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38ИНТЕГРАЦИОННЫЕ ПРОЦЕССЫ И СОТРУДНИЧЕСТВО
В СОВРЕМЕННОМ МИРЕ
Alzhanova F.G.
Doctor of Economics, Institute of Economics CS MES RK, Almaty
Kireyeva A.A.
PhD in Economics, Institute of Economics CS MES RK, Almaty
Urdabayev M.T.
PhD student, Institute of Economics CS MES RK, Almaty
THE ROLE AND PLACE OF KAZAKHSTAN IN EAEU INTEGRATION PROCESSES1
Keywords: Kazakhstan, Eurasian Economic Union, integration processes, foreign trade activity.
Ключевые слова: Казахстан, Евразийский экономический союз, интеграционные процессы, внешнеторговая деятельность.
EAEU is an international organization that provides free movement of goods, products, capital and human resources for the members of the organization. It also enhances the economic potential of states.2 The main purpose of the activities is creation of good conditions for the states that are members of this organization, to improve the living conditions of the inhabitants of these states, to improve the market economy of the countries and to create a universal market for goods, services and human resources within the EAEU. This international organization addresses customs, tariff and non-tariff issues, monopolies, and others.
The main task of the EAEU is to create unity and unite states for the integration of economic space. The EAEU is not a political but an economic union.
A lot of states, including the Republic of Kazakhstan, are entering into and actively participating in many integration procedures on their own initiative. One such procedure is joining the Eurasian Economic Union (the EAEU), which includes Kazakhstan, Armenia, Belarus, Russia, and Kyrgyzstan.
Today, Kazakhstan can assess the results of joining the Eurasian Economic Union; can assess the role and place of the Republic of Kazakhstan in the EAEU integration process. The Republic of Kazakhstan, from the very beginning, aimed at the successful development of the State, it aimed at reaching the leading positions of international foreign trade3. In today's world, Kazakhstan is a dynamically innovative state with a high level of economy, as well as a major exporter of grain and flour to countries such as the CIS, Asia, and China.
Let us give an example. The Treaty of the Union on Access to Domestic Tariffs of the Member States has led to the fact that transport costs have decreased in the Republic of Kazakhstan, which has enabled the Kazakh companies to improve the competitiveness of their products on foreign markets.
For all EAEU member states, the Union administration has created non-tariff barriers that can impede foreign trade. The Eurasian Economic Union effectively fights non-tariff barriers, allowing to increase the level of foreign trade of member states.
Within the framework of the EAEU, Kazakhstan has been able to ratify the pension scheme for residents of it by the State, as all pension systems of countries of the Union are going to be unified in the very near future. In the territory of the Eurasian Economic Union, the administration forms the prerequisites for obtaining guarantees for the pension of migrants who work in other countries for all member states.
The EAEU agreement between member countries shows that migrant workers are able to receive pensions according to their length of service. It should be borne in mind that the pension will be calculated in rigorous accordance with national legislation. Total length of service is an amount in accordance with the calculation of pension benefits. Migrants will be guaranteed insurance contributions for the entire period of employment under a fixed EAEU contract4.
Thus, the pension reform of the member states of EAEU will soon be unified due to their pension national characteristics.
1 This research is funded by the Science Committee of the Ministry of Education and Science of the Republic of Kazakhstan (Grant «Scientific and technological space of the EAEU countries: structure, development mechanisms, ensuring the economic interests of Kazakhstan» No. AP09259768).
2 Foreign trade in goods. Eurasian Economic Union statistics. 2019: Statistical compendium / Eurasian Economic Commission. -Moscow: LLC «Sam Polygraphist», 2020. - 345 p.
3 What is Kazakhstan's share of imports and exports in EAEU states. 2019. - https://www.zakon.kz/4995602
4 Nurtazin M.M. The role of the Republic of Kazakhstan in geopolitical transformation within the framework of the «Eurasian project» // Problems of the post-Soviet space. 2018. - Vol. 5, N 2. - P. 191-202. - https://doi.org/10.24975/2313-8920-2018-5-2-191-202
The Eurasian Economic Union is an international society. This is the reason why participation in this integration process is a budding transition stage for the development of Kazakhstan's foreign policy. After Kazakhstan joined the Union, it began to have preconditions for participation in world economic integration. Kazakh companies have gained access to the infrastructure of unified transport, energy and information systems. This has a positive impact on their activities and on the economy of the State generally1 .
In the modern world, the integration process in the Eurasian Economic Union is an important step towards increasing the export potential and developing the economy of the Republic of Kazakhstan. EAEU integration is a stable process that brings together the cultural and historical aspects of the peoples of the member states. This provides an opportunity for these states to develop international trade and improve their economies. It is also worth noting that the Eurasian Economic Union regularly shapes economic priorities for these states, including the Republic of Kazakhstan. This is the reason why Kazakhstan is expanding its export and import foreign trade activities, which enable that State to reach national goals.
In Table 1 you can see the statistics of exports and imports of foreign trade within the EAEU of the Republic of Kazakhstan.
Table 1
Export and import trade volumes within the EAEU of the Republic of Kazakhstan from
2015 to 2019, million USD2
№ Name 2015 r. 2016 r. 2017 r. 2018 r. 2019 r.
1 Turnover 60 191,7 48 320,0 60 322,2 74 625,5 76 071,3
2 Exporting 40 835,5 32 806,8 43 240,7 55 064,4 51 659,4
3 Importing 19 356,2 15 513,2 17 081,5 19 561,1 24 411,9
4 Balance 21 479,3 17 293,6 26 159,2 35 503,3 27 247,5
In Table 1, the high level of exports and imports of foreign trade of the Republic of Kazakhstan within the EAEU was fully reflected. This shows that in the Republic of Kazakhstan there is a favorable trend in the integration process of the State.
Large quantities of imports of goods of the Republic of Kazakhstan are products that were produced in Russia and Belarus.
In the territory of the Eurasian Economic Union, the Republic of Kazakhstan, Belarus, and Russia have a national GDP of $2 trillion. At the same time, experts estimate the industry of these three countries at $600 billion, and the value $112 billion in agricultural production 3. This fact shows how important the role of the Republic of Kazakhstan and its special place in the integration process of the Union is. You can see the dynamics of trade turnover of the Republic of Kazakhstan with states that are in the Union, in figure 1.
Trade turnover of the foreign trade of the Republic of Kazakhstan with the EAEU member states between 2018 and 2019.
16000 l4752 4
In all Russia Kyrgyzstan Belarus Armenia
■ 2019 B2018
The figure 1.
Trade turnover of Kazakhstan's foreign trade with EAEU member states between 2018 and 20194
1 Marchenko M.N., Deryabin E.M. European Union Law. Historical and Theoretical Questions: Training Manual. - M.: Prospekt, 2014. - 59 p.
2 Table compiled by the authors of the work on the basis of source: Foreign trade in goods. Eurasian Economic Union statistics. 2019: Statistical compendium / Eurasian Economic Commission. - Moscow: LLC «Sam Polygraphist», 2020. - 714 p.
3 Foreign trade in goods. Eurasian Economic Union statistics. 2019: Statistical compendium / Eurasian Economic Commission. -Moscow: LLC «Sam Polygraphist», 2020. - 714 p.
4 The figure was compiled by the author of the work on the basis of the source: What is Kazakhstan's share of imports and exports in EAEU states. 2019. - https://www.zakon.kz/4995602
Kazakhstan's foreign trade with the Union has grown considerably in recent years. For example, the trade turnover of the Republic of Kazakhstan, in a ratio of 92 per cent, functions exactly with Russia and amounts to $13.6 billion. We can assume that turnover increased by 6% in one year1.
The figure 2 presents to your attention the dynamics of the supply of imported products.
International trade activities are subject to many changes that have a significant impact on the rules and principles of international trade, such as a reduction in the size of foreign trade transactions, an increase in the control of customs control authorities, and the use of non-tariff techniques that control exports.
In the modern world, the integration processes in the Eurasian Economic Union give states a chance to change the methodology to free foreign trade so that they can deal with the problems associated with international trade, which are very numerous.
Imports of foreign trade of the Republic of Kazakhstan with the EAEU member states between2018 and 2019.
12000
10317,9
10000
8000 6000 4000 2000 0
9633,3 9674,8
■
180,6 173,4 458,2437,1 4,2 4,4
In all Russia Kyrgyzstan Belarus Armenia
12019 «2018
The figure 2.
Imports of foreign trade of the Republic of Kazakhstan with the EAEU member states between
2018 and 20192
5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0
Expoit of foreign trade of the Republic of Kazakhstan with the the EAEU member states between 201S and 2019.
4434,5 434iu
3950,7 3830,8
410,5 452,3
<58 61,2 5,3 4,9
In all
Russia
Kyrgyzstan
■ 2019 ■ 2018
Belarus
Armenia
The figure 3.
Export of foreign trade of the Republic of Kazakhstan with the EAEU member states between
2018 and 20193
1 The figure was compiled by the author of the work on the basis of the source: What is Kazakhstan's share of imports and exports in EAEU states. 2019. - https://www.zakon.kz/4995602
2 Ibid.
3 The figure was compiled by the authors of the work on the basis of the same source.
It follows that the Republic of Kazakhstan, like other members of the Eurasian Economic Union, will have a chance to take its place in the processes of world integration. We analyzed the importance and place of this Republic in EAEU and decided to describe its features in detail to give an objective assessment of it. To that end, we must take into account the natural and climatic conditions of that State and other characteristics. What matters most are the internal and external factors of the Republic, such as1:
1. The Republic of Kazakhstan is an autonomous state that actively cooperates with other states, such as Russia, China, and the United States of America.
2. Kazakhstan participates in other economic associations (such as WTO).
3. The Republic of Kazakhstan is the initiator of integration processes in the territory of the former Soviet Union. The condition for this is active activity and a conscious national policy of Kazakhstan.
The results of the research may be summarized as follows.
According to the analysis of the study, the Republic of Kazakhstan is of great importance in the processes of the Eurasian Economic Union as it has unique features of domestic and foreign policy factors. For example, Kazakhstan's cooperation with the States of the Central Asian region, as well as with Russia, Belarus, the United States of America, and other States, is of great importance2. With all member states of the Eurasian Economic Union, Kazakhstan has a trustworthy and trusting relationships that help this country to be a partner in international trade and economic activities. We must also say that Kazakhstan is a member of SCO, in which it actively cooperates with China. It is worth noting that Kazakhstan has experience in relations with Russia on the post-Soviet territory.
In conclusion, we can say that the foreign policy and business activity of the Republic of Kazakhstan are quite active in the integration processes, significantly influencing the formation of the mechanisms of the Union in the modern world. The initiative and activity of Kazakhstan are factors that demonstrate that Kazakhstan has prerequisites for the realization of the socio-economic program and development of the economy within the framework of EAEU. It also resolves issues of customs, tariff and non-tariff regulation, a unified pension system for migrant workers, increasing the size of imports and exports of foreign trade, and increasing the competitiveness of Kazakhstan's products. It is also important that EAEU plans to promote the expansion of exports of the Republic of Kazakhstan and the economic community with the member states.
1 Tenetko A.A. Place and role of the Republic of Kazakhstan in the regulatory mechanism «Eurasian Economic Union» // Governance in Modern Systems. 2015. - N 1. - P. 1-6.
2 Ibid.
