Transformations in socio-economic development of the Gulf group states

The article is devoted to the national economy transformations of the GCC States (Cooperation Council for the Arab States of the Gulf countries). This paper analyzes the dynamics of socio-economic development of the Gulf Group countries for the last 10 years, compares and systematizes the traditional and unique statistical data in order to prove the hypothesis that the positive dynamics was not only due to the high hydrocarbon prices on the global market but also to the successful structural transformation. The growth of the regional economy in the conditions of an almost threefold drop in world oil prices over the past three years is shown. We use systemic approach, comparative and statistical analysis. As the analysis of economic situation and development in the GCC countries at the current stage shows, all of them need to change the structure of the national economy and diversify it in order to reduce the dependence from mining industries, world prices fluctuations. This paper proposes a number of practical considerations and appropriate measures for the formation of more rational structure of the national economies, including the diversification of the sources of budget revenues through expanding industrialization; accelerating development of solid minerals and the creation of new industries using them. As Gulf States belong to the group of emerging countries and the structure of their national economies is similar with the Russian economy, the factors of the positive changes of the national economies will be useful for Russian and foreign researchers

Regional economic integration in the Eurasian Economic Union: theory, lessons from the past and new opportunities

The article shows that the processes of world development initiate changes in various areas of international cooperation both at the global and regional levels. This is also happening within the framework of regional economic integration cooperation. The author proves that the modern transformation of integration processes has an impact on the development of the Eurasian Economic Union (EAEU). This process requires a comprehensive theoretical analysis and systematization. The purpose of the article is to analyze and evaluate integration processes in the EAEU. The scientific novelty of the article is the systematization of new phenomena and characteristics in regional economic integration in the world in the 21st century. The author also tries to formulate new tasks for the EAEU in building a progressive integration process. Another point of view, which the author substantiates in the article, is that the foundation for the development of integration in the EAEU should be taking into account ongoing global changes, previous experience of economic integration within the framework of the Council for Mutual Economic Assistance (Comecon) and the development of industrial cooperation between the EAEU countries and non-regional partners both in industry, and in agriculture, that means, in the real sectors of the economy. The author concludes that it is production cooperation in the real sectors of the economy in the EAEU that will ensure the necessary stability of both national economies and the progressive development of the integration process in the current conditions of the world economic process increased turbulence and the global system transformation. And since the EAEU faces such large-scale and vital tasks, then, according to the author, a reassessment and some redirection of integration efforts are required. It is on this basis that an adequate formation of new principles of financial cooperation in the EAEU is possible

Comparative Analysis of Foreign Trade Development in the Digital Segment by World Regions

Foreign trade, affected by digitalisation, acquired new features, while its development led to a new redistribution of world regions. The present article aims to reveal specific features and emerging trends in the digital segment of foreign trade and identify leading regions and success factors. In this case, the digital segment includes ICT-equipment and ICT-services trade. UNCTAD statistics for 2000–2019 were examined using the methodology of foreign trade structural and comparative analysis. We hypothesise that there are different development stages in the digital segment of foreign trade characterised by changes of leading regions. In particular, three waves in the development of the digital segment of foreign trade, corresponding to different characteristics, were identified. In the third wave, the growth rate of digital turnover remained the same but its share in the total global turnover decreased. It was revealed that the share of the digital segment is higher than the share of merchandise trade in the countries of one region. Asia-Pacific Region replaced the USA (that moved from the 1st place in the first wave to the 5th position) as the leading region. China, specialising in the export of ICT-equipment, came out on top with the 27.1 % share of digital exports in the country’s total exports, increasing by 15.9 times in 20 years. Russia, whose specialisation is the export of ICT-services, is closer to the end of the top 50 ranking of countries in this segment; its negative foreign trade balance was also revealed. The obtained findings can be useful for specialists developing the foreign digital trade strategy of Russia. In order to increase the potential of national economies, including Russia, in the digital segment of foreign trade, further research should focus on ways to prevent their lagging behind the leaders. © 2022 Institute of Economics, Ural Branch of the Russian Academy of Sciences. All rights reserved

Integration and the Diplomatic Crisis: Current Realities of the GCC

The article analyzes the integration process in the Gulf Cooperation Council group countries (GCC), which was founded in 1981. Regional economic integration in the GCC has passed through the several traditional stages: the Free trade zone, the Customs Union and the Common market. Certain exceptions remain in the GCC integration, but the countries aim to create a full economic Union by 2025. Currently, the GCC is one of the most advanced and successful integration associations in developing countries. However, the GCC is the only truly functioning integration bloc in the MENA region. The author's analysis confirms that the share of intraregional trade is growing in the GCC, but this share is less high than in other integration blocs. The author emphasizes that the GCC countries have significant success in the world market of goods and capital. The GCC trade turnover is growing steadily, although it depends on fluctuations in world oil prices. The GCC region attracts a lot of foreign investment and technology. This allows them to continue to diversify their national economies. The level and quality of life in the GCC is improving. These and other achievements are largely the result of regional economic integration and cooperation between countries in various areas on the world and regional markets. At the same time, the GCC is one of the most strategically important regions in the world economy and politics. Economic and political processes are influenced by many factors, both internal and external. Therefore, there are many contradictions in the GCC, and sometimes crisis situations are formed. One of them is the current "diplomatic crisis". It began in 2017 and has so far created numerous problems in the region and in the Arab world as a whole. It also has a negative impact on the development and deepening of integration processes. The author analyzed statistical data for 2009-2018 and justified the conclusion that the "diplomatic crisis" damages intraregional trade, reduces the dynamics of macroeconomic indicators, and worsens the position of the GCC countries in the world market of goods and capital. It also creates difficulties for citizens of GCC countries and companies that operate in the region. Now GCC countries should develop a mechanism to de-escalate the crisis, as this is in the economic and political interests of all participants and the Middle East as a whole. The relevance of the research is due to the need to analyze regional economic integration processes in the subregion in the context of growing global instability. The research makes a significant contribution to understanding the nature and features of integration processes in the Middle East

Russia’s Foreign Trade with the GCC Countries: Dynamics, Characteristics and Opportunities

This article examines the foreign trade relations between the Russian Federation and the states of the Cooperation Council of the Arab States of the Persian Gulf (GCC) in the 21st century. It considers the development of bilateral trade and economic cooperation with Middle Eastern states, particularly the Arabian monarchies, as an essential direction for enhancing Russia's integration into the global economic system in the context of increasing anti-Russian sanctions. The study's relevance lies in the Russian Federation's need to intensify foreign trade and investment cooperation with friendly states under the current circumstances. The research holds theoretical and practical significance for understanding the characteristics, challenges, and future development of bilateral trade relations with Gulf states.The article aims to analyze the current state of mutual trade between the Russian Federation and GCC countries from 2000 to 2021 and identify the main factors influencing the dynamics and effectiveness of this trade. It establishes that trade and economic cooperation between both sides are founded on a stable objective basis, characterized by similarities and proximity in economic potential levels between the Russian Federation and the GCC countries as a collective business entity, considering individual country characteristics. The economic foundations and mutual benefits remain a priority for further cooperation. Trade volumes, both in goods and services, have shown steady growth, particularly in the past 5-6 years, although there are significant differentiations among countries. The United Arab Emirates (UAE) remains Russia's primary trading partner within the GCC. However, trade flows between Russia and the UAE, as well as other Gulf states, are imbalanced, with Russian exports to the Arabian monarchies significantly exceeding imports from the region. The commodity structure of bilateral trade also requires improvement, offering opportunities for both parties to enhance efficiency. The author suggests that future efforts should focus on developing trade in areas that contribute to economic diversification, the establishment of foundations for "green energy" and other promising sectors, and continuous enhancement of the regulatory framework for cooperation.The analysis draws on data from the UNCTAD international database, ensuring the formulation of reliable and well-founded conclusions. The research utilizes various methods, including comparative analysis, statistical analysis, factor analysis, as well as historical, institutional, and causal approaches

RUSSIAN-EUROPEAN INVESTMENTS: DYNAMICS AND STRUCTURE IN TERMS OF SANCTIONS

The paper characterizes the main trends of direct investment from the EU to Russia in connection with the introduction of the EU anti-Russian sanctions. The author analyzes the dynamics of foreign direct investment from European Union countries in the Russian economy, their industry structure. On the basis of the conducted analysis the author comes to the conclusion that in 2014-2016 the existing problems in the investment relations between the European Union and the Russian Federation to a significant extent, are not the direct result of the sanctions. The sanctions only exacerbated tensions that had already formed at the turn of the century

Transformations in socio-economic development of the Gulf group states

The article is devoted to the national economy transformations of the GCC States (Cooperation Council for the Arab States of the Gulf countries). This paper analyzes the dynamics of socio-economic development of the Gulf Group countries for the last 10 years, compares and systematizes the traditional and unique statistical data in order to prove the hypothesis that the positive dynamics was not only due to the high hydrocarbon prices on the global market but also to the successful structural transformation. The growth of the regional economy in the conditions of an almost threefold drop in world oil prices over the past three years is shown. We use systemic approach, comparative and statistical analysis. As the analysis of economic situation and development in the GCC countries at the current stage shows, all of them need to change the structure of the national economy and diversify it in order to reduce the dependence from mining industries, world prices fluctuations. This paper proposes a number of practical considerations and appropriate measures for the formation of more rational structure of the national economies, including the diversification of the sources of budget revenues through expanding industrialization; accelerating development of solid minerals and the creation of new industries using them. As Gulf States belong to the group of emerging countries and the structure of their national economies is similar with the Russian economy, the factors of the positive changes of the national economies will be useful for Russian and foreign researchers

The impact of the customs union and the EAEU on the small and medium business in Kazakhstan

The Customs Union (CU) and the Eurasian Economic Union (EAEU) are an effective mechanism for protecting the domestic market, because the member states of these organizations follow a coordinated foreign trade policy. Conditions are being created for the development of the non-primary sector in these countries so as to modernize, diversify and enhance the competitiveness of their economies. For the countries of the EAEU, whose members are Russia, Belarus, Kazakhstan, Kyrgyzstan and Armenia, the development of small and medium-sized enterprises (SMEs) is highly relevant, especially considering the recession and Western economic sanctions against Russia, the largest EAEU economy. At the same time, their development encounters significant difficulties. This article examines the current situation and development trends in Kazakhstan’s small and medium business since the establishment of the Customs Union of Russia, Belarus and Kazakhstan in 2010 and the Eurasian Economic Union on 1 January, 2015. It shows the areas of government support for SMEs and argues the need for the development of a common strategy to regulate small and medium business in the EAEU space. In the functioning of the Kazakhstan economy as part of the Customs Union and the EAEU, the authors have identified problems caused by inadequate interaction between business and government. © 2017, CA and CC Press AB. All rights reserved

The impact of the global economic crisis on asian technology markets (India and China)

Only 50 years ago, the Asian countries were among the poorest in the world. Since then, there has been a fantastic breakthrough: the region’s total GDP has increased 10-fold, and Western investors are investing hundreds of millions of dollars in its previously high-risk markets. Today’s favorable state of affairs is a result of the long way traveled by the region before it became an attractive and promising investment destination. At the same time, 2015 saw a decline in economic growth in many emerging market economies. Many of them, including Russia, experienced an external shock caused by a decline in exports, primarily due to an economic slowdown in China. In order to recover from the crisis, emerging economies should launch large-scale structural reforms, but the only major economy in Asia where such reforms are being implemented, at least to some extent, is India. China and India are two emerging economies, the second and ninth largest economies in the world, respectively. The latest forecasts suggest that inconspicuous India, largely oriented in recent decades toward the domestic market, will shortly surpass China and, according to the World Bank, by 2017 will be growing much faster than the latter. In the face of a global economic crisis, China’s desire to become an innovation leader by 2020 is an important factor of global development. Goldman Sachs and the World Bank predict that China’s GDP will exceed U.S. GDP within 20 years, roughly by 2030. The IMF forecast is even bolder: China’s GDP will exceed U.S. GDP in 2016. This article is an attempt to analyze the economic potential and development prospects of India and China, the two largest emerging economies of the world, during the global economic crisis. Today there are both great economic opportunities for China and India and serious threats facing them. In the coming decades, China and India will be among the world’s leading economies in terms of GDP, but not always in terms of growth rates. China’s development will slow down, including due to population aging and a labor shortage. India will have more resources for maintaining high development rates, but it too is expected to fall behind some other rapidly developing countries. © 2016 CA and CC Press AB

The impact of the customs union and the EAEU on the small and medium business in Kazakhstan

The Customs Union (CU) and the Eurasian Economic Union (EAEU) are an effective mechanism for protecting the domestic market, because the member states of these organizations follow a coordinated foreign trade policy. Conditions are being created for the development of the non-primary sector in these countries so as to modernize, diversify and enhance the competitiveness of their economies. For the countries of the EAEU, whose members are Russia, Belarus, Kazakhstan, Kyrgyzstan and Armenia, the development of small and medium-sized enterprises (SMEs) is highly relevant, especially considering the recession and Western economic sanctions against Russia, the largest EAEU economy. At the same time, their development encounters significant difficulties. This article examines the current situation and development trends in Kazakhstan’s small and medium business since the establishment of the Customs Union of Russia, Belarus and Kazakhstan in 2010 and the Eurasian Economic Union on 1 January, 2015. It shows the areas of government support for SMEs and argues the need for the development of a common strategy to regulate small and medium business in the EAEU space. In the functioning of the Kazakhstan economy as part of the Customs Union and the EAEU, the authors have identified problems caused by inadequate interaction between business and government. © 2017, CA and CC Press AB. All rights reserved