Understanding Institutional Inertia and Complexity

The video discusses the negative impact of institutional inertia, where resources are misallocated due to sticking to traditional methods. It introduces the principle of subsidiarity, advocating for decision-making at the most local level. The speaker emphasizes the need to understand and forecast complex issues like population growth and resource stress to ensure progress and stability.

What is the main issue with institutional inertia according to the speaker?

• It encourages innovation.

• It promotes efficient decision-making.

• It reduces the need for capital.

• It leads to misallocation of resources.

What principle does the speaker advocate for to counteract institutional inertia?

• Centralization

• Globalization

• Subsidiarity

• Privatization

What does subsidiarity aim to achieve in decision-making?

• Global decision-making

• Empowerment at the most local level

• Centralized control

• Increased bureaucracy

Why does the speaker emphasize the need to understand complex systems?

• To ensure political stability

• To prevent progress from faltering

• To reduce climate change

• To increase population growth

Which of the following is NOT mentioned as a factor affecting political stability?

• Technological advancement

• Climate change

• Geopolitics

• Resource stress