Natural and industrial disasters are increasing in the U.S., and the terrorist threat is still with us. Our response has been proximate — remediation and protection B rather than basic B reducing our vulnerabilities. Reducing vulnerabilities will involve the deconcentration of hazardous materials, of population density in vulnerable areas, and of private centers of economic and political power. The objection that deconcentration will entail economic inefficiencies is addressed by examining four systems that are very large, highly efficient, robust, radically decentralized, (...) and innovative: the Internet, the electric power grid, networks of small firms, and, alas, terrorist networks. All are threatened, but regulation by a strong state could preserve the efficiency of the first three, and muster the tools to thwart the fourth. (shrink)