[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:01.00,0:00:03.24,Default,,0000,0000,0000,,"When the crisis came,
Dialogue: 0,0:00:03.26,0:00:07.95,Default,,0000,0000,0000,,the serious limitations\Nof existing economic and financial models
Dialogue: 0,0:00:07.97,0:00:09.87,Default,,0000,0000,0000,,immediately became apparent."
Dialogue: 0,0:00:12.20,0:00:16.35,Default,,0000,0000,0000,,"There is also a strong belief,\Nwhich I share,
Dialogue: 0,0:00:16.37,0:00:21.34,Default,,0000,0000,0000,,that bad or oversimplistic\Nand overconfident economics
Dialogue: 0,0:00:21.36,0:00:23.27,Default,,0000,0000,0000,,helped create the crisis."
Dialogue: 0,0:00:23.29,0:00:25.85,Default,,0000,0000,0000,,Now, you've probably all heard\Nof similar criticism
Dialogue: 0,0:00:25.87,0:00:28.87,Default,,0000,0000,0000,,coming from people\Nwho are skeptical of capitalism.
Dialogue: 0,0:00:29.55,0:00:30.72,Default,,0000,0000,0000,,But this is different.
Dialogue: 0,0:00:30.74,0:00:34.42,Default,,0000,0000,0000,,This is coming from the heart of finance.
Dialogue: 0,0:00:34.44,0:00:37.34,Default,,0000,0000,0000,,The first quote\Nis from Jean-Claude Trichet
Dialogue: 0,0:00:37.37,0:00:40.23,Default,,0000,0000,0000,,when he was governor\Nof the European Central Bank.
Dialogue: 0,0:00:41.18,0:00:45.92,Default,,0000,0000,0000,,The second quote is from the head\Nof the UK Financial Services Authority.
Dialogue: 0,0:00:47.02,0:00:48.56,Default,,0000,0000,0000,,Are these people implying
Dialogue: 0,0:00:48.59,0:00:51.33,Default,,0000,0000,0000,,that we don't understand\Nthe economic systems
Dialogue: 0,0:00:51.35,0:00:53.69,Default,,0000,0000,0000,,that drive our modern societies?
Dialogue: 0,0:00:54.52,0:00:55.67,Default,,0000,0000,0000,,It gets worse.
Dialogue: 0,0:00:56.44,0:00:58.63,Default,,0000,0000,0000,,"We spend billions of dollars
Dialogue: 0,0:00:58.66,0:01:02.53,Default,,0000,0000,0000,,trying to understand\Nthe origins of the universe,
Dialogue: 0,0:01:02.64,0:01:08.51,Default,,0000,0000,0000,,while we still don't understand\Nthe conditions for a stable society,
Dialogue: 0,0:01:08.54,0:01:12.19,Default,,0000,0000,0000,,a functioning economy, or peace."
Dialogue: 0,0:01:14.18,0:01:16.95,Default,,0000,0000,0000,,What's happening here?\NHow can this be possible?
Dialogue: 0,0:01:16.97,0:01:20.22,Default,,0000,0000,0000,,Do we really understand more\Nabout the fabric of reality
Dialogue: 0,0:01:20.24,0:01:24.20,Default,,0000,0000,0000,,than we do about the fabric\Nwhich emerges from our human interactions?
Dialogue: 0,0:01:24.73,0:01:26.53,Default,,0000,0000,0000,,Unfortunately, the answer is yes.
Dialogue: 0,0:01:27.26,0:01:29.97,Default,,0000,0000,0000,,But there's an intriguing solution
Dialogue: 0,0:01:29.100,0:01:34.24,Default,,0000,0000,0000,,which is coming from what is known\Nas the science of complexity.
Dialogue: 0,0:01:35.78,0:01:38.47,Default,,0000,0000,0000,,To explain what this means\Nand what this thing is,
Dialogue: 0,0:01:38.50,0:01:41.11,Default,,0000,0000,0000,,please let me quickly take\Na couple of steps back.
Dialogue: 0,0:01:41.97,0:01:44.19,Default,,0000,0000,0000,,I ended up in physics by accident.
Dialogue: 0,0:01:44.21,0:01:47.33,Default,,0000,0000,0000,,It was a random encounter\Nwhen I was young,
Dialogue: 0,0:01:47.35,0:01:51.94,Default,,0000,0000,0000,,and since then, I've often wondered\Nabout the amazing success of physics
Dialogue: 0,0:01:51.97,0:01:54.87,Default,,0000,0000,0000,,in describing the reality\Nwe wake up in every day.
Dialogue: 0,0:01:56.14,0:01:58.88,Default,,0000,0000,0000,,In a nutshell, you can think\Nof physics as follows.
Dialogue: 0,0:01:58.90,0:02:01.91,Default,,0000,0000,0000,,So you take a chunk of reality\Nyou want to understand
Dialogue: 0,0:02:02.52,0:02:05.68,Default,,0000,0000,0000,,and you translate it into mathematics.
Dialogue: 0,0:02:06.15,0:02:08.12,Default,,0000,0000,0000,,You encode it into equations.
Dialogue: 0,0:02:09.14,0:02:11.54,Default,,0000,0000,0000,,Then, predictions can be made and tested.
Dialogue: 0,0:02:13.12,0:02:15.61,Default,,0000,0000,0000,,We're actually\Nreally lucky that this works,
Dialogue: 0,0:02:15.64,0:02:18.52,Default,,0000,0000,0000,,because no one really knows\Nwhy the thoughts in our heads
Dialogue: 0,0:02:18.55,0:02:22.36,Default,,0000,0000,0000,,should actually relate to the fundamental\Nworkings of the universe.
Dialogue: 0,0:02:24.28,0:02:27.15,Default,,0000,0000,0000,,Despite the success,\Nphysics has its limits.
Dialogue: 0,0:02:27.69,0:02:30.74,Default,,0000,0000,0000,,As Dirk Helbing pointed out\Nin the last quote,
Dialogue: 0,0:02:30.76,0:02:35.62,Default,,0000,0000,0000,,we don't really understand the complexity\Nthat relates to us, that surrounds us.
Dialogue: 0,0:02:36.60,0:02:40.70,Default,,0000,0000,0000,,This paradox is what got me interested\Nin complex systems.
Dialogue: 0,0:02:40.73,0:02:42.60,Default,,0000,0000,0000,,So these are systems which are made up
Dialogue: 0,0:02:42.63,0:02:46.09,Default,,0000,0000,0000,,of many interconnected\Nor interacting parts:
Dialogue: 0,0:02:46.11,0:02:48.92,Default,,0000,0000,0000,,swarms of birds or fish,
Dialogue: 0,0:02:48.95,0:02:53.50,Default,,0000,0000,0000,,ant colonies, ecosystems,\Nbrains, financial markets.
Dialogue: 0,0:02:53.52,0:02:55.27,Default,,0000,0000,0000,,These are just a few examples.
Dialogue: 0,0:02:57.69,0:03:02.91,Default,,0000,0000,0000,,Interestingly, complex systems\Nare very hard to map
Dialogue: 0,0:03:02.93,0:03:04.93,Default,,0000,0000,0000,,into mathematical equations,
Dialogue: 0,0:03:04.95,0:03:08.59,Default,,0000,0000,0000,,so the usual physics approach\Ndoesn't really work here.
Dialogue: 0,0:03:09.28,0:03:11.45,Default,,0000,0000,0000,,So what do we know about complex systems?
Dialogue: 0,0:03:11.48,0:03:17.51,Default,,0000,0000,0000,,Well, it turns out that what looks\Nlike complex behavior from the outside
Dialogue: 0,0:03:17.53,0:03:21.24,Default,,0000,0000,0000,,is actually the result\Nof a few simple rules of interaction.
Dialogue: 0,0:03:22.100,0:03:26.84,Default,,0000,0000,0000,,This means you can forget\Nabout the equations
Dialogue: 0,0:03:26.86,0:03:29.58,Default,,0000,0000,0000,,and just start to understand the system
Dialogue: 0,0:03:29.61,0:03:31.33,Default,,0000,0000,0000,,by looking at the interactions,
Dialogue: 0,0:03:31.35,0:03:33.72,Default,,0000,0000,0000,,so you can actually forget\Nabout the equations
Dialogue: 0,0:03:33.75,0:03:36.30,Default,,0000,0000,0000,,and you just start to look\Nat the interactions.
Dialogue: 0,0:03:36.32,0:03:39.66,Default,,0000,0000,0000,,And it gets even better,\Nbecause most complex systems
Dialogue: 0,0:03:39.68,0:03:42.16,Default,,0000,0000,0000,,have this amazing property\Ncalled emergence.
Dialogue: 0,0:03:42.70,0:03:46.89,Default,,0000,0000,0000,,So this means that the system as a whole\Nsuddenly starts to show a behavior
Dialogue: 0,0:03:46.91,0:03:49.78,Default,,0000,0000,0000,,which cannot be understood or predicted
Dialogue: 0,0:03:49.81,0:03:52.36,Default,,0000,0000,0000,,by looking at the components\Nof the system.
Dialogue: 0,0:03:52.39,0:03:55.69,Default,,0000,0000,0000,,So the whole is literally\Nmore than the sum of its parts.
Dialogue: 0,0:03:56.66,0:03:57.93,Default,,0000,0000,0000,,And all of this also means
Dialogue: 0,0:03:57.96,0:04:02.82,Default,,0000,0000,0000,,that you can forget about\Nthe individual parts of the system,
Dialogue: 0,0:04:02.84,0:04:04.17,Default,,0000,0000,0000,,how complex they are.
Dialogue: 0,0:04:04.19,0:04:09.18,Default,,0000,0000,0000,,So if it's a cell or a termite or a bird,
Dialogue: 0,0:04:09.20,0:04:11.44,Default,,0000,0000,0000,,you just focus on the rules\Nof interaction.
Dialogue: 0,0:04:13.95,0:04:19.62,Default,,0000,0000,0000,,As a result, networks are ideal\Nrepresentations of complex systems.
Dialogue: 0,0:04:21.10,0:04:25.62,Default,,0000,0000,0000,,The nodes in the network\Nare the system's components,
Dialogue: 0,0:04:26.85,0:04:29.26,Default,,0000,0000,0000,,and the links are given\Nby the interactions.
Dialogue: 0,0:04:30.61,0:04:32.89,Default,,0000,0000,0000,,So what equations are for physics,
Dialogue: 0,0:04:32.92,0:04:36.40,Default,,0000,0000,0000,,complex networks are for the study\Nof complex systems.
Dialogue: 0,0:04:37.66,0:04:40.87,Default,,0000,0000,0000,,This approach has been\Nvery successfully applied
Dialogue: 0,0:04:40.90,0:04:44.49,Default,,0000,0000,0000,,to many complex systems\Nin physics, biology,
Dialogue: 0,0:04:44.52,0:04:47.24,Default,,0000,0000,0000,,computer science, the social sciences,
Dialogue: 0,0:04:47.26,0:04:48.52,Default,,0000,0000,0000,,but what about economics?
Dialogue: 0,0:04:49.56,0:04:51.36,Default,,0000,0000,0000,,Where are economic networks?
Dialogue: 0,0:04:52.11,0:04:55.72,Default,,0000,0000,0000,,This is a surprising\Nand prominent gap in the literature.
Dialogue: 0,0:04:56.98,0:05:02.81,Default,,0000,0000,0000,,The study we published last year, called\N"The Network of Global Corporate Control,"
Dialogue: 0,0:05:02.84,0:05:07.47,Default,,0000,0000,0000,,was the first extensive analysis\Nof economic networks.
Dialogue: 0,0:05:08.65,0:05:11.22,Default,,0000,0000,0000,,The study went viral on the Internet
Dialogue: 0,0:05:11.24,0:05:14.63,Default,,0000,0000,0000,,and it attracted a lot of attention\Nfrom the international media.
Dialogue: 0,0:05:16.25,0:05:20.46,Default,,0000,0000,0000,,This is quite remarkable, because, again,\Nwhy did no one look at this before?
Dialogue: 0,0:05:20.49,0:05:23.55,Default,,0000,0000,0000,,Similar data has been\Naround for quite some time.
Dialogue: 0,0:05:23.57,0:05:26.75,Default,,0000,0000,0000,,What we looked at in detail\Nwas ownership networks.
Dialogue: 0,0:05:29.07,0:05:34.72,Default,,0000,0000,0000,,So here the nodes are companies,\Npeople, governments, foundations, etc.
Dialogue: 0,0:05:36.12,0:05:39.01,Default,,0000,0000,0000,,And the links represent\Nthe shareholding relations,
Dialogue: 0,0:05:39.03,0:05:44.20,Default,,0000,0000,0000,,so shareholder A has x percent\Nof the shares in company B.
Dialogue: 0,0:05:44.22,0:05:48.40,Default,,0000,0000,0000,,And we also assign a value to the company\Ngiven by the operating revenue.
Dialogue: 0,0:05:49.78,0:05:54.32,Default,,0000,0000,0000,,So ownership networks reveal the patterns\Nof shareholding relations.
Dialogue: 0,0:05:56.04,0:06:00.17,Default,,0000,0000,0000,,In this little example,\Nyou can see a few financial institutions
Dialogue: 0,0:06:00.19,0:06:02.52,Default,,0000,0000,0000,,with some of the many links highlighted.
Dialogue: 0,0:06:03.84,0:06:06.69,Default,,0000,0000,0000,,Now, you may think that no one\Nlooked at this before
Dialogue: 0,0:06:06.71,0:06:11.20,Default,,0000,0000,0000,,because ownership networks\Nare really, really boring to study.
Dialogue: 0,0:06:11.94,0:06:16.01,Default,,0000,0000,0000,,Well, as ownership is related to control,
Dialogue: 0,0:06:16.03,0:06:17.56,Default,,0000,0000,0000,,as I shall explain later,
Dialogue: 0,0:06:17.59,0:06:19.00,Default,,0000,0000,0000,,looking at ownership networks
Dialogue: 0,0:06:19.03,0:06:21.71,Default,,0000,0000,0000,,actually can give you\Nanswers to questions like,
Dialogue: 0,0:06:21.73,0:06:23.18,Default,,0000,0000,0000,,who are the key players?
Dialogue: 0,0:06:23.20,0:06:25.53,Default,,0000,0000,0000,,How are they organized?\NAre they isolated?
Dialogue: 0,0:06:25.55,0:06:27.20,Default,,0000,0000,0000,,Are they interconnected?
Dialogue: 0,0:06:27.22,0:06:29.95,Default,,0000,0000,0000,,And what is the overall\Ndistribution of control?
Dialogue: 0,0:06:31.15,0:06:34.39,Default,,0000,0000,0000,,In other words, who controls the world?
Dialogue: 0,0:06:34.42,0:06:36.76,Default,,0000,0000,0000,,I think this is an interesting question.
Dialogue: 0,0:06:36.78,0:06:39.76,Default,,0000,0000,0000,,And it has implications for systemic risk.
Dialogue: 0,0:06:41.35,0:06:45.57,Default,,0000,0000,0000,,This is a measure of how vulnerable\Na system is overall.
Dialogue: 0,0:06:46.86,0:06:50.53,Default,,0000,0000,0000,,A high degree of interconnectivity\Ncan be bad for stability,
Dialogue: 0,0:06:51.52,0:06:56.25,Default,,0000,0000,0000,,because then the stress can spread\Nthrough the system like an epidemic.
Dialogue: 0,0:06:58.33,0:07:00.86,Default,,0000,0000,0000,,Scientists have sometimes\Ncriticized economists
Dialogue: 0,0:07:00.89,0:07:05.74,Default,,0000,0000,0000,,who believe ideas and concepts\Nare more important than empirical data,
Dialogue: 0,0:07:06.42,0:07:09.11,Default,,0000,0000,0000,,because a foundational\Nguideline in science is:
Dialogue: 0,0:07:09.96,0:07:12.59,Default,,0000,0000,0000,,Let the data speak. OK. Let's do that.
Dialogue: 0,0:07:12.62,0:07:18.85,Default,,0000,0000,0000,,So we started with a database containing\N13 million ownership relations from 2007.
Dialogue: 0,0:07:19.58,0:07:22.87,Default,,0000,0000,0000,,This is a lot of data,\Nand because we wanted to find out
Dialogue: 0,0:07:22.89,0:07:25.00,Default,,0000,0000,0000,,"who rules the world,"
Dialogue: 0,0:07:25.02,0:07:28.43,Default,,0000,0000,0000,,we decided to focus\Non transnational corporations,
Dialogue: 0,0:07:28.45,0:07:29.78,Default,,0000,0000,0000,,or "TNCs," for short.
Dialogue: 0,0:07:29.80,0:07:33.37,Default,,0000,0000,0000,,These are companies that operate\Nin more than one country,
Dialogue: 0,0:07:33.40,0:07:35.24,Default,,0000,0000,0000,,and we found 43,000.
Dialogue: 0,0:07:37.15,0:07:40.11,Default,,0000,0000,0000,,In the next step, we built\Nthe network around these companies,
Dialogue: 0,0:07:40.13,0:07:42.49,Default,,0000,0000,0000,,so we took all the TNCs' shareholders,
Dialogue: 0,0:07:42.51,0:07:44.47,Default,,0000,0000,0000,,and the shareholders' shareholders, etc.,
Dialogue: 0,0:07:44.50,0:07:47.35,Default,,0000,0000,0000,,all the way upstream,\Nand we did the same downstream,
Dialogue: 0,0:07:47.37,0:07:51.50,Default,,0000,0000,0000,,and ended up with a network\Ncontaining 600,000 nodes
Dialogue: 0,0:07:51.52,0:07:52.82,Default,,0000,0000,0000,,and one million links.
Dialogue: 0,0:07:53.31,0:07:55.80,Default,,0000,0000,0000,,This is the TNC network which we analyzed.
Dialogue: 0,0:07:57.25,0:07:59.36,Default,,0000,0000,0000,,And it turns out to be\Nstructured as follows.
Dialogue: 0,0:07:59.38,0:08:01.91,Default,,0000,0000,0000,,So you have a periphery and a center
Dialogue: 0,0:08:01.94,0:08:06.39,Default,,0000,0000,0000,,which contains about 75 percent\Nof all the players,
Dialogue: 0,0:08:06.94,0:08:10.99,Default,,0000,0000,0000,,and in the center,\Nthere's this tiny but dominant core
Dialogue: 0,0:08:11.01,0:08:14.15,Default,,0000,0000,0000,,which is made up of highly\Ninterconnected companies.
Dialogue: 0,0:08:15.12,0:08:17.38,Default,,0000,0000,0000,,To give you a better picture,
Dialogue: 0,0:08:17.41,0:08:19.05,Default,,0000,0000,0000,,think about a metropolitan area.
Dialogue: 0,0:08:19.07,0:08:21.08,Default,,0000,0000,0000,,So you have the suburbs and the periphery,
Dialogue: 0,0:08:21.10,0:08:23.93,Default,,0000,0000,0000,,you have a center,\Nlike a financial district,
Dialogue: 0,0:08:23.96,0:08:25.68,Default,,0000,0000,0000,,then the core will be something like
Dialogue: 0,0:08:25.71,0:08:28.28,Default,,0000,0000,0000,,the tallest high-rise building\Nin the center.
Dialogue: 0,0:08:29.73,0:08:33.19,Default,,0000,0000,0000,,And we already see signs\Nof organization going on here.
Dialogue: 0,0:08:34.35,0:08:39.56,Default,,0000,0000,0000,,36 percent of the TNCs\Nare in the core only,
Dialogue: 0,0:08:39.59,0:08:45.67,Default,,0000,0000,0000,,but they make up 95 percent of the total\Noperating revenue of all TNCs.
Dialogue: 0,0:08:46.75,0:08:49.36,Default,,0000,0000,0000,,OK, so now we analyzed the structure,
Dialogue: 0,0:08:49.38,0:08:52.16,Default,,0000,0000,0000,,so how does this relate to the control?
Dialogue: 0,0:08:53.52,0:08:57.16,Default,,0000,0000,0000,,Well, ownership gives\Nvoting rights to shareholders.
Dialogue: 0,0:08:57.19,0:08:59.56,Default,,0000,0000,0000,,This is the normal notion of control.
Dialogue: 0,0:08:59.96,0:09:01.43,Default,,0000,0000,0000,,And there are different models
Dialogue: 0,0:09:01.45,0:09:04.92,Default,,0000,0000,0000,,which allow you to compute\Nthe control you get from ownership.
Dialogue: 0,0:09:05.92,0:09:08.74,Default,,0000,0000,0000,,If you have more than 50 percent\Nof the shares in a company,
Dialogue: 0,0:09:08.77,0:09:10.09,Default,,0000,0000,0000,,you get control,
Dialogue: 0,0:09:10.12,0:09:13.78,Default,,0000,0000,0000,,but usually, it depends\Non the relative distribution of shares.
Dialogue: 0,0:09:15.09,0:09:16.91,Default,,0000,0000,0000,,And the network really matters.
Dialogue: 0,0:09:18.32,0:09:21.24,Default,,0000,0000,0000,,About 10 years ago, Mr. Tronchetti Provera
Dialogue: 0,0:09:21.26,0:09:24.68,Default,,0000,0000,0000,,had ownership and control\Nin a small company,
Dialogue: 0,0:09:24.70,0:09:27.51,Default,,0000,0000,0000,,which had ownership and control\Nin a bigger company.
Dialogue: 0,0:09:27.89,0:09:29.04,Default,,0000,0000,0000,,You get the idea.
Dialogue: 0,0:09:29.45,0:09:34.68,Default,,0000,0000,0000,,This ended up giving him control\Nin Telecom Italia with a leverage of 26.
Dialogue: 0,0:09:36.49,0:09:39.76,Default,,0000,0000,0000,,So this means that,\Nwith each euro he invested,
Dialogue: 0,0:09:39.79,0:09:43.73,Default,,0000,0000,0000,,he was able to move 26 euros\Nof market value
Dialogue: 0,0:09:43.76,0:09:45.92,Default,,0000,0000,0000,,through the chain of ownership relations.
Dialogue: 0,0:09:47.18,0:09:53.09,Default,,0000,0000,0000,,Now what we actually computed in our study\Nwas the control over the TNCs' value.
Dialogue: 0,0:09:54.04,0:09:58.18,Default,,0000,0000,0000,,This allowed us to assign\Na degree of influence to each shareholder.
Dialogue: 0,0:09:59.76,0:10:03.93,Default,,0000,0000,0000,,This is very much in the sense\Nof Max Weber's idea of potential power,
Dialogue: 0,0:10:04.86,0:10:08.33,Default,,0000,0000,0000,,which is the probability\Nof imposing one's own will
Dialogue: 0,0:10:08.36,0:10:10.34,Default,,0000,0000,0000,,despite the opposition of others.
Dialogue: 0,0:10:12.41,0:10:17.16,Default,,0000,0000,0000,,If you want to compute the flow\Nin an ownership network,
Dialogue: 0,0:10:17.19,0:10:18.54,Default,,0000,0000,0000,,this is what you have to do.
Dialogue: 0,0:10:18.57,0:10:20.76,Default,,0000,0000,0000,,It's actually not that hard to understand.
Dialogue: 0,0:10:20.79,0:10:23.79,Default,,0000,0000,0000,,Let me explain by giving you this analogy.
Dialogue: 0,0:10:23.82,0:10:28.74,Default,,0000,0000,0000,,So think about water flowing in pipes,\Nwhere the pipes have different thickness.
Dialogue: 0,0:10:29.59,0:10:34.94,Default,,0000,0000,0000,,So similarly, the control is flowing\Nin the ownership networks
Dialogue: 0,0:10:34.97,0:10:37.06,Default,,0000,0000,0000,,and is accumulating at the nodes.
Dialogue: 0,0:10:39.07,0:10:42.87,Default,,0000,0000,0000,,So what did we find after computing\Nall this network control?
Dialogue: 0,0:10:43.12,0:10:48.49,Default,,0000,0000,0000,,Well, it turns out\Nthat the 737 top shareholders
Dialogue: 0,0:10:48.51,0:10:54.08,Default,,0000,0000,0000,,have the potential to collectively control\N80 percent of the TNCs' value.
Dialogue: 0,0:10:55.73,0:10:58.43,Default,,0000,0000,0000,,Now remember, we started out\Nwith 600,000 nodes,
Dialogue: 0,0:10:58.46,0:11:05.14,Default,,0000,0000,0000,,so these 737 top players\Nmake up a bit more than 0.1 percent.
Dialogue: 0,0:11:06.17,0:11:10.49,Default,,0000,0000,0000,,They're mostly financial institutions\Nin the US and the UK.
Dialogue: 0,0:11:11.08,0:11:12.84,Default,,0000,0000,0000,,And it gets even more extreme.
Dialogue: 0,0:11:14.05,0:11:17.34,Default,,0000,0000,0000,,There are 146 top players in the core,
Dialogue: 0,0:11:18.98,0:11:22.18,Default,,0000,0000,0000,,and they together have the potential\Nto collectively control
Dialogue: 0,0:11:22.20,0:11:25.99,Default,,0000,0000,0000,,40 percent of the TNCs' value.
Dialogue: 0,0:11:28.08,0:11:30.36,Default,,0000,0000,0000,,What should you take home\Nfrom all of this?
Dialogue: 0,0:11:30.38,0:11:37.36,Default,,0000,0000,0000,,Well, the high degree of control you saw\Nis very extreme by any standard.
Dialogue: 0,0:11:39.28,0:11:44.16,Default,,0000,0000,0000,,The high degree of interconnectivity\Nof the top players in the core
Dialogue: 0,0:11:44.27,0:11:48.72,Default,,0000,0000,0000,,could pose a significant systemic risk\Nto the global economy.
Dialogue: 0,0:11:49.96,0:11:52.44,Default,,0000,0000,0000,,And we could easily\Nreproduce the TNC network
Dialogue: 0,0:11:52.47,0:11:54.05,Default,,0000,0000,0000,,with a few simple rules.
Dialogue: 0,0:11:54.77,0:11:58.42,Default,,0000,0000,0000,,This means that its structure is probably\Nthe result of self-organization.
Dialogue: 0,0:11:58.83,0:12:04.67,Default,,0000,0000,0000,,It's an emergent property which depends\Non the rules of interaction in the system,
Dialogue: 0,0:12:04.70,0:12:08.51,Default,,0000,0000,0000,,so it's probably not the result\Nof a top-down approach
Dialogue: 0,0:12:08.54,0:12:10.24,Default,,0000,0000,0000,,like a global conspiracy.
Dialogue: 0,0:12:12.10,0:12:14.70,Default,,0000,0000,0000,,Our study "is an impression\Nof the moon's surface.
Dialogue: 0,0:12:14.72,0:12:16.03,Default,,0000,0000,0000,,It's not a street map."
Dialogue: 0,0:12:16.06,0:12:19.86,Default,,0000,0000,0000,,So you should take the exact numbers\Nin our study with a grain of salt,
Dialogue: 0,0:12:19.89,0:12:25.97,Default,,0000,0000,0000,,yet it "gave us a tantalizing glimpse\Nof a brave new world of finance."
Dialogue: 0,0:12:28.19,0:12:32.22,Default,,0000,0000,0000,,We hope to have opened the door\Nfor more such research in this direction,
Dialogue: 0,0:12:32.24,0:12:36.54,Default,,0000,0000,0000,,so the remaining unknown terrain\Nwill be charted in the future.
Dialogue: 0,0:12:37.04,0:12:38.62,Default,,0000,0000,0000,,And this is slowly starting.
Dialogue: 0,0:12:38.64,0:12:43.73,Default,,0000,0000,0000,,We're seeing the emergence of long-term\Nand highly-funded programs
Dialogue: 0,0:12:43.76,0:12:47.38,Default,,0000,0000,0000,,which aim at understanding\Nour networked world
Dialogue: 0,0:12:47.41,0:12:49.14,Default,,0000,0000,0000,,from a complexity point of view.
Dialogue: 0,0:12:49.86,0:12:51.66,Default,,0000,0000,0000,,But this journey has only just begun,
Dialogue: 0,0:12:51.68,0:12:55.38,Default,,0000,0000,0000,,so we will have to wait\Nbefore we see the first results.
Dialogue: 0,0:12:57.41,0:13:00.59,Default,,0000,0000,0000,,Now there is still\Na big problem, in my opinion.
Dialogue: 0,0:13:01.54,0:13:07.47,Default,,0000,0000,0000,,Ideas relating to finance,\Neconomics, politics, society,
Dialogue: 0,0:13:07.49,0:13:11.44,Default,,0000,0000,0000,,are very often tainted\Nby people's personal ideologies.
Dialogue: 0,0:13:13.45,0:13:16.98,Default,,0000,0000,0000,,I really hope that this\Ncomplexity perspective
Dialogue: 0,0:13:17.60,0:13:21.18,Default,,0000,0000,0000,,allows for some common ground to be found.
Dialogue: 0,0:13:22.98,0:13:25.21,Default,,0000,0000,0000,,It would be really great\Nif it has the power
Dialogue: 0,0:13:25.24,0:13:30.37,Default,,0000,0000,0000,,to help end the gridlock\Ncreated by conflicting ideas,
Dialogue: 0,0:13:30.39,0:13:33.70,Default,,0000,0000,0000,,which appears to be paralyzing\Nour globalized world.
Dialogue: 0,0:13:35.57,0:13:39.32,Default,,0000,0000,0000,,Reality is so complex,\Nwe need to move away from dogma.
Dialogue: 0,0:13:40.36,0:13:42.92,Default,,0000,0000,0000,,But this is just my own personal ideology.
Dialogue: 0,0:13:42.94,0:13:44.09,Default,,0000,0000,0000,,Thank you.
Dialogue: 0,0:13:44.12,0:13:50.39,Default,,0000,0000,0000,,(Applause)