Books in the Anthem Climate Change and Policy Series series

Bangladesh is one of the countries most vulnerable to climate change - but it is also a country that is capable of coping. Far from being a victim, Bangladesh has lessons for activists, scientists, government and donor officials and concerned citizens who want to know what climate change looks like and how to respond to it.This densely populated country feeds itself because it is in a rich delta. But that comes at the price of a volatile environment - three huge rivers bring floodwaters from the Himalayas and massive cyclones sweep up the Bay of Bengal. Once accurately described as a 'basket case' of hunger and disaster, its scientists and engineers, working with local communities, have transformed the country. Strong cyclone shelters and early warning systems now protect at-risk coastal people. Improved rice varieties and irrigation feed the nation and rapidly cut child malnutrition. Women's education has curbed population growth. Along with these changes have come measures to cope with the volatile environment.Climate change makes the problems worse, with higher temperatures and rising sea levels, heavier rain and bigger floods and stronger cyclones. Bangladeshis know what the damaged climate change will bring. The government, researchers and communities are already adapting, raising land levels to match the rise in sea level, strengthening dykes to protect against floods, producing more adaptable rice varieties and improving disaster preparation. Bangladesh is a model of climate change adaptation and a lesson for those who continue to ignore global warming.Bangladeshis have taken a leading role in international campaigning and negotiating, helping to convince industrialized countries to curb greenhouse gas emissions. Because it cannot wait for help from rich countries, Bangladesh has shouldered most of its adaptation costs. Will industrialized countries make the task harder - or will they help Bangladesh by reducing emissions and paying for the damage already done?

Why do climate and financial crises pose such extreme risks? And what does it take to respond effectively to those risks? Extreme weather events - storms and sea-level rise, heat waves, droughts and floods - seem ever more common and extreme, while scientists warn of even greater climate risks ahead. Financial failures on the scale of 2008 make a mockery of the supposed efficiency of the market economy. None of this would be possible in the world as imagined by conventional economics - an imaginary land of gradualism, equilibrium, well-informed rationality and the win-win solutions dealt by the invisible hand.The erratic rhythm of boom and bust in financial markets could be explained either by the patterns of crowd-following behaviour among investors, or by the unequal distribution of wealth (and the impact of the largest investors on the markets). Climate crises reflect the fact that natural systems can reach tipping points or critical transitions, where gradual change gives way to large-scale discontinuous changes. The economics of climate change has lagged behind the science, understating the severity of the problem and the likelihood of a crash.While the causes of climate and financial extremes are distinct, the implications for public policy have much in common. The frequency of extreme events, of varying sizes, means that there is no way to predict the likely size of future crises. The traditional approach to risk aversion cannot account for longstanding patterns in financial markets. Better theories of risk call for more precautionary approaches to both financial and climate policy. In the frequent cases in which potential outcomes have unknown probabilities, the best policy is based on the worst-case credible scenario. When a single catastrophic risk commands everyone's attention, a World War II-style, costs-be-damned mobilization is the right response. There is no formula for perfect responses to extreme risks, but there are important guideposts that point toward better answers.