History of the world economy - Polyak GB

31.3. Integration processes in developing countries

The development of integration processes is a relatively new phenomenon in the mutual economic cooperation of developing countries. The emergence of multilateral economic associations of developing countries is mainly in the late 50's - early 60's. According to UNCTAD (United Nations Conference on Trade and Development ), at the beginning of the 1980s, the intergovernmental economic ties of the newly free countries were already implemented within the framework of 44 regional trade and economic groupings, 30 commodity associations, two currency unions, eight payment clearing and five credit Agreements. The share of integration groups in the total commodity turnover of developing countries increased from 7% in 1960 to 15% by the mid-1980s.

Integration processes in developing countries are carried out primarily on a regional basis: in Latin America, Asia, Africa, the Middle East and the Middle East.

Experience of integration development in certain regions

Economic integration in Latin America (19 South American republics and Mexico) develops in various forms. In 1960, the Latin American Free Trade Association (LAST) was created, which was transformed in 1983 into the Latin American Integration Association (LAI). Members of the Association are divided into three categories: the most developed countries (Argentina, Brazil, Mexico), countries of medium development (Chile, Colombia, Peru, Uruguay, Venezuela) and the least developed countries (Bolivia, Ecuador, Paraguay). The Association focused on industrial cooperation in specific areas and joint programs for the development of the economy and exports with further liberalization of intra-zonal trade. Intra-regional exports in the mid-80s accounted for 16 % of the total exports of Latin America.

Cooperation was also developed within other organizations: the Latin American Economic System (SELA), the Subregional Andean Group, the Amazon Pact (1978), Argentina-Brazil Integration (1986), and others.

In 1991, the Presidents of Argentina, Brazil, Uruguay and Paraguay signed an agreement on the establishment of a common market for the countries of southern America (MERCOSUR) comprising four states with a total population of 200 million people, a territory of 11 million km2 (almost 2/3 of South America) and GDP 460 billion dollars (1992).

Participants in MERCOSUR assumed over time to connect to this organization other South American countries, turn it into the main association of South America.

Integration processes developed in the Caribbean, where since 1973 there was a Caribbean Community (CARICOM), which united 14 English-speaking states. Within the Community there was also the Common Market.

President George W. Bush on June 27, 1990, came up with the idea of ​​a "new economic partnership" in the Western Hemisphere. His initiative met positive responses from most Latin American governments. In 1992, the North American Free Trade Area (NAFTA) was created with the participation of Mexico, the United States, Canada.

Integration processes in Africa have been going on since the early 1960s. At the first stage, there were organizations inherent in African natural conditions, for example, seven organizations of the so-called "river profile": OMVG (Organization for the Development of the Gambia River Basin), OMVS (Organization for the Development of the Senegal River), organization for the exploitation and development of the Katera River basin and Etc. But they, as a rule, proved to be ineffective due to the complete absence of production links. At the end of the 1980s, structures were established to concentrate the processes and turn them into integration ones: the African Forest Industry Organization, the International Union of Cocoa Producing Countries, the Rice Growing Association in West Africa, and others.

In view of priority needs, the Treaty on the Phased Establishment of the African Economic Community (AFES), which was organized in 1994 and which lasts 34 years, is increasingly being given attention. The main elements of the AFES are already existing subregional groupings, in particular ECOWAS (Economic Community of West African States, created by 16 countries in 1975), COMESA (Common Market for Eastern and Southern Africa, 1993), SADC (Southern African Development Community, 1992, 12 States), UDEAC (Customs and Economic Union of Central Africa, 1967, six countries). In the first 20 years, it is planned to give priority to these organizations, to direct efforts to the coordination of their activities.

Integration processes in Africa are not easy, encountering obstacles of an objective and subjective nature. In all likelihood, the practical effect of AfPP will be in the distant future. However, the very process of the formation of the Community will give impetus to the economic interaction of the African countries.

Currently, there are three areas of cooperation in the Arab world:

1) Maghreb (Algeria, Libya, Mauritania, Morocco and Tunisia);

2) the Persian Gulf area (the Emirates and Saudi Arabia);

3) The Council of Arab Cooperation (CAC), established in 1989: Egypt, Iraq, Jordan, Yemen.

A number of regional integration agreements and organizations operate in the countries of the Arab region (on a bilateral and multilateral basis). A common, universal organization for all countries is the League of Arab Countries . Eight states are members of the Arab Monetary Fund (AVF), the accounting unit of which is the Arab dinar. The AWF was created to expand trade between oil producers and other Arab countries, and since this organization includes the African states, it has a certain impact on the integration processes on the continent.

Successful implementation of integration programs in the region will be largely determined by general political problems, such as the resolution of the Palestinian question, the settlement of territorial and other disputes between the countries of the region themselves, including the problem of leadership in the Arab world.

In Southeast Asia, new forms of the international division of labor between countries of different levels of development are being created.

The most successful integration grouping is ASEAN (Brunei, Indonesia, Malaysia, Philippines, Thailand), which for twenty years of its existence has made significant progress towards the creation of a unified market. The ASEAN countries are gradually shifting from the primary export of raw materials to the export of manufactured products, including to Japan and the United States. The basis for rapid development is the increase in direct private investment, including foreign investment.

However, despite the rapid growth in production of most of the participating countries, their mutual ties through formal inter-state integration are not yet sufficiently developed, they fail to reduce customs duties on intraregional trade goods due to the resistance of Indonesia, which fears that this will negatively affect the development of its Industry. Progress towards regional unity is still slow.

Despite the existing difficulties in the organization and operation of integration unions and associations, the future lies behind them: they contribute not only to the elimination of economic backwardness, military conflicts, but also to counterbalance the excessive foreign influence of the developed countries in the regions.

The most general result of economic growth in developing countries is characterized by the fact that in the period 1960-1990. The volume of production as a whole has increased significantly. As a result, the age-old tendency to widen the development gap between the former metropolitan countries and the developing countries as a whole began to slow down, which indicates the beginning of the modernization of the Third World countries.

Questions for repetition

1. Explain the specifics of the Third World countries.

2. On which groups can developing countries be divided according to their level of socio-economic development?

3. Describe the situation of developing countries in the world economy.

4. On the example of one chosen country, show the development of the economy: a) the new industrial countries, b) the countries-members of OPEC.

5. Tell us about the economic development of any (at your choice) country, related to the medium developed.