The paper examines the economic implications of Belarus' participation in the newly created EURASEC Customs Union. The results of the calculations show that after the introduction of a common external tariff (CET) the level of tariff protection in Belarus has not increased noticeably. The reduction in the volume of imports from non-CIS countries equal to USD 1.1 bn (8% of Belarusian non-CIS import in 2008) will be mainly brought about by cancellation of used cars imports from non-member countries. The analyses revealed that Belarusian budget can benefit from participation in the Customs Union (CU). The amount of possible gain will be about 28.3% of total budget revenues from customs duties and customs charges in 2008 due to the fact that approximately 40% of Russian imports may go through customs clearance in Belarus owning to less bureaucracy at the border with respect to Russia, and the revenues from customs charges, which is not planned to be distributed among member countries, will be transferred to Belarusian budget. However, it is unlikely that CU membership will increase foreign direct investment (FDI) inflow to Belarus, since in the case of South-South regional trade agreements (the type of EURASEC countries CU) FDI usually goes to the bigger country, i.e. to the bigger market. Therefore, most probably that in the regional arrangement in question Russia followed by Kazakhstan will be the main beneficiaries of foreign direct investments.
Authored by: Irina Tochitskaya
Published in 2010
Joint survey by EY and the Russia-China Investment Fund (RCIF), which was established by the Russian Direct Investment Fund (RDIF) and China Investment Corporation (CIC).
The paper analyses possible consequences of the EU enlargement on the EU – CIS-7 trade. It considers current situation in trade between two country groups, describes the factors limiting this trade, and discusses the opportunities for the trade associated with the EU accession of the Central and East European countries with strong historical ties to the CIS-7. The paper concludes that the EU enlargement creates some potential for expansion of trade and, importantly, exports from CIS-7 to Europe.
Authored by: Roman Mogilevsky
Published in 2004
Prime Minister Vladimir Putin has announced the
establishment of the Eurasian Economic Union, the aim
of which is the complete integration of the economies of
Russia, Belarus and Kazakhstan by 2013
The paper examines the economic implications of Belarus' participation in the newly created EURASEC Customs Union. The results of the calculations show that after the introduction of a common external tariff (CET) the level of tariff protection in Belarus has not increased noticeably. The reduction in the volume of imports from non-CIS countries equal to USD 1.1 bn (8% of Belarusian non-CIS import in 2008) will be mainly brought about by cancellation of used cars imports from non-member countries. The analyses revealed that Belarusian budget can benefit from participation in the Customs Union (CU). The amount of possible gain will be about 28.3% of total budget revenues from customs duties and customs charges in 2008 due to the fact that approximately 40% of Russian imports may go through customs clearance in Belarus owning to less bureaucracy at the border with respect to Russia, and the revenues from customs charges, which is not planned to be distributed among member countries, will be transferred to Belarusian budget. However, it is unlikely that CU membership will increase foreign direct investment (FDI) inflow to Belarus, since in the case of South-South regional trade agreements (the type of EURASEC countries CU) FDI usually goes to the bigger country, i.e. to the bigger market. Therefore, most probably that in the regional arrangement in question Russia followed by Kazakhstan will be the main beneficiaries of foreign direct investments.
Authored by: Irina Tochitskaya
Published in 2010
Joint survey by EY and the Russia-China Investment Fund (RCIF), which was established by the Russian Direct Investment Fund (RDIF) and China Investment Corporation (CIC).
The paper analyses possible consequences of the EU enlargement on the EU – CIS-7 trade. It considers current situation in trade between two country groups, describes the factors limiting this trade, and discusses the opportunities for the trade associated with the EU accession of the Central and East European countries with strong historical ties to the CIS-7. The paper concludes that the EU enlargement creates some potential for expansion of trade and, importantly, exports from CIS-7 to Europe.
Authored by: Roman Mogilevsky
Published in 2004
Prime Minister Vladimir Putin has announced the
establishment of the Eurasian Economic Union, the aim
of which is the complete integration of the economies of
Russia, Belarus and Kazakhstan by 2013
This paper aims to study the joint effects of the 2004 EU Enlargement and Russia’s entry into the WTO, and the effects of an eventual Russia-Enlarged EU Free Trade Agreement (FTA). The paper is organized as follows: in Section I, it starts with the brief description of the model used. The effects of the 2004 EU Enlargement are estimated on Section II. In Section III, the effects of Russia’s WTO Accession are simulated up on the benchmark of an Enlarged EU. Section IV simulates different Russia-EU FTAs, again upon the benchmark of an Enlarged EU. The work ends with a conclusion.
Authored by: Lucio Vinhas de Souza
Published in 2004
The paper discusses the role of regional public goods vs. global goods in influencing postcommunist transition in Central and Eastern Europe and former USSR with special attention given to three particular factors: (i) external anchoring of national reform process; (ii) international trade arrangements and (iii) international financial stability.
Authored by: Marek Dabrowski, Artur Radziwill
Published in 2007
The model of the Russian economy that was formed in the 2000s does not match a new stable growth path, though it helped to calmly overcome the crisis of 2008 and 2009. The state needs to provide stability in the fields under its direct control, i.e. the budgetary and monetary policies. In the budgetary policy we consider the advantages and drawbacks of a “New Budget Rule”, which is based on the long-term average price of oil. In the monetary sphere, we vote for a policy of transition to inflation targeting and prioritizing low inflation against the other goals of the monetary authorities.
Authored by: Sergey Drobyshevsky, Sergey Sinelnikov-Murylev
Published in 2013
he paper examines theoretical literature, recent EMU accession examples, and current CEECs performance in search of the optimal currency regime for meeting the Maastricht criteria. Currency board arrangements seems to provide the fastest convergence. For other regimes, the markets may have theoretical and historical reasons to believe in the government's temptation to devalue on the ERM-2 entry. The government should announce the final date, and, possibly indicate the final exchange rate for the regime switch to avoid excessive currency and yield volatility. It should also underscore the central bank’s and EU authorities importance (even if non-existent) in the parity setting process to avoid excessive domestic debt inflation premium ahead of the accession. Recent experience shows that it will be easy to get rid of the remaining influence of cross rates on CEECs exchange rates.
Authored by: Mateusz Szczurek
Published in 2003
A risk report I produced on Russia for my International Banking and Finance unit, highlighting key sovereign and foreign exchange risks facing the country. Obtained the highest grade of all students for the assignment.
The introduction of Moldovan leu has been accompanied by a monetary stabilisation policy that until 1998 proved to be one of the most successful among FSU countries. The leu showed a remarkable stability and the rate of inflation was brought down to around 10% in 1997. However, fiscal policy was driven by inertia and pressure groups, reflecting the slow path of structural reforms and the general weakness of the state. Loose fiscal policy in turn reduced the determination in reforming state structures. Arrears and nettingout operations led to the development of the non-payment culture. At macroeconomic level, expansionary fiscal policy led to high absorption in the economy that was not met by the supply side response due to the impeded restructuring process, which fuelled imports and deteriorated trade balance. The ultimate result of the policy mix was the rapid accumulation of external debt and expenditure arrears. The unsustainability of both internal and external position of the state led to the inevitable financial crisis. The turmoil that followed in 1998 the crisis in Russia was a catalyst that speeded up the collapse of monetary stabilization. The capital account losses (capital flight) immediately brought the country to the verge of default. The abrupt and probably persistent loss of major export markets will affect the real economic activity over a longer period. More over, the crisis may create a window opportunity for accelerating Moldovan reforms. A critical situation makes the public and policy makers more likely to accept the painful measures that are necessary to revert the negative tendencies accumulated in recent years, while the large external debt makes the country fully dependent on the co-operation with international organizations, especially the IMF. Indeed, the new cabinet of young and liberal reformers voted in March 1999 initiated a more energetic program of reforms. Likewise, the decline of exports to Russia forced Moldovan enterprises to search new export possibilities for many producers trying to enter non-traditional western markets.
Authored by: Artur Radziwill, Octavian Scerbatchi, Constantin Zaman
Published in 2000
Russia and the European Union are neighbours. Located on the same continent side by side, we share a common history and culture, and the same religious, philosophical and civilizational roots. We are building predominantly the same type of secular society based on a socially oriented economy and public representation.
Russians have decisively broken with the past division of the world into two opposing camps. We are no longer separated by the deepest insurmountable gap of antagonistically incompatible ideologies. The threat of nuclear war, on the brink of which we were balancing for some time, has been eliminated.
Russia and the EU follow similar strategic goals. Both sides strive for peace, stability, security, prosperity, sustainable development, high standards of living and happiness for their citizens.
The Metals & Mining in Russia industry profile is an essential resource for top-level data and analysis covering the Metals & Mining industry. It includes data on market size and segmentation, plus textual and graphical analysis of the key trends and competitive landscape, leading companies and demographic information. Scope * Contains an executive summary and data on value, volume and/or segmentation* Provides textual analysis of Metals & Mining in Russia's recent performance and future prospects* Incorporates in-depth five forces competitive environment analysis and scorecards * Includes a five-year forecast of Metals & Mining in Russia* The leading companies are profiled with supporting key financial metrics * Supported by the key macroeconomic and demographic data affecting the market Highlights * Detailed information is included on market size, measured by value and/or volume * Five forces scorecards provide an accessible yet in depth view of the market's competitive landscapeWhy you should buy this report * Spot future trends and developments * Inform your business decisions * Add weight to presentations and marketing materials * Save time carrying out entry-level researchMarket DefinitionThe metals & mining industry consists of the aluminum, iron & steel, precious metals & minerals, coal and base metal markets.In the aluminum market, only production of primary aluminum is considered. Recycled aluminum is not included within this report. The market is valued at manufacturer's selling price (MSP).The base metals market consists of lead, zinc, copper, nickel and tin. The market has been valued as total primary metal production at annual average prices.The coal market consists of just primary coal (anthracite, bituminous and lignite). Secondary coal (metallurgical coke, anthracite and bituminous briquets, and lignite briquets) is not included in this report. The market has been valued as total mine production at annual average minemouth prices and does not include any transportation costs.The iron & steel market consists of the production of crude steel, blast furnace (pig) iron and direct reduced iron. Market values have been calculated using annual average steel and iron prices.The precious metals & minerals market includes gold, silver, platinum, palladium, rhodium and industrial and gem-quality diamonds. The market is valued using total annual mining production volumes and annual average prices.For the purposes of this report, Europe consists of Western Europe and Eastern Europe.Western Europe comprises Belgium, Denmark, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden, and the United Kingdom.Eastern Europe comprises the Czech Republic, Hungary, Poland, Romania, Russia, and Ukraine.
Uzbekistan and the Eurasian Economic Union EEU Integration in the Interests o...YogeshIJTSRD
Articles in the section, whether the Republic of Uzbekistan is a member of the Eurasian Economic Union or not, can be useful or harmful for our integrated economy. X. I. Muminov | I. B. Abdullayev "Uzbekistan and the Eurasian Economic Union (EEU): Integration in the Interests of the Country and the People?" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Special Issue | Innovative Development of Modern Research , April 2021, URL: https://www.ijtsrd.com/papers/ijtsrd40022.pdf Paper URL : https://www.ijtsrd.com/economics/other/40022/uzbekistan-and-the-eurasian-economic-union-eeu-integration-in-the-interests-of-the-country-and-the-people/x-i-muminov
The paper first considers why central European countries wish to join EMU soon. The main reasons are the risk of macroeconomic instability they face outside the euro zone if they wish to grow quickly. At the same time, Central Europe is highly integrated as regards trade with EMU, so it is little exposed to asymmetric shocks that would require a realignment of exchange rates. Finally, it is argued that there is no cost in terms of slower growth from EMU accession, so that there is no trade-off, as has been claimed, between nominal convergence to EMU and real convergence to EU average GDP levels. Second, the paper assesses whether Central European accession to EMU would be disadvantageous to current members. It concludes that accession cannot increase inflationary pressure on existing EMU members, as has been claimed, but that slow growing members of EMU might suffer increased unemployment, unless they increase the flexibility of their labour markets. Incumbent members may also be unwilling to share power with Central Europeans in EMU institutions.
Authored by: Jacek Rostowski
Published in 2003
The CIS countries' EU-related interests are very heterogeneous. The countries themselves differ not only in terms of their geopolitical and geo-economic situations, and how those affect their relations with the EU, but also in their levels of ambition in relation to the Union, as well as their specific sectoral interests. Some Eastern Partners have set full EU membership as their strategic goal; others want to enjoy the benefits of the common free market, and the ambitions of others are limited to developing cooperation in selected areas. Similarly, the EU's policy towards its Eastern neighbourhood is multi-level and very diverse, considering as it must the different characters of mutual relations. The EU and most of its Eastern partners have a sufficient number of common or converging interests to expect reasonable cooperation between the two sides to develop and deepen. However, serious challenges and problems exist that may prevent this positive scenario from being realised.
Authored by: Marcin Kaczmarski, Wojciech Kononczuk, Marek Menkiszak
Published in 2008
The 2014 edition of the guide Doing Business and Investing in the Russian Federation has been released and is available for distribution. This guide is designed to assist companies and individuals in evaluating the prospects for operating and investing in a business in Russia. It provides business people with practical, concise and up-to-date information on how to do business in the country and also offers valuable insight into the Russian economy and business climate, its tax, legal and accounting systems, as well as labour relations and other important issues.
A closer look. Tendencies on the fertilizer transshipment market in Eastern B...Olga Gopkalo
Fertilizers are one of the most important cargo groups
for Baltic Sea ports. Their share in the total cargo handled
in Eastern Baltic ports is close to 7%, with Port of
Klaipėda leading this market. Its three major terminals,
serving the Lithuanian chemical industry’s export, attract
Belarusian and Russian transit as well.
The Eurozone crisis mobilises an appreciable amount of the attention of politicians and the public, with calls for a decisive defence of the euro, because the single currency’s demise is said to be the beginning of the end of the EU and Single European Market. In our view, preserving the euro may result in something completely different than expected: the disintegration of the EU and the Single European Market rather than their further strengthening. The fundamental problem with the common currency is individual countries’ inability to correct their external exchange rates, which normally constitutes a fast and efficient adjustment instrument, especially in crisis times.
Europe consists of nation states that constitute the major axes of national identity and major sources of government’s legitimisation. Staying within the euro zone may sentence some countries – which, for whatever reason, have lost or may lose competitiveness – to economic, social and civilizational degradation, and with no way out of this situation. This may disturb social and political cohesion in member countries, give birth to populist tendencies that endanger the democratic order, and hamper peaceful cooperation in Europe. The situation may get out of control and trigger a chaotic break-up of the euro zone,
threatening the future of the whole EU and Single European Market.
In order to return to the origins of European integration and avoid the chaotic break-up of the euro zone, the euro zone should be dismantled in a controlled manner. If a weak country were to leave the euro zone, it would entail panic and a banking system collapse. Therefore we opt for a different scenario, in which the euro area is slowly dismantled in such a way that the most competitive countries or group of such countries leave the euro zone. Such a step would create a new European currency regime based on national currencies or currencies serving groups of homogenous countries, and save EU institutions along with the Single European Market.
This paper has been also published in "German Economic Review" (Volume 14, Issue 1, pages 31–49, February 2013)
Authored by: Stefan Kawalec and Ernest Pytlarczyk
This project created by ''Turkish Economic and Social Studies Foundation (TESEV-Turkey)'' and ''Sociological and Marketing Research Center (HASA-Armenia)'' by funding provided of Center for Global Peace in 2004.
This paper aims to study the joint effects of the 2004 EU Enlargement and Russia’s entry into the WTO, and the effects of an eventual Russia-Enlarged EU Free Trade Agreement (FTA). The paper is organized as follows: in Section I, it starts with the brief description of the model used. The effects of the 2004 EU Enlargement are estimated on Section II. In Section III, the effects of Russia’s WTO Accession are simulated up on the benchmark of an Enlarged EU. Section IV simulates different Russia-EU FTAs, again upon the benchmark of an Enlarged EU. The work ends with a conclusion.
Authored by: Lucio Vinhas de Souza
Published in 2004
The paper discusses the role of regional public goods vs. global goods in influencing postcommunist transition in Central and Eastern Europe and former USSR with special attention given to three particular factors: (i) external anchoring of national reform process; (ii) international trade arrangements and (iii) international financial stability.
Authored by: Marek Dabrowski, Artur Radziwill
Published in 2007
The model of the Russian economy that was formed in the 2000s does not match a new stable growth path, though it helped to calmly overcome the crisis of 2008 and 2009. The state needs to provide stability in the fields under its direct control, i.e. the budgetary and monetary policies. In the budgetary policy we consider the advantages and drawbacks of a “New Budget Rule”, which is based on the long-term average price of oil. In the monetary sphere, we vote for a policy of transition to inflation targeting and prioritizing low inflation against the other goals of the monetary authorities.
Authored by: Sergey Drobyshevsky, Sergey Sinelnikov-Murylev
Published in 2013
he paper examines theoretical literature, recent EMU accession examples, and current CEECs performance in search of the optimal currency regime for meeting the Maastricht criteria. Currency board arrangements seems to provide the fastest convergence. For other regimes, the markets may have theoretical and historical reasons to believe in the government's temptation to devalue on the ERM-2 entry. The government should announce the final date, and, possibly indicate the final exchange rate for the regime switch to avoid excessive currency and yield volatility. It should also underscore the central bank’s and EU authorities importance (even if non-existent) in the parity setting process to avoid excessive domestic debt inflation premium ahead of the accession. Recent experience shows that it will be easy to get rid of the remaining influence of cross rates on CEECs exchange rates.
Authored by: Mateusz Szczurek
Published in 2003
A risk report I produced on Russia for my International Banking and Finance unit, highlighting key sovereign and foreign exchange risks facing the country. Obtained the highest grade of all students for the assignment.
The introduction of Moldovan leu has been accompanied by a monetary stabilisation policy that until 1998 proved to be one of the most successful among FSU countries. The leu showed a remarkable stability and the rate of inflation was brought down to around 10% in 1997. However, fiscal policy was driven by inertia and pressure groups, reflecting the slow path of structural reforms and the general weakness of the state. Loose fiscal policy in turn reduced the determination in reforming state structures. Arrears and nettingout operations led to the development of the non-payment culture. At macroeconomic level, expansionary fiscal policy led to high absorption in the economy that was not met by the supply side response due to the impeded restructuring process, which fuelled imports and deteriorated trade balance. The ultimate result of the policy mix was the rapid accumulation of external debt and expenditure arrears. The unsustainability of both internal and external position of the state led to the inevitable financial crisis. The turmoil that followed in 1998 the crisis in Russia was a catalyst that speeded up the collapse of monetary stabilization. The capital account losses (capital flight) immediately brought the country to the verge of default. The abrupt and probably persistent loss of major export markets will affect the real economic activity over a longer period. More over, the crisis may create a window opportunity for accelerating Moldovan reforms. A critical situation makes the public and policy makers more likely to accept the painful measures that are necessary to revert the negative tendencies accumulated in recent years, while the large external debt makes the country fully dependent on the co-operation with international organizations, especially the IMF. Indeed, the new cabinet of young and liberal reformers voted in March 1999 initiated a more energetic program of reforms. Likewise, the decline of exports to Russia forced Moldovan enterprises to search new export possibilities for many producers trying to enter non-traditional western markets.
Authored by: Artur Radziwill, Octavian Scerbatchi, Constantin Zaman
Published in 2000
Russia and the European Union are neighbours. Located on the same continent side by side, we share a common history and culture, and the same religious, philosophical and civilizational roots. We are building predominantly the same type of secular society based on a socially oriented economy and public representation.
Russians have decisively broken with the past division of the world into two opposing camps. We are no longer separated by the deepest insurmountable gap of antagonistically incompatible ideologies. The threat of nuclear war, on the brink of which we were balancing for some time, has been eliminated.
Russia and the EU follow similar strategic goals. Both sides strive for peace, stability, security, prosperity, sustainable development, high standards of living and happiness for their citizens.
The Metals & Mining in Russia industry profile is an essential resource for top-level data and analysis covering the Metals & Mining industry. It includes data on market size and segmentation, plus textual and graphical analysis of the key trends and competitive landscape, leading companies and demographic information. Scope * Contains an executive summary and data on value, volume and/or segmentation* Provides textual analysis of Metals & Mining in Russia's recent performance and future prospects* Incorporates in-depth five forces competitive environment analysis and scorecards * Includes a five-year forecast of Metals & Mining in Russia* The leading companies are profiled with supporting key financial metrics * Supported by the key macroeconomic and demographic data affecting the market Highlights * Detailed information is included on market size, measured by value and/or volume * Five forces scorecards provide an accessible yet in depth view of the market's competitive landscapeWhy you should buy this report * Spot future trends and developments * Inform your business decisions * Add weight to presentations and marketing materials * Save time carrying out entry-level researchMarket DefinitionThe metals & mining industry consists of the aluminum, iron & steel, precious metals & minerals, coal and base metal markets.In the aluminum market, only production of primary aluminum is considered. Recycled aluminum is not included within this report. The market is valued at manufacturer's selling price (MSP).The base metals market consists of lead, zinc, copper, nickel and tin. The market has been valued as total primary metal production at annual average prices.The coal market consists of just primary coal (anthracite, bituminous and lignite). Secondary coal (metallurgical coke, anthracite and bituminous briquets, and lignite briquets) is not included in this report. The market has been valued as total mine production at annual average minemouth prices and does not include any transportation costs.The iron & steel market consists of the production of crude steel, blast furnace (pig) iron and direct reduced iron. Market values have been calculated using annual average steel and iron prices.The precious metals & minerals market includes gold, silver, platinum, palladium, rhodium and industrial and gem-quality diamonds. The market is valued using total annual mining production volumes and annual average prices.For the purposes of this report, Europe consists of Western Europe and Eastern Europe.Western Europe comprises Belgium, Denmark, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden, and the United Kingdom.Eastern Europe comprises the Czech Republic, Hungary, Poland, Romania, Russia, and Ukraine.
Uzbekistan and the Eurasian Economic Union EEU Integration in the Interests o...YogeshIJTSRD
Articles in the section, whether the Republic of Uzbekistan is a member of the Eurasian Economic Union or not, can be useful or harmful for our integrated economy. X. I. Muminov | I. B. Abdullayev "Uzbekistan and the Eurasian Economic Union (EEU): Integration in the Interests of the Country and the People?" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Special Issue | Innovative Development of Modern Research , April 2021, URL: https://www.ijtsrd.com/papers/ijtsrd40022.pdf Paper URL : https://www.ijtsrd.com/economics/other/40022/uzbekistan-and-the-eurasian-economic-union-eeu-integration-in-the-interests-of-the-country-and-the-people/x-i-muminov
The paper first considers why central European countries wish to join EMU soon. The main reasons are the risk of macroeconomic instability they face outside the euro zone if they wish to grow quickly. At the same time, Central Europe is highly integrated as regards trade with EMU, so it is little exposed to asymmetric shocks that would require a realignment of exchange rates. Finally, it is argued that there is no cost in terms of slower growth from EMU accession, so that there is no trade-off, as has been claimed, between nominal convergence to EMU and real convergence to EU average GDP levels. Second, the paper assesses whether Central European accession to EMU would be disadvantageous to current members. It concludes that accession cannot increase inflationary pressure on existing EMU members, as has been claimed, but that slow growing members of EMU might suffer increased unemployment, unless they increase the flexibility of their labour markets. Incumbent members may also be unwilling to share power with Central Europeans in EMU institutions.
Authored by: Jacek Rostowski
Published in 2003
The CIS countries' EU-related interests are very heterogeneous. The countries themselves differ not only in terms of their geopolitical and geo-economic situations, and how those affect their relations with the EU, but also in their levels of ambition in relation to the Union, as well as their specific sectoral interests. Some Eastern Partners have set full EU membership as their strategic goal; others want to enjoy the benefits of the common free market, and the ambitions of others are limited to developing cooperation in selected areas. Similarly, the EU's policy towards its Eastern neighbourhood is multi-level and very diverse, considering as it must the different characters of mutual relations. The EU and most of its Eastern partners have a sufficient number of common or converging interests to expect reasonable cooperation between the two sides to develop and deepen. However, serious challenges and problems exist that may prevent this positive scenario from being realised.
Authored by: Marcin Kaczmarski, Wojciech Kononczuk, Marek Menkiszak
Published in 2008
The 2014 edition of the guide Doing Business and Investing in the Russian Federation has been released and is available for distribution. This guide is designed to assist companies and individuals in evaluating the prospects for operating and investing in a business in Russia. It provides business people with practical, concise and up-to-date information on how to do business in the country and also offers valuable insight into the Russian economy and business climate, its tax, legal and accounting systems, as well as labour relations and other important issues.
A closer look. Tendencies on the fertilizer transshipment market in Eastern B...Olga Gopkalo
Fertilizers are one of the most important cargo groups
for Baltic Sea ports. Their share in the total cargo handled
in Eastern Baltic ports is close to 7%, with Port of
Klaipėda leading this market. Its three major terminals,
serving the Lithuanian chemical industry’s export, attract
Belarusian and Russian transit as well.
The Eurozone crisis mobilises an appreciable amount of the attention of politicians and the public, with calls for a decisive defence of the euro, because the single currency’s demise is said to be the beginning of the end of the EU and Single European Market. In our view, preserving the euro may result in something completely different than expected: the disintegration of the EU and the Single European Market rather than their further strengthening. The fundamental problem with the common currency is individual countries’ inability to correct their external exchange rates, which normally constitutes a fast and efficient adjustment instrument, especially in crisis times.
Europe consists of nation states that constitute the major axes of national identity and major sources of government’s legitimisation. Staying within the euro zone may sentence some countries – which, for whatever reason, have lost or may lose competitiveness – to economic, social and civilizational degradation, and with no way out of this situation. This may disturb social and political cohesion in member countries, give birth to populist tendencies that endanger the democratic order, and hamper peaceful cooperation in Europe. The situation may get out of control and trigger a chaotic break-up of the euro zone,
threatening the future of the whole EU and Single European Market.
In order to return to the origins of European integration and avoid the chaotic break-up of the euro zone, the euro zone should be dismantled in a controlled manner. If a weak country were to leave the euro zone, it would entail panic and a banking system collapse. Therefore we opt for a different scenario, in which the euro area is slowly dismantled in such a way that the most competitive countries or group of such countries leave the euro zone. Such a step would create a new European currency regime based on national currencies or currencies serving groups of homogenous countries, and save EU institutions along with the Single European Market.
This paper has been also published in "German Economic Review" (Volume 14, Issue 1, pages 31–49, February 2013)
Authored by: Stefan Kawalec and Ernest Pytlarczyk
This project created by ''Turkish Economic and Social Studies Foundation (TESEV-Turkey)'' and ''Sociological and Marketing Research Center (HASA-Armenia)'' by funding provided of Center for Global Peace in 2004.
A practitioner's guide to development, applying, and maintaining a general endeavor management (GEM) and enterprise management architecture (EMA) capability. Applicable to individuals, groups, communities, organizations, and combinations of these.
Romania's post cold war international relationsMarc Bonnemains
This work’s research examines the international relations of Romania after the 89’ Revolution, within the changing parameters in the Romania’s near shore as well the new paradigms of International Relations appeared at the end of the eighties and the dawn of the 21st century. Focusing on the ‘major forces’ (geopolitics, country’s history…) likewise ‘variable forces’ (foreign policy, domestic policy, sociology…), this work identified three pillars: the powerful impact of the 'Others', an in-between situation and the complexity of Romania’ borderland as well its crossroad situation. These pillars underline the Romanian international relations actions and impel the Romanian foreign policy decisions. It is pointed out that Romania’s case study represented the Central and Eastern European Countries’ (CEECs) path and contingencies, likewise the politico-ideological transformation of the military alliance as well the European Union enlargement strategy adaptation in the Post-Cold War Era interdependence. In addition, this work allows validating some theories in different fields as Foreign Policy Change, International Relations, Geopolitics, Interdependence...
Over its history despite the geopolitical and domestic changes, Romania's main options in the international relations remained unchanged relying on system of alliance thru balancing or bandwagoning likewise International Organizations to guaranty the country’ peace and freedom. In addition, from a constant in-between situation associated to a complex borderland context, the country will move regularly to a crossroad situation. Besides, after restructuring the country’s internal situation, its alliances and its bilateral relations, Romania took an active role towards the Balkans and the Wider Black Sea. With its new status, Romania is becoming the ‘Nato's aircraft carrier’ and practically the EU’s voice at the southeast European frontiers with a new role custom designed in the post-Yalta international system.
As the process of population ageing in Europe carries on and the retirement age increases, the relationship between age and productivity becomes more and more important. One can be afraid that as the average age of the working individual goes up, the average level of productivity growth will go down, resulting in decreasing competitiveness of European economies. Our expectation is that due to serious differences in labor market structures between New Member States (NMS) (including current candidates) and the EU15, the former are the first order candidates to experience higher than average productivity costs of ageing in the near future. In this paper, one tries to examine this hypothesis.
The research strategy in this study has been based on the assumption that, in general, wages are correlated with productivity on the individual level and, as such, can be used as a proxy for productivity. Such an assumption is quite risky and can be easily criticized. Hence, based on the results of earlier studies, our main empirical analysis is limited to groups of workers for which one can expect that correlation between productivity and wages is still substantial.
It seems, that taking all the caveats in mind, the results of our analysis show that the relative productivity of older workers in the NMS is lower than in EU15.
Authored by: Mateusz Walewski
Published in 2007
Defining Democracy: Procedural AND Authenticelegantbrain
Definition of the concept of democracy. Includes a chronology of legislation to demonstrate the difference between procedural democracy and authentic democracy. In capitalist societies, the purpose of authentic democracy is to humanize capitalism.
Moldova unilaterally declares its EU membership aspirations and started the process of economic, legal and institutional approximation targeted at establishing free market economy, stable democratic institutions and sound legal system. In the paper the authors made an attempt to assess the competitive and institutional capacity of Moldova in the context of EU membership requirements. It presents Polish achievements in European integration process as a CEE successful way towards full membership. The paper is devoted to transfer know how on Polish experience in EU integration at first stages of the process, with the emphasis on assessment of fulfillment of Copenhagen criteria and the role of association stage in the integration process as a whole. Basing on Poland's example, it provides the recommendations for Moldova on possible ways of integration with the EU so that Moldovan economy and society would be able to benefit most from the process - in other words, to successfully conclude the transformation of economy and adjust law and state institutions to European standards.
The analysis does not cover the political aspects of Transdniestrian conflict as it is an important and broad issue that requires deep separate analysis. In the paper there is also no evaluation of cooperation within Stability Pact for South Eastern Europe since we consider Moldova as Eastern European country with clear geopolitical position neighboring Ukraine and Romania.
Authored by: Iurie Gotisan, Karina Kostrzewa, Eugen Osmochescu
Published in 2005
Autor w artykule analizuje proces integracji w przestrzeni poradzieckiej zwłaszcza w formule Euroazjatyckiej Unii Gospodarczej (EEU). Przedmiotem analizy jest sposób w jaki nowo
utworzona struktura integracyjna zamierza określić swoje powiązania z najważniejszą organizacją świata zachodniego – Unią Europejską. Kwestia znalezienia wspólnej płaszczyzny porozumienia i współpracy jest niezmiernie istotna ponieważ to Rosja jako główny komponent EUU
jest jednym z najważniejszych partnerów Unii Europejskiej zarówno pod względem gospodarczym jak i politycznym. Nie sprzyjają tej kooperacji geopolityczne napięcia, zwłaszcza te
związane z konfliktem na Ukrainie. Istnieje duży potencjał współpracy pomiędzy tymi dwoma
organizacjami, ale rozpoczęcie dialogu uzależnione jest od rozwiązania przez obie strony nie tylko problemów gospodarczych (instytucjonalizacja relacji, harmonizacji handlu), ale również od przygotowania odpowiedniej agendy politycznej. Wzajemne powiązania pomiędzy UE
i EEU mogą ewoluować w scenariuszu współistnienia, który zakłada istnienie przede wszystkim obecnego status quo przy braku instytucjonalnych powiązań. Aby to zmienić i odpowiednio ukształtować wzajemne relacje w przyszłości, UE musi wziąć pod uwagę wiele czynników,
kładąc nacisk na szczególną rolę Rosji w tym ugrupowaniu i udowodnieniu przez EUU celowości swojej egzystencji jako struktury integracyjnej.
This article analyzes the scope of cooperation at the institutional and bilateral level of the
European Union and Central Asia. Despite the systematic tightening of cooperation between
Brussels and the republics of the former USSR, there is still a lack of unambiguous definition
of real long-term interests of the European Union in the region. The fundamental problem of
cooperation development is a strong fragmentation of EU activities in five different republics
of Central Asia. Therefore, there is a need to improve the exchange of information, increase
control and coordination, as well as limit the thematic scope of undertaken initiatives. There are
potential diversification opportunities for energy sources that exist in the Central Asia region.
The purpose of this paper is to examine the economic aspects of EU policy towards its Eastern neighbors in the former Soviet Union. For a long period of time, this region was considered as less important for the EU, as compared to Central and Eastern Europe, which was the subject of a far-reaching economic and political integration offer materialized in two rounds of EU Eastern Enlargements (2004, 2007). However, moving the EU's geographical frontier further to the East and Southeast increased the importance of the CIS region as a potential partner of the enlarged EU. In 2004, East European and Caucasus countries were invited to participate in the European Neighborhood Policy a new EU external policy framework also addressed to the Southern Mediterranean countries. Russia has been attempting to build a strategic political and economic partnership with the EU outside the ENP framework but the content of this relationship is, in fact, very similar to the ENP.
A general weakness of the ENP is that there is a lack of balance between farreaching expectations with respect to neighbors' policies and reforms, and limited and distant rewards that can potentially be offered. Thus, making this cooperation framework more effective requires a serious enhancement of the rewards using, to the extent possible, the positive experience of previous EU enlargements. The nature of contemporary economic relations in the globalized world calls for a more complex package-type approach to economic integration rather than just limiting cooperation to some narrow fields.
Authored by: Marek Dąbrowski
Published in 2007
Russia–European Union: Potential for PartnershipRussian Council
The report analyses the development of Russia–European Union Relations. In the authors’
opinion the high level of economic interdependence between Russia and the European
Union, their geographic proximity and the nature of international relations in a globalized
world make it imperative that the parties continue to build and develop their relations.
The key issue is to give this cooperation a new impetus and increase the level of trust. The
report outlines recommended steps to make relations as good as possible.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
Embracing GenAI - A Strategic ImperativePeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
Francesca Gottschalk from the OECD’s Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
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The French Revolution Class 9 Study Material pdf free download
The misleading eastern alternative: Republic of Moldova and The Russia – Kazakstan – Belarus Customs Union
1. Institute for
Development and
Moldova’s Foreign Policy statewatch Social Initiatives
“Viitorul”
Issue 12, November 2010
The misleading easTern alTernaTive:
republic of moldova and The russia –
KazaKhsTan – belarus cusToms union
Eduard Țugui
Next topics
Moldova’s Foreign Policy Statewatch represents a series of brief
analyses, written by local and foreign experts, dedicated to the
to be covered:
most topical subjects related to the foreign policy of Moldova,
major developments in the Black Sea Region, cooperation with Free trade Agreement
international organizations and peace building activities in the region. between Moldova and eU
It aims to create a common platform for discussion and to bring
together experts, commentators, officials and diplomats who are the treaty regarding the
concerned with the perspectives of European Integration of Moldova. border regime between
It is also pertaining to offer to Moldova’s diplomats and analysts a Moldova and romania
valuable tribune for debating the most interesting and controversial
points of view that could help Moldova to find its path to EU.
T
he internal political instability and its collateral effects are marked
in the Republic of Moldova from the perspective of foreign policy
orientation, which on the geopolitical background are orbiting between
the European integration and the integrationist projects from the former
soviet space, articulated around Russia. Despite the greater openness
of the European Union towards Moldova, the new Russian geopolitical
project: Russia – Kazakhstan – Belarus Customs Union was rapidly
seized by some Moldovan political parties in the campaign for the
elections of parliament that will take place on November 28, 2010 and
will be perhaps a real issue of foreign policy in negotiating the future government
alliances. As for Moldova, this alternative does not represent only a simple tactical
move but a strategic perspective, it is important to emphasize a series of economic
indicators primordial in sustainable development which do not support the inclusion
of Moldova in the Eurasian economic space.
2. 2 Moldova’s Foreign Policy statewatch
Resuscitation of the former soviet
space integration
On the background of the inefficiency of the Commonwealth of Independent States, the former
soviet space has tried different integration models, from state unions to joint military structures designed
according to the interests of Russia, which is forced to propose alternatives against EU in Eastern Europe
and against China in Central Asia. At the end of 2009, the presidents of Russia, Kazakhstan and Belarus
signed the hasty establishment, under an agreement concluded on 6 October 2007 within the Eurasian
Economic Community (EvrAzEs), of the Customs Union (CU), which provides a common custom tax on
the territory of these 3 countries, the elimination of the customs control at the borders between them and
the implementation of common regulatory mechanism of external trade1. The agreement entered into
force beginning with 1st January 2010, and beginning with July 6 the new joint customs code is applied,
after a confrontation on gas related issues between Russia and Belarus, and from 2012, the aim is to
create a Common Economic Space.
Institutional uncertainty
For Moldova it is difficult to integrate, first of all, institutionally in a customs union and even
more in common Eurasian market. Since 2001 Moldova is a member of World Trade Organisation
(WTO), whereas the CU members are in different stages of negotiating accession to the organisation.
Russia (the leader of any possible post-soviet integration) is negotiation the accession to WTO since
1993 and has tried at a certain moment to negotiate a “package” accession, together with Belarus and
Kazakhstan, or through the voice of PM V. Putin to blackmail the western partners that they renounced
to WTO membership, in favour of regional (protectionist) integration. The subsequent resumption of the
negotiations with Americans for speeding up the individual accession of Russia, make the CU for the time
being an instrument in the negotiations with US and EU or a “geopolitical asylum” for the amortization of
the risks of the future trade openness.
The fact is that Russia is not yet a member of the WTO and the trade is often hampered by the
bilateral political relationship between Chisinau and Moscow, and repeated embargoes in 2006 and 2010
imposed by Russia to Moldovan wine and other food products have preceded the (geo)political events.
Otherwise, since Russian investors control many companies in the sector, it is difficult to understand
how to develop a competitive sector of the Moldovan economy when even the state of origin of these
investments disputes the quality products made by them. If Russia eventually joins the WTO, it is still
uncertain the legal relationship of CU with WTO as uncertain remain the settlement mechanisms of
potential trade disputes within the Eurasian space. Will we address to World Trade Organization, as
most of the countries do, or we will continue to settle the problems in Moscow? Furthermore, the fact
that Ukraine is not, at least for now, a CU member brings an additional uncertainty on the geographical
customs unification between Moldova and the current members.
Moreover, in 2006 Moldova became a member in the Central European Free Trade Agreement
(CEFTA), which includes Moldova into a southeast European free trade area, along with the Balkan states,
aimed to adjust the trade and economic standards to European members, not Belarusian standards. Thus,
membership in the CU, which involve common customs tariffs, would suggest to impose, for the Balkan
states, the tariff regime modeled after the Russian economy, given that we are with them in a free trade
area aspiring to integrate into a common European market. To not mention that part of the negotiations
on the Association Agreement between Moldova and the European Union launched in January 2010,
there will be negotiations on the signing of a Deep and Comprehensive Free Trade Agreement, expected
to be launched in early 2011. It is an irreversible process, and Moldova cannot afford not to benefit from
1 Договор о создании единой таможенной территории и формировании Таможенного Союза. Art. 2; 3. [On-Line]. 2010. http://
www.tsouz.ru/Documents/TCform_dog.doc. (accessed 20.10.2010).
str. iacob hîncu 10/1, chişinău Md-2005 republic of Moldova 373 / 22 221844 phone 373 / 22 245714 fax office@viitorul.org www.viitorul.org
3. Moldova’s Foreign Policy statewatch 3
free access to European markets, respectively, to suspend a comprehensive mechanism of negotiations
with the European Union.
Economic incompability
As an economic entity, CU is a market of 170 million consumers with a GDP of 1.86 trillion
dollars2 and a share (for the whole CIS) of 3% of world trade.3 Difficult to compare with the EU, which
represents a market of 500 million consumers with a GDP of 17 trillion dollars and a 42% share of world
trade in goods.4 Specializing in oil exports, which bring the largest reserves in the case of Russia and
Kazakhstan, this entity may give to other candidates, as is the case of Belarus, only lower prices for
oil and segments of the market for some goods under the global market quality. The engine of the new
structure – Russia, has no productive capital and technology to be invested in the economies of CU
partners, and they link, in turn, hopes of a real economic recovery (not based on high prices on raw
materials) of Western technology and investments. European companies, which until 2007 had invested
17 billion Euros in the Russian economy,5 provide approximately 75% of FDI stock in Russia and entire
Russian economic sectors (from cars construction to food industry) link its future to European productive
capital.
In the context in which Russia already sells gas and oil at market price throughout the former
Soviet Union, including Belarus, its partners cannot revive the economies by stimulating production with
low energy prices. However, despite it calls for creating an internal market, even a common currency,
Russia does not want to liberalize energy markets, including oil transport infrastructure that would allow
direct purchase of energy from Central Asia. Thus, in a common economic space, the Russian state will
have a monopoly on transportation and on the price of hydrocarbons. If we assume that the CU becomes
attractive to foreign investors, although it could never compete with the EU that attracts half of global
direct investment, then there is a real risk that Western capital and technology will move further towards
the market where energy is cheaper, and the Government has cash (at least compared with Moldova)
to support in times of crisis, some Western companies, as was the case of Renault. Moreover, Russia
as not being WTO member, seeks to protect with customs tariffs certain industrial sectors that Moscow
is willing to re-launch, and high taxes were imposed in the CU to the import of cars and textiles, for
example. For other members, this will mean an inflationary pressure, the more expensive European cars
(well preserved) and Chinese textiles (let’s say affordable).
For Moldova, thus, economic recovery and return of its citizens home is more real within an
integrationist project in which European companies, trying to recover from the global economic crisis
will prefer eastern markets in the EU. Also, an economy with free trade with the EU, not to speak of
a common market, will attract a large flow of Asian investments, particularly Chinese, who have been
seeking for a while for opportunities to penetrate the largest market in the world. Moldovan workers flow
into the European labor market, inevitably the first phase, will stabilize and reverse the process once
there will be opportunities to work at home.
The problem of cohesion
Any kind of economic openness is accompanied, at least in the mid-term, with series of negative
externalities that are directly felt by economy and some social segments. Moldova, in which a large
part of its budget revenues are from taxing imports / consumption, would substantially reduce customs
/ budget revenues, that would happen in a case of free trade area with the EU and CU with Russia.
At the same time, Moldovan farmers and companies will compete, unprotected by tariffs, with highly
2 United Nations Conference on Trade and Development. Handbook of Statistic 2009. [On-Line]. 2010. p. 416. http://www.unctad.org/en/docs/
tdstat34_enfr.pdf (accessed 10.10.2010).
3 The World Trade Organization. World and regional Exports Profiles 2009. [On-Line].2010. http://www.wto.org/english/res_e/statis_e/world_re-
gion_export_09_e.pdf (accessed 20.10.2010).
4 Idem.
5 For details see: http://ec.europa.eu/trade/creating-opportunities/bilateral-relations/countries/russia/index_en.htm.
str. iacob hîncu 10/1, chişinău Md-2005 republic of Moldova 373 / 22 221844 phone 373 / 22 245714 fax office@viitorul.org www.viitorul.org
4. 4 Moldova’s Foreign Policy statewatch
subsidized farmers and companies, both in West and East. Also, when the European Community has
entered the phase of the Customs Union (1968), France managed to establish the Common Agricultural
Policy, the policy that absorbed about 90% in the first decades of the Community budget and through
which are subsidized European farmers. Preparations to complete the internal market and later the
Economic and Monetary Union, assumed the creation of financial mechanisms and policies (Structural
Instruments) which only in the current financial framework (2007-2013) will allocate 347 billion of Euros6
to disadvantaged states and regions to support investments in infrastructure, education, health, business
and administrative reforms.
Lack of such compensatory mechanisms in the CU, will create financing problems of the Moldovan
economy and local producers will be disadvantaged compared with those from Russia, for example.
Large currency reserves of Russia allow it to invest in infrastructure projects (although not so many)
or to support their own producers by tax exemptions. Although it has decided to reduce agricultural
subsidies, they will anyway remain enormous compared with possibilities of Moldovan budget, which
will return slowly after the deficit and the losses of some revenues from imports. Republic of Moldova, at
least in the medium term will not have comparable reserves (per capita obviously) with those of Russia,
that could massively intervene from the state budget with big infrastructure projects to stimulate private
investments, thus European grants is currently the only alternative.
Conclusions
Therefore, the Eurasian economic space that is articulated by Russia based on the Customs
Union is a misleading alternative to the economic and institutional modernization of the Republic of
Moldova. On the other hand, socio-economic development of the Moldovan state may have the strongest
support for European integration, expressed in structural investments aimed at developing the most
important factors of production.
Important is that Moldova should keep the European path, through a prudent and technical well-
supported sectorial European integration. A political exercise which is not easy, especially since Russia
will often remind us about the eastern structure.
It is also important that the liberalization of visa regime to precede trade liberalization or as a
backup scenario, the two liberalization processes should occur concomitantly and Moldovan citizens
could begin to move freely on the European market along with the goods.
Finally, the Moldovan authorities must negotiate with the European capitals to increase financial
assistance grants for the Republic of Moldova. In the negotiation of EU budget for 2014-2020, the
Moldovan state may ask in this period for funding through the Instrument for Pre-Accession Assistance
(from which benefit Balkan states that are potential candidate), financial instrument absolutely providential
for domestic producers in an area free and comprehensive trade with the EU.
6 For details see: http://ec.europa.eu/trade/creating-opportunities/bilateral-relations/countries/russia/index_en.htm.
This publication was produced by idis “viitorul” with the financial support of soros Foundation
Moldova and the national endowment for democracy. The opinions expressed in this publicati-
on reflect the author’s/authors’ position and don’t necessary represent the views of the donors.
str. iacob hîncu 10/1, chişinău Md-2005 republic of Moldova 373 / 22 221844 phone 373 / 22 245714 fax office@viitorul.org www.viitorul.org
str. iacob hîncu 10/1, chişinău Md-2005 republic of Moldova 373 / 22 221844 phone 373 / 22 245714 fax
office@viitorul.org www.viitorul.org