The whole point of Complexity Theory is to understand why intricate problems and systems are so difficult to solve, predict or compute. Some years ago, I developed an interest in the theory when I joined the World Future Society (WFS) based in Washington, DC.
In 1993, as executive director of the then Institute of Business (IOB), now the Arthur Lok Jack Global School of Business, I met Manfred Jantzen, an American professor here, who knew a lot about Complexity Theory and complex adaptive systems and through talking with him and reading some of the books and articles he shared with me, I began to learn and understand more about it. The then IOB became one of the first business schools anywhere to introduce complexity, complex adaptive systems and Chaos Theory to teaching about business strategy. More famous schools came to it much later.
Because of my developing interest in complex systems, I also learned about Chaos Theory. The two are deeply related. Chaos Theory focuses on how simple systems can become completely unpredictable. And Complexity Theory focuses on how complex systems adapt, organise and create order. But these two theories meet. The bridge where they meet has been labelled “the edge of chaos” by complexity theorists.
I often think that we here in Trinidad and Tobago are living on the edge of chaos constantly. Sometimes, I mean this in the complexity sense. Other times, I just mean it as confusion!
Caricom is a classic complex adaptive system made up of sovereign “agents” (member states), and they have differing fiscal dependencies, geographical exposures, and foreign policy alignments. Things happening outside can have high impact and one member’s gain does not always translate to gains for everyone else. So, withdrawal of OFAC licences by the US can spoil things for T&T. So can tariffs for one or many. T&T and Venezuela can have cooperation on cross-border gas while Guyana and Venezuela have a standoff over the Essequibo basin. T&T can be outraged about the reappointment of a secretary general, but then everyone commits to regional food security, collective climate financing and shared maritime logistics. At the end of the day, sharp divergences melt to bring all states into equilibrium.
What, therefore, is the takeaway from a Complexity point of view? Conflict in Caricom is not a problem to be eliminated. It is just a good example of a method which prompts sovereign nations to balance individual survival with regional integration and solidarity and to establish a formula of multi-track diplomacy. Top-down mandates had to give way. The economic mutual dependency in the region, even beyond Caricom, is a stabilising force because it is first and foremost a feedback loop. In spite of ideological differences or regional military posturing, it incentivises peaceful accommodation.
T&T’s humanitarian gestures to both Venezuela and Guyana in their time of need make a qualitative and psychological difference that positively impacts the system.
What about the management of the T&T economy? From a complexity standpoint, relying on Dragon, Manatee and Exxon to offset structural deficits is an attempt to treat a non-linear problem with a deterministic gamble. What do I mean? We are gambling on natural gas, which has always been the saviour, and even if we win, we will not have solved the problem of structural deficits. All we are dealing with is solving fiscal liquidity through debt accumulation ($3.7b TT now) and waiting for natural gas to flow. However, in complexity terms, postponing structural reforms while waiting for gas creates latent instability. If Dragon gas encounters political friction or Exxon gas is late, such delays will compound debt service costs and forex starvation.
Let’s take the State of Emergency (SoE). It is inevitable that prolonged rigidity and suppression by the State will prompt crime networks to operate as complex adaptive systems, shifting territories and adapting strategies and operations. Moreover, both systemic stress and citizen strain become heightened. At the household level, anxiety over affordability, crime and the economy has an emergent feedback effect. While we wait for relief from gas flows, high debt does limit spending on public goods; forex shortages limit both imports and diversification; and a prolonged SoE creates friction for small business, impacting livelihoods every day.
How you see a problem, therefore, how you discern them connecting and, what kind of system you see emerging, are all important for solution finding. That is the value of Complexity Theory and the critical and creative thinking that it demands.
