Financial markets' expectations and human development

Abstract

Purpose

It matters to be aware of the important direct or indirect role of the financial markets in the human development dynamics in a globalizing world. The purpose of this paper is to identify some main inter‐relations in the socio‐economic system. Deterministic technical factors are opposed to individual or political will. Invisible and visible hands of “players” are designing the future. Is fear justified?

Design/methodology/approach

This paper uses a systemic approach to describe the impact of the regulation rules through market forces (here the financial markets). But, these forces are not just anonymous; behind hide shareholders, stakeholders, financial funds and institutions, corporate managers, consultants and analysts, employees, retired individuals, politicians, etc. The socio‐economic game is asymmetric and often conflicting.

Findings

The paper tries to explain how the present winners of the game are powerful. The domination effect has its rationale. Applied skills and behaviour of the players are able to contribute to the general equilibrium or unbalance of the social system; but this is never a stable one. Evolution may lead to a paradigm shift or a dangerous clash.

Originality/value

The paper brings together diverse aspects, facts and theories that illustrate the relationship between monetary assets, business activities and human well‐being (both materialistic and intangible). It underlines also the role of policy that has to legitimate the finality of the system.

Citation

Urban, S. (2008), "Financial markets' expectations and human development", Society and Business Review, Vol. 3 No. 2, pp. 162-171. https://doi.org/10.1108/17465680810880080