Integration- (lat. integratio - restoration, replenishment) - the process of mutual adaptation and integration into a single whole of organizations, industries, regions or countries, etc.; the unification of economic entities, the deepening of their interaction, the development of ties between them. Economic integration takes place both at the level of national economies of entire countries, and between enterprises, firms, companies, corporations.
Economic integration is manifested both in the expansion and deepening of production and technological ties, the joint use of resources, the pooling of capital, and in the creation of each other favorable conditions for the implementation of economic activities, the removal of mutual barriers.
Integration stages
At the first stage of integration between the countries, preferential trade agreements... In accordance with them, countries provide more favorable treatment to each other than to third countries. Preferential trade agreements can be viewed not as an initial one, but as preparatory stage integration process.
At the second stage of integration, countries move on to creating free trade zones, providing for the complete abolition of customs tariffs in mutual trade while maintaining national customs tariffs in relation to third countries. The free trade area can be coordinated by a small interstate secretariat.
The third stage of integration is associated with education customs union- the agreed abolition of national customs tariffs and the introduction of a common customs tariff, and unified system non-tariff regulation of trade in relation to third countries. The Customs Union provides for duty-free intra-integration trade in goods and services and full freedom of movement within the region.
The fourth stage of integration is creation of a common market... The integrating countries agree on the freedom of movement not only of goods and services, but also of factors of production - capital and work force... Freedom of interstate movement of factors of production requires interstate coordination economic policy... Within the EU, the coordinating bodies are the European Council of Heads of State and Government, the EU Council of Ministers, and the EU Secretariat.
The fifth stage of integration - economic union, which provides, along with the general customs tariff and freedom of movement of goods, services and factors of production, the coordination of macroeconomic policy and the unification of legislation in key areas - foreign exchange, budget, monetary.
On this stage there is a need for bodies empowered to make operational decisions on behalf of the grouping as a whole.
The sixth stage of integration - political union transferring national governments most of its functions in relations with third countries are supranational bodies. This means the creation of an international conference and the loss of sovereignty by individual states.
At the first stage of integration, preferential trade agreements are concluded between the countries. In accordance with them, countries provide more favorable treatment to each other than to third countries. Preferential trade agreements can be viewed not as an initial, but as a preparatory stage of the integration process.
At the second stage of integration, the countries move to the creation of a free trade zone, which provides for the complete abolition of customs tariffs in mutual trade while maintaining national customs tariffs in relation to third countries. The free trade area can be coordinated by a small interstate secretariat.
The third stage of integration is associated with the formation of a customs union - the agreed abolition of national customs tariffs and the introduction of a common customs tariff and a unified system of non-tariff trade regulation in relation to third countries. The Customs Union provides for duty-free intra-integration trade in goods and services and full freedom of movement within the region.
The fourth stage of integration is the creation of a common market. The integrating countries agree on the freedom of movement not only of goods and services, but also of factors of production - capital and labor. Freedom of interstate movement of factors of production requires interstate coordination of economic policy. Within the EU, the coordinating bodies are the European Council of Heads of State and Government, the EU Council of Ministers, and the EU Secretariat.
The fifth stage of integration is an economic union, which provides, along with a common customs tariff and freedom of movement of goods, services and factors of production, the coordination of macroeconomic policy and the unification of legislation in key areas - currency, budget, monetary. At this stage, there is a need for bodies empowered to make operational decisions on behalf of the grouping as a whole. Within the EU, this body is the EU Commission (CES).
The sixth stage of integration is a political union, providing for the transfer by national governments of most of their functions in relations with third countries to supranational bodies. This means the creation of an international conference and the loss of sovereignty for individual states.
The criteria for assessing the integration group from the point of view of compliance with the interests of the international economy as a whole are the following:
® regional trade agreements should cover
all sectors of the economy, without exception; ® the transition period should not exceed 10 years and include a clear timetable for trade liberalization in selected sectors;
most favored nation trade liberalization should precede or accompany the formation of any new integration grouping;
® the general customs tariff imposed within the customs union must not exceed the lowest tariff that existed in the country with the lowest tariff in the relevant industry, or even the lowest tariff under the most favored nation regime; ® the rules for admitting new members to integration associations should be liberal and not hinder their expansion;
® the rules for determining the country of origin of goods must be transparent and not be an instrument of protectionism within the group; ® a quick transition to the most developed forms of integration is necessary, which are preferable to less developed ones, since they provide a more rational distribution and use of production factors;
® after the creation of an integration grouping, anti-dumping rules should no longer be applied in relations between its members, and clear rules for their application should be established in relations with third countries.
The formation of the theory of economic integration, in particular, customs unions, is associated with the name of the Canadian scientist Jacob Weiner. In accordance with Weiner's theory of the customs union, as a result of its creation, two types of effects arise in the economy:
® static effects - economic consequences that appear immediately after the creation of a customs union as its immediate result; ® dynamic effects - economic consequences that manifest themselves at later stages of the functioning of the customs union.
Among the static effects, the most important are the trade creation and trade rejection effects.
Trade creation - the reorientation of local consumers from a less efficient internal source of supply of goods to a more efficient external source (import) -) made possible by the elimination of import duties within the customs union.
Trade diversion is the reorientation of local consumers from purchasing goods from a more efficient non-integration source of supply to a less efficient intra-integration source, which occurred as a result of the elimination of import duties within the customs union.
More on the topic 24.2. Integration stages:
- 6.2. Stages, experience and prospects of international economic integration 6.2.1. Stages of international economic integration
| Parameter name | Meaning |
| Topic of the article: | Integration stages |
| Rubric (thematic category) | Trade |
Types of integration associations
The main types of integration associations appear in the second half of 20 V. Each of them reflects a certain stage in the development of the integration process.
Stage 1. At the first level, countries are taking the first steps towards mutual rapprochement. Countries conclude preferential trade agreements... These are agreements that provide for any favorable conditions for these countries. Such agreements provide for:
Maintaining the national customs tariffs of each country;
Interstate bodies are not created;
The countries are moving into free trade zones, as a result of which there is a complete abolition of customs tariffs in trade (also with third countries), except for agricultural products.
Stage 2. The countries are moving to the creation of a free trade zone, and this is a complete abolition of customs tariffs in mutual trade and their reduction for third countries. The CMEA zone has never dealt with agriculture.
Stage 3.Customs Union (CU)- coordinated abolition of a group of national customs tariffs for countries, a system of non-tariff regulation for third countries is being introduced. The CU provides for duty-free trade and full movement of goods within the region. This alliance requires the creation of interstate bodies that coordinate the trade policies of the countries. These interstate bodies are represented by a meeting of heads of government and administrative bodies (in particular, the public customs committee).
Stage 4. Common Market (OR) - countries agree on the freedom of movement not only of goods and services, but also of factors of production (capital, labor). At this stage, there is a complex system interstate bodies for the coordination of economic policy. In addition to the heads of government, heads of central banks, heads of ministries and a permanent body - secretariat.
Within the EU, the European Council of Heads of State and Government as an interstate body is the EU Council of Ministers and the EU Secretariat.
Stage 5.Economic Union. When, along with all the previous signs, the coordination of macroeconomic policy is carried out, the unification of countries in the economic sphere, and especially in the monetary, budgetary and monetary areas. Coordination is becoming insufficient, bodies are emerging that can independently make operational decisions on behalf of the countries as a whole. Governments consistently relinquish part of their functions and thereby cede part of state sovereignty in favor of supranational bodies. Such supranational bodies can make decisions without coordinating with the governments of the countries. Now such a body exists and is usually called the Commission of the European Union (CES).
Stage 6. Political union(fundamentally possible) - assumes a transfer more functions of governments to supranational bodies. This would actually mean the creation of an international configuration and the loss of the sovereignty of statehood. Not a single integration group has yet reached this level.
It is quite difficult to say exactly at what level of development this integration association is for two reasons:
It is difficult to obtain comparable information;
Far-reaching goals are proclaimed, but real achievements are very modest
According to the WTO in the mid-90s. there were more than 30 integration associations, and in the 80s. (5-6). The classification of basic operating integration associations according to the above parameters allows grouping existing integration associations according to this typology.
Free trade zones: Australian, New Zealand, Baltic, Central American Common Market, African Economic Community, in which 51 states intend to become members, its formation has been going on for 8 years (since 1994). This process is designed for 34 years.
The most developed integration association, a kind of model on which the elements of integration are being worked out, is the EU.
The effect of integration should be:
- Static- the economic consequences are manifested immediately after the creation of the customs union.
- Dynamic- economic consequences at later stages of the functioning of the customs union.
The most important are the results of trading among static effects. This is usually called trade creation effect... As a result of the formation of the CU, a situation may arise when goods traditionally closed on the domestic market will suddenly turn out to be more expensive than the same goods produced abroad. If, before the creation of the CU, local producers were protected by duties, and this was not profitable, now imported goods have become cheaper than local ones. As a result, there was an import flow of goods, which did not exist before. And to counter this, local producers are forced to use resources more efficiently.
Trade creation- reorientation of local consumers in changing the efficiency of the internal source of supply of goods to a more efficient external source (import), resulting from the elimination of customs duties in the CU. The main symptom of a TS is the elimination of barriers in mutual trade. And besides the creation of trade, it causes trade rejection effect.
Trade diversion- reorientation of local consumers with the purchase of goods from a more efficient non-integration source to a less efficient intra-integration source. This is due to the fact that higher customs duties are set for three countries.
Second best theory
Before the formation of the CU, it was believed that freedom of trade leads to an increase in the well-being of all peoples. The theory and practice of the CU has shown that free trade is good only for the countries that are members of this union, and for three countries, the principles of free trade are excluded. The effect of diverting trade from an import source as efficiently as domestic may outweigh the positive effect of trade creation. This situation indicates that the CU as an element of trade policy cannot be interpreted as an unambiguously positive phenomenon in the world economy. After the free trade policy, there is no such alternative policy that would have an unequivocally positive impact.
Theory of the “second best” J. Meew 1952 ᴦ. Apart from freedom of trade, which leads to an increase in the well-being of all peoples, there is no other trade policy option that would also ensure an unconditional increase in well-being. Although integration may not be the best option trade policy, it also has a positive effect.
Integration stages - concept and types. Classification and features of the category "Stages of integration" 2017, 2018.
Politics and economics are two interconnected lines that determine the vital activity of the state. In the modern era of integration, issues of education and political, monetary and monetary unions are becoming especially acute.
"Integration » - definition, more precisely, a concept that is considered in politics, sociology, political science, philosophy. In each of the sciences, it is defined as unity, convergence, fusion of any phenomena, concepts, actions, systems, etc. Traditionally, it is customary to talk about international economic or political integration.
Political integration is a series of measures taken to bring together several political entities (states, parties) for cooperation that is equally beneficial to all parties. In other words, this is a kind of complex education at the inter-party or international level. Such integration requires the creation of formal and informal bodies and institutions to jointly resolve and resolve various issues. Distinctive feature states that have embarked on the path of political integration can be considered the presence of not only common interests, but also values.
If the states agreeing on integration experience not only mutual expectations, but also meet them in rapprochement, this process will be fruitful, promising and long-term. Otherwise, political integration between certain states will exhaust itself.
Although the "integration » - definition, that is, a term that emphasizes the voluntary nature of the unification of states on the most favorable terms for them, it requires careful and thorough preparation. And the work of such a union requires quality control and management. Naturally, all this is not a matter of one day, month or year. Integration stages include whole line measures and solutions ranging from economic level and ending with political.
Integration stages:
- Trade agreements are considered to be the beginning of any integration at the interstate level. Countries interested in rapprochement provide each other with more favorable conditions for the market of services and goods than other states.
- The next stage of rapprochement is a zone that begins to operate between partner states. Customs tariffs are abolished, and a general trading strategy is being developed. All this is controlled and coordinated by a specially created body of representatives of the allied countries.
- The Customs Union is another link in the overall integration chain, its introduction presupposes more high level relationship of partner countries. Considering that the term "integration" is a definition of union relations, at this stage, there is a process of establishing duty-free trade relations, abolishing the national customs tariff of each member state of the Union, creating common system non-tariff trade with other countries. In addition, the customs union is characterized by free movement of services and goods within the integrating states.
- After the formation of the customs union, a common market for the participating countries is created. And this is not only goods, but also capital, which moves freely at the interstate level, as well as the free movement of labor. Thus, the participating countries create a common economic policy and their own governing and coordination bodies. In the EU, these issues are dealt with by the European Council, which includes governments, the EU Council of Ministers and the EU Secretariat.
- An even higher level of integration is the coordination of economic policies of states at the macro level, at the level of the budget, currency, money supply. Domestic laws are being adapted to these new requirements, and the economic policy of each individual participating country is increasingly being built taking into account the interests and needs of other integrating parties. This is reflected in the legislative and administrative bodies of the international level.
- The highest level of integration is considered to be the formation of political unions, or political integration. Thus, the term "integration" is a definition that gives an idea of the gradual, step by step process rapprochement of states on the basis of mutually beneficial interests.
The economic model of each integration entity is the result of a long historical process, during which the ratio of the elements that form the regional economic complex is built, the mechanism of their interaction is strengthened. That is why each integration system is unique, and mechanical borrowing of its experience is ineffective. However, holding comparative analysis existing in the world of integration formations and trade and economic groups speaks about certain general patterns development of integration, its sequential passage through a number of stages, each of which has its own special specific traits, varying degrees of intensity of integration, its depth and scale.
The view of integration as a process that develops from simple to more complex forms made it possible to classify the stages of the integration process. The classical classification of the stages of integration was B. Balassa's scheme.
B. Balassa distinguishes between five main forms of integration (types of integration agreements). Consider them, given modern modifications of this theory, introduced by the specific experience of the functioning of the European Union and other integration groups:
free trade zone;
Customs Union
(customs union);
Common Market
(common market);
economic union (in its most mature form, economic and monetary union, economic and monetary union);
full economic and political integration. Let's consider each of the stages (types of agreements) in more detail. Free trade Area. It is customary to understand it as such a form of integration in which its participants agree on the removal of customs tariffs and quotas in trade with each other. At the same time, in relation to third countries, each member of the free trade zone has the right to pursue its own foreign trade policy. A similar form of integration is being implemented in EFTA, NAFTA, ASEAN.
Customs Union. The main difference from the free trade zone is that the members of the customs union not only eliminate tariffs and quotas in trade with each other, but also pursue a single foreign trade policy in relation to third countries, establishing a single external tariff along the perimeter of the border of the common customs territory. According to Art. XXIV GATT Customs Union involves the replacement of several customs territories with one. At the same time, the customs services at the internal borders are abolished, and their functions are transferred to the relevant services at the external borders of the single customs territory. An example of such a formation, already since 1968, is the European Economic Community (later - the European Union), as well as MERCOSUR. With this form of integration, commodity flows change significantly, there is a reorientation towards imports from the countries participating in the agreement, and there are changes in production and consumption of products.
The customs union is a rather logically complete form. At the same time, being limited solely to the sphere of international trade, it conceals an internal contradiction, the development of which inevitably gives rise to the need for a transition to even more improved forms of trade and economic unions.
Common Market. In addition to the existing advantages within the framework of the customs union, this stage of integration involves the elimination of obstacles to the free movement of all factors of production within the member states. It is assumed that national legislations, standards will converge, as well as the development of the institutional framework for integration, common bodies management of unification processes.
In principle, the free movement of factors of production within a certain grouping of a number of countries should contribute to more rational use total resources, the development of the division of labor, the specialization of production, the optimization of production structures and the full use of the factor of savings from an increase in the scale of production. This is hindered by differences in the economic policies pursued by states that are members of the common market. There is a need for further unification, harmonization and coordination of the economic policies of the countries - members of the integration group. At the same time, common coordinating bodies are being created.
Economic Union. This form of integration presupposes the removal of the contradiction noted above by coordinating the economic policies pursued by the participating countries. Within the EU, a unified agricultural policy is being pursued, an agreed industrial, energy, transport, regional, social, scientific and technical policy.
It should be noted that as soon as the process of coordinating economic policy reaches a certain level, it begins to obey its own logic and demand, especially if the country is characterized by high degree openness of its economy, ever closer coordination, covering all larger circle questions. This process comes to a certain logical conclusion within the framework of a complex and more complex shape- the next stage of integration, economic and monetary union. Monetary Union - the creation of a single regional monetary system, including the creation of a single bank, the introduction of a single currency, the coordination and establishment of a single currency and credit, coordinated macroeconomic policy, etc. In this case, general coordinating institutions are created, or rather, transformed into supranational bodies, to which part of the state sovereignty is transferred to solve the problems of coordinating all spheres of life of an integration education or even integration statehood.
Full economic and political integration. In this case, we are talking about the transformation of a single market space into an integral economic and political entity, which implies not only coordination, but also the implementation of a common unified, in fact, a single economic policy, complete unification of the legislative framework.
At this stage, on the basis of the institution of supranational authorities, a new multinational subject of international economic and political relations is gradually being formed, and there is a movement towards the creation of a single federal or confederative state.
Thus, the transition from lower stages (forms) of integration to higher ones is stepwise process international economic integration. The duration of the stages is determined by a complex of diverse factors of an internal economic, external economic, and political nature.
However, practice has shown that the real process of integration, due to its internal inconsistency, cannot proceed as straightforward and progressively as the considered logical scheme suggests. The experience of regional integration (in the most developed forms focused within the EU) has shown the colossal difficulties in creating a single economic space and varying degrees of interest in the depth of interaction between the parties, which does not fit into the accepted schemes. Variety of models of integration in North America, Latin America, Asia-Pacific, Africa, the Middle East, reflecting a significant differentiation of country, regional and subregional economic systems, mechanisms of reproduction, other key parameters of development, allows you to see and partial modification classical scheme in some cases and its significant transformation in others. History shows that there are no strict patterns or automatism between the phases of regional integration: everything depends on the specific historical conditions in the MEO, in individual countries, on the economic and political interests of these countries.
So, unlike the EU, NAFTA member countries, creating a free trade zone, do not set the task of moving then to a customs union (this is hardly possible given such huge differences in economic potential countries participating in the association), but at the same time, from the very first steps, they introduce certain elements of the common market (liberalization of investment; measures to converge standards, liberalize services, harmonize policies in certain areas, for example, in the field of protection the environment and etc.).
APEC has set the task of forming (by 2020) a free trade zone and free movement investment. According to the Osaka Action Program since 1997, liberalization applies not only to tariff and non-tariff measures in trade in goods, to investment flows, but also to services (telecommunications, energy, tourism); standards and conformity; intellectual property; competition policy; government procurement; dispute resolution; collection of information and analysis: joint implementation of the decisions of the Uruguay Round of the GATT. At the same time, within the framework of APEC, one of the most important key elements is political dialogue.
Latin American countries began to create prerequisites for a new phase of cooperation with Asian countries APEC: It combines the coordination of interregional relations with bilateral cooperation channels. Chile is an example. This country, being an associate member of MERCOSUR, as well as having signed bilateral agreements with a number of Latin American countries on free trade zones, is also a member of APEC. V last years Chile applies a new strategy that combines regional and interregional levels of integration: it creates a kind of bridge between the Pacific countries of Asia and the Atlantic states Latin America- Brazil and Argentina. Through a special liberalization policy, Chile is creating an “gateway” for Asian products to South American markets and an “exit gate” for Brazilian and Argentinean products to markets across the Pacific.
Both in the EU and in the CIS, a model of "multi-speed" integration is being implemented, which provides for the use by different member states within one integration group different forms integration. In the EU, the concept of "integration of concentric circles" (around the core - the zone of the euro-currency union) is practically being implemented. In the CIS, a multilevel integration model has become widespread: the Union of Russia and Belarus, which forms a union state; Eurasian Economic Community (EprAsEC); GUUAM; Central Asian Economic Community (CA-ES). V recent times a new initiative of four states: Russia, Belarus, Ukraine and Kazakhstan on the creation of a single economic space was developed.
Finally, non-traditional integration schemes are also developing in terms of various institutional integration mechanisms. Among them, first of all, the "western" (based on a rigid institutional structure and the obligation to implement decisions within a given time frame by all participating countries) and "Asian", which provides freedom of maneuver for each partner country, stand out.