Pitrakov V.Yu.

Post-graduate student Omsk Academy of the Humanities, Russia

Cooperation of border countries within the framework of formation of the Customs Union

As is well-known, in pursuance of earlier attained agreements among the leaders of Russia, Kazakhstan and Belarus consummation of primary contract legal positions of the Customs Union, oriented at creation of a unified customs territory, supranational authorities and regulation of rules of trade among its participants, was started on January 1, 2010. From this date the unified Customs Code has been functioning in all countries – participants of the Customs Union.

Consolidation of the three countries into the Customs Union occurred in time of general economic development. While supply volumes remained permanent, raw material prices have been restoring, which affected a general result. Certainly, it is necessary to appreciate commodity turnover among Kazakhstan, Russia and Belarus, but at the same time an actually significant factor is required, in order to provide objective estimation for the existent process. At present time many countries started to explore world market more thoroughly, and Kazakhstan and Russia have a good opportunity to use this world experience in building their interrelations [1].

Position held by the Russian Federation in the issue of formation of the Customs Union is determined by long-term strategic interests of economic as well as political nature, which was repeatedly stated by the national leaders of Kazakhstan and Russia. Success in this direction corresponds with the most important objectives of its national development, even despite the fact that meanwhile the Russian Federation incurs definite financial losses on realization of principal measures on formation of the Customs Union.

A political decision on creation of the Customs Union consisting of the three countries has been made. But the given union is basically an economic organization, and it should be acknowledged that from the beginning of its existence the Customs Union has come across with serious problems of economic nature, caused by, first of all, differences in national and group economic interests. For more than 20 years after disintegration of the USSR not only different national economic interests of former Soviet republics, including new sovereign states – participants of the Customs Union, have been formulated, but also specific economic interests of definite influential national business-groups have been formed, which, moreover, do not always coincide with national interests of even their own countries.

Formation of the Customs Union should be hastened under no circumstances; its stages should not be skipped, since this is a continuous process. And decisions have been already made on establishment of transitional period for adaptation to new conditions and even on partial realignment of customs duties in direction of their reduction in respect of a whole series of commodity groups and their withdrawal from the system of the Customs Union for a period from six months to several years demonstrate that a process of habituation of interests of national commodity producers may last for a sufficiently long time.

Viability of formation of the Customs Union will be in many respects determined by accomplishment of a principal task of providing successful progressive development of integration on a micro level with involvement of the widest circle of economic entities in this process. Meanwhile it seems that issues of political superstructure are prioritized, whereas less attention is paid to productive and investment contacts on a level of separate enterprises. However, not everything is so pessimistic, and, as Russian experts mark, such progressive forms of business collaboration as outsourcing, leasing, technology transfer, border trade are actively introduced into commercial and economic relations of members of the Customs Union.

In other words, a fairly continuous period of «mutual adjustment» and coordination of concrete interests is required, until advantages of integration processes become evident.

At present time, on evaluation of consequences of formation of the Customs Union of Belarus, Kazakhstan and Russia most attention is paid to perspectives of liveliness of trade contacts. Nevertheless, there are other, more promising directions of development of economics of the countries-participants. Particularly, in our opinion, diversification and modernization of economics due to attraction of large-scale investments into advanced branches of manufacturing industry may become the most perspective result of joining Kazakhstan with the Customs Union. For instance, economics of the Republic of Kazakhstan has a vividly expressed raw material nature, which causes problems with stability because of its dependence on the world market environments. All programs of economic development of Kazakhstan were aimed at modernization of economics and development of high-technology productions in leading tempo. However, such large investments, main source of which may be predominantly foreign capital, are necessary for accomplishment of such important objectives. At present time, foreign investments in Kazakhstan are concentrated in spheres connected with extraction of raw material, finances and building as well.

From the moment of functioning of the Customs Union favorable conditions for realization of commerce and manufacturing interrelations between the border regions were created:

- procedure of international trade was simplified a lot;

- possibility of passenger and cargo transportation was increased;

- significant prerequisites for raise of economic climate and investment cooperation between the border regions appeared [2].

It is necessary to mark that to present moment extensive basis of scientific researches, dedicated to influence of customs unions and free trade zones on investment attractiveness of the counties-participants, has been formed. Moreover, it is possible to emphasize several reasons of liveliness of investment activity of large business after introduction of such intergovernmental unions:

- liveliness of commodity turnover in consequence of removal of customs barriers causes growth in production and key macroeconomic indicators; as a result, country becomes more dynamic, its attractiveness for investments raises;

- on account of liberalization of commerce export increases essentially, which also provides influx of additional investments into already existing branches, earlier oriented predominantly at home market;

- the given factors are frequently considered by international investors in advance; therefore simply fact of such affiliation as itself or even an announcement about the forthcoming accession is enough for a sharp raise of influx of investments into the country joining a commercial association [1].

Enlargement of membership of the Customs Union in foreseeable, at any case the nearest future is generally hardly expedient, since at present time the primary task is a consolidation of this organization, overcoming already existing inner difficulties and contradictions, attainment of noticeable progress in already planned directions. Exactly achievement of such progress, and by no means growth in number of members of the organization, should become a genuine criterion of popularity and authority of the Customs Union.

` Thus, conducted monitoring of formation of intergovernmental commercial unions demonstrates that significant increase of foreign investments into economics of the countries-participants is one of the most important aspects of their functioning. Present conclusion allows hoping for observation of analogous situation in case of the Customs Union of Belarus, Kazakhstan and Russia; growth of investments will permit to accelerate processes of modernization and diversification of national economics.

Analyzing general condition of course of integration processes on the post Soviet area and reasons of their appearance, it is possible to draw a conclusion that a number, a majority in essence, of former Soviet republics – nowadays independent states has an obvious objective demand on strengthening mutual political and economic collaboration not only in bipartite, but also in multilateral formats. This necessity is determined not only by purely economic causes, but also by the whole complex of the most diverse factors having influence on the strategic choice of this part of the post Soviet countries.

References:

1. Topical issues of Kazakhstani-Russian cooperation in the modern stage // Kazakhstan Institute for Strategic Researches under the President of the Republic of Kazakhstan. – Almaty, 2010.

2. Science and society: problems of modern researches. Under the editorship of A.E. Eremeyev. // Non-governmental educational institution of higher professional education «Omsk Humanitarian Academy». – Omsk, 2013. – Pp. 127 – 131.