THE GLOBAL FINANCIAL CRISIS AND THE CHALLENGES OF THE ECONOMIC STABILITY

Abstract

Globalist (nominalist) view of the world is a logical continuation of liberalization, which is associated with the privatization of state (public) companies, increasing the role of private sector and entrepreneurship by reducing state interference in the economy (deregulation), increasing freedom of movement of finance and foreign investments. Globalization is, therefore, a new starting point of the behavior of trans-national corporations, changes in technology, production and distribution, economies of scale, consumer behavior, liberalization of foreign trade and capital flows, extensions of limits for locating companies and ignoring the importance of proximity to raw materials, production and markets, and in particular, the economic role of national borders. There is no culture, no dialogue. The symbol of globalization is trans-national corporations to which even local governments wooing because of the foreign investments due to “global trend” of spreading pseudo-values. Globalization as such crashes cathedrals of national values and national origin and destroys the local communities in order to pave the path to global capitalism. Globalization, however, can connect the national economy, to expand market access to new technologies in production and distribution, to ensure foreign capital inflow. In addition, globalization also brings bad luck, increases the vulnerability of economically weaker, accelerates application for adjustment and modernization of the economy, shows unpredictable movements in capital flows, contributes to speculative attacks on the domestic currency, causes financial crisis, the rapid transfer of production and employment from country to country, and increases the economic and social vulnerability of small, developing countries.