industry, which is a dominant sector but fragile by construction.

The insurer collects premiums and hopes that no disruption or accident will occur to avoid having to pay back during the year. However, if a major earthquake occurs, many of these companies would go bankrupt. Governments’ economic sanctions also cause countries to become isolated, making them fragile.

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