CIS is a platform for integration
processes
Prepared
by:Uzhakhov Adam, Master’s Student of
the faculty of Law
AcademicAdvisor,
Cand. Sc. Law, actingassociateprofessor
BerdibayevaÀ.Ê.
Almost twenty years have passed from the collapse of
the USSR and establishment of inter-state integration at the former USSR space,
i.e. Commonwealth of Independent States (CIS), formed for the purpose of
provision of retaining and development in new conditions of the multiple
existing communications in economics. Politics, humanistic and other fields
between former Soviet Republics
Initially the composition of CIS included Belarus,
Russia and Ukraine, the heads of which signed the Agreement about CIS Establishment
on December 8, 1991 in Bialowieza forest. On December 21, 1991 Azerbaijan,
Armenia, Kazakhstan, Kyrgyzstan, Moldavia, Tajikistan, Turkmenistan, Uzbekistan
joined CIS. In 1993 Georgia also entered into CIS, however in 2009 after the
armed conflict with Russia in South Ossetia, this state left the commonwealth.
In January 1993 the Articles of Association of the
Commonwealth has been approved and signed by 9 member-states. Turkmenistan did
not sign the CIS Articles of Association and declared about its participation
in CIS as associate member. Ukraine also has not signed the Articles of
Association, in law shall not be considered as the CIS member.
During creation of CIS it was assumed, that the formed
common economic, humanitarian, informational space shall be retained without
even one state; based on plans, after release from the union center, the
cooperation between the former USSR republics had to be more close and
efficient. Nevertheless, for the years of CIS existence, it was discovered that
there is a sharp contradiction between the potential opportunities of the
Commonwealth (firstly economical one) and actual mutual cooperation. On one
hand, the inter-dependence formed in USSR times between the national economies
of CIS countries, their production and technological unity and rich experience
in interaction in the framework of the one state objectively prevents close
cooperation of these countries and development of integration processes of the
Commonwealth. CIS has quite significant
natural and economic potential which may provide the Commonwealth (if it is
fully used) with strong position in the world arena and make it to be one of
the most powerful international economic unions.
Basedonavailableestimates, theCIScountrieshavearound
16.3% of the world territory, almost 5% of population, 25% of the explored
natural resources (including 7% of the
world oil reserves and 40% of natural gas reserves), 10% of the world
industrial potential[1].
Relativecheapnessofthelaborforceandenergyresourcesobjectivelysupportsoccupation
of beneficial competitive positions at the world arena by the CIS countries[1].
For the last 20 years while we have been searching
forms of establishment of the common economic space (CES), the number of
member-countries of EC grew up from 15 to 27. It is obvious that foundation
with population exceeding half of billion reached limits of its possible
expansion.
Europe nowlives and worksmainlyon imported raw materials, including wood, gas, coal, oil,hydro andproductsof
nuclear energy[2].Evena 2%growth of the Europeaneconomy will requirehuge
volumeof additional resources.Therefore,the last five tosevenyears there has
beenincreased interest inthe EUand some otherleading economies ofthe
countrieswith extensivesources of raw materials.
Today, we seethat thepost-Soviet spacepresents
amulti-layeredandmulti-vectorintegration process. Fiveof the CIS countries, for example, are
already members ofthe World Trade Organization(WTO).Unfortunately, entry
into this unionone by one, did not give
any significantpreferences, as the proportion ofthe
economiesof these countriesin the global economyis minimal.SameMoldovafelt
thatWTO membershipdoesnotfacilitate, for example, the path of Moldovan wineto European markets,whereas theCustoms Union (CU)
of Russia, Kazakhstanand Belarusin just ninemonthsshoweda real
increase inturnoverby 40%[3].
Today, there arefive areasin whichcross-border
cooperationacross theCISis the mostreal anddoes not causepolitical oppositionat
the national level. These lineswill determine thefaceof the
CISintegrationin the near future. What are they?
The first directionis
energy.
Todaythere is real moneyand the real
economy. [3] If we take, for example, recent statements bythe German government's intention to abandon the use ofnuclear energyin the country(despite the
fact that Germanyneedsmore thangreat), it
becomes obvious thatthis failureshould beoffset by higherenergy imports.
The second isinnovationand high technology.If
implemented correctly,this areacan providea significantbreakthroughin the
economy.
The third is
agricultural and industrial complex. It is ahuge resource interested for
Kazakhstan, Russia, Belarus and Ukraine.
The fourth is a
labor migration.
It is obviousthat ifin Russiatoday,the average salaryis
tentimes bigger than the average wagein Kyrgyzstan, Uzbekistan,
Tajikistan, there is nothing surprising in the factthat it
looksattractive tomigrant workers.Note thatmost of themdo not cometo a
permanent placeof residence,namelyin orderto make money andbe able tosupport
his family, which often remainsin the
countrywherethemigrantarrived. It is impossible
toconstrain this process.
The fifth is
atransport, including creationof transport corridors, anda
brand newmoderntransit infrastructure. It is obviousthat
the transportRoad runningor under constructionin the territory ofthe CIS
countries, not onlyserve as a linkto theintra-regional
level, but present a bridgethat connects thetransport and communication systemof European and Asian countries, making ourhighwaysa
part ofintercontinentaltransport infrastructure[4].
All of
thesestrategic directions, development of whichin the
next fewyearsshould be giventhe highest priority.It seems thatsensible
politiciansand economistsof the CIS countriesare well aware ofthese
objectivefactors andwilltake them into accountin determining the degreeand
extent oftheirparticipationin the developmentof theagreed positionson
deepeningeconomic cooperationwithin the Commonwealth.Constructive rolein this
matteris to playthe Treaty on thefree trade zone, adopted at the summit ofCIS Heads of GovernmentOctober 18, 2011in St.
Petersburg, and to laya solid foundationfor the
promotion ofintegration processes in thepost-Soviet space.
Therefore
there is a strong need in a deep modernization and increase of competitiveness
of our economies at a new technological basis oriented to recovery of economic
relationship of a new format.
- Restructuringandmodernization
of the economy;
-Recoveryof cooperative tiesbetween industriesand enterprises;
-Formation ofjoint industrialstructures;
-Access to internationalcommodity markets;
- Attractingforeign direct investment;
- The development ofscientific and technical potential;
- The achievement ofthe internalsocio-economic and
political stability, overcoming the tendency ofimpoverishment
Necessary and sufficient conditions of integration are:
Inter-dependenceoftheresourceandtechnologicalbaseanddevelopednetworkofcomprehensiveeconomiccommunications.Mutuallybeneficialcooperationformedwithinmanydecadesduetothegeneralindustrialandterritorialsystemoflabordivisionandproductioncooperation;
territorial neighborhood; significant length of borders; availability if
multiple and close economic and scientific inter-communications; existing of
the resource and technological inter-dependence of the separate branches and
production; sole transportation system.
Marketofgoodsandtechnologies; territory with rich mineral and energy resources.
CIScountrieshavepowerfulenergyandraw stocks sufficient labor and high
intellectual potential.
The
community ofnations, the unity of the historical pastand
culture, centuries-old cultural ties.
Regional economiceducationhas everything you needto turn intoa
full-fledgedeconomic unionof the largestpost-Soviet states:
- A vastresource base, including skilled
labor;
-Potentiallylarge domestic marketwith a totalpopulation of
approximately260.6 million.;
- High degree ofself-sufficiencyof the integratedeconomy;
-Existence of the clearleading country(Russia), the
domestic market whichis able toplay a role ofeconomic
locomotive;
-The potentialability toform amonetary unionwith access toa
commoncurrency.There is a lineof contradictionsthat emergedduring the creation
ofthe Common Economic Spaceof the EurAsEC countries. Among the "internal" reasons there
are such as:
- Lack ofa constructiveapproach and the principlesof strategic
partnershipon the settlementof mutualproblems;
-Low level ofmutual directinvestment;
-"Politicization" of economic cooperation(Russian investments are
consideredby the political elitesof individual
countriesas a wayto influencepolitical processes);
- Absencein some countriesof the EurAsEC the really
applicablelegislationin the field ofinternational business structures, production-sharing, etc., which does not allow
work togetherfor establishing thestable cooperation relations, deprivesRussian companiesto participatein major investment projectsof
mutual interest;
-Absence ofcoordinated actiondirected to elimination of mutual
competitionand confrontationin the world market.
In
the process of joint legislative work in the framework of Inter-Parliament
Assembly of Eurasian Economic Union, taking into account WTO rules and
standards, it is extremely necessary today to work out or newly establish the following:
- The basis ofcustoms, antitrust, tax, investment,
transport, land law, law ontrade in services;
- Typicaldraft legal actsofforeign trade activities,export
control, standardization, generalcapital market,a common
paymentsystem, innovation, licensing, basic principles
ofprotection of foreign investments, the basicsof
ensuring economicand information security, orderthe
implementationof international legal instrumentsin the nationallegal system.
Coordination of the energy policy, rational use of resources of the CIS
countries is one of the key conditions for the growth of competitiveness of
economies of these states-members of
EurAsEC. It will allow optimize costs related to upgrading of
energetics, extraction industry, transportation infrastructure, provide the
economies with energy sources and investments.
Forcreationofthecommonenergyspaceitisrequiredtosolvethefollowingchallenges:
- Creation
ofthe electricity marketon the basis ofthe Protocolon the conditions ofmovement
ofelectric energy, defining the rulesof cross-bordertradeand
convergence oflevelsof reforms;
-Harmonization of policiesin respect oftransit of
electricityand hydrocarbons, the formation of a common
energyand transport infrastructurein the neighboringregions of Europeand Asia;
- Modernizationand optimization ofenergy transportsystems;
- Development ofjointenergy balancestates- members of EurAsEC;
- Implementation of measuresin the field ofenergy efficiency
and conservation[5]
There
have been incorporated several regional unions on the base of CIS, such as:
Eurasian economic Union (EEC)
EEC establishmentwas signedin October 2000
betweenBelarus, Kazakhstan, Kyrgyzstan, Russiaand
Tajikistan.In January 25, 2006Uzbekistan also
entered into a membership at theEurAsEC summitheld in St. Petersburg.The objectives of theunion
are:
-Completionformalization of afullfree
trade regime,
-Formationunifiedcustomstariffanda unified system ofnon-tariff
regulation,
-Establishinggeneral rules oftrading goods andservices and
their accessto domestic markets,
-Development of the agreed positionof CIS
states relations withthe WTO(World Trade Organization) and other
international economic organizations,
-Create aunified system of customsregulation.
The main objective ofthe Eurasian Economic Community is the
creation ofa single economic spacein sixof thesestates.The supreme body ofthe
EurAsECis Interstate Council,whichshall have sessions
at leastonce a yearat the level ofHeads of State andat least twicea year -at
the level ofHeads of Government.Permanent bodies ofthe Eurasian Economic
Communityare:Integration Committee, theInter-Parliamentary Assembly, the
Court community.By decision of theInterstate Councilin the
countries-members of the Communitycan be openedrepresentative officesof the
Integration Committee.
Union
of Belarus and Russia
This Union represents
the most advanced form of integration between the CIS countries. Agreement on
establishment of the union was signed in December 1999, prior to which the
following treaties have been concluded:
- CustomsUnionAgreementsignedin 1995. Kazakhstan, Kyrgyzstan and Tajikistan
have entered into this union in 1995-1999;
- Union Agreement signed in April 1997 between Belarus and Russia.
Eurasian Economic Union
Eurasian
Economic Union (EEU, in Belarusian- Å¢ðàç³éñê³ýêàíàì³÷íûñàþç,
in Kazakh -ÅóðàçèÿëûқÝêîíîìèêàëûқÎäàқ, in Armenian -Եվրասիականտնտեսականմիություն) is an international integration economic union, the establishment
treaty on which was signed in May 29, 2014 based on the Customs Union EurAsEC
(it shall cone into force on 1st of January 2015). The composition
of the union includes Russia, Kazakhstan, Belarus and Armenia. EEU is created
for strengthening of the economy of the countries-members and establishment of
close interrelationship, upgrading and increase of competitiveness of these
countries on a world market. Till the end of 2014 Kyrgyzstan plans enter into
EEU. Also Tajikistan considers the
issues on entering into this union.
For
the purposes of creation the common economic space in the framework of EEU, it
is proposed to establish the supranational structures:
·
Economics commission;
·
Primaryresourcescommission
(establishment of prices and quota for the primary resources goods and sources,
coordinates policy in extraction, sale of gold and other precious metals,
etc.);
·
Fund on economical and scientific
& technical cooperation formed due to contributions of EEU countries
(financing of the potential scientifically volumetric economic and R&D
programs, support solution of challenges, including legal, tax, finance and
environmental fields, etc.);
·
Commissiononinterstatefinancialandindustrialgroupsandjointventures;
·
EEU international investment bank;
·
International arbitrage of EEU;
·
Commission on implementation of the
UA;
·
Environment commission.
The
Eurasian Economic Commission controlling about 170 functions of the economic
union was established after signing of Declaration of Eurasian Integration made
by the leaders of Russia, Belarus and Kazakhstan on 18th of November
2011.[7]
Finally it should be noted that integration of states
at the former USSR space is surely a positive and financially rational process.
The key point lies in the speed of efficient development of the states and
efficiency of integration regulatory system. The bright future is imagined in
the frames of successful integration strategy of the neighborhood and
partnership between Kazakhstan and CIS countries, strengthening of social and
economic interaction at all level of cooperation.
List
of used literature:
[1]
Report of the National economic board “Economic cooperation as a factor of CIS integration”
Yekaterinburg, 2004. p. 9; Independent Newspaper, 2007, 22 January.
[2]
Å. Vinokurov, À. Libman.Eurasian Continental Integration.St. Petersburg: EDB, 2012.
[3]
MansurovÒ. Eurasianintegration: experience, problems and tendencies of
development / Economy strategy. - 2012. - N 1. - p.6-11.
[4]
ZevinL.Z. SpecificsofconsolidatedandintegratedprocessesinEurasia //
Russia.Modern world - 2012. - N 2. - p.71-86.
[5]
YazevV.À. EurAsEC countries are at the threshold of a new stage of cooperation. Eurasian integration:
economics, law, politics.. 2010. N 8. P. 19
[6]
http://www.zavtrasessiya.com/index.pl?act=PRODUCT&id=1516
[7]https://ru.wikipedia.org/wiki/Åâðàçèéñêèé_ýêîíîìè÷åñêèé_ñîþç