Understanding Economic Integration in the Eurasian Economic Union – the Relevance of Integration Theories

Abstract

ABSTRACT The Eurasian Economic Union (EAEU) established in 2015 has developed an institutional framework that on the paper largely mimics the European Union’s. The article suggests that a closer examination of the economic interdependence in the region adds valuable knowledge regarding the development of the organization. The analysis follows a (post)-functionalist model and highlights how the integration process responds to economic interdependence, and that the integration process has the potential of generating spillovers. The Eurasian Economic Commission (EEC) has initiated work targeting the removal of non-tariff barriers, and business associations in the region are paying attention to the organization. Yet, there are also several constraints to integration in the region linked to the member states’ reluctance to delegate substantial powers to the EEC, and their insistence on the cooperation as being merely economic. These limitations are in line with previous suggestions in the literature regarding non-democratic regional organizations.