Economic Integration Projects Research Articles

Regional Economic Integration and the Reality of Strong National Constitutional Powers in South America. A Comparative Analysis

Abstract This paper contributes to the discussion on the potential of today’s regional economic integration projects in South America. The starting point is a global mapping exercise of constitutional references to regionalism, which allows locating and typifying the South American constitutional contexts in comparison to global patterns. This global analysis is then connected to the context of South American constitutionalism, on the one hand, and the institutionalization of the various sub-regional economic integration schemes, on the other. The article finds that although South American constitutions refer more frequently to regionalism than the global average and incorporate clauses that promote regional cooperation and integration, very often these clauses are compensated by other clauses that seek the protection of national sovereignty and safeguard the absolute supremacy of the national constitutional framework. This helps to explain the inherent limitations of South American regional economic integration projects towards the future, and non-compliance with regional rules in the past.

Structural reforms in the euro area: a Greek view

Events in recent years have put the European economic integration project and the euro under pressure. The main cause of the euro crisis is loss of competitiveness, particularly on the periphery of the Economic and Monetary Union. To reverse this, Union members must promote structural reforms that increase long-term employment, productivity and external competitiveness. The successful implementation of reforms, however, requires sufficient public support, which in turn presupposes measures that support demand during the implementation of reforms. To that end, important steps include taking an expenditure-based approach to fiscal adjustment and the introduction of the European Deposit Insurance Scheme. And for Greece in particular, the set of necessary steps includes taking ownership of reforms, the downward revision of fiscal targets, and medium- and long-term measures of debt relief conditional upon meeting fiscal/reform targets. Finally, the stability of the euro hinges on the moderation of all fiscal and external imbalances across all member states, regardless of whether these imbalances are apparent or not.

One Belt, One Road: Many Routes for Transnational Crime and Its Suppression in China

Among the many objectives of China’s “One Belt, One Road” (OBOR) initiative, the creation of new opportunities for trade and investment and thereby boosting economic development in the region must be considered the central pillar. Although OBOR will probably be a stimulus to the economy in the region, there may be some unintended consequences. In a recent study the United Nations Office on Drugs and Crime (UNODC) pointed towards OBOR, among other inter-regional projects of economic integration, as a typical facilitator of severe transnational crimes such as drug smuggling and human trafficking. The UNODC study clearly shows the necessity and explicitly recommends the incorporation of risk assessment, developing safeguard policies and strengthening cross-border cooperation of law enforcement. Hence, the OBOR initiative should address the issue of cross-border crime along with its prevention and suppression. This paper considers how China is meeting these recommendations. For this purpose, it briefly introduces the concept of transnational crime in contrast to international crime in its strictest sense and then explores the relationship between cross-border crime and economic integration. Furthermore, it elaborates on China’s approach to and involvement in substantial and procedural issues of transnational criminal law in the geographical context of OBOR. Finally, it offers a tentative evaluation of China’s efforts to suppress cross-border crime.

European Togetherness is not for Granted

Looking at the past decade of the European Union as a developing economic and political integration project, this article first provides an overview of both positive developments as well as negative or threatening factors that the supranational institution has been subject to, indicating a spiralling cycle of political, economic and security crises. Second, it analyses the role of young European generations, who tend to engage less in traditional forms of political participation but seek out new forms and, surprisingly, express stronger belief in EU integration and higher levels of European citizenship awareness than older generations. The article points to citizenship and global education as well as lifelong learning as answers to the challenges posed by decreasing trust and belief in the European idea.

LIBERALIZATION OF CAPITAL ACCOUNTUNDER INTEGRATION

The article summarizes countries’ approaches to the liberalization of capital accountincluding CEE countries before their accession to the European Union – in pre- accession. The main steps on the way of capital liberalization are identified: the removing of restrictions on FDI before the liberalization of financial flows; the preference for the liberalization of capital inflows against capital outflows; the primary liberalization of long- term capital flows against short-term flows. The financial liberalization experience in Kazakhstan and Uzbekistan in the context of regional integrationis considered. As it is known, Uzbekistanhas always stayed away from the projects of economic integration. As a result, this country has a less developed domestic exchange market.In contrast, an active integration policy of Kazakhstan has become the driving force behind the liberalization of exchange regulation.

LEGAL REGIME FOR CROSS-BORDER INVESTMENTS IN THE STATES OF THE CASPIAN REGION

The Caspian region has a great economic potential and there are a lot of prospects for its future development. Caspian states have not formalized any special regional economic integration projects; however, they actively cooperate in implementing different large-scale projects. The article provides the detailed analysis of the main forms of foreign investments in the Caspian region and the peculiarities of their legal regime. The legal basis for the development of investments in the region was established by the system of bilateral treaties concluded between the respective states on avoidance of double taxation and on mutual protection of investments. The legal basis provides for different legal forms for cross-border investments in the Caspian region: 1) preparatory activity without creation of permanent establishment; 2) activity through permanent establishment; 3) activity through subsidiary company; 4) special forms of activities in special economic zones. Additionally, specialized tax rules for investments may be provided for the certain types of business activities: cross-border transportation, the use of complex infrastructure objects (pipelines, electricity lines, etc.).

Strengths and Weaknesses of the Union Trademark System in the Eurasian Economic Union

Since 1 January 2015, the Eurasian Economic Union (‘EAEU’) has begun functioning as a regional economic integration project of Belarus, Russia, Kazakhstan, Kyrgyzstan and Armenia, which aimed to create a common market between the Member States with free movement of goods, services, capital and persons. As one of methods to avoid negative consequences of territoriality of intellectual property rights, the Treaty on the Eurasian Economic Union (‘Treaty on the EAEU’) has enabled the introduction of a single system of protection of the trademark and the appellation of origin of goods registered and effective at the Union level. The paper analyses the Draft Treaty on Trademarks, Service Marks and Appellations of Origin of Goods of the EAEU and Regulation relating thereto and the concept of the new trademark system. The paper analyses strengths and potential weaknesses of the proposed concept of the Union trademark and addresses possible improvements to the new trademark system compared with the European trademark system. The paper argues that the goals set in the Treaty on the EAEU may be achieved through the creation of a strong, well-functioned trademark system with an independent single trademark office, taking into account suggestions in overcoming inconsistencies in substantive and procedural Union trademark law.

МЕГАРЕГИОНЫ В ГЛОБАЛИЗИРУЮЩЕМСЯ ХОЗЯЙСТВЕ

The bipolar nature of modern world – globalization and fragmentation – speeds up regional movements and economic integration. These processes in peripheral regions are expected to grow more vigorously than in the developed regions. Fragmentation redoubled the number of national economies and reduced their average size. To withstand the impact of globalization peripheral countries apply to their regional potential: they increase the connectivity of integration unions and regional infrastructure. The developed countries with their oversupplied home markets concentrate on outward expansion. Interaсtion of these heterogeneous foreign trade strategies gave birth to new links in the system of international economic relations – mega-regionalism and interregional constructions including transoceanic integration unions like TTP. The world economy is in store for a new division line because of the coexistence and competition between mega-regional and transoceanic integration unions. One of the possible repercussions of these events may be the emergence of geopolitical and geoeconomic triad – NATO, TTIP, TTP. Under such international situation peripheral economies are able to build regional integration unions and function for many years but mostly without any noticeable progress. Low internal connectivity hampers their movement towards the integration threshold. That’s why integration process should be analyzed by dividing it into two stages – initial (start) period (until reaching integration threshold and nature stage (integration build mainly on its own recourses and base). The possibility of measuring quantitatively the approach to integration threshold allows to determine the division line between two stages. Duration of the first stage is 10–12 and more years. The creation of a successful project of regional economic integration takes at least 20–30. Proposals are made how to measure the progress of regional integration projects.

Le processus de réforme des Etats postsoviétiques : politiques et interactions de l'Union européenne et de la Russie dans leur voisinage commun

Domestic change in post­Soviet countries : The impact of EU's and Russia's policies in their ''common neighbourhood''. The article explores the interplay between domestic change and external actors' policies in a regional context characterised by a growing rivalry between the European Union and Russia. In recent years, both actors have launched deep economic integration projects premised on regulatory convergence and policy transfer, namely the Eastern Partnership for the EU and the Eurasian Economic Union for Russia . The article asks how the reform process of post­Soviet countries is affected by multiple external influences. In exploring this question, it departs from the prevailing geopolitical understanding that places the focus on EU­Russia rivalry and regards post­Soviet countries as mere objects of the contest engaged in the ''common neighbourhood". Instead, the article assumes that the competition between two integration projects provides domestic actors with additional leverage in the reform process.

Экономическая интеграция: уроки для постсоветского пространства

Authors examine economic effects of regional integration in the emerging markets, impact of globalization on economic integration and existing models of economic integration in different regions of the world in order to distinguish key characteristics of efficient model of integration at the post-Soviet space. In particular, authors distinguish the significance of various static and dynamic effects of economic integration for emerging markets and make a conclusion on the rising importance of dynamic effects. It is proved that positive economic effects of integration could be more evident for the emerging markets than for the developed ones. On the basis of a detailed analysis of specific features of economic integration projects in different regions of the world, a conclusion is drawn on key importance for emerging markets of such formats of economic integration that directly contribute to economic development (infrastructure development projects, creation of growth poles, formation of scientific and technological potential, etc.). In the context of globalization the strengthening of cooperation in investment sphere, the implementation of integration projects on financial markets, the creation of common defensive mechanisms against external shocks are of particular significance for economic integration processes. Basing on the undertaken analysis, the main principles of efficient model of integration in the Eurasian Economic Union are outlined and the key terms of realization of this model are defined. First of all, an efficient model of integration in the Eurasian Economic Union should be formed in contest of interaction between this union, at the one hand, and European and Asian integration centers, at the other hand. Then, integration mechanisms should extend beyond traditional schemes of integration and include different types of agreements (on preferential investment, financial integration and cooperation), sectoral cooperation projects, common policies, etc. Formation of single humanitarian, scientific and innovation environment should become the key element of the integration model of the Eurasian Economic Union. Acknowledgements. The article has been supported by a grant of the Russian Fund for Humanities.Project No. 13-33-11120.

ANALYSIS OF CENTRAL ASIA ECONOMIC INTEGRATION PROJECTS FROM THE VIEWPOINT OF CONVERGENCE HYPOTHESIS

In this study, Eurasia Region integration process will be investigated in theoretical and empirical terms. Potential impact of economic integration will be evaluated in the context of what needs to be done for successful integration. At this stage, a comparison will be drawn between the EU and the integration in the Eurasia. Later, an econometric analysis will be performed in the study; whereby Central Asia Economic Integration projects will be analyzed separately, and attempts will be made to demonstrate the results of the projects within the context of convergence hypothesis. After these, some solution proposals for integration will be presented.

Origins of the Ukrainian Crisis

The author explores the origins of the crisis in the socio-economic and political developments of the country and the region since 1991. He finds that the convergence of several factors was responsible for provoking the crisis: the loss of a social consensus and democratic legitimacy by the Ukrainian state leadership; its international isolation between rival Western and Russian projects of regional economic integration and security; the revival of Russian imperialism after 2000; divisions between European states over policy towards Russia; and the decline of US capacity to project its power in Eastern Europe after 2008. Russia is seen as the proactive regional power in the crisis: it militarised and internationalised the domestic struggle of power in Ukraine by seizing Crimea and arming the separatist movement in the eastern region. These findings challenge the veracity of the claim currently widespread among the Western left, and parts of the right as well, that the USA bears primary responsibility for provoking the crisis by pressing too far into Russia's ‘traditional’ or ‘historic’ sphere of influence, to which in their view Ukraine belongs. Such a claim by socialists is questioned on normative as well as analytical grounds.

Is European integration causing Europe to become more nationalist? Evidence from the 2007–9 financial crisis

ABSTRACTThe European Union's (EU) political and economic integration project has grown dramatically since its inception in 1952. While the ultimate goal of the EU is unclear, one of its aspirations has been to attempt to create European citizens. The idea is that over time, citizens would look towards Europe as their main national identity. While the political and economic integration projects are quite far along, the national identity project has lagged far behind. The number of people who have primarily a European identity is quite small and has not increased much in the past 20 years. There is a far larger number of citizens for whom their national identity is paramount, but a European identity also exists. Since 2005, this group has grown smaller and the number of citizens with only a national identity has grown larger. This article argues that the EU integration project has pushed citizens to value their national identities more and to look to their national governments to protect them. We examine the evidence for this in the context of the 2007–9 financial crisis. We show that in countries most seriously hit by the crisis, national identities have increased dramatically and citizens with some European identity have decreased.

What Is the German’s Fatherland?

This article deals with the migration of “ethnic Germans” from socialist Eastern Europe to the GDR in the decades after the Second World War. Post-expulsion resettlement from that region is commonly associated with Aussiedler migration to West Germany. Contesting the idea that East Germany displayed no interest in Eastern European Germans, this article shows that the GDR, which challenged the West German claim to be the sole representative of the German nation, also received ethnic German immigrants, mostly from Poland and the USSR. It argues that the distribution of roles between the two German states, with West Germany being the prime destination for resettlers, was not clear from the outset. It was only after Polish–West German “normalization” in 1970 that the FRG became the almost uncontested “fatherland” for Eastern European Germans. West and East German approaches resembled each other as long as they were predicated on humanitarian family reunification. They diverged as the GDR attempted co-ethnic labor recruitment in Poland in the 1960s. These efforts met with limited success, as East Germany was the weakest link in a cross-bloc “tetradic nexus” with the German minority in Poland, the Polish state, and West Germany. Meanwhile, the GDR authorities eyed grass-roots migration initiatives by Soviet Germans with suspicion, as they undermined the government aspiration to control the movement of people. The article finally argues that movement of labor had no priority in the project of socialist economic integration, which gives reason to suspect a link between limited migration and failed COMECON integration.

Sanchita Basu Das, ed. Achieving the ASEAN Economic Community 2015: Challenges for Member Countries and Businesses. Singapore: Institute of Southeast Asian Studies, 2012, xxvi+347p.

Achieving the ASEAN Economic Community 2015: Challenges for Member Countries and Businesses Sanchita Basu Das, ed. Singapore: Institute of Southeast Asian Studies, 2012, xxvi+347p.The ASEAN Economic Community (AEC) 2015 is the most anticipated economic integration project for the people in ASEAN countries. Despite being a form of state-level cooperation, the inclusion of the private sector in integration is undoubtedly a crucial factor in the implementation of AEC. This book's aim is to examine the progress of the states as they implement soft and hard infrastructures to milestones that were attained over the years and how the private sector responded to these achievements.In the first part of the book the first chapter by Sanchita Basu Das specifically explores ASEAN member countries' challenges including their infrastructure effectiveness to ensure regional inte- gration and the importance of their business sector's involvements in realizing an effective AEC by 2015. The second chapter by Pushpanathan Sundram highlights the future challenges that include integration process management and focuses on the non-implementation of regional com- mitments, and the importance of private sector engagements as drivers of economic integration.The second part of the book examines the readiness and challenges of individual ASEAN member states with regard to the AEC. The chapters show that as the ASEAN economies widely diversify the variation in progress and challenges also become apparent. For example, chapter 4 by Chan Sophal and Larry Strange, chapter 5 by Pradeep Srivastava, and chapter 11 by Vo Tri Thanh highlight the fact that the main problems for the new member countries of Cambodia, Myanmar, Laos, and Vietnam (CMLV) are domestic ones such as poor capacity for resources mobilization, a lack of private sector coordination and networks, and institution-building. In par- ticular, the importance of the Cross-Border Transport Agreement (CBTA) in Cambodia and Laos on cross border transportation for trade facilitation highlights sub-regional integration issues. On the other hand, the original member countries-with the exception of the smaller ones such as Singapore and Brunei Darussalam-face political and resources mobilization problems. Further- more, both the Philippine and Indonesian governments are under pressure to address governance issues that may hinder gaining advantages from regional integration and additionally we also see that in Malaysia, ethnic policies have hindered state institutional capacities to support economic growth (p. 96).The third part of the book discusses the private sector's readiness for the AEC. This part includes studies drawn from interviews and data analysis of the private sector's perception and demands on AEC implementation. However, this part is insufficient as it only has one chapter on Vietnam, and lacks concrete studies that deal with CMLV countries case studies. Chapter 18 by Vo Tri Thanh and Nguyen Anh Duong shows how the private sector's main problem with AEC is poor information dissemination and knowledge. Interestingly, this problem is also the main issue for original member countries: that ASEAN and member countries' attempts have been insufficient in promoting and accelerating AEC implementation beyond government and academic research. This limited attempt at information dissemination and poor governance of ASEAN as a supra- national institution has been recognized since the implementation of ASEAN Free Trade Agree- ment (AFTA) with the poor performance of Form D. This form is for applications for a lower tariff under the Agreement on the Common Effective Preferential Tariff (CEPT) Scheme for AFTA (Nesadurai 2003; Chandra 2008). The cases in Indonesia and Thailand show that limited dissemi- nation of information on integration processes, tariffs, regulations, and Rules of Origins (ROOs) has undermined the private sector's enthusiasm for AEC. Furthermore, the chapters on the Philippines and Malaysia show how cultural-related business activities have hindered the rate of AEC acceptance and implementation in these respective countries. …

Russia in WTO: interests, policy autonomy, and deliberations

The author examines the role of Russia’s WTO accession in shaping institutional adaptation across several important dimensions, arguing that WTO accession has generated more scope for pro-trade as opposed to protectionist domestic interest groups, constrained the scope of trade policy, and made more and better information available to deliberations by business and the public related to trade. Adjustments to Russian legislation and trade policies through the lengthy accession process have, it is argued, helped elicit more transparent forms of business–government coordination. The article also explores the role of Russia’s WTO commitments in shaping the functioning of the Eurasian Customs Union formed in 2010. The crisis in Russia’s relations with the EU and the US, initially sparked by contending projects of regional economic integration, will be a major challenge for the WTO’s agenda-setting and conflict management functions, a test having implications for the broad question of relevance of the WTO in an atmosphere of renewed geopolitical tensions among major powers.

From Balkanization to Regional Economic Integration Project: Cefta Agreement

The years of the 1990s for Balkan Regions were this era was remembered war, political unrest and collapse of Former Yugoslavia. This means despite of regional economic integration in rest of the World, this region had political unrest, the emergence of new states and economic problems. Between 2002 and 2006, before CEFTA Agreement signed, more than bilateral free trade agreements were signed between these countries. After signing CEFTA in 2006, these agreements that signed before replaced with this agreement. Both bilateral FTAs and after CEFTA agreement has a positive impact on trade volume between the countries in the regional. Although there are some obstacles regional economic integration, especially technical barriers, the countries in the region, have some advantages. Some of these are common language, common border, land areas, cultural similarity, geographical position and historical links. DOI: 10.5901/jesr.2014.v4n4p414

Two Integration Projects in Europe: Dead End of Struggle

The report represents the first part of a project targeting the problems and prospects of two economic integration projects in Greater Europe — the European project (European Union) and the Eurasian project (Russia, the Customs Union and the Eurasian Economic Union). This topic is particularly relevant in light of the Ukrainian crisis, the signing of Association Agreements with the EU by Georgia, Moldova and Ukraine, as well as the looming threat of „continental fracture‟.

Europe after the U.S. Pivot

Insofar as Europe's security and cohesion have for decades been premised upon a strong American political and strategic engagement, Washington's intention to “rebalance” to Asia casts a shadow over the sustainability of a stable and coherent geopolitical order on the continent. This article argues that as the United States seeks to rebalance strategically towards the Asia-Pacific region a number of “indigenous” geopolitical trends are becoming increasingly important in Europe: an Anglo-French entente for a “maritime” Europe, a German-French “continental” project of economic and political integration, and Russia's resurgence across Europe's East. The growing prominence of competing geopolitical visions for Europe might even call into question the cohesion and direction of the institutional expressions of the U.S.- engineered Western order in Europe, namely the Atlantic Alliance and the European Union. Increasing geopolitical and institutional contestation, we contend, pose a number of challenges for both U.S. interests and European security.

Russian Politics in Times of Change: Internal and External Factors of Transformation

The first few months of 2014 brought an unprecedented collapse of the Russian Federation's image on the world stage, the worst since the end of the Cold War. The events in Ukraine and the reaction to them by a significant number of countries in the international community, quickly demoted Russia to that group of countries whose foreign policy provokes harsh condemnation. For the first time in decades, international sanctions have been put in place against Russia, adopted by a large number of the world's largest countries, de facto downgrading Russia to the rank of a rogue state; these sanctions are intended to exert pressure on the elite, who are responsible for implementing certain foreign policy decisions. For many experts, the events are associated with a new and sudden sea-change in Russia's foreign policy. However, it appears to us that the current stage of cooling relations with the West is a logical consequence of the way in which the Russian state was constructed in recent years; in fact, a different scenario could hardly have been anticipated. This article presents the author's view of the mechanisms and logic that shaped Russia's foreign policy course, which has evolved through several iterations in the last three years. The below analysis could facilitate a fuller understanding of Russian motives in international relations, and help find opportunities and mechanisms for dialogue between Russia and the West.Vladimir Putin's new presidential term, which began in 2012, was typified by a significant transformation of Russia's foreign policy, both with respect to neighboring states, and world politics in general. The majority of pundits tend to link this transformation with domestic, social processes in Russia itself, an increasingly active public and a qualitative transformation of the Russian elite. However, we consider that Russia's current foreign policy concept is a complex combination of three factors, which are both foreign and domestic:A. The evolution of the political system, which took place as a result of competition between different groups within the Russian elite, over the past 3-5 years. As a result of these processes, Russia's political spectrum has a complex structure, which includes liberal-economic, conservative-political and oligarchic elements. Competition between these groups is a major factor behind the complex character of Russia's current foreign policy.B. The Eurasian economic and political integration project which, in the mindset of Russian leaders, is the key to Russian development in the 21st century. Success or failure in implementing the giant steps required to re-integrate post-So- viet space is seen as the main indicator of the effectiveness of the Russian political system today, and its foreign-policy strategies.C. The international security situation, which features a wide range of uncertainties and threats in the Middle and Far East, as well as Central Asia and Afghanistan.We consider it important to analyze how much the above factors influence current Russian foreign policy, and then ascertain how much each factor can influence policies. This analysis will offer answers to key issues about the dominant factors in foreign policy decision-making in today's Russia, e.g. whether policy-making is reactive or proactive, and what transformations the next few years will bring.The Russian EliteTo answer the questions raised, we must first determine the structure of the Russian elite today. This stratum can nominally be divided into two, deeply inter-connected segments. The first is a hierarchy: the distribution of economic and financial influence and interests within a ruling class that took shape during the first presidential terms of President Putin. The second is the values of the members of the elite who occupy the country's political governance system.The Russian elite, taken in general, are fairly well understood. Between 2000 and 2010, four main groups of influence emerged in Russia. …