TRANSFORMATION OF WORLD FINANCIAL ARCHITECTURE UNDER THE INFLUENCE OF FINANCIAL GLOBALIZATION

Abstract

At the current stage of the evolution of the global economy, there is an intensive increase in the pace of financial globalization (FG), which leads to qualitative and quantitative changes in its institutional environment. In parallel, the interaction and interdependence of all components of theglobal financial system is being restructured. Thus, the purpose of the article is to analyze the transformational dynamics of the world financial architecture (WFA) under the influence of financial globalization and to develop a scientific and practical mechanism for regulating WFA transformations in the context of financial integration. To achieve this goal, the author generalizes and expands the scope of study of financial globalization (its positive and negative effects) as a key factor influencing the transformation of the WFA. In this context, the average daily cash flow on the Forex market, general flows (inflows and outflows) of direct foreign investments, export-import operations on international markets, and the pace of development of financial technological innovations (FinTech) were investigated. To make the study more thorough, the author analyzed the transformational processes of WFA after the global economic and financial crisis of 2007-2009, which led to a number of structural shifts and led to the emergence of alternative stabilization mechanisms and sources of international liquidity. In addition, modern trends in the development of the world financial architecture in the conditions of the FG were revealed. Thus, the COVID-19 pandemic highlighted the interconnectedness of financial markets and the vulnerability of economies to external shocks and caused a sharp decline in stock market indices, significant fluctuations in exchange rates and general economic instability. Even more devastating consequences are threatened by a full-scale invasion of russia into Ukraine, which caused a significant slowdown in the economic growth of many countries due to a large-scale break in international production and trade ties, changes in the direction of FDI flows, aggravation of crises on international markets, in particular food and energy, and an increase in labor migration, world inflation. The result of the conducted research was the development of a mechanism for the transformation of the world financial architecture in the conditions of financial globalization. Thus, it was proposed to single out seven main vectors of the transformation of the world financial architecture, including: strengthening of global economic governance; improving the financial safety net; improvement of the political and regulatory framework of the financial system; easing the debt burden and reducing the cost of government borrowing; strengthening regulation and supervision of banking and non-banking financial institutions; restructuring of the global tax system, increasing international public development.