burakovsky parallel 3 1

Ukraine: “Sandwiched” between the European Union and Russia: 

Ukraine: 'Sandwiched' between the European Union and Russia Igor Burakovsky, Lúcio Vinhas de Souza, Rainer Schweickert, Veronica Movchan, Olena Bilan

How to integrate: 

How to integrate Basic ways of Ukraine’s integration into the world economy (as well as any other country): Through flows of goods, services, capital, labour force and technologies (determined by the level of economic development of the country as such) Through institutions (depends upon the policy of the country towards different international political and economic structures)

Ukraine’s Trade: 

Ukraine’s Trade Structure of Ukrainian Exports, 2004

Ukraine’s Trade: 

Ukraine’s Trade Structure of Ukrainian Imports, 2004

Origins of FDI Inflows, 2004: 

Origins of FDI Inflows, 2004

EU- Ukraine relations (institutional framework): 

EU- Ukraine relations (institutional framework) Agreement on Trade in Textile Products (signed in 1993, December 2000) Agreement on setting up a Contact Group on Coal and Steel (signed in 1994); Partnership and Cooperation Agreement (signed in 1994); Agreement on Trade in Certain Steel Products (signed in 1997, August 2005); Agreement for Cooperation between the European Atomic Energy Community and the Cabinet of Ministers of Ukraine in the Field of Controlled Nuclear Fusion (signed in 1999).

EU- Ukraine relations (institutional framework): 

EU- Ukraine relations (institutional framework) In March 2003 Ukraine and the EU signed a bilateral protocol for market access in goods and services in the framework of Ukraine’s WTO accession. Since 1 January 1993 Ukraine has become a beneficiary of the Generalized Scheme of Preferences (GSP). Recently Ukraine was granted Market Economy Status (MES) for trade defense Next stop – FTA ???

Ukraine-Russia relations institutional framework: 

Ukraine-Russia relations institutional framework Ukraine’s trade regime is determined by both CIS-wide arrangements and bilateral agreements. Numerous CIS-wide agree­ments (like the CIS Economic Union, CIS Free Trade Zone, CIS Common Agricultural Market, etc.) have failed so far to be implemented in full. Free trade agreement

Ukraine-Russia relations institutional framework: Special case: 

Ukraine-Russia relations institutional framework: Special case September 2003: Belarus, Kazakhstan, Russia, and Ukraine signed an Agreement on the establishment of a Single Economic Space (SES) and the Concept (Guidelines) of Single Economic Space formation among the four countries. SES is 'an area consisting of the customs territories of the participants, where the mechanisms of economic regulation are intended to ensure the free movement of goods, services, capital, and labour; where a common foreign-trade policy is carried out, and fiscal, monetary, and foreign-exchange policies are coordinated to the extent needed in securing fair competition and macroeconomic stability'.

Slide10: 

Logic and stages of the process of institutional development : 

Logic and stages of the process of institutional development First stage - institution building: establishing necessary institutions as well as regulatory framework. At this stage every country has to take decision how to move along this road in terms of utilizing international experience. The second stage - implementation period: when the established institutions starts functioning (learning by doing process). This period can be lengthy because the institutions cannot be imposed in one step and its establishment is an evolutionary process by itself. The third stage - fine-tuning of the institutions: the institutions itself has its own logic of development.

Behind the weakness of the institutions: 

Behind the weakness of the institutions Very often the problems of transition are attributed to the poor development of institutions. Poor developed institutions means that re relevant functions in the country are not performed or these functions are performed by the 'shadow institutions' or 'informal institutions'. In this case the country can even enjoy more or less rapid and dramatic economic development based upon peculiar combination of official and shadow institutions but in the long-rung such economic development is unsustainable. The more lengthy period of shadow institutions operation we have the more difficult is to switch to the normal official institutions.

Institutions and Integration: 

Institutions and Integration The choice of the European integration option reflects commitment to introduce rules and standards that have already been implemented in the region. Today it is clear that the perspective of EU accession can generate deeper domestic reforms than different regional projects in the CIS region. But both could provide a significant boost to reform by providing incentives for more liberal trade policies and better economic governance. Under certain circumstances even rapprochement with the CIS could be regarded as a movement towards the EU – for instance if universally recognized WTO rules and regulations are introduced within the CIS.