Scenarios for global financial sector development: greening, digitalisation, institutionalisation
DOI:
https://doi.org/10.51599/is.2025.09.02.01Keywords:
international economic order, intellectualisation, global financial stability, green transformation, digital transformation, global financial architecture, international political economy.Abstract
Purpose. Based on the generalisation of the scenarios for the development of the global financial architecture, to provide additional arguments that need to be taken into account in the theoretical and practical aspects of interaction of countries within the global financial sector (GFS).
Results. The authors summarised the key financial and climate scenarios for the development of the GFS; demonstrated the need for functional and organisational reform of the interaction of states with international financial organisations. Emphasised the feasibility of taking into account institutional maturity, diversification, fragmentation and convergence in the process of improving the GFS architecture. Financial nationalism is identified among the current determinants of the development of the GFS along with legal, technological, knowledge and environmental blocks of factors. Outlined that institutional diversification should involve the integration of both purely specialised players in the financial sector (regional development banks, creditor clubs, national welfare funds) and private sector players. It is noted that the importance of Asian countries in the GFS is expected to increase due to the share of developed countries with a potential change of leader.
Scientific novelty. It has been further developed the argumentation of immanent features of the formation of a qualitatively new, polycentric model of the international financial order, the formation of which will occur through the processes of green and digital transformations, which have the greatest impact on changes in the global financial architecture by introducing institutional innovations.
Practical value. The use of the research results will allow national governments and infrastructure participants in the global financial system to formulate more effective competitive behaviour strategies. The world economy, due to combining of financial mechanisms with the effective use of digitalisation to increase the efficiency of the global financial sector, will be able to benefit from improved regulation of global economic activity in the context of solving global environmental problems, in particular, minimising the threat of losing up to 2/3 of global GDP.
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Johnson, J., & Barnes, A. (2015). Financial nationalism and its international enablers: the Hungarian experience. Review of International Political Economy, 22(3), 535–569. Available at: http://www.jstor.org/stable/24673306.
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Lupo-Pasini, F. (2019). The rise of nationalism in international finance: the perennial lure of populism in international financial relations. Duke Journal of Comparative & International Law, 30, 93–141. Available at: https://scholarship.law.duke.edu/djcil/vol30/iss1/3.
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Blom, J. (2021). The institute of international finance: from poacher to gamekeeper? Business and Politics, 23(1), 153–178. https://doi.org/10.1017/bap.2020.6.
IIF (2013). Principles for stable capital flows and fair debt restructuring in emerging markets. Available at: https://www.iif.com/Portals/0/Files/content/Regulatory/2013_IIF_PCG_Report.pdf.
Murau, S., Rini, J., & Haas, A. (2020). The evolution of the offshore US-dollar system: past, present and four possible futures. Journal of Institutional Economics, 16(6), 767–783. https://doi.org/10.1017/S1744137420000168.
Sensenig, V. J. (2012). The World Bank and educational reform in Indonesia. In C. S. Collins, A. W. Wiseman (Ed.), International Perspectives on Education and Society (pp. 395–421), vol. 16. Emerald Group Publishing Limited. https://doi.org/10.1108/S1479-3679(2012)0000016021.
Oatley, T., Winecoff, W. K., Pennock, A., & Danzman, S. B. (2013) The political economy of global finance: a network model. Perspectives on Politics, 11(1), 133–153. https://doi.org/10.1017/S1537592712003593.
Helleiner, E. (2011). Understanding the 2007–2008 global financial crisis: lessons for international political economy. Annual Review of Political Science, 14, 67–87. https://doi.org/10.1146/annurev-polisci-050409-112539.
Tausch, A., & Heshmati, A. (2009). Re-Orient? MNC Penetration and contemporary shifts in the global political economy. IZA Discussion Paper No. 4393. Available at: https://ftp.iza.org/dp4393.pdf.
