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Sergei Glazyev called upon for promoting economic growth in EAEU countries through developing pharmaceuticals, information and bioengineering technologies

Sergei Glazyev called upon for promoting economic growth in EAEU countries through developing pharmaceuticals, information and bioengineering technologies

11/26/2020
The Eurasian Economic Union States have not yet been able to achieve growth rates higher than the global ones. This is largely due to the macroeconomic policies being implemented in the countries. The economic growth can be promoted by developing industries being drivers of the new technological paradigm. This was stated by Sergei Glazyev, Minister in charge of Integration and Macroeconomics of the Eurasian Economic Commission, on November 26 at the international seminar "COVID-19 Pandemic: Symptoms and Treatment of the World Economy”.

As Sergei Glazyev emphasized, the pandemic has significantly accelerated structural changes in the world economy. There is a differentiation in the world economy depending on the efficiency of the economic development governance system in the countries. In particular, the center of global activity is moving to South-East Asia. China is the only country demonstrating positive growth rates this year.

"When it comes to the EAEU States, we have not yet been able to achieve growth rates higher than the global ones," Sergei Glazyev noted. "As far as I can see, this is largely due to the macroeconomic policy being implemented. The EAEU States still have extremely low capital accumulation rates, low rates of investment activity growth and have capital leakage which indicates that the economic development governance system is working suboptimally".

Along with that, he has focused on the fact that the EAEU countries have growth in those industries that are drivers of the new technological paradigm.

"Rapid growth in pharmaceuticals, manufacturing of medicinal products, medical devices and total increase in economic activity in health care stand out in the EAEU States,” Sergei Glazyev noted.

According to the Public Statistics Services of the EAEU countries, manufacturing of pharmaceuticals in January-October 2020 increased by 23.5% compared to the same period in 2019 in Armenia, it increased by 11% in Belarus, by 40% in Kazakhstan, by 180% in Kyrgyzstan, and by 21% in Russia.

The EEC Minister has added that trends related to informatization, development of bioengineering technologies, robotics and introduction of digital technologies are accelerating; so, the EAEU countries should keep up with the times. He has stressed that the States of the new technological paradigm's core maintain currency control rates, strictly monitor transboundary capital flows, are selective in monetary policy, promote the investment development by forming targeted investment lending tools, provide affordable long-term lending to priority areas of economic development and keep monetary circulation under strict state control.

Sergei Glazyev has stated that in the new conditions, the main direction of international economic cooperation is not so much the liberalization of the world economy, as the combination of competitive advantages of different countries around increasing joint investment, principally infrastructure investment.

"We in the Eurasian Economic Union actively cooperate with China within coupling with the Belt and Road Initiative. The pillar of our cooperation is joint investment based on a combination of our competitive advantages and creating common rules we have enshrined in our agreement," Sergei Glazyev concluded.

The International Macroeconomic Seminar is held by the EEC jointly with the Interstate Bank. The Seminar is traditionally devoted to discussing the most relevant challenges and risks of the global and regional economy as well as promising areas of integration cooperation between the EAEU States. The discussion was attended by representatives of international organizations, integration associations, national and supranational regulatory bodies, development institutions and academia.​