Unraveling Complexity in Policy System, Economy, Business, and Organizations

So far, the world has been dealing with certainty, orderliness, and stability in the social and economic systemsSystem. The systemSystem in question—social or economic—was taken as a single homogeneousHomogeneous structureStructures. These have defined the thoughts about the method of inquiry and policy and economic theoriesEconomic theories. In contrast, social and economic systemsSystem consisting of real-world problems are complexComplex. A systemSystem is called complexComplex when it comprises multiple interconnectedInterconnected elementsElements, parts, or subsystemsSubsystems, and their interactionsInteractions and feedback loopsFeedback loops determine the behavior of the systemSystem or economyEconomy. It is the interactionInteractions between elementsElements that matters. Studying the policy systemPolicy system or economyEconomy as a single structureStructures may not provide a reasoned approach. Though challenging, understanding complexityComplexity can add an advantage by realizing the hidden potential of interacting elementsElements. For over a century, scholarly research about complexityComplexity has brought to the fore concepts that were not realized before. The research in complexity economicsComplexity economics at Santa Fe Institute has made a significant contribution since the 1980s. The deeper understanding has added characteristicsCharacteristics, such as the interactiveInteractive nature of elementsElements, emergenceEmergence, adaptationAdaptation, evolutionEvolution, and path dependencyPath dependency, to examine a complex systemComplex system. Understanding them assumes importance in exploring new approaches and strategies for better policymakingPolicymaking, managing the economyEconomy, and meeting the challenges of the twenty-first centuryTwenty-first Century challenges.