LA COMUNICACIÓN: ADO RM ECEDO R DEL PUEBLO

Three geographical areas, where economic integration processes are well developed are singled out by Bulatov (1995, p. 485), Matsnev (2003, p. 19) and Spiridonov (1999, p. 73): Western European, North American and Asian-Pacific. Indeed, the EU, the North American Free Trade Agreement (NAFTA) and the Asia-Pacific Economic Cooperation (APEC) represent three powerful regional groupings which have a big potential to further expansion and progressive economic integration amongst its member states. The first two are both well established integration groupings with the second one being a future economic integration grouping with a high (if not the highest) economic potential.

Thanks to the growth of their power and influence, regional integration groupings have already taken up the role of leaders in world economic development. This is one of the main distinctive features of the world economic development at the present time.

Data in Table 1 shows that economic indicators of the EU and NAFTA are similar enough. The difference in size of their territories is not important. Though the NAFTA’s territorial superiority may have a positive value with reference to the USA, another NAFTA member, Canada, for example is, to a considerable extent, located in severe Arctic areas where nearly no economic activities are conducted.

Table 1

Main integration groupings

1

European Union (27 members)

North American Free Trade Zone (3

members) Asia-Pacific Economic Cooperation (21 members) Territory, km² Population, mln. GDP, bln. USD$ Share in world GDP, per cent 4,324,782 499,0 16,830 30,9 21,783,850 445,3 16,169 29,7 - 2701,0 29,209 53,7

Note. GDP=Gross Domestic Product. USD=United States Dollar. Data from “Key development data & statistics,” by World Bank, 2008c.

The EU is the largest world trade participant: its total share in the world goods turnover makes up nearly 43 per cent (Directorate General for Trade

Zverev (2000) reminds that NAFTA is the first trade bloc to unite two advanced and of the European Commission, 2007) and more than a half of the EU’s international goods turnover accounts for trade within this integration grouping. Main external trading partners of the EU are the USA, China, Russia and European states outside of the union (Switzerland, Norway, Turkey). This testifies that the EU external trade has a diverse orientation and this policy most likely will remain active in future.

Domestic Product (GDP) volume is nearly the same as the EU’s. It is noticeable that such a figure is mainly the USA’s contribution (85 per cent), which repeatedly surpasses partners in scales of production. According to the Directorate General for Trade

This chapter has presented an examination of the forms of economic integration. Economic aspects of each form of economic integration have been discussed. The

of the European Commission (2007), the NAFTA’s share in the total world trade volume is 21 per cent (USA’s – 14.9 per cent). Most part of the NAFTA’s trade is directed outside. The main trading partners of this grouping are the Asian and European countries. Because the integration processes in the NAFTA have not yet reached the degree and the depth of the EU (Matsnev, 2003), it is, so far, rather early to consider this grouping as a single subject of the world economy (unlike the EU). It should be noted that from time to time various discussions take place concerning the future of the NAFTA, especially regarding plans on developing integration within the grouping, which includes changing its current form from the free trade area to the customs union (Huelsemeyer, 2004). In general, the comparison between the NAFTA and the EU only makes sense when basic indicators (as above) are taken. For more detailed comparison, it is prudent to examine separately each member country of these groupings.

Being a large economic cooperation grouping of 21 Pacific Rim countries, APEC significantly differs from the previous two. Being an “amorphous” (Matsnev, 2003, p.20) economic grouping, the data given above rather characterises the APEC from the point of view of its potential. It gives an idea of how powerful this potential union could be if APEC in practice had turned into an integration grouping similar to the EU. Therefore, namely this integration project seems to be one of the most promising for several reasons. Firstly, its member is a country with the largest economy in the world, that is the USA. Thanks to their territory’s attachment to the Pacific Ocean and thus openness of trade to sea routes, member countries enjoy stable economic development. However, it should be noted that they do vary in their level of development, ranging from “developing” (Brunei, Indonesia, Papua New Guinea, Vietnam and so on) to “advanced” (the USA, Canada, New Zealand, and Japan). Secondly, the grouping unites two countries with the largest populations in the world – China and India. Thirdly, member countries, still each of them being unique, represent the world’s four continents and these contribute to the grouping’s diversity.

chapter also contains opinions of authors suggesting classification of forms different from the traditional one. It has been defined that depending on what form economic integration takes, its participants make changes to mutual trade patterns. To give an example of economic integration, three integration groupings have been examined. In the next chapter, a closer look will be taken at the CIS.

CHAPTER

FIVE THE COMMONWEALTH OF INDEPENDENT

STATES

5.1

Overview

In this chapter the CIS will be examined during the period 1991-2007, starting with a detailed look into the economic and political situation in the former Soviet states before and after the breakup. The creation of the CIS, its development, aims and objectives are discussed. The analysis of economic measures taken by the CIS member states is made by dividing the CIS activity years into four time periods. Also trade patterns between the CIS states and their characteristics are discussed. At the end of the chapter, various prognoses and possible scenarios for CIS future development are described.