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Exclavity under globalization. Selected works

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Table 5

The basic external contradictions (conflicts) related to the functioning of the SEZ in the Kaliningrad region

External actors outside

Internal actors in the SEZ

 

The basic points at issue

of the SEZ

 

 

 

 

 

Is there a need in the SEZ?

The Federal Centre

 

The region’s administration, business

 

 

sphere of the SEZ (both domestic and

Is the SEZ a territory or a regime?

 

 

foreign investors)

 

Management mechanism of the SEZ

 

 

 

 

Type and stability of the regional benefits.

Producers of the competiti-

Producers of the import-substituting

Facilitated SEZ regime, which, according to the pro-

ve goods from other

Rus-

goods within the SEZ

 

ducers from other regions, creates unequal conditions

sian regions

 

 

 

for competition in the all-Russian market

Major investors from other

Kaliningrad’s business

 

New federal law on the SEZ: minimum investments

regions (first of all, from

 

 

into the project that confers a right on tax concessions

Moscow)

 

 

 

 

Foreign investors

 

The region’s administration

 

Favourable regime for foreign investments

Foreign producers of goods

Local producers working for the re-

Facilitated customs SEZ regime, which, according to

and services sold in

the

gion’s market

 

the local producers, contributes to an increase in for-

Kaliningrad region

 

 

 

eign products’ competitiveness in the region’s home

 

 

 

 

market

The EU government agen-

The Federal Centre1, the region’s

Regime of goods transit via the territory of Lithuania

cies, management structures

administration, business (both

re-

(first of all export of the import-substituting goods to

of the Lithuanian Republic

gional and foreign, invested into the

the other Russian regions)

 

 

enterprises of the SEZ)

 

 

 

 

 

 

 

1 In this case it is the internal actor protecting the interests of the Kaliningrad region as a subject of the RF and the SEZ.

Exclavity under globalization

Thus, the peaks of two conflicts (the exclave conflict and the regional one) have coincided; at the same time they are constituents of a major conflict connected with the Kaliningrad region. This conflict is noted for its enormous publicity as it is being discussed at various levels - discussions of ordinary people and international negotiations. Moreover, all the aspects of the conflict are widely covered by mass media.

Judging by its scope, the conflict around the region is of a composite nature, comprising economic, political, international and even environmental issues. It is a multi-faceted conflict; first of all, it is an international conflict as well as an “intergroup” one (between various business groups, strata of population, etc). A complicated opposition of interests emerged, demanding immediate resolving. Due to a multiplicity of the participating actors and the differences in their strategies the conflict may be resolved either with zero benefits for the region, negative or positive consequences, or it may turn into a violent conflict.

It is possible to ensure the region’s sustainable and dynamic development (which is proclaimed in the official strategy of “the region of cooperation”) only if it meets the all-Russian interests and causes minimal damage to the interests of the other regions of the country. Moreover, there is a need to take into account the interests of foreign partners, first of all, those from the neighbouring countries – Poland and Lithuania as well as other Baltic Sea States.

The advantages and disadvantages, opportunities and threats to the Kaliningrad region’s social and economic development are directly or indirectly linked with the exclave position of the region. The exclave position is not only a disadvantage but an important resource of the regional development as well; however, there is a need to make considerable efforts in order to use this specific resource.

The region’s exclave position has not yet been fully assessed as a factor affecting social development. The population is concerned with the incipient syndrome of exclave and with the region’s spatial separation from both Russia and the neighbouring countries (after their accession to the EU). The region’s exclave position and its impact on the regional character of the developing social and territorial entity require a more detailed consideration.

32

The Kaliningrad region of Russia and the EU enlargement

The analysis of the opinions of the youth deserves attention. According to the survey conducted in 2005 (as well as in the previous years 2001-2004) a significantly high number of young respondents, compared with older ones, mentioned a possibility of creating an independent state or a territory under the joint administration of the RF and the EU as a preferable future status of the region. Among the population aged over 60, there is a high number of respondents who preferred the status of an ordinary region within the RF (table 6).

 

 

 

 

 

 

 

Table 6

Future status of the region according to certain age groups

 

 

 

 

 

 

 

 

Preferable

 

 

 

Age

 

 

future status

18-29

30-39

40-49

40-59

60 and

Total

Total*

of the region

older

 

 

 

 

 

 

 

(7,2)

Independent state

14,2

15,6

7,0

4,3

4,2

10,2

((10,8))

 

 

 

 

 

 

 

(((11,1)))

Territory under the

 

 

 

 

 

 

(6,2)

joint administration

8,7

6,5

9,0

11,6

2,8

8,0

((19,8))

of the RF and the EU

 

 

 

 

 

 

(((14,5)))

Republic within Rus-

 

 

 

 

 

 

(7,6)

13,1

6,5

13,0

5,8

4,2

9,8

((14,3))

sia

 

 

 

 

 

 

(((15,8)))

 

 

 

 

 

 

 

Region of the RF

 

 

 

 

 

 

(46,6)

with the benefits of

42,1

61,0

41,0

46,4

35,2

44,4

((34,4))

the SEZ

 

 

 

 

 

 

(((39,3)))

 

 

 

 

 

 

 

(29,8)

Region within the RF

10,9

7,8

22,0

24,6

43,7

19,2

((14,1))

 

 

 

 

 

 

 

(((10,3)))

Region within

3,8

1,3

4,0

5,8

2,8

3,6

(2,6)

another state

((6,6))

 

 

 

 

 

 

 

 

 

 

 

 

 

(((8,4)))

Other; or hesitant

7,1

1,3

4,0

1,4

7,0

4,8

 

 

 

 

 

 

 

 

 

Total

100

100

100

100

100

100

100

* In brackets there are the data of the 2004 survey; in double brackets there are the data of the 2003 survey; in triple brackets there are the data of the 2001 survey.

33

Exclavity under globalization

The population of the Kaliningrad region is shaping surrounded by the foreign countries and being inevitably exposed to their influence. This fact enhances the influence of the population’s heterogeneity and exclave position on the shaping of the Kaliningraders’ mentality and the appearance of a new ethnographic entity, different from other Russian regions. On the whole, the specific character of the region’s population has not yet been fully revealed.

Globalization creates prerequisites for overcoming the exclave related conflict in two ways. On the one hand, common rules in political, economic and social life eliminate barriers between countries and make communication easier. On the other hand, regionalization creates a possibility to strengthen interregional and cross boarder cooperation.

As it has already been mentioned, economic globalization strengthened regionalism in the Baltic Sea region and facilitated the implementation of the large-scale project, e.g. “Eurovision2010”, the “Baltic Ring” energy project, the “Baltic Gateway” transport project, etc. In addition to that, Baltic Sea regions start to create transnational subregions including the well known euroregions. The Kaliningrad region and its municipalities participate in a number of Euroregion projects - “Baltica”, “Neman”, “Saule”, “Sheshupe”, “Lyna-Lava”, though their participation has a limited character due to a number of factors.

Social globalization also causes regionalism. There is an opinion that the construction of “European fortress” is taking place, thus a new (“velvet”) curtain might appear between Russia and the West. The accession of Poland and Lithuania – the Kaliningrad region neighbours - to the EU poses a potential threat of building a sociocultural barrier that might isolate the region. At the same time the Kaliningrad region may become a region where Russian and European cultures intertwine enriching each other. This can be achieved through a growing number of contacts especially at a non-governmental level, i.e. between various NGOs. Such contacts are increasing but, as a rule, they are initiated by western partners. It would be very useful to boost the activity of the Kaliningrad NGOs in the sphere of international cooperation. It will facilitate a better understanding of Russian culture by our partners from the

34

The Kaliningrad region of Russia and the EU enlargement

neighbouring countries as well as give a better glimpse of real interests and needs of Russian people.

Political globalization creates macroregional spaces (or “a new configuration of regions in the world”) and the Baltic Sea region is one of them. The CBSS and the Nordic Council serve as political coordinators in the Baltic region. In addition, non-governmental initiatives appear (“The Northern Dimension”). The Kaliningrad region can play an important role in political cooperation between the Russian Federation and NATO, the Russian Federation and the EU. More than that, it can promote intergovernmental relations between the states in the Baltic Sea region.

Russian and foreign experts suggest different scenarios of the Kaliningrad region development. Figure 1 shows the scenarios which are fundamentally different in their dependence on the policies pursued by the federal centre in the spheres of politics and economy (this dependence decreases from left to right).

Marginalisation

Threats

 

Separatism

 

 

 

The region

Standard type

 

The region’s

 

 

totally de-

of economy,

Special

withdrawal

Economy

 

pendent on

doesn’t differ

economic

from the Rus-

 

 

the federal

from that of

zone

sian economic

 

 

subsidies

other regions

 

space

 

 

Federal ter-

A subject of

 

 

 

 

ritory gov-

Special po-

Independent

Politics

 

the Russian

erned by the

litical status

state

 

Federation

 

federal centre

 

 

 

 

 

 

Fig. 1. Possible scenarios of the development of the Kaliningrad region

The most comprehensive scenarios include political and economic aspects that are presented in the table (economic ones – the upper part, political ones – the lower part). It is impossible to apply a development strategy elaborated for an ordinary Russian region to the Kaliningrad region. Such attempt cannot be successful and may cause economic depression. To improve the socio-economic

35

Exclavity under globalization

situation in the Kaliningrad region, the federal centre will have to increase the amount of subsidies to the region and take upon itself direct control of the region.

Fundamentally different strategies devise from the assumption that Russia supposedly does not have enough resources of its own to provide the necessary conditions for the development of the region. These scenarios presuppose assistance of western countries and the EU to the region and granting the region a special political status to the extent that the region separates from Russia. Such scenarios are completely unacceptable either for Russia or for the Kaliningrad region.

It goes without saying that there is a necessity for the Kaliningrad region to be granted a special political status, though of a completely different character. This necessity arises from the exclave position of the region, its separation from the mainland Russia by the territories of other states. The exclave must maintain sustainable links with its mother country. All these make the region a subject of international politics. More than that, the region cannot develop without a special economic mechanism, which is at the moment provided by the Law on the Special Economic Zone. This law per se ensures the region’s special economic status. So, the special economic zone with its special economic mechanisms different from the ones in other regions should be given a special political status. That is why, the existing strategy of the development of the Kaliningrad region (i.e. a special economic zone, but an ordinary Russian region) has an apparent contradiction which has to be eliminated for a successful implementation of the strategy.

The author thinks that it would be appropriate to formalise the status of the region by adopting a new federal law on “The Kaliningrad region as an exclave territory of the Russian Federation”. It means, on the one hand, more possibilities for self-gov- ernance and, on the other hand, more efficient control from the Centre. Thus, the special political status does not mean separation of the region from Russia. It recognizes and takes into consideration the Kaliningrad region’s peculiarities in comparison with other regions of the Russian Federation. The region’s specific position

36

The Kaliningrad region of Russia and the EU enlargement

presupposes developing more active international links and at the same time, requires further strengthening economic, political and social relations within the Russian Federation in order to obliterate even slightest traces of separatism in the region.

If Russia is not able to participate in the European integration as an equal partner, the exclave Kaliningrad region will probably find itself in a very difficult situation, since it is located between two large political and economic zones and on the periphery of both Russia and the EU.

The Kaliningrad region is in the focus of interest of both Russian and foreign actors. They may have their own view on the future of the Kaliningrad region. That explains the existence of so many strategies of the development of the region. To ensure a sustainable development of the region, it is necessary to reach a balance of Russian, regional, interregional and international interests. The author of the article analyses the relations between these groups of interests and possible conditions of their harmonization. The author comes to a conclusion that it is institutionalization that can resolve the international conflict around the Russian exclave in the Baltic Sea region. The process of institutionalisation has not started yet, that’s why decisions on newly appearing problems are sometimes made spontaneously. The “zonal” constituent of the Kaliningrad region conflict has already been institutionalized though, and the conflict will be resolved with the perfection of the federal legislation on Kaliningrad. A task to devise a comprehensive policy on the Kaliningrad region has been set. The policy when elaborated will make the situation in and around the region clearer.

The author outlines a comprehensive approach to the Kaliningrad region issue, taking into consideration various interests and bearing in mind a further perfection of the following documents and measures that are the institutional prerequisite for the region’s sustainable development.

On the federal level –

In order to ensure a sustainable development of the Kaliningrad region the federal authorities should assume an active attitude. It is

37

Exclavity under globalization

in the interests of both the region and the Russian Federation. The action plan on the Kaliningrad region should include:

elaboration and implementation of the federal policy on the Kaliningrad region with a clear indication of its role in the Russian socio-economic development.

adopting the federal law on “The Kaliningrad region as an exclave territory of the Russian Federation”. It should cover a wider scope of provisions in comparison with the “Law on the Special Economic Zone” and guarantee the viability and development of the Kaliningrad region taking into consideration changes in the international situation (including the Russia’s future joining the WTO and the accession of Poland and Lithuania to the Schengen Treaty and etc.). According to the new law, all residents of the region should be compensated for the losses incurred by the exclave position of the region. An effective mechanism of the region’s development should be elaborated.

adjusting the federal programme of the “Development of the Kaliningrad region for the period up to the year 2010” to the changes that have taken place in and around the region since the programme was elaborated. The adjustment must be done systematically in order to provide cumulative effect of all the taken measures.

On the international level –

it is necessary to sign an agreement between the Russian Federation and the EU as well as the Baltic Sea countries and Belarus on the viability and development of the Kaliningrad region as a region of cooperation. Foreign partners should guarantee a reliable and sustainable communication between the region and the main land Russia and give an opportunity to export the regional products to their markets. The Russian party should guarantee its economic support to the region, and ensure social stability and environmental security. In addition, joint actions should be taken in order to provide for military safety, counteract the threat of terrorism and organised crime, and broaden international economic, social and political relations in the South-East of the Baltic Sea Region.

38

The Kaliningrad region of Russia and the EU enlargement

On the regional level –

it is necessary to improve the regional legislation and reduce the number of administrative barriers in order to develop business in the region. The elaboration of the regional development complex programme is also very acute. The programme should be in line with the federal legislation, international agreements and should meet municipal interests.

At the same time two interrelated but relatively independent tasks must be solved simultaneously:

maintaining and strengthening the Russian sovereignty over the region’s territory. It means maintaining and strengthening the viability of the region and its sustainable functioning.

making the region play a more active role in the development of the Russian Federation. This active position will inevitably boost the development of the region itself.

The first task can be solved, firstly, by providing federal financial support to the region and, secondly, by granting privileges by the federal legislation. As for the second task, there are both financial and legislative opportunities for boosting the economic development of the region. Direct financing of the regional institutions, predominantly in infrastructure, is regulated by the Federal Programme “The development of the Kaliningrad region for the period up to the year 2010”. The law on the Special Economic Zone creates favourable conditions for duty-free import of raw material and semi-finished products for processing and their further export to the Russian market. Another potential opportunity – tax concessions – is included in the new law on the SEZ, that was passed by the Federal Assembly of the Russian Federation in December, 2005 and signed by the President in January, 2006.

The law on “the Kaliningrad region as an exclave territory of the Russian Federation” could help to implement the federal policy on the region and create favourable conditions for its sustainable development. The Kaliningrad region could become a bridge between Russia and the EU.

39

Exclavity under globalization

Conclusion

1.Exclaves are regions, separated from the main territory of their mother country by the territory of another state (or other states). Apart from political exclaves (the article lays a major emphasis on the study of this type of exclaves) there are also economic and ethnic exclaves, the functioning of which may worsen political exclavity and contribute to the proneness of exclaves to conflict.

Exclavity is a typical attribute of exclaves, which reflects their social and economic isolation from their mother country, caused by their territorial (geographical) isolation from it. Exclavity does not only reflect a separation of a part (an exclave) from a whole (the mother state), it also reflects the realisation (sometimes a deformed one) of such a separation, which is often reflected in the so-called “exclave syndrome” – a constant feeling of being separated or isolated from the “whole”.

Being separated from its mother country by the territory of foreign states, any exclave is a subject of international (interstate) relations, which make it possible for the exclave to keep normal sustainable links with the mainland of eh mother country as well as with the neighbouring states. Exclaves are qualitatively different not only from other, “inner” regions of their mother country, but also from border regions of the country. Speaking about exclaves, we do not mean a quantitative (geographical) notion of separation, which is also typical of periphery regions being located far from the centre. We mean “easiness to reach/accessibility” which is a qualitative parameter.

2.Political exclavity is mostly caused by the conditions of the Westphalian System of international relations, the main actors of which are sovereign states. Being separated from its mother state, an exclave territory becomes an object of international relations between states and the viability of the exclave depends on the interests of these states. The exclave shows a higher degree of proneness to conflict as a result of possibly international disputes over the issue of exercising sovereignty of the mother state over a part of its territory, surrounded by foreign states.

40