Dmitry Pankin: Regional integration neutralises negative economic effects for landlocked countries
New York, 23 May 2017. Experts estimate that the continentality of landlocked countries has significant impact on their economic development, including a 30% decrease in trade and a 1.5% decline in economic growth compared to littoral countries. Regional economic integration may be one of key solutions to this challenge. Dmitry Pankin, Chairman of the Management Board at Eurasian Development Bank (EDB), stated this at the United Nations’ Economic and Social Council (ECOSOC) Forum on Financing for Development.
The head of EDB emphasised that regional economic integration can alleviate restrictions associated with the geographical isolation of countries by reducing border and customs costs and improving labour and capital mobility, which are of paramount importance to trade and economic growth rates. In addition, it ensures greater inter-regional connections between the regions of neighbouring countries, as well as to ports and other key infrastructure. Dmitry Pankin added that economic integration also creates a stable regional structure conducive to investment cooperation.
He also stated that, to overcome these problems, EDB, as a multilateral development bank, works in accordance with the United Nations’ development agenda, giving priority to integration projects and assisting its member countries in overcoming barriers to economic growth by financing transport and power infrastructure projects. “Almost a half of all projects in EDB’s current investment portfolio are integration projects that enhance ties between our member countries,” the head of EDB pointed out.
The ECOSOC Forum on Financing for Development is taking place from 22 to 25 May 2017 in New York (U.S.). It is an intergovernmental event empowered to consider financing for programmes concordant with the United Nations’ sustainable development goals.
Additional Information
Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. EDB’s charter capital totals US $7 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan.
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