Anglo-American Dominance of the World Financial System

The research objective. Global finance is a complex and multifaceted concept associated with the functioning of the global financial market (GFM), the global monetary and financial system (GMFS) and the global financial architecture (GFA). The GFM distributes and redistributes financial resources between transnational companies, investors, government institutions and international organisations. The GMFS facilitates international trade and investment through internationally agreed financial instruments and mechanisms. In turn, the functionality of the GFM and GMFS is ensured by the global financial architecture. The smooth functioning of the GFM, GMFS and GFA depends on the ability of economic entities to finance promptly and fully international transactions in means of payment acceptable to creditors. Meanwhile, in modern conditions, the creation of international liquidity is not the subject of interstate agreements and goes beyond the control of government bodies into the sphere of activity of supranational monopolies, mainly of Anglo-American origin. The purpose of the article is to substantiate the privileged role of Anglo-American institutions in the functioning of modern global finance as the reason for creating conditions for unequal exchange in the global economy. The article considers the specific features of the circulation of global financial capital, which ensures the synergy of the processes of economic and financial globalisation. The functional and hierarchical structure of global financial institutions is systematised. The article reveals the role of Anglo-American monopolies in the formation of restrictive rules and standards for access of private and sovereign borrowers to the resources of the global financial market. The research describes the reasons for the long-term Anglo-American dominance in the system of world finance and the problems of reforming their institutional structure. Therefore, it follows that China, as a rising superpower, needs to develop non-trivial approaches to attract allied states to its side, capable of creating a conceptual alternative to the unipolar structure of modern world finance.

1. Kuznetsov A.V. Imperatives for transformation of the international monetary system in the conditions of multipolarity. Finance: Theory and Practice. 2022;26(2):190-203. DOI: 10.26794/2587-5671-2022-26- 2-190-203

2. Levitt T. The globalization of markets. Harvard Business Review. 1983;(May). URL: https://hbr.org/1983/05/the-globalization-of-markets

3. Metel’skaya V.V. Financial capital as a product of financial globalization at the present stage of economic development. Finansovaya analitika: problemy i resheniya = Financial Analytics: Science and Experience. 2019;12(2):219-233. (In Russ.). DOI: 10.24891/fa.12.2.219

4. Savvina O.V. Global financial capital. Uchenye zapiski Rossiiskoi Akademii predprinimatel’stva = Scientific Notes of the Russian Academy of Entrepreneurship. 2013;(36):85-93. (In Russ.).

5. Piketty T. Capital in the twenty-first century. Cambridge, MA: The Belknap Press of Harvard University Press; 2014. 696 p.

6. Rodrik D. The globalization paradox: Democracy and the future of the world economy. New York, NY: W.W. Norton & Co.; 2012. 368 p. (Russ. ed.: Rodrik D. Paradoks globalizatsii: demokratiya i budushchee mirovoi ekonomiki. Moscow: Gaydar Institute Publ.; 2014. 576 p.).

7. Wolf M. The shifts and the shocks: What we’ve learned — and have still to learn — from the financial crisis. New York, London: Penguin Books; 2015. 528 p. (Russ. ed.: Wolf M. Sdvigi i shoki: Chemu nas nauchil i eshche dolzhen nauchit’ finansovyi krizis. Moscow: Gaydar Institute Publ.; 2016. 512 p.).

8. Navoy A.V. Towards the efficiency of modern international financial institutions: Systemic methodological approach. Mir novoi ekonomiki = The World of New Economy. 2023;17(4):16-29. (In Russ.). DOI: 10.26794/2220- 6469-2023-17-4-16-29

9. Zvonova E.A., Kuznetsov A.V. Institutional approaches to monopolizing world economy and world finance. Filosofiya khozyaistva = Philosophy of Economy. 2017;(6):90-109. (In Russ.).

10. Kuznetsov A.V. Institutional barriers to currency competition in the international monetary system. Finansy i kredit = Finance and Credit. 2019;25(10):2341-2358. (In Russ.). DOI: 10.24891/fc.25.10.2341

11. Hongbing S. The currency war. Transl. from Chin. Moscow: Russkii Vybor Publ.; 2015. 528 p. (In Russ.).

12. Kanashevskii V.A. Offshore companies and trusts. Anti-offshore regulation. Moscow: Mezhdunarodnye otnosheniya; 2018. 328 p. (In Russ.).

13. Gordieieva T., Tsaturian A. Analysis of trends and determinants of the “Big 4” companies in the global audit market. Technology Audit and Production Reserves. 2023;4(4):6-11. DOI: 10.15587/2706-5448.2023.286076

14. List F. Das nationale System der politischen Ökonomie. Stuttgart, Tübingen: Cotta Verlag; 1841. 352 p. (Russ. ed.: List F. Natsional’naya sistema politicheskoi ekonomii. Moscow: Evropa Publ.; 2005. 392 p.).

15. Reinert E.S. How rich countries got rich… and why poor countries stay poor. New York, NY: PublicAffairs Books; 2008. 400 p. (Russ. ed.: Reinert E. Kak bogatye strany stali bogatymi, i pochemu bednye strany ostayutsya bednymi. Moscow: HSE Publ.; 2011. 384 p.).

16. Shaxson N. The finance curse: How global finance is making us all poorer. London: The Bodley Head; 2018. 361 p.

17. Kuznetsov A.V. The influence of the geopolitical situation on the formation of a new global financial architecture: Challenges and opportunities for Russia. Ekonomika. Nalogi. Pravo = Economics, Taxes & Law. 2022;15(4):17-29. (In Russ.). DOI: 10.26794/1999-849X-2022-15-4-17-29

18. Buzan B. A new cold war?: The case for a general concept. International Politics. 2024;61(2):239-257. DOI: 10.1057/s41311-024-00559-8

19. Tung R.L., Zander I., Fang T. The Tech Cold War, the multipolarization of the world economy, and IB research. International Business Review. 2023;32(6):102195. DOI: 10.1016/j.ibusrev.2023.102195

20. Babaev K.V. Cold War II. SShA i Kanada: ekonomika, politika, kul’tura = USA & Canada: Economics, Politics, Culture. 2024;(8):5-15. (In Russ.). DOI: 10.31857/S2686673024080013

21. Zheng Y. The middle technology trap: China in a comparative perspective. Asian Review of Political Economy. 2024;3(1):11. DOI: 10.1007/s44216-024-00030-8

22. Dmitriev S. S. U.S.-China technological rivalry: From “arrogance” to boycott. Mirovaya ekonomika i mezhdunarodnye otnosheniya = World Economy and International Relations. 2020;64(12):70-77. (In Russ.). DOI: 10.20542/0131-2227-2020-64-12-70-77

23. Kim Y., Rho S. The US-China chip war, economy-security nexus, and Asia. Journal of Chinese Political Science. 2024;29(3):433-460. DOI: 10.1007/s11366-024-09881-7

24. Hu H., Yang S., Zeng L., Zhang X.U.S.-China trade conflicts and R&D investment: Evidence from the BIS entity lists. Humanities and Social Sciences Communications. 2024;11:829. DOI: 10.1057/s41599-024-03369-8

25. Zeihan P. The end of the world is just the beginning: Mapping the collapse of globalization. New York, NY: Harper Business; 2022. 512 p. (Russ. ed.: Zeihan P. Konets mira — eto tol’ko nachalo: Ekonomika posle krakha globalizatsii. Moscow: Alpina Publisher; 2025. 660 p.).