Among the largest modern international associations is the Eurasian Economic Union. Formally, it was established in 2014, but by the time of signing the agreement on its creation, the EAEU member states already had considerable experience of interaction in the regime of active economic integration. What is the specificity of the EAEU? What is an economic or political association?
Organization Overview
We begin the study of this question by examining key facts about the organization concerned. What are the most noteworthy information about the EAEU? What is this structure?
The Eurasian Economic Union, or EAEU, is an association within the framework of international economic cooperation of several states of the Eurasian region - Russia, Kazakhstan, Kyrgyzstan, Belarus and Armenia. Other countries are expected to join this association, as the Eurasian Economic Union (EAEU) is an open structure. The main thing is that the candidates for joining the association share the goals of this organization and show willingness to fulfill the obligations stipulated by the relevant agreements. The establishment of the structure was preceded by the establishment of the Eurasian Economic Community, as well as the Customs Union (which continues to function as one of the EAEU structures).
How did you come up with the idea of forming the EAEU
According to a number of sources, the state, the first to initiate the processes of economic integration in the post-Soviet space, which grew up in the establishment of the EAEU, is Kazakhstan. Nursultan Nazarbayev expressed the corresponding idea at a speech at Moscow State University in 1994. Subsequently, the concept was supported by other former Soviet republics - Russia, Belarus, Armenia and Kyrgyzstan.
The main advantage of the state being a part of the Eurasian Economic Union is the freedom of economic activity of the entities registered in it on the territory of all member countries of the union. It is expected that an unified trading space will be formed on the basis of the EAEU institutes, characterized by a commonality of business standards and norms.
Is there a place for political engagement?
So, the EAEU - what is it, exclusively an economic structure, or an association, which, perhaps, will be characterized by the political component of integration? At the moment and in the near future, as various sources testify, it will be more correct to talk about the first interpretation of the essence of the association. That is, the political aspect is excluded. Countries will integrate in pursuit of economic interests.
There is evidence of initiatives regarding the creation of certain supranational parliamentary structures within the EAEU. But the Republic of Belarus and Kazakhstan, as evidenced by a number of sources, do not consider the possibility of their participation in building appropriate political communications. Countries want to maintain full sovereignty, agreeing only to economic integration.
At the same time, it is obvious to many experts and ordinary people how close the political relations of the countries included in the EAEU are. The composition of this structure is formed by the closest allies who do not have publicly expressed fundamental disagreements about the difficult situation on the world stage. This allows some analysts to conclude that economic integration within the framework of the association in question would be very difficult if there were significant political differences between the countries participating in the association.
History of the EAEU
A better understanding of the specifics of the EAEU (what kind of organization it is) will help us study some facts from the history of the association. In 1995, the heads of several states - Belarus, the Russian Federation, Kazakhstan, and a little later - Kyrgyzstan and Tajikistan, drew up agreements establishing the Customs Union. On their basis, in 2000, the Eurasian Economic Community, or EurAsEC, was established. In 2010, a new association appeared - the Customs Union. In 2012, the Common Economic Space opened - first with the participation of the states that are members of the CU, then - Armenia and Kyrgyzstan joined the structure.
In 2014, Russia, Kazakhstan, and Belarus signed an agreement on the creation of the EAEU. Later it was joined by Armenia and Kyrgyzstan. The provisions of the relevant document came into force in 2015. The EAEU Customs Union continues to function, as we noted above. It includes the same countries as in the EAEU.
Progressive development
Thus, the EAEU member states - the Republic of Belarus, Kazakhstan, Russia, Armenia, Kyrgyzstan - began to interact long before the relevant association was established in its modern form. According to some analysts, the Eurasian Economic Union is an example of an international organization with a gradual, systematic development of integration processes, which can predetermine significant stability of the corresponding structure.
EAEU Stages of Development
Several stages of development of the Eurasian Economic Union are identified. The first is the establishment of a free trade zone, the development of standards by which goods can be exchanged between the EAEU member countries without duties. At the same time, each state retains independence in the aspect of conducting trade with third countries.
The next stage in the development of the EAEU is the formation of the Customs Union, which involves the formation of an economic space, within which the movement of goods will be unhindered. At the same time, the rules of foreign trade common to all member countries of the association should also be determined.
The most important stage in the development of the union is the formation of a single market. It is expected that an economic space will be created within which a free exchange will be possible not only of goods, but also of services, capital and personnel - between the member states of the association.
The next stage is the formation of an economic union, the participants of which will be able to coordinate the priorities of the implementation of economic policy among themselves.
After the listed tasks are solved, it will remain to achieve full economic integration of the states included in the association. This involves the creation of a supranational structure that will determine priorities in building economic and social policies in all countries that are members of the union.
EAEU Benefits
Let us consider in more detail the key benefits that the EAEU members receive. Above, we noted that among the key ones is the freedom of economic activity of economic entities that are registered in any state of the union throughout the EAEU. But this is far from the only advantage of the state joining the organization we are studying.
EAEU members will have the opportunity to:
- take advantage of low prices for many goods, as well as reduce costs associated with the transportation of goods;
- dynamically develop markets by increasing competition;
- increase labor productivity;
- increase the volume of the economy due to increased demand for manufactured goods;
- provide employment for citizens.
GDP Growth Prospects
Even for such economically powerful players as Russia, the EAEU is the most important factor in economic growth. Russia's GDP, according to some economists, may, thanks to the country's accession to the association in question, receive a very powerful growth stimulus. Other EAEU member states - Armenia, Kazakhstan, Kyrgyzstan, Belarus can achieve impressive GDP growth indicators.
The social dimension of integration
Apart from the positive economic effect, the EAEU member countries are expected to integrate also in the social aspect. International business activity, according to many experts, will help to establish partnerships, stimulate cultural exchange, and strengthen the friendship of nations. Integration processes are facilitated by the common Soviet past of the peoples living in the countries of the Eurasian Economic Union. The cultural and, very importantly, linguistic proximity of the EAEU states is obvious. The composition of the organization is formed by countries in which Russian is familiar to most of the population. Thus, many factors can contribute to the successful solution of the tasks facing the heads of state of the Eurasian Economic Union.
Supranational Structures
The agreement on the EAEU has been signed; it is up to its implementation. Among the most important tasks in the framework of the development of the Eurasian Economic Union is the creation of a number of supranational institutions, the activities of which will be aimed at facilitating the integration of economic processes. In accordance with a number of public sources, it is planned to form some of the basic institutions of the EAEU. What kind of structures can this be?
First of all, these are various commissions:
- in economics;
- on raw materials (it will be involved in setting prices, as well as quotas for goods and fuels, coordinate policies in the field of precious metals turnover);
- for interstate financial and industrial associations and enterprises;
- on entering a monetary unit for settlements;
- on environmental issues.
It is also planned to create a special Fund, the competence of which is cooperation in various fields: in the economy, in the field of development of science and technology. It is assumed that this organization will deal with the financing of various studies, help participants in solving a wide range of issues - legal, financial or, for example, environmental.
Other major supranational structures of the EAEU that are planned to be created are the International Investment Bank, as well as the arbitration of the Eurasian Economic Union.
Among the successfully created associations that are part of the EAEU governance structure are the Eurasian Economic Commission. We study the features of its activities in more detail.
Eurasian Economic Commission
It can be noted that the EEC was established in 2011, that is, even before the agreement on the creation of the EAEU was signed. It was established by Russia, Kazakhstan and Belarus. Initially, this organization was created to manage processes at the level of such a structure as the Customs Union. The EAEU is a structure in the development of which the Commission is called upon to directly participate now.
A council and a collegium have been established in the ECE. The first structure should include deputy heads of government of the member states of the association. Three people from the EAEU member states should work in the collegium. The Commission provides for the establishment of separate departments.
The Eurasian Economic Commission is the most important, but not the most important supranational governing body of the EAEU. It is subordinate to the Supreme Eurasian Economic Council. Consider the key facts about him.
Supreme Eurasian Economic Council
This structure, like the Eurasian Economic Commission, was created several years before the signing by the states of the agreement on the creation of the EAEU. Thus, for a long time it was considered a supranational body in the structure of the Customs Union, as well as the Common Economic Space. The Council is formed by the heads of the EAEU Member States. With a frequency of at least 1 time per year, it should be assembled at the highest level. The heads of government of the member countries of the association should meet at least 2 times a year. A feature of the functioning of the Council is that decisions are taken in consensus format. The approved provisions are mandatory for implementation in the EAEU member countries.
EAEU Prospects
How do analysts assess the development prospects of the EAEU? We noted above that some experts believe: at the same time as economic integration, a political rapprochement of the states participating in the association is inevitable. There are experts who share this point of view. There are experts who completely disagree with her. The main argument of those analysts who see the prospects for the politicization of the EAEU is that Russia, as the leading economic player in the association, will somehow influence the decisions taken by the authorities of the EAEU member states. Opponents of this point of view believe that on the contrary, it is not in the interests of the Russian Federation to show excessive interest in politicizing the relevant international association.
Subject to a balance between the economic and political component in the EAEU, the prospects for the union, based on a number of objective indicators, are estimated by many analysts as very positive. Thus, the total GDP of the member states of the structure under consideration will be comparable with the indicators of the leading economies of the world. Taking into account the scientific and resource potential of the EAEU, the volumes of the economic systems of the member countries of the union can significantly increase in the future.
Worldwide collaboration
According to some analysts, the prospects for cooperation with the EAEU are attractive for countries that would seem to be far from the economic space formed by the countries that signed the EAEU treaty - Russia, Kazakhstan, Kyrgyzstan, Belarus and Armenia. For example, Vietnam has recently signed a free trade agreement with the EAEU.
Show interest in cooperation Syria, Egypt. This gives analysts a reason to say that the Eurasian Economic Union can become a powerful player in the global market.