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International integration. Past and present. Учебное пособие

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It is believed that a decisive role in the integration of Russia with the countries of the Asia-Pacific may be performed by the huge territory to the east of the Yenisei River which is geographically closest to this region. The main advantages of the Russian Federation, including its eastern part, in terms of integration with APEC are following:
1) Transit location between Europe and the Asia-Pacific;
2) Energy potential of the territory;
3) Wealth of natural resources.
Implementation of the first advantage, transit location between Europe and the Asia-Pacific, depends on the development of transport infrastructure as a key element of integration. It is owing to the high infrastructural support of Russia, and most of all its eastern part, that this country will be able to fully realize its transit potential in the long run. Thus, the development of transport infrastructure will allow the Russian Federation to significantly increase its trade with the Asia­Pacific. Creating a full transport network should include the development of the port, rail, and pipeline infrastructure.
In 2005, the ports of the Far East accounted for 17 % of the total cargo turnover of sea trading ports of Russia. This indicator only diminished in the subsequent years which of course could not contribute to the increase of integration. Current lack of port facilities for handling bulk cargoes, coal, and mineral fertilizers is quite evident and became one of the obstacles to active cooperation between the Russian Federation and its partners in the Asia-Pacific.
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The elimination of port capacity deficit and transformation of the ports of Primorsk and Khabarovsk regions into the actual participants of the East-West transport corridor may be achieved through a number of public and private projects. The implementation of the investment projects for expansion and construction of the new port facilities should be carried out in parallel with the railways expansion including the access ways. No transportation of cargo handled at these ports to the central part of Russia and Europe is possible without such a modernization.
The main traffic arteries in the east of the Russian Federation are the Trans-Siberian and Baikal-Amur railways. However, their current condition does not allow active developing of cooperation with the Asia-Pacific and may become an obstacle to the development of trade
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Rossijskaja akademija nauk. Institut mirovoj jekonomiki i mezhdunarodnyh otnoshenij. Mirovoe razvitie. Vypusk 2. Integracionnye processy v sovremennom mire: jekonomika, politika, bezopasnost'. M.: IMJeMO RAN, 2007. P. 73.
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in the future. Thus, the construction of the new infrastructure may be the only real way out.
The key to the development of the Trans-Siberian Railway is the second stage of the construction of a 2,6 km long bridge across the Amur River near Khabarovsk and then a repair of the tunnel under the Amur. The most significant development projects of the Baikal-Amur Mainline are increasing the capacity of the railway track section Komsomolsk-on-Amur – Vanino as well as building a bypass around the Kuznetsovsky passage and second railway tracks. The improvement of border crossings in the direction of China and Korea is also being
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planned.
It is difficult to overestimate the importance of the pipeline transportation for Russia’s foreign economic relations. Nowadays, the main project which is aimed at providing Russian role as one of the main suppliers of oil to the Asia-Pacific is the oil pipeline Eastern Siberia – Pacific Ocean. The capacity of the two pipeline phases is 80 million tons annually.
The energy potential of the east of the country including the rich hydro-energy resources of the Yenisey, Lena, and Amur, the reserves of natural gas and thermal coal allow Russians to become one of the key exporters of electricity the consumption of which is increasing in the Asia-Pacific each year.
Construction of the new power plants and modernization of the existing ones allow meeting both the internal and external demand. The implementation of the projects in eastern Russia will provide additional beneficial effects in stimulating the economy in the east of the country and reducing the costs of the distribution of power for export.
Such projects include the modernization of the Gusino-Ozerskaya thermal power plant (TPP) in Buryatia whose capacity is 1,100 MW, construction of the new power unit of 225 MW at the Haranorskaya TPP in the Chita Region which will increase annual production to 1,3 billion KWh and provide an opportunity to export a part of
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electricity produced to Mongolia and China.
Another project with export potential is the increase in the capacity of the Neryungri TPP in Yakutia by 450 MW. The reconstruction of the Primorskaya TPP will provide 660 MW of power and an opportunity to
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export the energy produced.
35
Op. cit. P. 75.
36
Integracionnye processy v sovremennom mire: jekonomika, politika, bezopasnost'. P. 75.
37
Op. cit. P. 75.
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There are projects aimed at the Asia-Pacific supplying with electricity which could be implemented at hydroelectric power plants (HPP). Thus, the completion of the Bureya HPP in the Amur Region (5 and 6
th
power units) is partly aimed at the electricity supply to China.
th
The South Yakutia hydroelectric power complex including four HPPs on the tributaries of the Aldan River with total capacity of 5.000 MW will be able to export power to the Asia-Pacific including Japan and China.
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Resource wealth of eastern Russia includes oil, gas, coal, ferrous and non-ferrous metals, and forest resources which are the basis of the mutually beneficial cooperation between the Russian Federation and foreign investors involving the implementation of major projects to develop natural resources. This raw material may be directed to the domestic market and abroad, but first of all to China, whose consumption of these products is increasing.
Today there are dozens of projects to develop natural resources of the eastern part of Russia. The most capital consuming and attractive to investors from the APEC countries are oil and gas fields due to the shortage of energy resources in the Asia-Pacific.
Projects in the coal industry also have export potential. For example, the development of the Elga (Yakutia) and Elegest (Tyva) fields will produce up to 40 million tons of coal annually which may be exported to the APEC countries with low transport costs due to their geographical proximity.
The fields of ferrous and non-ferrous metals in the east of the Russian Federation are still not of great interest to the APEC investors. However, the potential of Russian territory with regard to this type of raw material is significant.
Forestry in eastern Russia remains attractive for foreign investors and first of all for Chinese companies as a source of cheap raw material, the wood products in lower stages of processing only, while the development of a deep processing is still at the project level. The latter includes the construction of pulp and paper mills which had been stated by the representatives of the authorities of almost all the forest-rich federal subjects in the east of Russia. However, these projects are not implemented hitherto because of the need for a major long-term investment.
Thus, the Far East and Eastern Siberia are key areas for the integration of the Russian Federation into the Asia-Pacific.
38
Op. cit. P. 76.
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Implementation of the main advantages of these areas will expand and speed up the cooperation between Russia and the APEC economies.
However, some problems in the development of this cooperation should be noted:
1) Increasing deficit in Russian foreign trade with the other APEC
members;
2) Growing share of raw material in Russian exports and the
consumer goods – in the imports.
One should agree with the opinion of some experts that a promising area of cooperation is agriculture and labor migration, as there is an excess of labor and lack of food in some APEC countries.
In July 2010, Russian President Dmitry Medvedev made a number of proposals at a meeting on social and economic development of the Far East and cooperation with the nations of the Asia-Pacific in Khabarovsk which include:
1) Comprehensive approach to cooperation combining the long­term forecast for the development of the Russian Federation, in particular, Eastern Siberia and the Far East, as well as the integration processes that are taking place in Southeast Asia;
2) Development of industrial cooperation including the establishment of the special zones in Russia which should provide particularly favorable conditions for foreign investment;
3) Transition to an innovation-oriented cooperation in the energy sector including oil refining and petrochemicals and improving port facilities and much more.
Test Your Knowledge
1. Evaluate Russia’s accession to APEC and its significance.
2. What are the main directions and results of the development of integration within APEC at present?
3. Where the APEC summit was held in 2012?
Topics for Discussion
1. Russia’s participation in APEC: the main areas of cooperation, problems, and prospects.
2. The role of energy in the development of economic cooperation between the Russian Federation and other APEC members.
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3. Transit potential of Russia’s eastern regions and its participation in the integration processes within the framework of APEC.
4. APEC Summit in Vladivostok (2012): goals and results.
CONCLUSION
International integration is a complicated process which is full of economic, political, social, and other contradictions. However, it represents a higher level of economic, political, social, and cultural development of the world community of nations.
The nature of integration is not a mere unification of national economies but also their inclusion into economic and political cooperation which is based on the voluntary participation of the parties as well as on mutual respect of their interests and benevolent attitude to each other. This should contribute to the economic progress of the humanity and to the creation of fair conditions for everyone.
Today, under the impact of globalization, the competition for natural resources, for the control of communications, and other benefits is constantly growing making the reforming of the system of international relations and the entire world order increasingly urgent.
International integration helps to address two major challenges:
1) Stimulating economic growth and welfare of the participating
countries;
2) Maintaining political stability and lasting peace in the whole
world.
To be successful, integration must meet certain conditions, primarily – realization of collective responsibility of all its participants and providing an effective decision-making mechanism and organizational framework.
QUESTIONS FOR CREDIT TEST
1. Explain a concept of international integration.
2. Analyze the significance of globalization as a major factor of
modern international integration.
3. Characterize the levels of international integration.
4. Identify basic types of integration associations.
5. Explain a concept of a stage of international integration.
6. Outline economic theories of international integration.
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7. What are classical (“high”) theories of international
integration?
8. What are neo-institutional (“middle”) theories of international
integration?
9. What are new (“low”) theories of international integration?
10. Analyze the relationships between the evolution of basic concepts of the international integration study and the development of the system of international relations.
11. Describe the preconditions for emergence of IOs.
12. Outline the periodization of the history of IOs.
13. Characterize the international organizations of Antiquity and the Middle ages.
14. Characterize the IOs in the 19
th
century.
15. Explain the significance of “Holy Alliance” as a type of international intergovernmental organization of modern times.
16. Analyze the significance of the League of Nations as the first global international intergovernmental organization.
17. Analyze the impact of the changes in the system of international relations after World War II on the evolution of international intergovernmental organizations.
18. Outline the main attributes of intergovernmental (interstate) IOs.
19. Identify features of non-governmental IOs.
20. Identify the main attributes of IOs of general and special jurisdiction. Exemplify.
21. Outline the characteristics and significance of IOs classification by their membership. Exemplify.
22. Outline the characteristics and significance of IOs classification by their sphere of competence. Exemplify.
23. Outline the characteristics and significance of IOs classification by the nature of authority. Exemplify.
24. Outline the characteristics and significance of IOs classification on the basis of geographical coverage. Exemplify.
25. Identify the functions of IOs.
26. Outline the changes in the international system after World War II. Explain the significance of regional and sub-regional intergovernmental (interstate) IOs emergence in Asia and Africa.
27. Outline the history of the UN emergence.
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28. Describe the organizational structure of the UN.
29. What was common and what was specific in terms of organizational structure and activities between the UN and the League of Nations?
30. Explain the significance of the UN “Oil-for-Food Program” and the issue of corruption within the UN.
31. Explain the content and significance of the UN reform projects.
32. Characterize the background of European integration.
33. Outline the origins, organizational structure, principles, and objectives of the Council of Europe.
34. Analyze the significance of the Treaty of Paris (1951). Describe the European Coal and Steel Community as the first stage of European integration.
35. Analyze the significance of the Treaty of Rome (1957). The EEC and EURATOM.
36. Outline the evolution of the EEC in the 1960s, its achievements and discrepancies. Explain the relationship between Charles de Gaulle’s policies as a president of France and the contradictions within the EEC.
37. Outline the organizational structure of the EU.
38. Analyze the importance of the introduction of a single European currency and the creation of the euro area for the European integration.
39. Analyze the causes of emergence, purposes, and the conditions of membership in ASEAN.
40. Outline the main directions of cooperation within ASEAN at present.
41. Outline the reasons for creation, goals, and objectives of APEC.
42. Explain the significance of the Bogor Declaration for cooperation within APEC.
43. Outline the rules regulating the operation of APEC, APEC’s organizational structure and its features.
44. Analyze the main trends, challenges, and prospects of
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GLOSSARY
Customs territory is a geographic territory where the same
customs legislation is applied.
Ellinotamies were the officials of the Delian League whose task was
to collect monetary contributions from the allies (initially in the amount of 460 talents of silver, while during the Peloponnesian War this tax reached 1300 talents) and to manage the common treasury of the League.
Gross domestic product (GDP) is the monetary value of all the
finished goods and services produced within the territory of a certain country during a certain period of time.
Institutionalization means the formalization of processes,
sustainability, and acceptance of a system of social relations assuming various forms, for example, that of organization.
International division of labor involves the specialization of
particular countries in certain branches of production.
Internationalization is a phenomenon which involves various
kinds of exchanges, economic, political, or cultural between different nations, as well as the relationships emerging in the outcome, peaceful or conflictual, resulting in complementarity or competition.
Mercosur the Southern Common Market (Spanish: Mercado
Común del Sur) is a sub-regional association whose full members are
six countries in South America – Argentina, Bolivia, Brazil, Paraguay, Uruguay, and Venezuela.
Neoliberalism in studying international integration is a theoretical
approach attaching a great importance to the institutions in the international system, that is to say, transnational actors (for example, NGOs) or, in other words, everything which is not a nation state. Developed in the 1970s by Robert Keohane and Joseph Nye in response to neorealism, neoliberal theory like its namesake in the economic field appeals to the game theory but should not be confined to it.
Production factors are inputs or resources used in the process
of finished goods and services production.
Structuralism is a school of thought which emerged mainly in
sociology in the middle of the 20
th
century using the term “structure” perceived as a theoretical model focusing rather on the relations between the basic units of a system than on those units themselves.
Supra-nationality refers to a political system in which certain
states cede to a greater or lesser extent some of its powers of government to international bodies which affects more than one nation.
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LIST OF ABBREVIATIONS BSEC – Black Sea Economic Cooperation CMEA – Council for Mutual Economic Assistance FAO – Food and Agriculture Organization of the United Nations GCC – Gulf Cooperation Council or Cooperation Council for the Arab
States of the Gulf
IAEA – International Atomic Energy Agency NAFTA – North American Free Trade Agreement NATO – North Atlantic Treaty Organization OSCE – Organization for Security and Co-operation in Europe SCO – Shanghai Cooperation Organization UNESCO – United Nations Educational, Scientific, and Cultural
Organization
UNICEF – United Nations Children’s Fund WHO – World Health Organization WTO – World Trade Organization
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