Like the non-governmental aid organizations of today, Victorian missionaries believed they knew what was best for Africa. - Niall Ferguson

The financial crisis is really a relatively small historic phenomenon, which has accelerated this huge shift, which ends half a millennium of Western ascendancy.

A defining feature of history is that there are many more black swans — not to mention what Didier Sornette calls “dragon kings,” events so large in scale that they lie beyond even a power-law distribution — than a normally distributed world would lead us to expect. All such events lie in the realm of uncertainty, not of calculable risk. Moreover, the world we have built has, over time, become an increasingly complex system prone to all kinds of random behavior, nonlinear relationships and “fat-tailed” distributions. A disaster such as a pandemic is not a single, discrete event. It invariably leads to other forms of disaster — economic, social and political. There can be, and often are, cascades or chain reactions of disaster. The more networked the world becomes, the more we see this.

I disbelieve in both cycles of history and ends of history. History is the interaction of many complex systems. There are certain long-run processes (notably exponential gains in productivity through the development of technology and the “suprasecular” decline of nominal and real interest rates as a result of capital accumulation) punctuated by, well, one disaster after another. These disasters are either randomly distributed or follow a power law (i.e. there are lots of little earthquakes, pandemics or wars, but a few cataclysmic ones). At unpredictable intervals, the global system is tipped into a major transition by a disturbance that can be quite small, if not quite as small as Edward Lorenz’s famous butterfly in the Amazon setting off a tornado in Texas. Russia’s war in Ukraine — destructive certainly, but still a relatively small conflict by 20th-century standards — can be enough to trigger a “conflict avalanche.”