Mastering Risk

Communicating the Truth about State Capacity


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There is a limit, irrespective of the evens occurring, where the state capacity is breached and no assistance is possible. That occurs at a different point for various services, but all have their capacity limit. The state is hesitant to delineate this point, communicate it to the residents and advise them as to when they'll be without services. 

Preparedness is the totality of cognitive efforts and physical activities undertaken in times of peace and calm in order to be capable of successfully navigating exogenous shocks without external assistance. 

In modern democracies, a social contract exists between the government and the population. There are a number of tasks or services that cannot be completed by the individual, hence the collective transfer that responsibility to an elected body, supported by a public service, in exchange for funding - taxation. A simple idea, which over the decades has expanded to cover a number of services that the population could do, but has chosen to transfer that responsibility to the government. 

The social contract does ask for the service to be sufficient. It needs to meet the requirements of the population and its modernization and growth is the responsibility of the government, when necessary supported by additional taxation. This is the basic relationship between the governed and the politician. The reality is that this is executed by a public service, not the politician, but they are in theory the guardians sent to oversee the social contract's successful and amenable execution.

We chat about capacity limits and what happens when they're breached and the population is without government assistance, irrespective of the circumstances.

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Mastering RiskBy Dr. Jeff Donaldson, CD


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