Volga Avechkina,
PhD in economics, Head of the
chair, Institute of management and business, Minsk, Belarus.
INTEGRATION
OF THE REPUBLIC OF BELARUS IN THE WORLD ECONOMIC SYSTEM
Abstract.
Covers the key aspects of the development of the foreign-economic activity of
the Republic of Belarus, their impact on the sustainability of the country's
economic growth and competitiveness in a dynamic world economy development.
Key
words: foreign-economic activity, economical system,
integration, competitiveness.
Introduction. The main direction of the development of the modern
world economy is integration. Regional economic alliances unite countries on
all continents, which provide them with more effective interactions, new
opportunities and prospects. In turn, the development trends of the
foreign-economic activity of the Republic of Belarus and the increasing of it
range is largely predetermined by the characteristics of market relations as
well as the new processes in domestic and world economy. Changes in the development
of Belarusian economy are aimed to choose the optimal model of the integration
of Belarus into the world economy to achieve a sustainable economic growth of
the country.
Key part. The main distinctive feature
of today's global economy is the development of strong regional coalitions to
achieve animation efforts and protection of corporate interests in the global
market. The top regional associations currently accounts for 80% of world GDP, 82% of all public budgets of countries of the world, 85% of world exports (Table 1 – Proportion of
regional groupings in the world economic indicators).
Table 1 –
Proportion of regional groupings in the world economic indicators, %.
|
Economic
indicators |
NAFTA |
EU |
APEC |
CIS |
|
Population |
5 |
7 |
40 |
5 |
|
GDP
on the increase in purchasing power |
26 |
24 |
29 |
2 |
|
Export |
17 |
43 |
25 |
2 |
|
Investment |
19 |
19 |
55 |
3 |
Note: source [7, p. 16-19].
Table 1
demonstrates the weak competitive position of the Commonwealth of independent
States, Belarus is a member. Corresponding member of National Academy of
Science of Belarus, professor V. Medvedev noted that the construction of
economical relations of the Republic of Belarus with foreign partners in the
medium and long term in the face of a number of unfavorable internal and
external factors:
- dependence of
national economy on imported raw materials and energy resources;
- dependence of the
production structure of the country from importing components;
- low ranking of the
credit and investment;
- low percentage of
added value and, consequently, the lack of competitiveness of domestic goods
and services, moreover, the persistence of discrimination of Belarusian
exporters abroad;
- low availability of
highly qualified personnel in the sphere of foreign-economic, marketing and
foreign trade [4].
To all
the above, can be added:
-
poor service support of Belarusian products, which reduces its consumer
relevance;
-
information and communication system does not match to the current level
of development and management of production and supply activities (promotion).
The
main direction of the economic development of each country is to realize its
objective advantages: absolute and/or relative. The absolute advantages are
based on total unique climatic, natural and labour force resources available
within the country due to historical circumstances that determines the
direction of the "natural" specialization in international division
of labour (e.g., potassium salt, cement, geographical position of Belarus).
Relative (comparative) advantages are not unique advantages in regard to
production conditions in the country, and comparing the values of the
alternative cost of manufacturing homogeneous (similar) products in different
countries, that predetermines possibilities for specialization and competition
on the basis of comparative advantages (for example, the unique products of
BELAZ plant of wheeled tractors, recipes and food technology a number of
Belarusian enterprises). The fundamental principle of the market economy is the
quest for profit. It leads businesses to implement absolute and comparative
advantages. We have to admit that the Republic of Belarus cannot develop and
use absolute and relative advantages fully consciously.
According to the Prime Minister of the Republic of
Belarus Mikhail Myasnikovich, on the way of the profound integration of the
economy of Belarus in the world economic system "the number and the
potential negative impact of existing and new threats will increase" [5,
p. 3].
Foreign trade activities in the framework of the Customs Union of
Russia, Belarus and Kazakhstan create additional opportunities to Belarusian
business, but define a number of problems as well.
The main problem is that the participants have changing products with a
high proportion of natural resources and the DWCP elementary occupations
mainly. In addition, intra-industry trade is still at a fairly low level.
Economic development, based on obtained or stolen foreign technologies, leads
to reduced competitiveness. It is necessary to search for new opportunities, as
well as to response timely to the threat of competition and the global economic
environment in general for the development of long-term stable success.
Russia's accession to the WTO in 2012, requires reconsideration of many
formerly mutual obligations and concerns the harmonization of macroeconomic
policies. However, this Alliance generated interest in close collaboration on
the part of a number of CIS countries and the far abroad countries (Venezuela,
Viet Nam, Egypt, Syria), reflecting on the possibilities of expanding the range
of external economic activity.
Creation
of conditions for the full integration of the Republic of Belarus in the world
economic system needs a complex approach, namely:
-
analysis of dynamic changes of regional and national markets, as well as
of development trends in the world economy and the international trade;
-
development of the traditional specialization of Belarus within the
framework of the international division of labour;
-
historical expansion of trade and economic relations of the State and
its geographical location;
-
development of mechanisms of functioning of foreign trade infrastructure
of Belarus;
-
improve the efficiency of the national economy.
Moreover,
the integration of the Republic of Belarus in the world economy as a whole must
be seen as part of economic reforms.
A priority is the formation and development of the competitiveness of
the national economy, overcoming its structural deformation and the lack of
efficiency in modern conditions. This requires accelerated development innovation,
industrial production modernization and improvement of financial policy. These
will make the position of Belarusian export more stable and competitive.
Large-scale innovation on the development and use of new technologies must be
based on scientific thought. Importation is incomparably more expensive.
It requires a balanced use of export and import tools for open economy.
The increase in exports makes it possible to earn money to pay for imports and
to increase national income. The present stage of development of foreign trade
relations of Belarus is characterized by the increased efficiency of
export-import operations and expansion of regional trade. In 2012 was
accomplished positive foreign trade balance.
However,
in the structure of exports of the Republic of Belarus is dominated by
intermediate goods and goods produced by traditional technologies. This raises
the need to increase the share of commercial high-tech products and its
inclusion in the international division of labour. Thus, the Belarusian
business has the opportunity to move to a higher level of internationalization
and business activity by the organization of the assembling and service
industries using Belarusian technologies and local resources.
An export of services is of special significance for Belarus. One of the
perspective directions of cooperation of the Republic of Belarus with the
countries is exporting educational services [1, p. 5]. Belarus has real
potential, enabling it to take a worthy place in the world education community:
demand for University and post-university education, mainly humanitarian,
technical, foreign nationals from Asia and the Middle East rose by 2012, almost
double. Unfortunately, the Belarusian higher educational institutions do not
have a proper interest in the export of educational services. Meanwhile, the
expansion of cooperation in the scientific, technical and educational fields
contributes to the reproduction of the labour force – an essential resource for
economic and socio-cultural development [5, p. 5].
Multi-vector
foreign economic relations of the Republic of Belarus to some extent justifies
itself, as it helps to expand the geography of Belarusian export.
Development
of the foreign trade business requires forecasting and planning work abroad based
on system analysis of complex business environment factors, active use of the
mechanism of international marketing. A permanent presence of Belarusian goods
in foreign markets needs the development of logistics and the information
technology as a tool to deliver the goods to the consumer with optimal
financial, material and spatial-temporal cost. In that connection, the National
Centre for marketing and price study, which founder is the Ministry of Foreign
Affairs of the Republic of Belarus, should conduct the intensive research into
markets.
Conclusion. Integration of the
Republic of Belarus in the world economy requires is a managed process aimed at
addressing long-term economic goals. Thus, the openness of the economy of the
Republic of Belarus, raising its internationalization and integration of
domestic producers in the world economic system, while at the same time leads
to the need to confront the Belarusian business the increasing onslaught of competitive environment in the
domestic and foreign countries markets.
It is important that competitive advantages are achieved and are held
only at constant improvement in all spheres of activity. In this regard,
improvement and actively use the tools of foreign economic activity, contribute
to the strengthening of Belarusian products in foreign markets.
List of sources
used
1.
The National Programme for the development of exports of the Republic of
Belarus for 2011-2015 years. [Electronic resource]. – Access mode:
http://www.gov.datacenter.by/ru/content/3836. -The date of access: 12.01.2013.
2.
The National strategy on sustainable social and economic development of
Belarus for the period till 2020, 2010/National Commission for sustainable
development of the Republic of Belarus; Authors: J. M. Altksandrovich. [et al.].
Minsk: Oxford University Press, 2004.
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3.
Klocvog, F.N., Golubeva, O.V. Development perspectives of Economics
and foreign economic relations of the Republic of Belarus. / F.N. Klocvog, O.V.
Golubeva. The Republic of Belarus//in the system of international economic
relations. Compendium of international macro sheet. researcher Scient. config.,
Minsk, 23-24 Oct. 2008 г./the Institute of
Economics of the Academy of Sciences of Belarus. – Minsk, 2009. – P. 31-33.
4.
Medvedev, V.F. On priorities of development of international economic
relations of the Republic of Belarus. /V.F. Medvedev. The Republic of
Belarus//in the system of international economic relations. Compendium of
international macro sheet. researcher Scient. config., Minsk, 23-24 Oct. 2008 г./the Institute of Economics of the Academy of
Sciences of Belarus. – Minsk, 2009. – P. 16-22.
5.
Myasnikovich, M.V. Economic security and macroeconomic stability of the
Republic of Belarus in modern conditions/Mikhail V. Myasnikovich//Republic of
Belarus in the system of international economic relations. Compendium of
international macro sheet. researcher Scient. config., Minsk, 23-24 Oct. 2008 г./the Institute of Economics of the Academy of
Sciences of Belarus. – Minsk, 2009. – P. 3-9.
6.
Мясникович, М.В.,
Ткачев, С.П. Республика Беларусь по пути устойчивого развития./ М.В. Мясникович, С.П. Ткачев. // Проблемы управления. – 2005. –
№ 3(16). – С. 6-11.
7.
Сейфуллаева, М.Э.
Международный маркетинг в экономике современной России / М.Э. Сейфуллаева. –
М.: Экономика, 2001. – 223 с.
SUMMARY
Avechkina Volga
Integration of the Republic of
Belarus in the world economic system
The Private Institute of
Management and Business, Minsk
The article deals
with the problems of competitiveness of the economy of the Republic of Belarus
in conditions of active development of the integration processes of the world
market and their related aspects and directions of improving the mechanism of
the world economy connections of Belarus.