Among the largest modern international associations is the Eurasian Economic Union. Formally, it was established in 2014, but by the time the agreement on its creation was signed, the EAEU member states already had considerable experience of interaction in the mode of active economic integration. What are the specifics of the EAEU? Is it an economic or political association?
General information about the organization
Let's begin our exploration of the question at hand by looking at the key facts about the relevant organization. What are the most noteworthy facts about the EAEU? What is this structure?
The Eurasian Economic Union, or the 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, since the Eurasian Economic Union (EAEU) is an open structure. The main thing is that candidates for joining the association share the goals of this organization and show readiness to fulfill the obligations stipulated by the relevant agreements. The creation of the structure was preceded by the establishment of the Eurasian Economiccommunity, as well as the Customs Union (which continues to function as one of the structures of the EAEU).
How the idea of forming the EAEU appeared
As evidenced by a number of sources, the state that was the first to initiate the processes of economic integration in the post-Soviet space, which grew into the establishment of the EAEU, is Kazakhstan. Nursultan Nazarbayev expressed the relevant 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 being a state member of the Eurasian Economic Union is the freedom of economic activity of entities registered in it on the territory of all member countries of the union. It is expected that on the basis of the institutions of the EAEU a single trading space will soon be formed, characterized by common standards and norms for doing business.
Is there room for political engagement?
So, what is the EAEU, an exclusively economic structure, or an association, which, perhaps, will be characterized by a political component of integration? At the moment and in the near future, as various sources testify, it would be more correct to speak of 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 some supranational parliamentary structures within the framework of the EAEU. But the Republic of Belarus,Kazakhstan, as evidenced by a number of sources, does not consider the possibility of its participation in building appropriate political communications. Countries want to maintain full sovereignty, agreeing only to economic integration.
At the same time, for many experts and ordinary people, it is obvious how close the political relations of the countries that are members of 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 under consideration would be very difficult if there were significant political differences between the member countries of the association.
History of the EAEU
To better understand the specifics of the EAEU (what kind of organization it is), we will be helped by studying some facts from the history of the association. In 1995, the heads of several states - Belarus, the Russian Federation, Kazakhstan, a little later - Kyrgyzstan and Tajikistan, formalized agreements establishing the Customs Union. On their basis, the Eurasian Economic Community, or EurAsEC, was established in 2000. In 2010, a new association appeared - the Customs Union. In 2012, the Common Economic Space was 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, Armenia and Kyrgyzstan joined it. The provisions of the relevant document entered intoforce since 2015. The Customs Union of the EAEU continues, as we noted above, to function. It includes the same countries as the EAEU.
Progressive development
Thus, the EAEU member states - the Republic of Belarus, Kazakhstan, Russia, Armenia, Kyrgyzstan - began to interact long before the corresponding association was established in its modern form. According to a number of analysts, the Eurasian Economic Union is an example of an international organization with a progressive, systematic development of integration processes, which may predetermine the significant stability of the corresponding structure.
Stages of EAEU development
Several stages of development of the Eurasian Economic Union have been identified. The first is the establishment of a free trade zone, the development of norms according to which trade between the EAEU member countries can be carried out without duties. At the same time, each state retains independence in terms of conducting trade with third countries.
The next stage in the development of the EAEU is the formation of the Customs Union, which implies the formation of an economic space within which the movement of goods will be carried out without hindrance. At the same time, foreign trade rules common to all countries participating in 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 it will be possible to freely exchange not only goods, but also 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 remains to achieve full economic integration of the states included in the union. 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.
EEU benefits
Let's take a closer look at the key benefits that members of the EAEU 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 territory of the EAEU. But this is far from the only advantage of the state joining the organization we are studying.
EAEU Members will be able to:
- enjoy the benefits of low prices for many goods, as well as reduced costs associated with the transportation of goods;
- develop markets more dynamically by increasing competition;
- increase labor productivity;
- increase the volume of the economy by increasing demand for manufactured goods;
- provide employment for citizens.
GDP growth outlook
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, can, thanks to the country's entry into the association in question, get verypowerful growth stimulus. Other EAEU member countries - Armenia, Kazakhstan, Kyrgyzstan, Belarus - can achieve impressive GDP growth rates.
Social aspect of integration
In addition to the positive economic effect, the EAEU member countries are expected to integrate socially as well. International business activities, according to many experts, will help 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, which is very important, the linguistic proximity of the EAEU states is obvious. The composition of the organization is formed by countries in which the Russian language 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 Treaty 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 whose activities will be aimed at promoting integration economic processes. According to a number of public sources, the formation of some basic institutions of the EAEU is expected. What structures could these be?
First of all, these are various commissions:
- economics;
- for raw materials (she will deal with setting prices, as well as quotas for goods and fuel,coordinate the policy in the field of circulation of precious metals);
- for interstate financial and industrial associations and enterprises;
- by entering the currency for calculations;
- 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 science and technology development. It is assumed that this organization will deal with the financing of various studies, help the participants in cooperation 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 arbitration of the Eurasian Economic Union.
Among the successfully created associations that are part of the management structure of the EAEU is the Eurasian Economic Commission. Let's 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 founded 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.
The Council and the Board have been established in the EEC. The first structure should include deputy heads of governments of the member states of the association. The board should consist of three people frommember countries of the EAEU. The Commission provides for the creation 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 key facts about him.
Supreme Eurasian Economic Council
This structure, like the Eurasian Economic Commission, was created a few years before the states signed 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. At least once a year, it must meet at the highest level. The heads of government of the participating countries of the association must meet at least 2 times a year. A feature of the functioning of the Council is that decisions are made in the format of consensus. The approved provisions are mandatory for implementation in the EAEU member countries.
EAEU prospects
How do analysts assess the prospects for the development of the EAEU? Above, we noted that some experts believe that along with economic integration, the political rapprochement of the member states of 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 in one way or another influence the decisions made by the authorities of the EAEU member states. OpponentsFrom this point of view, they believe that just the opposite, it is not in the interests of the Russian Federation to show excessive interest in the politicization of the corresponding international association.
Providing a balance between the economic and political components in the EAEU, the prospects for the union, based on a number of objective indicators, are assessed 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 world's leading economies. Taking into account the scientific and resource potential of the EAEU, the volume of economic systems of the member countries of the union can grow significantly in the future.
Global cooperation
According to a number of analysts, the prospects for cooperation with the EAEU are attractive for countries that 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 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 the most powerful player in the world market.
