Components of Resilience

So, what makes an economy resilient to economic shocks?  Writers suggest that the resilience of an economy is dependent upon:

  • Inherent, or innate, capabilities (such as the structure of an economy, or its autonomous response functions)
  • Adaptive capabilities (the sum of purposeful decisions made by agents whether they are individuals, corporations or other organisations including public sector actors)

The unique mix of these capabilities within each region and their interaction with the wider economic system will determine the resilience of the regional economy.