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Regional integration is an important factor in strengthening the economic security of the state

The article examines the concept of security and economic security. By analysing the conceptual apparatus, the basic categories of economic security of the country are determined. The gradual development of the Eurasian integration, starting with the formation of the Customs Union and Common Economic Space is considered. It describes the basic directions of development of the Eurasian Economic Union through the operation of the common market of services, medicines and financial markets, the development of industrial and transport cooperation, the creation of conditions for free movement of citizens of member states of the Union. This article discusses the development of innovative cooperation of the Eurasian Union countries in the nuclear and space fields. 

Today there is no specific definition for the concept of «safety» in the world, different scientists approach the definition of safety from different sides. By that the safety can be considered from different angles, such as «national safety», «state safety», «international safety» etc.

For example, according to the work of Senchagov V.K. «On essence and basics of economic safety strategies of Russia» safety is «the state of object in the system of its connections from the perspective of ability to survive and develop in terms of internal and external threats, as well as actions of unpredictable and hard-to-predict factors» [1].

Oleynikov E.A. in his work «Basics of economic safety (state, region, enterprise, personality)» considers safety of state, region, specific enterprise and personality from the perspective o development of «safety of vital interests of society and its structures of internal and external threats» [2].

Some scientists in their works consider the safety not only from the perspective of security of vital interests of personality, state from the threats, but also specifies the conditions and developments of the safety system itself (state, society etc.).

Various approaches to the definition of safety are found in scientific literature, however a common definition and vision of what can be associated with different factors, such as geographical location, political order of the state, as well as positions of the state on the global stage lacks.

Having considered above mentioned approaches, following definition of safety may be given: «safety is the ability to survive and the security from the internal and the external threats».

It is worthy to note, that both specific regions, community, state and fields of activities such as political, economic, military, external etc. can the object of safety. However, it is evident that economic safety takes a special place of all kinds of safety. Peculiarity of economic safety is that it assists in defining the state of economic, social and political, industrial and other relations when sustainable safety of national economic interests from negative effects of both internal and external threats are provided.

In the modern sense category of «economic safety» primarily was mentioned in the USA, exactly by the President F. Roosevelt in his message to the nation «national economic safety» concept was used.

In the USA, under economic safety well-being of the nation within the current economic system of the country, which includes such factors as accessibility, raise and dynamics is understood [3].

In Great Britain, economic safety is written in The National Security Strategy and covers economic interests of all society as a whole, which has priority to other forms of social interests [4].

In Japan, maintaining political and economic stability, complete support for the system of free trade and providing trading cooperation are considered as key condition of economic safety. By that, in Japan, economic safety is understood as «the state of economy, at which the country is protected, first of all, by economic means from serious threats of its safety, caused by international factors». The similar perception on economic safety is shared by a number of European countries, South Korea, Taiwan and Israel [5]. 

According to the law of the Republic of Kazakhstan «On national safety of the Republic of Kazakhstan» dated January 6, 2012 No. 527-IV «economic safety is the security of national economy of the Republic of Kazakhstan from real and potential threats, at which its steady development and national independence are provided» [6].

Economic safety of Kazakhstan is constituent of national safety of the country, when economic interests are basic of national interests.

Economic safety consists of following components:

  • Technological,
  • Food,
  • Financial and credit,
  • Industrial,
  • Foreign economic,
  • Investment,
  • Energy,
  • Transportation and communication,
  • Social (social and economic) [7].

According to law of the Republic of Kazakhstan «On national safety of the Republic of Kazakhstan» economic safety of the country includes following components:

  • financial safety, provides security of financial system from real and potential threats, wherein the state able to provide its integrity, independence and sustainable development;
  • food security, providing security of economy, including agroindustrial sector, wherein the state is able to provide the population with physical and economic accessibility to quality and safe food, sufficient  for satisfaction of society and the state needs in energy
  • energy security, providing security of fuel and energy, oil and gas, and atomic energy sectors of the economy from the real and potential threats, in which the state is able to provide energy independence and sustainable development to meet the needs of society and the state for energy;
  • road safety, providing protection of the transport sector of the economy from the real and potential threats, in which the state is able to provide the creation of conditions to meet the needs of economy and population in the transportation by vehicular, rail, air, sea and river modes of transport and related services, formation and development of transport infrastructure, as well as sustainable development and competitiveness of transit potential» [6].

Having considered the terminology of economic safety of various authors, it can be concluded that economic security is the condition of stability of the economy, due to its high level of competitiveness at deterioration of internal and external conditions.

An important factor in strengthening the economic security of the state and its sustainable development is the encouragement of trade and economic relations with neighbouring countries, expansion of regional integration processes.

Today the Eurasian Economic Union (EEU) is the locomotive of integration in the Eurasian space.

The financial and economic crisis that broke out around the world in 2008 stimulated the search for new models to minimize economic risks and sustainable development. This led to increased regional integration processes.

From January 1, 2010 the Customs Union between Belarus, Kazakhstan and the Russian Federation started working. On November 18, 2011 the Presidents of Belarus, Kazakhstan and Russia signed a declaration on Eurasian economic integration and identified the 1st January 2012 as the date of commencement of functioning of the Common Economic Space, ensuring the freedom of movement of goods, services, capital and labour resources.

As part of the CU and CES, the member states have adopted practical measures to enhance the integration processes in a number of sectors of the economy trade, technical regulations, customs administration, competition policy, which allowed our country to enter a new stage of mutually advantageous cooperation, which iscreation of the EEU.

May 29, 2014, the Presidents of Belarus, Kazakhstan and the Russian Federation signed the Agreement on the EEU, according to which the main goals of the Union is «to create conditions for stable development of the economies of the Member States in the interest of living standard of their populations; desire to create a common market for goods, services, capital and labour within the Union; comprehensive modernization, cooperation and competitiveness of national economies in the global economy» [7, 8]. Of the EEUAgreement entered into force on January 1, 2015. From that date, the operation of this integration association began.

The leaders of the Union Member States note an important role of the Eurasian integration for the economic  development  of  our  countries.  In  particular, the  President  of  Belarus A.G.  Lukashenko stressed:

«We believe that the Economic Union will be the foundation of our political, military and humanitarian unity in the future». The President of Kazakhstan N.A. Nazarbayev said: «Eurasian Economic Union is a new reliable mechanism of eternal friendship, cooperation, good neighbourly relations between our countries» [9].

Russian President V.V. Putin assesses the Eurasian integration as follows, «The signedagreement is really a landmark, historic significance and opens broad prospects for the development of the economies and welfare of our citizens» [Ibid].

It should be noted that the Agreement on the Union registered in the UN on July 24, 2015, the notification of which receivedfrom the United Nations Secretariat on November 10, 2015.

In accordance with the EEUAgreement of 2016 a common market of medicinal products and medical devices was created, and in  2019 it  is assumed  the formation of  a common  energy  market,  in 2025  —     a common financial market and the overall gas market, oil and oil products.

Eurasian integration project is «devoid of political component, focused on the interests of the business, improving regulatory frameworks and reduced barriers» [10].

In 2015, the enlargement of the Union has occurred. As a result of  signing their Agreements  of accession of Armenia and Kyrgyzstan to the Union by the Heads of Member States of the EEU, these countries became  full members of this integration association (Armenia —  January 2, 2015, Kyrgyzstan — August 12, 2015).

EEU becomes a full-fledged subject of the international arena, forming its own pool of trade and economic relations with the leading and promising economic centres. On May 29, 2015 the EEUcountries and Vietnam signed an agreement establishing a free trade zone. This document assumes zero tariffs on 90% of the goods, which will increase the turnover of the Union of States and Vietnam for more than doubled by 2020. The agreement marked the beginning of the subsequent tighter integration with the Asia-Pacific region.

Speaking about the international vector of the Union, it should be noted that currently the prospects of free trade between the EEU and Israel, India, and Egyptare under consideration. In 2015, the Memorandum  of Understanding between EEU and the Governments of the Republic of Chile, the Republic of Peru and the Republic of Mongolia was signed. EEU is engaged in dialogue with the South American Common Market (MERCOSUR) and the Association of South-East Asian Nations (ASEAN).

Important is the adoption of the decision to start negotiations on an agreement on the EEU and China trade and economic cooperation by the Heads of States of the Union on 8 May 2015. The implementation of this Agreement will contribute to the pairing of the Eurasian integration initiatives and projects of Economic belt of the Silk Road, will create a new platform for development of industrial cooperation and cooperation   in the field of infrastructure, the basis for the creation of new transport routes and production chains.

Currently the preparation of the «road map» for EEUintegration and the Silk Road Economic Belt are underway. The leading role in its preparation belongs to the Eurasian Economic Commission.

Member States of the Union is doing a great job in the field of economic cooperation.

In particular, an important factor for sustainable economic growth is the creation of the EEUstates in 2015 in the framework of the Union common market. Its operation will be a powerful impetus for economic and industrial growth in the Union of the States, to improve their competitiveness, attract more investment to the economy of the Union countries, activating business, creating jobs, reducing unemployment.

Currently, a legal and regulatory data of forming a common EEUStates financial market  is developed. In particular, relevant agreements, determining the mechanism of its functioning are adopted. The establishment of the common market for financial services within theUnion will be an important mechanism for investing the real sector of our economies, business lending for industrial projects, providing capital freemovement, increasing business activity in the society, sustainable economic growth of the Union State.

It is obvious that the development of real integration between our two countries involves the creation conditions for free movement of citizens. One of the most important integration results in this direction was the launch of common labour market in 2015, which ensured a free movement of labour within the Union. Equal economic rights for the citizens of the UnionStates are ensured. The implementation of these accomplishments would lead to the growth of employment in our countries, to reduce unemployment and, as a consequence, improve the standard of living that meets the target plants of sustainable development of the states. 

The most discussed today both by businesses and concerned agencies of the Parties, the document is a project of the Customs Code of the EEU states. This document is currently undergoing internal approval procedure. Its implementation will contribute to the development of customs cooperation between our countries and, as a consequence, the intensification of trade and economic relations between them, create conditions  for sustainable economic growth in the Union State.

The economies of our countries create real sector. In this regard, the deepening of industrial cooperation between our countries, creating conditions for their innovative development, improving the quality of economic growth in the Union State assume significance. The solution of these tasks will be facilitated by the adoption of the Basic guidelines of industrial cooperation within the framework of the EEUby the heads of governmentsin September 2015. This strategic document aimed at deepening cooperation, conducting innovative modernization of existing production facilities, which will be the basis for the dynamic growth of the Union States.

In the field of industrial cooperation, formation of regional cooperative chains within the Unionseems highly relevant. Creating industrial clusters formanufacturing of products with high added value will allow to solve the most difficult task for the modernization and diversification of the economic development of our countries and will contribute to the integration capacity of the Union States.

For Kazakhstan, it is important to develop cooperation with the EEUcountries in the refining industry and the possible cooperation in oil refineries (refinery) in the Republic of Kazakhstan with the enterprises of Russia and Belarus. In addition, on the agenda of the country there is the development of oil and gas production equipment. It should be noted that only 3 % of the needs of the internal market of Kazakhstan in the specified equipment is covered by domestic production. The rest of the equipment is imported from third countries. Deliveries of the EEU states are very small, indicating the need to intensify industrial cooperation between our countries in this area.

Cooperation between our countries in the space sector are highly relevant. Development of long-term program of joint use of Cosmodrome «Baikonur» is necessary. Cosmodrome «Baikonur» should become an international symbol of an innovative brand and a qualitatively new stage in the development of the Union State integration.

To carry out joint research in the field of peaceful use of outer space, on the proposal of the President of Kazakhstan N. A. Nazarbayev, a new unique platform of scientific and technological cooperation — Baikonur innovation forum should be created.

Creation of space remote sensing system using high and medium resolution satellites is of high importance. In this direction, the two countries are already working actively. As the world practice shows, with the help of remote sensing, it is possible to predict the yield of crops, the status of land, plan agrotechnical  events and solve environmental and national security issues, which is important for the development of our economies.

There is the development of innovative cooperation of EEUstates in the nuclear sphereon the agenda. Within the Comprehensive Program of Cooperation of the Republic of Kazakhstan and the Russian Federation in the field of peaceful use of nuclear energy, a joint project for the industrial development of uranium deposit «Zarechnoye», located in the South Kazakhstan region, which is implemented by the National Atomic Company «Kazatomprom», the Russian state enterprise «Techsnabexport» and uranium holding JSC «Atomredmetzoloto» is implemented.

In order to develop mutually beneficial cooperation the three joint Kazakhstan and Russian enterprises in the field of nuclear energy are created, which are engaged in uranium mining in Kazakhstan and the development of a new type of small and medium capacity nuclear reactor.

The International Centre for the provision of nuclear fuel cycle services, including uranium enrichment is establishedon the territory of the Russian Federation under the control of the IAEA in view of Russia and Kazakhstan scientific and industrial potential in the nuclear industry. Activation of innovative cooperation between our countries, the introduction of modern technologies in the nuclear sphere will contribute to the development of export potential of the EEU states, increasing the share of production of our countries in the global markets.

The actual value at the present stage is the development of scientific relations of the Union States for  the development of complex software. The experience of the Republic of Belarus to establish a High-Tech Park (HTP), specialized in the production of software for export is of high interest. About half of the production goes to the Park of the United States, about 30 % — to the EU. Annually, the volume of HTP export grows by about 40 %. Transformation of the High Technologies Park from the local production project to the new national IT-industry is planned.

It is important to coordinate the activities of the High Technology Park in Minsk and the activities of  the Park of innovative technologies in Almaty with the participation of Russian companies to create a range of software products for use in high-performance engineering evaluations [11].

An important factor in sustainable development of EEU states are intensification of integration processes in the infrastructure sectors, formation of the common energy and transport space. In 2015, the Heads  of State adopted the Concept of formation of a common energy market of the EAEC. It is expected that a common electricity market of the Union State will help to increase mutual  trade electricity in our countries by 1.5–2 times in the initial stages, and even in the 2–2.5 times to the beginning of the full functioning of the market [12].

Also, a lot of work is implemented on the development of cooperation between our countries in the oil and gas sector. In 2015, concept of a common gas market and common markets of oil and petroleum products of  EEU are developed,  which will  be  submitted to the authorities of the Union in the  near future.   The total effect from the creation of a common market of oil and oil products, according to the Institute for Economic Strategies of the Russian Federation, will be in 5 years from 5 to 8 US $ billion.

In addition, by the decision of the Supreme Eurasian Economic Council a Program of Gradual liberalization of implementing by the EEU states transporters of vehicular transportations of cargo within the Union in the period from 2016 to 2025 was adopted on May 8, 2015. Its realization will allow the Union States transportation companies access to internal market of goods traffic, decrease the transportation costs of customers of freight transportation services by development of competitiveness in this market.

The deepening of integration cooperation in the field of transport and energy of EEUstates will contribute to the development of market infrastructure in our countries, creating of new transport and energy corridors, strengthening the economic security of the Union State, effective use of transit potential of the Eurasian Economic Union, which will allow it to become a real bridge between the East and the West, Asia-Pacific region and the European Union [13].

In this regard, the initiative of the President of the Republic of Kazakhstan N.A. Nazarbayev on creation of new high-speed, multi-modal transport route «Eurasian transcontinental corridor» is of high sense, whose main objective is to ensure the smooth transit of goods from Asia to Europe and back. Implementation of this project will give impetus to the economic growth of the state, the development of production in all territories, including the EEU states.

In conclusion, it should be noted that today, in the modern world, it is very hard to survive and be heard alone. Everybody tries to find a certain format for the implementation of joint cooperation projects, advocacy of interests in the global agenda. Therefore, regional integration is becoming an important factor for sustainable development of the countries, strengthening their economic security. On the efficiency of the integration process depends largely the possibility of structural changes of the national economies, enhancing their competitiveness.

EEU becomes the driver of economic growth in member states, a kind of «window of opportunity» for the dynamic development of our countries.

Kazakhstan creates a platform for modernization and diversification of its economy, eliminates the negative effects of the global crisis, strengthens the economic security and improves the quality of life of the population by participating in integration processes. 

 

References

  1. Сенчагов В.К. О сущности и основах стратегии экономической безопасности России // Вопросы экономики. —— № 1. — С. 98–101.
  2. Видяпин В.И. Основы экономической безопасности (государство, регион, предприятие, личность): учебно-практ. пособие / Под ред. Е.А. Олеиникова. — М.: Бизнес-школа «Интел-синтез», 1997. — C.
  3. Dick Nanto Economics and National Security Issues and Implications for U.S. Policy // Congressional Research Service.— 2011. — January, 4. — 78 p.
  4. A Strong Britain in an Age of Uncertainty: The National Security Strategy // Официальный сайт Министерства Обороны Великобритании. — [ЭР]. Режим доступа: http://www.official-documents.gov.uk.
  5. Ломовцева А.В., Трофимова Т.В. Сущность экономической безопасности как экономической категории // Современные научные исследования и инновации. — — [ЭР]. Режим доступа: http://web.snauka.ru/issues/2015/04/47089.
  6. Закон Республики Казахстан «О национальной безопасности Республики Казахстан» от 6  января  2012 г. № 527-IV.
  7. [ЭР]. Режим доступа: http://adilet.zan.kz/rus/docs/Z
  8. Исламова Л., Кабдунасова Л. Вопросы экономической безопасности страны: теоретические аспекты // Вестн. Каз. нац. ун-та. Сер. Экономика. — № 1 (83). — С. 3–6.
  9. Договор о Евразийском экономическом союзе. — М., 2014. — 680 с.
  10. Заявление для прессы по итогам заседания Высшего Евразийского  экономического  совета  29  мая  2014  г.  —  [ЭР]. Режим доступа: kremlin.ru.
  11. Отчет Евразийской экономической комиссии 2012-2015 гг. // Официальный сайт Евразийской экономической комиссии. — [ЭР]. Режим доступа: eurasiancommission.org.
  12. Лукашенко А.Г.     О    судьбах     нашей     интеграции      //     Известия.    —          —    [ЭР].    Режим     доступа: http://izvestia.ru/news/504081.
  13. Мансуров Т.А. Определяющий год для создания общих рынков энергоресурсов // Деловой Казахстан. — 2015. —     12 нояб. — [ЭР]. Режим доступа: http://dknews.kz/opredelyayushhij-god-dlya-sozdaniya-obshhih-ry-nkov-e-nergoresursov/.
  14. Асаул М.А.  Развитие интеграции в  сфере транспорта и  инфраструктуры  в  Евразийском  экономическом  союзе   //Фундаментальные исследования. — 2016. — № 2 (1). — С. 120–124.

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