Panarchy is a conceptual framework to account for the dual, and seemingly contradictory, characteristics of all complex systems – stability and change. It is the study of how economic growth and human development depend on ecosystems and institutions, and how they interact.
Panarchy as conceptual framework play a fundamental role within Systemic Transformation. Key purpose systemic adaptation embrace the three key properties which are potential, Connectedness and resilience .
The stages within adaptive cycles clearly apply to economic systems, organizations and species.Some examples:
- Kodak became extinct due to inability to adapt to technological changes
- Neanderthal extinction
- Poor economic growth and high employment of a EU member country such as Italy due to low potential poor connectedness weak resilience