Paradexity: the convergence of paradox and complexity

1. Introduction

Do you ever feel like you are immersed in an intricate array of interconnected events while having to choose from a plethora of competing ambiguous choices? Charles Handy observed many years ago that "the more turbulent [the] times, the more complex the world, the more the paradoxes" ([6] Handy, 2002). There seems little doubt that this is a time of intense turbulence in which we are inundated with increasing paradox and complexity. Not only are they increasing, but they are also converging in a force I propose to call "paradexity": the convergence of paradox and complexity. (A glossary of terms used in this paper can be found in Appendix 1.)

A recent press article captured an example of financial paradexity. First, the paradox:

Designing an efficient, dynamic financial system while reducing the likelihood and costs of crises is a challenge.

And then the complexity:

This challenge is particularly hard because of the system's complexity. Financial interrelationships between major participants dwarf the scale of their business with the real sector (business and households) and involve complex financial products ([3] Davis, 2008).

Australian Treasury Secretary Ken Henry provides an example of taxation paradexity. The paradox:

Our tax-transfer system, designed for humans, now vastly exceeds human scale.

The complexity:

Australians should not need to consult an accountant to decide whether to return to work or put their kids in child care [...]

An excessive level of complexity wastes resources [...]

Complexity undermines social goals (and) provides opportunities for sharp planning practices [...]

A complex world constrains how simple a nation's tax system can be ([7] Henry, 2008).

Paradexity creates a fog which is hard to navigate, and contributes to feeling that we have lost control as we struggle to manage, make sense of, and live with these forces. It causes a sense of confusion, and never quite being "there" - wherever there may be.

Harnessing paradexity involves not just tolerating ambiguity and managing complexity. It means transcending paradox and embracing complexity as they converge and unsettle us. It requires a new level of human maturity. It recognises that we need to shift from stark choices to integration, collaboration and co-creation fostered by effective conversation.

2. Paradox and complexity

Paradox is inherent in what it means to...