2 Knightian uncertainty arises when you don’t know the underlying probability distribution, which makes quantifying the risks impossible. More recently, this distinction has been given prominence by Donald Rumsfeld with his knowns and unknowns, as well as by Satyajit Das in Traders, Guns and Money and Nassim Taleb in The Black Swan.
For instance, the launch of the current Chinese government’s “One Belt, One Road” initiative was inspired by the Silk Road initiative. The billions being poured into a reinvented and modern ‘Silk Road,’ comprising a network of around 60 countries in Asia and Europe will result in physical connections through land bridges, railways, utility grids and maritime highways.