The Future Governance Of The Global Economy

The Future Governance Of The Global Economy

Article written by


Fation Ceka / Financial Analyst

Exponential times, such as today, make globalization as tangible a concept as it never felt before. The dynamics of international markets have expanded corporate borders making the once existing barriers lose their purpose, unifying economies across the planet.

Countries such as Albania, where the local economy is directly influenced by foreign markets, feel the impact of global economies deeply.

As part of a vibrant generation constantly absorbing professional perspectives on matters of finance, makes it a must, acquainting oneself with international structures and standards in order to become part of this movement. In a quick changing modern corporate mentality, competition and strategy intelligently implemented, crush barriers that hold back globalization, unifying concepts and behaviors, cultures and values, hence products and nations.

Considering the penetration of the world’s economies in internal domains and that being achieved by large modern firms being transformed to global networks that work across borders, globalization has changed fundamentally the way countries interact economically. World financial markets have given birth to a single global market. Outsourcing and migration has unified and radically transformed the labor market. Geographic distances have been and keep shrinking continuously as communication and transportation keep transforming their evolutionary path. As a result, those evolutions have redefined the boundaries that define nations. This is a result of the whole transformation of all economic, and not only, channels in the global economy.

Continuous transformation, growth and evolution of different types of interactions has brought about a hybrid of viable relationships amongst finance, trade, environmental sustainability, economic growth, social progress and of course governance that are treated as a unit. This relationship and transmission of information between the above is an efficient way and an indispensable asset of modern global firms.

Those new rules and transformations in the unified global interactions create new demands on the shoulders of institutions and policies of global economic governance. If we would like to analyze more in depth the details and the importance of those demands on policies and the inter-relations that they have, we would find the connections of the grid amongst trade, finance, poverty reduction and development and of course economic, social, environmental and governance issues.

Just a better and clearer division of labor amongst global institutions is no longer sufficient as the overlapping of domains of responsibilities, bring confusion, bureaucratic competition and interagency coordination are not to be thought of as the most effective ways of addressing the overlaps in existence.

Global cultural shifts are related to globalization and the present time of minimization of geographical distances mentioned above have revolutionized not only globalization but also demographic and economic growth. An increase from non-traditional cultural expressionists from regions except western and western-like economies, have brought interlaced cultures and economies. Cultural shifts and transactions of information globally have minimized the cultural differences. This does not take out of the table the importance of the need to respect individual perspectives on environment, nature, community and individualism. The goals of such policies should respect and be determined by different cultural perceptions of what the most effective ways on bringing modernization and progress are.

Of course the asymmetry between global reality and governance cannot be denied and the need for mechanisms of global governance to change in order to support all the mentioned concepts is a move that would strengthen economies. As part of change and realization of better structures, summits of any nature should not only include representatives of common fields but also a representation of a unified group that would consider all points of views and support a global economy not only by exchanging views but by making better policies as an urge to better cooperate and be more efficient.

Those changes and the high inclusion of the business world in the global economic governance may be a shift of power and existence of chaotic anarchy in the way governments analyze and apprehend the new information.

The economic crisis of the previous years was the best possible way for both businesses and governments to realize the importance of the rules of the game and how their cooperation should bring about the well being of both. As far as global economic governance should be following transitions, the role of policy makers is to keep the action and reaction movements and their difference in time as close as possible.

During the present times, the observation of less developed countries has showed a high development rate in technology which directly relates to other fields. This is happening at a much greater pace than the development rates of developed countries. This is explained by the fact that less developed countries use technologies invented by others, saving R&D high costs and gives the opportunity of high accelerated growth. This revolutionizes the way step by step development works as markets don’t use technologies when they are invented but once they have the monetary capabilities they invest in the latest advancements in technology. By doing so, a previously primitive market can get into direct competition with advanced markets. Of course the need for change in legislations is always needed and the cooperation of governance seeking transitional reforms as far as radical changes happen is an undeniable need.

The advantage of Albania and other countries sharing the same or similar values in GDP, GNP & PPP is the high accessibility of new technologies and the ease to penetrate international markets.

Profit Margins might not be high during the time of regional conduction of business but the opportunities of working and creating a business in such a country and practicing international trade is a great opportunity into creating the fundamentals in the region and together with developing ones firm also developing the region. This means higher than average social progress, economic growth and regulation makers more ready to change implementing up to date governance for the country in which the firm operates.

I see great opportunities into business and as far as the global economy pushes governance into serving the fundamental needs of its existence, there will always be evolution and the need of reattachment and reconsideration of certain issues that characterize the group of issues that have to be dealt with as a “package” of interrelations. I also see great opportunity in my region as developed routes of communication create opportunities for small business to develop with high paces and work internationally without the need of being a well established multimillion firm.

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