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Ulyakina Natalia Aleksandrovna1, Grishakina Ekaterina Georgievna2
1Russian-British Institute of Management
2Russian Research Institute of Economics, Politics and Law in Science and Technology

The article deals with the main problems of the Russian economy, causing the hard way its integration into the global economy. Assesses the integration impact on the economy Russian regions development.

Keywords: Customs Union, economic space, Integration, regions development, Russian economy

Category: Economics

Article reference:
Regional development perspectives referring to the Russian Federation integration into the world economy // Humanities scientific researches. 2015. № 2 [Electronic journal]. URL: http://human.snauka.ru/en/2015/02/9276

View this article in Russian

Russia is a member of a number of integration blocks which are actively operating on the post-Soviet territory. The Russian Economy internationalization into the world market has been taking place for the last 20 years. We all do understand the necessity of such changes as Russia cannot be separated from various world economy processes; our businesses need both foreign investments and world markets memberships to have an opportunity to offer our goods and services; moreover, we are in need of additional opportunities to introduce different production forms which will be able to provide our citizens with an increasing welfare level.

Integration processes have gained in their value during the world financial crisis. July 1st 2011 witnessed abolition of supervision regarding goods movement at the internal borders of Russia, Belarus and Kazakhstan, which completed the formation of a full-grown unified customs territory to successfully implement even very ambitious business projects. Now we proceed further – to Unified Economic space. We are in the process of creating a vast market with more than 165 millions of consumers, unified legislature, as well as free capital, services and labor force movement [1].

Customs Union and Unified Economic space formation will lead to creating Eurasian economic union in the nearest future.

Deep integration processes in the world arena are characteristic of contemporary international economic relations. Regional integration is becoming an exceptionally important factor in the course of social and economic development. Regional integration process is responsible for causing various contradictions in the spheres of politics, social life and economics. That is why, the investigation into the given phenomena is getting more and more vital so that we are able to discover the necessary causation of possible patterns and their development, as well as to define their impact on member countries’ social and economic progress [2, c. 79].

The Latin word integratio means “restoring”, “compensation” (Latin “integrum” meaning “whole”), so “integration” means fusion of separate system parts and functions within the whole as well as a process leading to such fusion [3, c. 120].

The notion “integration” implies some integrity, wholeness, structure, perfection. We imply this very meaning while dealing with natural sciences., Theoreticians handling the questions in the sphere of public relations imply a different meaning, namely social communities establishments [4, c. 34].

Integration interaction is based on profound development of productive forces and is closely connected with social and economic development as it is. Economic factors are either basic ones or at least predominant in the course of international relations. The majority of scientific researchers consider integration as a natural tendency of a modern-day level of international relations development regarding certain regional conditions.

As a rule, it is entrepreneurs and the state itself that fulfill the function of integration dynamics. In the regional integration course the state loses certain functions of an institution, which calls for supranational system creation. That is why trade integration is impossible without production and financial integration, as well as without supranational regulatory system creation, etc.

The integration process is accompanied by objective (independent) and subjective (individual) obstacles and contradictions. The objective ones include geographical position, dissimilar levels of partner countries’ social and economic development, dissimilar economic and resource potential, international factors, etc. The subjective ones include political contradictions, lack of agreement in the field of economic and international interests, political and economic instability, geopolitical and geo-economic uncertainty, etc.

An evolutionary approach to the regional integration process is characterized by an object development stages which have their own unique social, economic and political features as well as structure formatting factors.

So, the integration processes are being developed both in internal and external environment.

At the modern-day level of development the Russian Federation cannot be referred to powerful economically developed nations as its share in the world GDP amounts only to 2-3 %.

The Russian Federation role and place in the modern-day society mostly depends on its geopolitical position, namely its power and strength as well as correlation of forces in the world states system. Specialists dwell upon the geopolitical position of the Russian Federation taking into consideration a number of geographical, political, military, economic and other factors.

Weak development of transport infrastructure on the territories of Siberia and Far East seems to be acute problem. Exploitation opportunities of the given area are dramatically few, which makes the national access to the Baltic and Black Seas ports restricted. The situation at the closed Caspian Sea has become even more difficult to handle. Russia has lost about a half of sea ports, the national losses of nonfreezing ports having proved the most significant.

Russia’s own modern-day economic and geographical reality implies that two-thirds of the national territory belong to the Far North regions as well as to the zones characterized by approximately the same severe climate conditions. That is why only about 35 % of all agriculturally cultivated land have enough solar heat to provide for cultivating grain crops. Additional energy resources seem indispensable for welfare of the Russian plains in the northern regions. Here lays the reason for lack of food supply, lack of some non-ferrous and rare-earth metals, as well as lack of numerous industrial crops and a number of goods for both manufacturing and individual consumption within Russia. Much of manufacturing and scientific cooperation that used to rather successfully operate in the course of the Soviet economic system has been dramatically ruined [5].

The abovementioned facts prove that the main preconditions for solving the problems of the Russian integration into the world economy can include: Russia’s path towards a market-type economy, which has not been indispensible for all modern-day economically developed countries; rebuilding previously broken relations; economic integration on the post-Soviet territory (first, partly in the terms of location); entering the world economy as a unified union [6, c. 36].

The Russian economic system, however, contains a number of branches that could become natural leaders in the economic aspect. Such branches are to become the basis of the Russian economy and are embodied in scientifically intensive spheres, high technologies spheres (including military complex) and others.

Transport industry, despite being far from ideally developed, occupies a special position. Transport industry in such a large country as Russia influences the major industries and agriculture, competitiveness and labor force mobility in these spheres, nation-wide market formation. Consequently, the problem of transport industry adaptation to the integration process new conditions implies working out a full-grown transport policy which will include, in its turn, transcontinental projects implementation [7, c. 5].

Statistics and other data collection and analysis regarding these or those goods/services at various Russian markets, as well as the situation at world commodity markets in partner-countries, embody one of the key questions in the sphere of integration into the world economy. Such data are to be fully available not only for the government, but also for enterprises and the public in general. Only under such circumstances can the government be ready to parry possible attacks and take right decisions; only in such a way can enterprises better understand their defending strategy at world markets. Entering the world economy is far from being an easy thing to do. Industrialized countries are sure not to welcome any strong competitor. Russia will have to actively fight to get its own place at the international market. We are to take into account both covert and overt attempts of leading world powers to get their claws into Russia as it is. The problem of economic safety seems to be getting more and vital in the course of integration process into the world economy. To provide the necessary economic safety we are to minimize all the possible damage which can be caused to Russia’s economy by the world economy market as well as by international competition and ineffectiveness of the Russian economic activity at world markets.

To make integration processes more dynamic Russia is to be ready to spend as many funds as it can only be necessary; we are to take into consideration not only the principle of current economic profit but also the principle of additional investments into any promising project. Reaching desirable strategic goals is impossible without inevitable risks and intensive competitiveness [8].

The given modern-day circumstances push Russia to a higher level of its economic development. Scientific community has been discussing this problem for years. There have been worked out and introduced a number of institutional modernization concepts, as well as concepts of national projects effectiveness and tools of interactive modernization formation. The stipulated global task has also been reflected in a number of program documents of the national government.

Russian integration into the global economy will lead to both positive and negative consequences for the economy of regions and individual cities.

The benefits of integration into world trade are unevenly distributed within regions. The effect of WTO accession for the region depend on the costs of companies and their performance, size, transport and trade costs. WTO accession can create additional threats to the regions with poorly diversified economies.

Russian participation in WTO can affect the economy of single-industry cities particularly damaging. If forming enterprise is not competitive, the demand for its products will be reduced and that fact will lead to an increase in unemployment in the city.

Single-industry city challenges will be sustainable and temporary measures will not help after joining WTO. During the economic crisis support measures mainly solve tactical problems: more than 37% of federal spending in the single-industry cities were in subsidies for balancing budgets and support local businesses and only 7% – for small and medium businesses [9].

No need to maintain the industry or business, it’s necessary to support people: to create opportunities for business and get a new profession, develop infrastructure, set up industrial parks.

Integration and modernization both amount to the most important part of economy organization process and economy subjects interaction, which makes them key priorities while implementing strategic planning in the course of general development of the society, the government and the corresponding national structures.

So, under discussion are both quality improvement of government regulation and supporting innovative lines of the domestic industry development. The given problems can be successfully solved due to a proper long-term government policy which will include steps to increase the government role while working out social and economic issues, forming and developing mixed forms of property and economic organization.

Certain criteria are to be chosen to intensify a national approach to the activity of manufacturing economic sector, which defines more complete integration of both individual/independent and government economy organization. Securing social and economic interests of factory workers goes hand in hand with forming an effective economy organization system, which can hardly be done without taking into consideration all peculiarities of this or that particular enterprise.

It is important to conclude that integration processes formation within a region is nothing but an objective and logical phenomenon which occurs against the background of active economy subjects and then gradually reaches the stage when government support in the form of institutional and politically legal interaction becomes necessary. Integration process is an objective and logical phenomenon as it is actively supported and agreed upon by the state government.

So, to stabilize regional development, we underline the necessity not only to work out but also to implement the activities package within all spheres of human life in order to provide a regional system interaction on the basis of regional interests as they are. The suggested combination will both accelerate the integration process into the world economy space and reduce the its total cost in the long run.

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  9. Лютова М. Вступление России в ВТО вызовет очередной кризис в моногородах / М. Лютова, А. Темкин // Ведомости, 28 апреля 2012 г. URL:http://www.vedomosti.ru/politics/news/1695561/novaya_ugroza_monogorodam(дата обращения 13.01.15)

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