Bretton Woods 2.0: Towards a New Global Financial Architecture

Abstract

The unipolar global monetary and financial system (GMFS), formed after the collapse of the USSR, contrary to the expectations of the collective West, was unable to ensure financial stability and crisis-free development, since it does not consider the multipolar nature of the modern world economy and the strengthening of the positions of developing countries as regional monetary and financial centers. Intensifying confrontation between developed and developing countries is a real threat to continued existence of the current world order. The article proposes a gradual transformation and describes the future configuration of the existing GMFS, in which, along with traditional institutions, new ones will function, established on the initiative of the currently most influential group of countries represented by the G20, the composition of which should be expanded with new participants. The new configuration of the GMFS can be considered as a transitional structure that will allow participants in the world community to coordinate their positions, redistribute roles and master new tools of interaction. The world has entered an era of irreversible transformation, which should ultimately move it to a qualitatively new stage of development. There is an urgent need to formulate general rules for a new world order, which will be based on the principles of justice and multipolarity. However, humanity has a difficult road ahead until relevant agreements are reached. The sooner members of the world community accept the new reality, learn to listen and hear each other and begin a constructive dialogue, the faster and less painful this transition will be.