On April 15, Mikhail Myasnikovich, Chairman of
the Board of the Eurasian Economic Commission, Doctor of Economics, Professor
and Corresponding Member of the National Academy of Sciences of Belarus, told
about the ways to achieve advanced development goals and improving the
competitiveness of the Eurasian Economic Union States in the context of the
global economy through strengthening integration processes in the medium term
during his lecture for students, postgraduates and the scientific and academic
community at the National Research University Higher School of Economics. The
event was held as part of the 22nd April International Scientific Conference on
Economic and Social Development.
The past year 2020 has made serious adjustments to the global development
logic. The last year’s global economic crisis was caused by changing
technological and world economic paradigms. The pandemic has only speeded up
the negative processes. They are based on a secular stagnation in 2014-2019,
long-term postponement of strategic decisions and unfavorable energy market
conditions. According to the IMF, the decline in global GDP ranges within 3.5%
in 2020.
The pandemic and the crisis have also
exacerbated a number of other problems: the rise of protectionism and the
crisis of the multilateral trading system, the unilateral rejection of
long-term commitments and the intention to change from a cooperative agenda to
separate development of the world's major economies.
"I believe that all of the above is a step backwards," Mikhail
Myasnikovich stressed. "In the current situation, deepening regional
integration and creating an updated seamless architecture of international
economic relations thereupon is one of the most efficient ways of
development".
Over the six-year period since its
establishment, the EAEU has passed a significant stage in its development, has
succeeded as an integral element of the Union countries’ economic model and has
become part of the global economy’s architecture. The EAEU GDP increased by 21%
in the first five years, reaching almost 2 tln dollars at year-end 2019. During
the same period, the EAEU’s industrial production increased by 13.2%, including
in the manufacturing industry by almost 15%. These indicators are higher than,
for example, in the EU, where industrial production increased by 5.4%,
including the manufacturing industry increased by 6.1%. The EAEU States’ mutual
trade increased by 27.7%. In the World Bank's annual Doing Business 2020 ranking,
the EAEU ranks 29th out of 190 economies raising its ranking by 12 positions,
while Kazakhstan and Russia improved their positions by 13 and 16 points,
respectively.
Nowadays, the EAEU has a functioning commodity
market, significant progress has been made in forming a market for services (it
operates in 53 sectors), a unified Customs Code has been adopted and free
movement and social guarantees for workers are provided (for example, the
Agreement on Pension Provision entered into force in January 2021). 49 common
technical regulations have been adopted and more than 12,000 international
standards are in force, so that about 85% of products have already been
certified according to the common technical standards.
According to Mikhail Myasnikovich, early 2021
seems good. The negative impact of the COVID-19 pandemic on the Union
countries’ economies is gradually weakening: for example, Belarus increased its
industrial output by 8.3% in January-February 2021 compared to January-February
2020 and the Union States’ mutual trade increased by 3.3% in January 2021.
According to forecasts of international organizations, a cyclical global
economic recovery is expected in 2021. For example, the GDP growth rate of the
Russian Federation may be approximately 3.0% and it may increase up to 3.9% in
2022.
The Chairman of the EEC Board reported on
coordinated actions taken to minimize the corona crisis at the Union level.
"This limited the virus spreading pace; we ensured the management of
resources, medicines and medical devices and strived to create conditions for
an efficient post-crisis recovery. Developing highly efficient vaccines against
coronavirus by the Russian Federation in a timely manner, arranging their
supplies and localizing their manufacture in the EAEU countries were of
paramount importance here, which may serve as a positive example of integration
cooperation for the sake of millions of people," Mikhail Myasnikovich
considers.
The objective to determine vectors, key measures
and new mechanisms required for developing integration and achieving the
Union's goals has been set out in the Strategic Directions for Developing the
Eurasian Economic Integration until 2025 approved by the Supreme Eurasian
Economic Council in December 2020. The Strategy-2025 unlocks the existing
potential of the Treaty on the Union signed in 2014, and develops integration
areas new for the EAEU.
"Despite the fact that we have an economic union, education,
healthcare, tourism, sports and etc. have been included in the Strategy. We
believe that there should be a certain social loyalty to those processes we
implement within our Eurasian Economic Union," the Head of the
Commission’s Board stressed. The Commission’s Council has recently approved a
detailed action plan for implementing the Strategy.
According to Mikhail Myasnikovich, due to high
competition in commodity markets after the coronavirus crisis, the EAEU
countries should strengthen cooperation, complementing and supporting each
other.
"We should address the issues of preferential lending to integration
projects. At present we explore specific proposals for instruments to reduce
(subsidize) interest rates for financing joint projects by the EAEU development
institutions. It is required to create joint Eurasian corporations and companies,"
he stated.
Later in the day, Mikhail Myasnikovich and
Yaroslav Kuzminov, Rector of the Higher School of Economics, signed a
Cooperation Program between the EEC and the HSE. The document is designed for
two years and contemplates, inert alia, joint implementation of educational
programs at the Higher School of Economics and involving students,
postgraduates and teaching staff in scientific support of the Eurasian economic
integration, determination of further development vectors as well as organization
of joint events.
For reference
The April International Scientific Conference on
Economic and Social Development is held annually by the National Research
University "Higher School of Economics". This venue is a meeting
place for young and distinguished scientists, government officials,
entrepreneurship and representatives of the expert community. The conference
discusses current issues of social development and holds discussions on a wide
range of issues. This year's event will be held on April 13-30.