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Global Crisis, Financialization and Technological Development

Journal: The Journal of International Economic Policy (Vol.1, No. 24)

Publication Date:

Authors : ;

Page : 124-154

Keywords : Global crisis; financialization; financial and production capital; speculative capital; technological development; technological revolution; technological structure; catching-up development and rapid development.;

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The article proves that the main factor of crisis is introduction of the sixth technological structure and the crisis gets global status as the result of financialization of global economy. The analysis of works of leading foreign scientists suggests that the term “financialization” grew out of the ideology of liberalism in the 1920s and was widespread in the 1990s based on the establishment in the late 1970s ? early 1980s of the ideology of neoliberalism. Financialization increases volumes of global financial sector, strengthens its role in the enlarged reproduction of global economy, redistributes in its favor income of global real sector diverting financial resources needed for its development and thus holding back the process of production technological renewal. Countries of the world kernel, financial sector of which plays a leading role in the global financial sector, get the opportunity of redistributing income of real sector of the countries of global periphery in their favor. It is emphasized that introduction of new technological structure creates opportunities for technological development of the periphery countries, but dominance in terms of financialization in the global financial market of speculative capital makes it difficult for them to obtain a reliable source of medium- and long-term loans and investments. Opportunities are created For developed countries to get rid of their previous productions of dominant technological structure by transferring them to less developed countries and conserving the existing technological hierarchy of the global economy by implementing new technological structure of production, which allows us reasonably believe the financialization is a factor to preserve the differentiation of levels of technological development of countries of the world. Two ways to improve technological level of countries of global periphery are analyzed: way of catching up development and way of advancing development. The article proves catching up with leading countries and even getting ahead of them becomes possible only when moving from the “pursuit curve” to “lead motion” innovative technologies are introduced before them. This opportunity to make technological leap for the periphery countries according to the Kondratiev “long waves” occurs once every in 50-60 years and requires relevant scientific, technological, financial base and leads to serious life changes of the whole society. It proves that the only entity for making such technological leap is the national state.

Last modified: 2017-01-23 22:40:45