Head of EDB: Pragmatic Eurasianism as a tool for upgrading CIS economies
Almaty, 24 May 2013. Integration is not an end in itself but a tool for achieving objectives, the main of which in the area of economic development of the SES and the entire CIS region is modernisation. Igor Finogenov, Chairman of Eurasian Development Bank’s (EDB) Management Board, stated this today at the 6th Astana Economic Forum. The head of EDB described the ideas and approaches of «pragmatic Eurasianism» to the advancement of Eurasian integration. He said that without using them the development and expansion of integration in the region would be a difficult task.
Eurasian integration should be able to withstand low oil prices. «Stability can be ensured by bottom-up integration. This includes mutually beneficial flows of goods, services, labour and capital,» said Igor Finogenov. «Trans-border companies and holdings that own intertwined assets in a number of countries of the future Eurasian Union can become an important stability factor, since they form the skeleton for long-term economic integration.» He believes that cooperation should be promoted and jointly owned transnational companies, with a consolidated access for the SES manufacturers to the global market, should be set up in the areas which already offer comparative and competitive advantages. «The post-Soviet space has some ten to twenty such sectors,» said the head of EDB. «These are ferrous and non-ferrous metallurgy, coke chemistry, fertilisers, power engineering, rail engineering, heavy automobile construction, aircraft and helicopter engineering, the space industry and agriculture (primarily the grain sector).»
In this context he emphasised the important role of the leading financial institutions in financial integration. «The integration of financial markets is a long-term project which can take some five to ten years,» said Igor Finogenov and noted the gradual movement in this direction.
In addition he believes that the integration of markets, resources and assets can help to solve the task faced by all countries in the region — the revival of the industrial sector as the locomotive for the economy. To this end, however, a shared industrial, research and technological policy is needed, which would take into account not only the interests of separate countries, but the needs of all member states of the integrated union as a whole.
Igor Finogenov also pointed out that it was very important that Russia did not become the only locomotive of integration. «Despite Russia’s apparent dominance as the region’s largest economy, other locomotives and active players are needed,» said he. «In this context the maintenance of Kazakhstan’s proactive position is of critical importance.»
«Eurasianism is an open project and an open ideology,» the head of EDB continued. «It would be useful to distinguish two processes in Eurasian integration. The first one is post-Soviet integration. The second one is continental integration. The task is to make both processes benefit us. The potential for economic and technological convergence in the post-Soviet space is significant, but it is limited. Multiple benefits can be derived from deeper economic integration in the western (European Union) and eastern (China, South Korea, Japan, Southeast Asia) directions.»
«It is important to understand that European and post-Soviet integration should not be deemed as mutually exclusive,» emphasised Igor Finogenov. «On the contrary, the formation of a strong Customs Union in the CIS can become a step towards integration with the European Union, because the Customs Union can become a more effective and strong partner for the EU than separate countries.»
Additional Information
Eurasian Development Bank 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 exceeds US $1.5 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. Read more at https://www.eabr.org