ABSTRACT
This chapter considers economies as complex adaptive systems, reviews some of the historical events that helped to shape contemporary economic theories and structures, then considers which economic model offers the best prospect of being able to generate and maintain the kind of flexibility referred to in the discussion of a systems model of sustainability on p 38. Our preferred model is an appropriately regulated market system, with a role for the state in correcting market failures and in strategic planning and investment. There are a number of different market systems in the world today, some of which are currently closer in certain key respects to our preferred model, and which we believe might therefore be better placed to make a transition to more sustainable modes of operation. Should environmental constraints become more pressing, we would anticipate that the countries that are better placed in this regard should be able to develop or increase a relative economic advantage in a transition to more sustainable practices.
