Bìznes Inform (Oct 2023)
Determinants of the Development of Global Financial Architecture
Abstract
The current stage of development of the global economy is characterized by the acceleration of the processes of financial globalization that qualitatively and quantitatively change not only its institutional environment, but the interconnections and interdependence of all components of the world financial system as well. The aim of the article is to disclose and substantiate the key determinants of the development of the world financial architecture (WFA), to define the dynamics of its functioning in the context of modern economic and political realities. In the process of carrying out the study, general scientific and special methods were used: analysis and synthesis, scientific abstraction, classification, structural analysis, grouping, graphic methods. The publication examines transformation processes and evaluates the current state of the world financial architecture. The main determinants of the WFA development are analyzed and allocated as follows: transformations in international monetary and credit relations; integration and globalization of stock markets; growth in the pace of international banking operations; dissemination of scientific and technological achievements; liberalization of international monetary relations and financial markets; sociocultural and demographic trends, etc. The main measures to strengthen and improve the functioning of the global financial architecture in the short and long term have been allocated, taking into account the studied factors of influence. Among the main measures to be implemented the sooner the better are allocated the following: ensuring a steady decline in inflation; control over financial stability; dealing with currency fluctuations; providing support to vulnerable strata of the population. In the long run, it is necessary to: restore the sustainability of the debt situation; strengthen the multilateral cooperation; accelerate the transition to a green economy. Thus, it is found that ensuring the sustainability and efficiency of the global financial architecture is an important task that requires immediate action. With this in mind, regulators, international financial institutions and participating countries should interact and work together to improve financial management systems, reduce economic and social inequalities, and create a financial environment conducive to sustainable economic growth. Prospects for further research in this direction are: analysis of the impact of leading international organizations on the WFA, development of a methodology for assessing the determinants of the development of the financial system and identification of possible scenarios for the development of the world financial architecture.
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