GLOBALISATION AND THE CRISIS

Global economic crisis has eroded the trust in globalisation. Globalisation as a process of broadening and deepening of markets across national borders has not improved the market allocation of resources and consequently of the wellbeing but has rather aggravated market failures and consequently created the environment for the mistakes of market actors which led to the financial and economic crises. One should not trace the origins of the crises only in wrong decisions in the environment of global markets but rather in the political framework in which global markets function. Politics of national interests forcing states to search for relative gains in the globalisation leads to the creation of the systemic and collective risks. Problem of globalisation is therefore not the global character of markets but lies in the contradiction between global problems and national governance which is unable to cope with global problems. Globalisation is therefore more a godfather than a mother of the crisis.