Global economy and its sustainability in the globalized world

Seinäjoki University of Applied Sciences, School of Business and Culture, Kampusranta 11, FI-60101 Seinäjoki, Finland

Abstract

Globalized economy has changed the whole world both in good and in bad. The changes in economy have significant impact on the everyday life, which affect practically everyone. Because the economy, monetary systems and financial markets form the operational platform of the globalized world, it is necessary to understand their role. As the economy is one of the three main pillars of the sustainability, it is impossible to develop the global sustainability without stabile and sustainable economy. The inequality of the distribution of wealth and prosperity is the most critical factor of economic sustainability and the ever-increasing accumulation of wealth and money is one of the most crucial factors jeopardising the global sustainability. People and nations struggling economically are usually having the biggest challenges with both social and environmental sustainability. Wealth works dually: it enables rich people and nations to increase their consumption footprint and they hinder poor people and nations to make consumer decisions and investments needed to improve sustainability. The rich countries have outsourced their unsustainable industrial activities to poor countries having undeveloped legislation and maximized their profits by utilising these socially and ecologically unsustainable labour and production practises, which most are illegal in the rich countries.