Academics as well as great scholars, having studied economic globalization, deregulation together with financial crisis concur that it is a process that creates extensive instability and vulnerability in the emergent markets and economies. Open integrated markets without rules have since been the dominant economic policy for the past few decades. The process of financial liberalization has not been as successful. Contributing factors include financial markets, global financial enterprises while states have been preoccupied by the much awaited results of the process during those passed decades and this is evidenced through the emergent economies. The gap exists between productive structural economic performance and traditional financial regimes that do not conform to economic globalization, oriented towards both financial stability as well as economic development.
It was inevitable that globalization was to be derailed by the global financial crisis because in itself, globalization is indeed a very dynamic process which has since yielded tremendous benefits. Poverty levels have since gone down in many countries despite economic crisis while business has been transformative. Traditionally, however, globalization is susceptible to terrible and expensive backlashes. It can be thought of as a cyclic phenomenon with repeated Historical instances; bearing dynamic and integrated global development that ended in eruptions of financial and economic crisis instability with consequential geopolitical disorder. Practical examples include French and British empires of the eighteenth century which came down as a result of military, social as well as financial chaos following the Napoleonic and French revolution wars and subsequently the later financial crisis following the Great Depression.
It suffices to note that every globalization upswing is propelled by technical advancement which more often than not leaps far much ahead while providing no time for political institutions and societies to adjust or put in place counter-mechanisms. According to Marxian economics, it is argued that financial transactions lie at the core of the manner in which people measure value, the collapse of financial globalization has resulted in extreme crisis of values.