Exclavity under globalization. Selected works

From an isolated exclave ≠ to a Ødevelopment corridorø

It is necessary to take into account special geopolitical and geoeconomic position of the region when developing and implementing both domestic and foreign policy of Russia. The Kaliningrad region is the only entity of the Russian Federation where regulations of the Special Economic Zone are in force and the Federal Target Programme “On the development of the Kaliningrad region for the period up to 2010” are being implemented. During negotiations regarding the issues of partnership and cooperation between Russia and the EU, the Kaliningrad issues are also given special attention.

However, up till now the new law “On the Special Economic Zone in the Kaliningrad region” has not been passed. The necessity of a new law is acknowledged by most experts and politicians both in the region and by the Federal centre since the current law does not quite correspond to the rapidly changing external conditions of regional development. The Federal Target Programme on the region's development is not implemented in full. A Russia - EU agreement on the Kaliningrad region so far has not been signed. Moreover, until recently the Western party had not considered such an agreement expedient, relying only on the Partnership and Cooperation Agreement (PCA) that was signed in 1994 and came into force in 1997. And only recently, after well-known difficulties regarding the issues of transit between the region and mainland Russia during the second half of 2002, the EU rерresentatives seem to be inclined to sign а special agreement on the Kaliningrad region.

The very necessity of work on the documents regarding the region at the federal and international levels emphasizes all the complexity of ensuring the viability and development of the Kaliningrad region. The obstacles that emerge when substantiating these documents confirm this fact even better. Apart from the complicated geopolitical and geo-economic position of the region, these obstacles are also caused by the changeability of external conditions. On the one hand, it is a question of the rapid formation of the market economy, of a new political environment and federal relations in Russia, and on the other hand, it is the enlargement of the European Union, which after the accession of new members

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has not yet completely identified the specificicity of its relations with Russia, including those regarding the Kaliningrad region. The changeability of the external environment hampers the elaboration of a long-term strategy of the development of the Russian exclave in the Baltic Sea region.

The strategy of the Kaliningrad region’s development should be а part of the regional policy of the Russian Federation. A promising position for the region within the system of the common Russian territorial division of labour has not been clearly defined yet. Discussions on the correlation of import substitution and exportoriented production, on the role of different branches ( the fishing industry, machine building, the amber industry, tourism, trade, innovative production etc.) within the structure of the regional economy are on-going. The more promising branches of specialization should fully exploit the advantages of the geo-economic position of the region and, at the same time, minimize the costs caused by its exclave position.

The prospective change of external conditions of the Kaliningrad region’s development requires optimization of the region’s economic structure, adjustment of Russian regional policy with respect to the Kaliningrad region and, additionally, consideration of the situation in the region in the framework of the dialogue between the EU and Russia, and also the region’s participation in the system of the international division of labour in Baltic Sea region. It might be as well to include Kaliningrad region’s strategy in the common the Baltic States strategy, the strategy of the European region “Baltic” (it includes the southern Baltic States, such as Sweden, Denmark, Poland, Lithuania, Latvia and the Kaliningrad region). This task was set by the “Seagull” project, which is being implemented in the region with the support of the “TACIS” program. Researchers at Kaliningrad State University, the Institute of the World Ocean of the Russian Academy of Sciences and Swedish experts are working on this project.

One of the most important areas of research that is conducted by the Baltic Centre for Advanced Studies and Education (BaltCASE) at Kaliningrad State University concerns the position of the

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Kaliningrad region within the interaction of the EU countries’ and Russian economies in the Baltic Sea region. At the same time geopolitical issues and issues associated with the formation of а common educational space and cultural identity are being studied. These studies are carried out by Kaliningrad State University researchers together with experts from other interregional institutes of social studies and with leading scholars from resource centers in Moscow and St Petersburg, in collaboration with specialists from Germany, Sweden, Denmark, Finland, Poland and Lithuania who are also involved in the research. The results of this research are discussed at international conferences that are regularly held by BaltCASE. The objective of studies carried out by BaltCASE is to coordinate the variety of all-Russian, regional and international interests, which overlap in the Kaliningrad region, and to create a balanced approach in determination the regional development strategy priorities and to define the position of the Kaliningrad region in the strategy of Russian socioeconomic development in agreement with the strategy of the EU countries in the Baltic Sea region. Several reports have already been published that are devoted to the strategy of regional development as а region of cooperation between Russia and the EU and ensuring conditions for its implementation and adjustment1. The results of this research are used by the regional authorities when substantiating the strategy of socioeconomic development of the region2.

1 Kaliningradskaya oblast Rossii i rasshirenie ES: Problemy obsheevropeiskoi integracii/ Pod red. A.P. Klemesheva. Kaliningrad: Izdvo KGU, 2003; Kaliningradskii socium v evropeiskom kontekste/ Pod red. A.P. Klemesheva. Kaliningrad: Izd-vo KGU, 2002; Klemeshev A.P., Kozlov S.D., Fedorov G.M. Ostrov sotrudnichestva. Kaliningrad: Izd-vo KGU, 2002; Klemeshev A.P., Kozlov S.D., Fedorov G.M. Osobaya territoriya Rossii. Kaliningrad: Izd-vo KGU, 2003; Rossiiskaya Baltika: prigranichnoe sotrudnichestvo. Kaliningrad: Izd-vo KGU, 2004; Region sotrudnichestva. Vyp. 1—32. Kaliningrad: Izd-vo KGU, 2001—2004.

2 Strategiya socialno-ekonomicheskogo razvitiya Kaliningradskoi oblasti kak regiona sotrudnichestva na period do 2010 goda/ Administraciya Kaliningr. oblasti. Kaliningrad: Izd-vo KGU, 2003; Kaliningradskaya oblast: strategiya sotrudnichestva/ Administraciya Kaliningr. oblasti. M.: OLMA-Press, 2004.

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The Kaliningrad region

as an exclave development corridor

The approach to the typology of the regions, which is based on the qualitative analysis of their role in the economic system of a higher rank (for example, in the national economy), and their participation in the common labour division is considered to be more preferable. A good example is J. Friedmann’s theoretical typology of the regions3.

Fig. 1. The scheme of interaction of the regions

J. Friedmann recognizes the following types of regions: Core regions

Upward-transition regions Downward-transition regions Resource-frontier regions Development corridors

This typology is much applicable to Russian regions, as it helps to understand the possible prospects for the development of the Kaliningrad region as a development corridor. We can discuss only the prerequisites and separate elements of the Kaliningrad region’s transformation into a region of this type. Only recently the figures for the socioeconomic development of the region could be used to ascribe it to downward-transition regions (and even now there is a risk that the Kaliningrad region will remain in this category).

3 Friedmann J. Regional Development Policy. Cambridge, 1968.

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From an isolated exclave ≠ to a Ødevelopment corridorø

The specificity of the region as a development corridor is its exclave status, in particular, the fact that the Kaliningrad region is situated between Russian regions and the EU. It complicates the dissemination of innovations between the Russian Federation entities via the Kaliningrad region. But international innovation flows from both the Russian Federation and the West European regions may be realized through the Kaliningrad region.

Therefore the Kaliningrad region now may be viewed not only as an entity of the Russian Federation, but as an interactive European region. The map given below represents the composition of the European region “The Baltic” (which, in our view, positions itself as a development corridor in the economic system of the Baltic region), in the framework of which different projects of cooperation between Sweden, Denmark, Poland, Lithuania, Latvia and the Kaliningrad region are realized.

Fig. 2. The composition of the European region “The Baltic”

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Regarding the comparison of the Kaliningrad region with other Russian regions, table 3 provides examples of the types of Russian regions.

It should be mentioned that due to the transitional character of the Russian economy this typology bears similarities to the classification of the regions according to the level of market development. Core regions have the most developed markets. They are followed by development corridors, and in third place are the up- ward-transition and resource-frontier regions. The market of the downward-frontier regions is poorly developed which deepens the economic crisis.

The classification of the regions according to cultural and economic characteristics explains their similarity in their search for a means of adaptation and regeneration which are essential for regional development4. It is expedient to elaborate strategies of social development for each type of region and compare them in order to work out a socioeconomic policy. The mechanism of the Special

4 Kovalev A. Region kak element geoprostranstva: struktura i evolucia // Region. Problemy I perspectivy. 1997. № 4. P. 24

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Economic Zone has played this role in the Kaliningrad region until now. The mechanism of the SEZ determines the economic conditions in the region and partly assists the region in the realization of its functions. Today, it may be seen not only in the maintenance of Russian foreign economic links (although it is very important), but also in the development of import substituting industries on the basis of the adoption of advanced western technologies for processing imported materials and the use of semi-finished products in the manufacture of finished products. Besides, there are special export-oriented industries in mechanical engineering which use both domestic raw materials and foreign technologies. But these opportunities are not fully exploited and the region has great potential for the development of the import substitution industries and export oriented production.

Nowadays, in Russian regional practice more attention is paid to the development of centres and poles of growth (in contrast to the former idea of levelling regional economic development)5 . Unfortunately, the Kaliningrad region thus far has rarely been considered a promising pole of growth although some experts think of it as a possible Hong Kong or Luxembourg on the Baltic. At the beginning of the 90s there were even more statements of this kind.

At the same time the opportunities for the enhancement of international cooperation and the mechanism of the Special Economic Zone are considered to be favourable prerequisites for rapid regional development. The Bureau of Economic Analysis states that “creation of “points of growth” on the basis of free economic zones” is a very promising approach to the development of the Russian economy6.

Given this approach, it can be stated that the Kaliningrad region, using the mechanism of its SEZ and implementing the strat-

5 The theory of the poles of growth was elaborated by F. Perru (Perroux F. Note sur la ville considéréé comme pôle de dévelopment et comme foyer du progréss // Tiers monde. 1967. № 32. Vol. 8 and etc). It was developed in the West.

6 Obzor ekonomicheskoi politiki v Rossii za 2001 god. M.: Byuro ekonomicheskogo analiza, 2002.

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egy of “the region of cooperation”7, has an opportunity to become one of the poles of growth of the Russian economy”8. According to some experts, the threat of becoming a “double periphery” of Russia and the EU can be overcome9 and the Kaliningrad region will become an EU-Russia common “pole of integration”.

The concept of the “region of cooperation” itself reveals the solutions of the central problem of the national economy which plays a crucial role in regional development10. As regards the region the key issue is its exclave position. The concept of the “region of cooperation” is used when it is necessary to overcome the exclave character of the region by adopting a special strategy of development. On the one hand, this strategy boosts the Russian-EU cooperation and on the other hand, presupposes regional cooperation with the neighbouring regions of other countries. Theoretical suppositions on the means of overcoming the threats caused by the exclave position have to be implemented based on a scientific strategy of the regional development.

7According to the strategy of the “region of cooperation” which is implemented in the region, the process of Russia-EU cooperation and integration will continue to develop. It was also mentioned in other concepts of the regional development (5.4).

8Bil`chak V., Samson I., Fedorov G. Kaliningardskij polyus integracii/Universitet Piera Mendesa. Grenobl`, 2000.

9For example, N. Smorodinskaya (2001).

sovetskom ekonomicheskom raionirovanii // Voprosy geografii: Ekonomicheskaya geografiya. M., 1957. Vol. 41; Problemnye voprosy ekonomicheskogo raionirovaniya. Tashkent, 1967.

Many foreign researchers state the same reasons for the specific understanding of the situation in the region in the appearance and concrete definition of the problem. For example: Metody regional`nogo analiza: vvedenie v nauku o regionah. M., 1966; Isserman A. W. Lost in Space? On the History, Status and Future of Regional Science//The Review of Regional Studies. 1993. Vol. 23. № 1.

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Summary

The exclave status of the region and regional strategy

There are various assessments of the conditions of the perspectives of the regional development by the experts. Along with the positive factors the negative ones are always emphasized, and the weighing of each is determined depending on how effective would be the expected measures of overcoming threats and exploiting the advantages of the region.

Exclave status is the most important but underestimated specific factor of the regional development. Economic, social, and demographic development of the region as well as many environmental issues, let alone the geopolitical problems, are determined by the exclave position of the region.

From an economic point of view the exclave status means a certain isolation of the region within the framework of the Russian economic space. Thus, unlike the other entities of the Federation, in the case of goods that are supposed to be exported from the region an examination is needed to determine whether they have actually been produced there and not imported. There is added value for identifying the goods as having been produced in the region.

The other important specific aspects of the regional economic development are closer production links of enterprises with foreign markets, and a higher share of imported goods on the local market. This brings the specificity into the indices of economic security of the region; many experts begin to emphasize the necessity of more complete satisfaction of the regional market needs for the most important foods by local producers. In other words, instead of trying to enhance the region’s role in the international territorial labour division, there are attempts to justify autarchy, and the self-im- posed isolation of the region from its neighbours.

The social aspects are connected with the specificity of the Kaliningrad socium. This specificity is partially conditioned by the demographic factors – by the migratory character of the region’s population, by the important role of migration (including migration from the CIS states) in the formation of the present population. Voluntary migration, the influx since the beginning of the 1990s of

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more than 300,000 migrants from other Russian regions and the CIS states, greatly affected the stability of the Kaliningrad socium, which even earlier had not been well established (approximately 60% of the region’s population was born outside it). This in its turn resulted in the absence of regional elite, which hampers determination and implementation of the regional development strategy.

But perhaps it is the exclave character of the region that is of utmost significance – the spatial separation from the main body of the Russian population, on the one hand, and the proximity to areas populated by Poles and Lithuanians, on the other hand. Contact with Russia is difficult, whereas it is easy with foreign countries, although it has become more problematic recently. In the consciousness of the population, especially recently, an exclave syndrome has emerged, a concern about the spatial isolation of the region both from Russia and from neighbours (following their accession to the EU).

The ecological specificities are associated not only with the need to take into consideration the requirements of the international agreements on the Baltic Sea protection. The environmental standards of the EU set heightened requirements for vehicles, providing not only for freight but also for passenger transport between the region and the mainland Russia.

The geopolitical factors are connected with the role of the region in ensuring the defensive interests of the Russian Federation in the Baltic Sea region, with the development of relations between Russia and NATO, Russia and the Baltic Sea states and the EU.

The foreign experience of administrating exclave areas shows the necessity for finding a complex solution to political, economic, social, demographic and ecological issues that emerge in connection with such areas. However, the situation in the Kaliningrad region did not initially draw the due attention of the federal authorities since at that time even more complicated issues of establishment of the Russian state were being dealt with. Besides, the issues of passenger and cargo transit via the territories of the former union republics were not so acute. Those republics, which de jure became independent states, retained de facto some former economic relationships characteristic of the single country. The transit

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