Restructuring of International Finance for Sustainable Development of The Global Economy

¹ 1199034, Russia, Saint Petersburg, St Petersburg University
² 2190031, Russia, Saint Petersburg, Emperor Alexander I St Petersburg State Transport University

^* v.shavshukov@spbu.ru

Abstract

The global crisis of 2008–2009 and its long post-crisis recession have raised questions about the future structure of the world economy. The crisis is viewed as a crash of the basic elements of the global economy’s system. The international markets of financial assets failed to regulate themselves and aggravated conflicts between global and national finance. In 2010–2019 the world economy faced the risks for sustainable development. Deglobalization and dedollarization procedures questioned the previous philosophy and world economic leadership. According to the main results of a research, international financial institutions have deficiency of means for the solution of civilization problems. The world banking system, enhancing capital base according to BIS III, is defenseless against a big share in balance of derivatives and off-balance obligations. The post-crisis economy is unstable before the risks of dropping rates by 70% of the world’s economy. The system’s solution to problems of ensuring sustainable development relies on “three whales”: change of the domestic economic policy in the direction of structural reforms for the 4.0 Revolution, ensuring productivity growth, smooth transition to a flexible exchange rate, decrease in the public and corporate debts; transition to cross-border policy without tariff wars; and focus of the world economy in civilization’s problems, quitting a competition for leadership in favor of the multipolar world, orientation to quality of life and SDR as the reserve currency.