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The Global Economic Model in Crisis: An Analysis of the Obstacles to the Sustainable Development Goals

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  • Andriy Stavytskyy

    (Department of Economic Cybernetics, Faculty of Economics, Taras Shevchenko National University of Kyiv, 01033 Kyiv, Ukraine
    Department of Theoretical Economics, Faculty of Economics and Business Administration, Vilnius University, 01513 Vilnius, Lithuania)

  • Andrii Dligach

    (Department of Marketing and Business Administration, Faculty of Economics, Taras Shevchenko National University of Kyiv, 01033 Kyiv, Ukraine)

Abstract

The Sustainable Development Goals (SDGs), established by the United Nations in 2015, aim to address global challenges like poverty, inequality, and climate change, yet only 17% of these goals are on track for 2030. This study investigates the geopolitical, economic, and technological barriers to SDG progress, focusing on the middle-income trap, trade regionalisation, and automation’s impacts. Using quantitative and qualitative methods, we analysed World Bank, IMF, UN, and OECD data (2005–2024) on GDP, FDI, exports, and public debt across various income-level countries. Findings reveal that economic growth is hindered by market saturation, ageing populations, high debt, and declining FDI, while global trade stagnation since 2011 and regionalisation impede cooperation. Automation reduces employment, shrinks the middle class, and threatens stability, with geopolitical tensions disrupting supply chains. The current economic model, reliant on consumption, investment, and exports, is insufficient for sustainable development. The novelty of this study lies in its integrated analysis of three structural global trends—trade stagnation, regionalisation, and automation—over the period 2005–2024. Unlike previous works that typically examine these factors in isolation or over shorter time horizons, our approach highlights their combined impact on SDG achievement. By formulating and testing specific hypotheses, the study contributes to the literature by providing empirical evidence on how these interrelated processes jointly hinder sustainable development under the current global economic model.

Suggested Citation

  • Andriy Stavytskyy & Andrii Dligach, 2025. "The Global Economic Model in Crisis: An Analysis of the Obstacles to the Sustainable Development Goals," Sustainability, MDPI, vol. 17(19), pages 1-21, September.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:19:p:8537-:d:1756365
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    References listed on IDEAS

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    1. United Nations UN, 2015. "The Millennium Development Goals Report 2015," Working Papers id:7097, eSocialSciences.
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    3. Moyer, Jonathan D. & Hedden, Steve, 2020. "Are we on the right path to achieve the sustainable development goals?," World Development, Elsevier, vol. 127(C).
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    5. Zhang, Yu & Tian, Kailan & Li, Xiaomeng & Jiang, Xuemei & Yang, Cuihong, 2022. "From globalization to regionalization? Assessing its potential environmental and economic effects," Applied Energy, Elsevier, vol. 310(C).
    6. United Nations UN, 2015. "The Millennium Development Goals Report 2015," Working Papers id:7222, eSocialSciences.
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