How Shocks Turn into Crises: National Policies for Advancing Social Development in Turbulent Times

Shocks and crises have become more frequent, intense and widespread in an interconnected world, affecting more people across the globe. Crises that might have previously remained relatively contained within a well-defined geographic region, are now propagated rapidly through globally interconnected systems and networks in areas such as economics, finance, the environment and health. The 2008 Global Financial Crisis is an example of how financial shocks spread through the interconnected balance sheets of financial institutions, causing havoc around the world. The COVID-19 pandemic also shows how national health systems were unable to absorb the effects of the virus, which spread quickly through a dense global transportation network before disrupting highly concentrated economic and financial networks and killing more than 7 million people. Looking toward the Second World Summit for Social Development in 2025, this policy brief focuses on explaining how shocks turn into crises and how national policies, supported by the international community, can help counter shocks, build resilience, and advance social development objectives, namely eradicating poverty, promoting full and productive employment, and fostering social inclusion in times of converging crises.