How should government manage big risks – pandemics to financial shocks?

Geoff Mulgan

Another Geoff Mulgan post, but a very different one from his reflections on the imaginary crisis, which spanned continents, philosophies and centuries. This one is a rigorously pragmatic account of how governments should manage risk effectively, using the UK as a case study and drawing on Geoff’s own experience of working in government.

There is much to reflect on in the post, but one of the points which comes through very clearly is the need to accept apparent short-term inefficiency, in the form of many kinds of excess capacity, in order to maximise overall long-term efficiency and effectiveness. There is of course an important debate to be had about how much of what kinds of capacity is worth paying for, but if that debate takes place in a political environment in which short-term cost efficiency is valued above all else, it is not likely to end in the optimal place.

Governments can’t avoid being the insurer of last resort for high impact risks. It matter to all of us that the premiums are kept paid up.

Preparing for risks is costly. It takes people and resources away from immediate priorities. But ultimately protecting people from risk is the heart of what government is for, and good bureaucracy manages risk systematically. Indeed, times like this remind us why boring, competent, reliable and forward-looking bureaucracy is so vital to helping us live our lives freely.  They worry so that we don’t have to.

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