How can investors apply systems thinking in frontier markets?

‘Systems thinking’ is a way of identifying and addressing the underlying causes of market failures rather than only treating the symptoms. In order to influence behaviour, systems thinking seeks to identify the core drivers of how a system behaves, by analysing the interrelationships between component parts and how those relationships and parts change over time.

In this publication from ARIA, we explore how two impact investment funds have applied systems thinking and shares practical examples for other investors considering how to incorporate systems thinking into their approaches.