The Institutional Provision and Regulation of the World Financial Architecture

Abstract

The article explains the essence of institutional provision and characterizes the main aspects of regulation of the world financial architecture. It is defined that no other element of financial architecture has such powerful financial resources to realize the goal of financial stability and to assist developing countries, as well as countries with transition economies. The main directions of implementation of strategic goals for regulation of financial architecture are considered. The authors justify the need to timely improve the institutional provision for the process of regulating international financial relations in the context of increasing financial stability in the global economic environment and as an appropriate reflection on the conditions of transformational uncertainty and strategic imperatives of the development of the world financial architecture. The conceptual scheme of institutional provision for regulation of world financial architecture is presented and characterized. A new world financial architecture is proposed and its main advantages are analyzed. The need for algorithmic transformation of the liberal model of world financial architecture to a clearer regulation both the State-based and the superior one fulfilled on the grounds of regionalization is argued. It is concluded that the main factors of negative impact of global disparities on the world economy are as follows: imperfection of the financial mechanism, aggravation of a totality of contradictions between financial and real sectors of the economy, between national and international structures in the direction of implementation of the strategic State goals and strengthening of regionalism.

Keywords

• financial architecture
• institutional provision
• world economy
• international financial institutions
• economic development