ECONOMIC CRISIS AND ITS IMPACT ON SUSTAINABLE DEVELOPMENT

The ongoing financial and economic crisis proves the great instability and points that contemporary neo-liberal doctrine has failed. Free-market fundamentalism on the one hand assumes freedom of choice and meeting the needs using the mechanism of supply and demand, on the other hand, it commits the failure of market for local communities. The elaboration is focused on regular economy development cycles. Also the imbalance between the real economy and the financial sector, which in turn led to the crisis was analysed. What is more, the man has lost awareness of being an integral part of the environment. The present ecological crisis is the price we have to pay for the development of civilisation. It is caused mainly by greed, empowered by the market economy model. Only money counts and the pursuit of profit, and care for the common good - the natural environment is neglected or even fully ignored. Therefore, it is reasonable and necessary to manufacture a public awareness that each person creates a microenvironment and has both, positive and the negative impact on the entire planet.