TRANSFORMATION OF THE SYSTEM OF GLOBAL FINANCIAL ORGANIZATIONS IN THE CONTEXT OF ENSURING INTERNATIONAL ECONOMIC SECURITY OF NATIONAL ECONOMIES

Abstract

The purpose of the article is to study the role of global financial institutions in the context of a financially vulnerable economy and to determine the prospects for the transformation of their activities. The activities of the World Bank and the IMF during the crisis caused by the consequences of the COVID-19 pandemic are analyzed, it is determined that the World Bank mobilized resources to support developing countries, and the IMF provided rapid one-time assistance and debt relief to the poorest and most vulnerable countries. The problems that have accumulated in the global system of financial institutions since the beginning of the formation of the current global financial system, which emerged as a result of the agreement on the Bretton Woods agreements, are analyzed. It is noted that in the modern global financial system, the financial gap is deepening and the risks of worsening economic security are deepening. It is determined that the solution to the problems of international financial organizations is situational in nature. The main initiatives for the development of a new global financial pact, formed at the 2023 Paris Summit, initiated in response to the consequences of the COVID-19 pandemic and the war in Ukraine, which led to a significant reduction in the fiscal and budgetary capabilities of many countries, are summarized. It is concluded that the threats to the transformation of the system of global financial institutions remain the negative manifestations of the dominance of developed countries over developing countries and the significant gap between their levels of economic development; the dependence of the least developed countries on assistance from developed countries and international organizations. It is determined that crises are becoming increasingly complex and are characterized by manifestations of global shocks, therefore, financial policy instruments and mechanisms for global coordination of financial institutions must be adapted to these challenges; requires expanding financing in cases of unforeseen circumstances, including through sovereign loans and a more automatic issuance of SDRs in times of crisis.