Abstract

The very idea of strategic thinking is quite opposed to the tradition of linking the choices of agents, individual or collective, to the process of maximization under constraints. The theory of general equilibrium has closed the door to the notion of strategy, just as the theory of generalized free trade has closed that of sovereignty. But this paradigm is falling apart. With a new approach of radical uncertainty, something made even more obvious with the COVID-19 pandemic, we are relearning the science and art of strategy, the more so because we are living in a world of a balance of power. But what would be the definition of strategy? Quite clearly we must distinguish between state and company strategy. This debate is also at the very center of the controversy over the role and meaning of institutions in economics. There is also a variety of strategies and those having a distinct appetite for risk must seriously consider whether to practice the art of strategy or not.

Highlights

  • How come we did not think of the economy in terms of strategy?1 Whatever we did, the tradition of linking the choice of agents be they individual or collective, to the process of maximization under constraints tended to make strategical thinking disappear2, 3

  • The theory of general equilibrium has closed the door to the notion of strategy, just as the theory of generalized free trade has closed that of sovereignty9

  • Mr Kemal Dervis, in a column published by the Brookings Institution, one of the most famous “think tanks” linked to the Democratic Party, in June 2020 added: “With the COVID-19 disaster having exposed the vulnerabilities inherent in a hyperconnected and justin-time global economy, a withdrawal from globalization seems increasingly inevitable

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Summary

Introduction

How come we did not think of the economy in terms of strategy?1 Whatever we did, the tradition of linking the choice of agents be they individual or collective, to the process of maximization under constraints tended to make strategical thinking disappear2, 3. This return to economic sovereignty involves strategic thinking.

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