The euro crisis has spread to Italy, the world’s third-largest bond market, which means the stock of rich-world government debt that is considered safe has shrunk dramatically.

The second need is a more established global rule of law: "I'm not talking about a global world government, but a sound system that tells entrepreneurs the rules of the game are stable."

After the Second World War, for example, businesses and government sought to persuade women to vacate jobs in factories, thus making room in the labor force for returning veterans.