Evidence is presented that suggests that there is a significant self-organized criticality (SOC) component in the dynamics of substorms in the magnetosphere. We assume that observations of bursty bulk flows, fast flows, localized dipolarizations, plasma turbulence, etc. show that multiple localized reconnection sites provide the basic avalanche phenomenon in the establishment of SOC in the plasma sheet. First results are presented from a study of this avalanche process based on this working assumption. A magnetic field reversal model is discussed. Resistivity, in this model, is self-consistently generated in response to the excitation of an idealized current-driven instability. When forced by convection of magnetic flux into the field reversal region, the model yields rapid magnetic field annihilation through a dynamic behavior that is shown to exhibit many of the characteristics of SOC. Over a large range of forcing strengths, the annihilation rate is shown to self-adjust to balance the rate at which flux is convected into the reversal region. Several analogies to magnetotail dynamics are discussed: (1) It is shown that the presence of a localized criticality in the model produces a remarkable stability in the global configuration of the field reversal while simultaneously exciting extraordinarily dynamic internal evolution. (2) Under steady forcing it is shown that a loading-unloading cycle may arise that, as a consequence of the global stability, is quasi-periodic and, therefore, predictable despite the presence of internal turbulence in the field distribution. Indeed, it is shown that the global loading-unloading cycle is a consequence of the internal turbulence. (3) It is shown that under steady, strong forcing the loading-unloading cycle vanishes. Instead, a recovery from a single unloading persists indefinitely. The field reversal is globally very steady while internally it is very dynamic as field annihilation goes on at the rate necessary to match the strong forcing. From this result we speculate that steady magnetospheric convection events result when the plasma sheet has been driven close to criticality over an extended spatial domain. During these events we would expect to find localized reconnection sites distributed over the spatial domain of near criticality, and we would expect to find plasma sheet transport in that domain to be closely related to that of BBF and fast flow events. ¿ 2000 American Geophysical Union