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╚Ёшэр ═шъюырхтэр ▐фшэр


Yudina, Irina
States and Regions Role Transformation in the Era of Globalization [*]


Transformation, happened in the world economic system at the end of the 20th century, raised a number of new problems related to geopolitical and geo-economic reality of the modern world. First, the world has become more dynamic, heterogeneous and offensive. The West is trying to impose its liberal values to other cultures, whereas non-western societies, having acquired independence, are looking forward to get rid of western economic military and cultural domination. According to professor S. Huntington the clash between civilisations will occur in all directions, including economic spheres such as trade and investment.1 Main superpowers will expand their spheres of influence by establishing economic control over territory and markets. The problem of geo-economic competition between newly-establishing regions Ц superpowers is becoming a focus of great debate.

One can observe a formation of a new system of economic activity, which provides the grounds for establishing some socially- economic areas. These areas appear on the base of the structure-building algorithms of economic practice formation and fundamental comнpetitive advantages, carried out in the system of world labour division and, as a result, posнsessing their own political and economic priority systems. The configuration of Уnew regionalismФ is ever more shown  on the world policy Ц North-Atlantic, Pacific, Euro-Asian and Southern geo-economic areals are establishing themselves as integrated socially-ecoнnomic groups with remarkable degree of goals and interests unity of the states-participants.

It can be presumed that in the 21st century the world will consist only of regional ecoнnomic blocs. State-region is marked by broken links between politics and economy and reнspectively between the rules of law and wealth. On the one hand, we can observe the number of regions the unity of which is achieved by mutual prosperity. They began to play more reнmarkable and independent role in the world economy. On the other hand, the heritage of the state still exists, despite the considerable loss of its functions. The state remains to be a certain territory structure, responsible for the well-being of its population. On the edge of the 20ннЦ21st centuries it faces a very difficult task: to preserve its unity as well as the existence of its population and territory in the era of rapidly increasing independence.

The reality of modern globalizing world reflects in the fact that power of the state-naнtion is being undermined both on the transnational level by the forces from above and by the forces from below Ц tendencies for regionalism and statesТ division. States remain sovereign politically but their economic power may change as a result of globalisation influences.

The end of the 20th century is also marked by debating the problem of links between economy, space and the increasing interest for the research of their interconnections. No doubt, that geo-economics is in fashion now, but any fashion reflects the most characteristic features of its epoch. From this point of view, the 20th century is characterised by the three factors. First, we witness the growth of countriesТ interdependence in different spheres (trade, investment, flow of capital, Уknow-howФ exchange), that results in more extensive growth of interdependence.

Secondly, the most important branches of some countriesТ economies (agriculture, inнdustry, and services) are targeted rather at international than at the national market. Third, the majority of countries connect their future and survival with their ability to participate in interнnational technological and economic competition. At the same time, it should be stressed that from the geo-economic point of view the global economic space is characterised by substanнtial heterogeneity and division. The majority of countries are integrating into one economic system presuming, however, certain differences in the level of their development. Nevertheнless, it only intensifies flows of goods, capital and people.

For example, capital is extremely mobile by nature. It may bring profit in one place and pay taxes in another one. Capital moves to the place with better conditions created for it. Sometimes it evaluates the situation in the market, more often it uses certain strategy, but alнmost always it takes into consideration economic and partly political purposes. The rules of the global market behaviour are changing. It is not the capital that is looking for a stateТs proнtection, but it is the state (region) that makes advances to the big capital. Rich states (regions) in such a world will form the archipelago standing in the ocean of poverty. There appear competitive interests of economic, social and political actors no longer representing an inteнgrated Уnational interestsФ.2 Multinational enterprises (УmultisФ headquarters), cities-states or rapidly developing regions (growth УtrianglesФ in South-Eastern Asia on the border with neighbouring countries) act as centres of attraction or centralities.

Uncontrolled regionalism weakens the effectiveness of stateТs supervision and may lead to the loss of the state power. We all know historic examples of great nationsТ golden times and collapse. Countries unable to adjust themselves to the interior and exterior chalнlenges were doomed to die and became victims of other rapidly developing nations.3

It is not only that Russia has lowered its status to the level of regional power on the scale of CIS, but also it is also loosing its influence on the neighbouring countries and is conнtent with secondary roles. With its economic and military powers being limited, the political importance of our country in the bordering newly-formed geo-economic territories of Asia Ц Central, Southern, South-Eastern and North-Eastern Ц has decreased substantially, while the role of China, its eastern neighbour has recently increased to the scale of regional power with the prospects of becoming a super state.

Pessimistic forecasts concerning the future role of Russia in the world are connected with the fact that present domestic policy fails to visualise the world global trends. The reнvival of Russia may never happen if we continue exploiting our resources Ц vast space, natuнral deposits and high-skilled workers and do not develop our technological potential as well as intellectual and political freedom in contract to our East Asian УtigersФ.

To my opinion, the main problem in the way of development of global trends lies in the fact that these ideas are not widely acknowledged by those responsible for the formulation of national economic policy and is not a component of the latter. The supporters of globalisaнtion do not strive to contrast it to the national development. On the contrary, ineffective adнaptation of the country to the world markets deprives it and its economic subjects of great economic advantages from mutual co-operation and entails serious losses.

In the period when national economy becomes more and more resource-based and forнeign economic links entail destructive character, it may be quite reasonable to shift to the new level of state control over economic mechanisms. The analytical report of the Federation Council of RF Federal Assembly УAbout measures of perfecting state control over economy and correcting the economic reformsФ states that Уin modern economic environment characнterised by globalisation of economic links and international economic integration the funcнtions of the state in foreign relations are subjected to considerable change. Moreover, the inнstruments of state protection of national interests become more and more complicated.4 World economic practice brings us numerous examples proving this statement.

According to experts Уstate market of industrially-developed countries, as a rule is connected to the key economic spheres such as agriculture, power engineering, transport, deнfence, scientific and technological complexes. In this spheres the state acts both as the main buyer and the basic consumer of good and services produced by these industrial branchesФ5 and uses two main mechanisms: federal budget and federal contract system.

Taking into consideration unfavourable natural conditions for business in Russia, such as severe climatic conditions, great distances, depreciated infrastructure and high-cost transнportation, it becomes clear, that only strengthening the function of the state in resource distriнbution and establishing the mercantilist control over capital flows (that is to say creating faнvourable conditions in your country for the countryТs own production development) will help the state increase its influence in geo-economic competition.

What is the essence of state functionsТ transformation in the new global environment (globalisation of markets, an increasing pressure from the side of supranational and sub-fedнeral factors)? The question arises if the federative Centre can be a core and connecting link of the state territorial structure on the background of open markets and state financial crisis, or if Russia is facing the threat of disintegration. The role of Russia and its regions in rapidly changing political and economic global environment is also debated.

Heterogeneity of Russia is caused not only by its great distances, but also by the fact that its regional constituents (on the sub-federal level) are characterised by different degree of outward orientation. Regions, the products of which successfully compete in the world market have received a great impact for their further development. The situation arises that separate regions may appear to be more financially powerful and more integrated into world economy than the state itself, thus laying grounds for the increase of centrifugal forces in economic and political spheres within the borders of one state.

As a result of development of such tendencies the relations between states are subнjected to radical change connected with the substitution of system-forming factors in internaнtional relationship. Meanwhile the introduction of the notion Уgeo-economicsФ aiming to reнflect a new level of economic development and integration processes is highly indicative. It is not by chance that several scientists offer to substitute the notion Уinternational economyФ with the notion Уworld political economyФ, as we all observe the economic factors becoming the main political resource.6

Geo-economics has its own interpretation of the two main issues of geopolitics quesнtioning what is power and how does it materialise? According to the statements of geopolitics, formulated by the Englishman Halford John MacKinder and by the German scientist Karl Haushoter, it is control over elements having large mass (territory, people, national reнsources)7 that ensures the power of the state. The notions УpowerФ and УsecurityФ are closely connected with each other. To possess power means to have a maximum variety of resources.8

From its side, geo-economics identifies power as the control over international networks. Power results from ability to create international networks (trading channels, information flows), to use them and make them bring profit. The one who plays the strategic role in this international network or in the total combination of international networks and successfully uses various advantages enjoys real power.

In modern world geo-economic competition is developing in accordance with the laws of post-industrial development. It is not the resource component of the national wealth, but the intellectual component of it that plays a more important role and it was illustrated by the post-war development of УAsian tigersФ. On the global scale the balance of power and interнests will more likely to be preserved by non-military economic measures such as expanding to the global markets not only by means of trade but also with the help of investment and introнduction of new technologies. Let us consider Russia and the region of Western Siberia from the point of view of their position in geo-economic competition on the continent of Eurasia.

The Economic factor and space in the beginning of the 21th century: Siberia on the Eurasian Continent

Asian region (North-Eastern Asia, South-Eastern Asia) characterized by the most rapidly-growing markets is known as the region of US economic priority for a long time alнready. China is also more directed to the West with USA, Japan and EC countries as its main trading partners and is rapidly expanding to the domestic markets of the neighboring countries. What can be opposed to this expansion by Russia, if we take into consideration our geoнgraphical proximity to the countries of Asia-Pacific region? Today it is obvious that resources and space remain to be the major factor of geopolitical influence of Russia in this region. New rapidly growing Asian economies are in need of natural resources, power and secure ways of transportation. It is just what Siberia, a region stretching from the Urals in the west to the Paнcific Ocean in the East can offer to them.

West-Siberian region is a continental region stretching in the meridian direction and bordering in the south on China, Mongolia and Kazachstan, countries characterised by miniнmum integration into newly-establishing УBig SpaceФ groups (grossraum) in the West (EC) and in the East (Asia-Pacific Energy Community (APEC)). As a member of APEC, Russia has the right to use its geographical potentials for the profit of the nations-participants of this group and can act as an agent actively projecting the power of pacific economies to transatнlantic and Central-Asian Markets, due to its tariffsТ and infrastructural policy. Transsib, the Northern variant of the Silk Route (stretching through the territories of China, Kazachstan and then through the Urals) and meridian way from the Indian Ocean (from Iran going through the eastern coast of the Caspian Sea and then through Russia to Europe) represent 3 major chanнnels of transportation that will link West-Siberian region and will make it more important from the point of view of its consolidating role in the geo-economic expansion of Asia-Pacific region to the West.

It will let our country, as well as the region, acquire the status of the Уfront borderФ in order to fix its important role in creating profits of pacific economies and lay the grounds for including our production facilities, scientific and technological centres into this regionТs diviнsion of labour. If Russia is looking forward to entering Asia-Pacific region (APR) with its Ural-Siberian region, its geo-economic pro-pacific policy will have to find a reliable support in its Central-Asian strategy. It is easy to observe that Pacific strategy may lead to the oligopoly of Russia, China and Iran in the sphere of transcontinental railway communication on the major part of Eurasia, that is to say to create Уthe pacific base in the heart of the contiнnentФ9.

Due to some historic and geo-economic causes Russia is more interested in the post-Soviet space, and that is why we most of all value the relationships wilt those Asian states that express their interest in CIS. We can work together in the framework of already-created Cusнtoms Agreement, elaborating new integration projects and strengthening security.

Central Asia and Middle East are important to Russia in view of stabilisation of the Russian South and maintenance of good relationships with Muslim world. Absence of peace and security in this part of Asia affects our economic interests, blocking important transport and communication channels. It also creates difficulties in oil and gas extraction and transнportation as well as in attracting investment from this region and getting debt payments from the Lebanon, Iraq, Syria and other countries.

The development of central regions of Eurasia is only in the early stage and represents a second priority to western interests, but it makes possible an inland communication between such vitally important regions as Eastern Asia and Persian Gulf. Alongside the forнmer Soviet-Chinese land border probably the most geopolitically-active zone of the modern world is to be found, stretching for more than 7 thousand kilometres with its demographic disbalances, ethnic contradictions, natural resources and newly-appearing states.

Intensification and expansion of economic links in the region will result in diversifiнcation of import flows from the neighbouring Siberian territories. It will lay grounds for changing the alarming proportional structure of Russian export for the increase of high-tech products share ensuring the necessary basement for the future growth. Moreover, a new level of co-operation with CIS countries and other Eurasian states may result in substantial weakнening of RussiaТs dependency upon western financial institutions. One of the most important steps in reaching these goals is the formation of the Eurasian Economic Community. Besides, the economic program of the Eurasians is worth paying attention to. The ideas of combining state control and private sector may compete with both planned economic systems and radical liberalism.

Growth poles in this region will be represented by China and Asian part of Russia. The development of Chinese power will probably go on in the next decade as well. If it hapнpens, Russia will have to adjust to China, this is still finding its place among global powers. Although Peking concentrates its attention mainly on Taiwan and southern direction, it will render a great economic and demographic pressure on Central Asia and Russian Far East. Judging the overall capacity of Chinese economy and its dynamic development will become more important for the development of Siberia and Russian Far East, than their connections with Europe. Together with further strengthening of traditional interconnections with EC countries, Siberia is fully capable of broadening its trade turnover with countries of Asia-Pacific region. Now it is in an embryonic stage of development. The total share of Russia in the volume of foreign trade turnover with Asian states does not exceed 2 percent. Other posнsible fields of co-operation are almost neglected as well.

RussiaТs priorities in the field of co-operation with China lie in the field of attracting foreign investments as well as in realising joint projects which let us use the resources and economic advantages of both countries most efficiently. For example, it may be large-scale power projects such as oil and gas pipelinesТ construction, electric power supply and producнtion of the equipment for the hydroelectric power stations. Forecasts here are quite favourable. New deposits enable us to increase oil extraction a cut above already by 2005. The extraction of coal and electric power production may be doubled by this time, while the extraction of gas may even triple. All this forms the base of energy resources enough to supply China as well as South Korea, Japan and other countries of Asia-Pacific region.

Today there are still a lot of unsolved problems. In particular Russia is lacking state control mechanisms to ensure the process of its integration into global economic system. Russia is also in need of new economic zones formation based on effective usage of the poнtential resulting from its Eurasian location.

What can be gained by Siberia from its transit location?

Geographical resources should play one of the most important roles in the revival of the economic power of the West-Siberian regions. The growth points for West-Siberian reнgions most probably lie in its location. Situated in the very centre of Eurasian continent it serves as a frontier region which divides and unites the elements of the integral planetary system at the same time, providing the shortest routes between growth poles in the West and East. The territoryТs revival is closely connected with the development of transport infraнstructure, as the system of production and housing is based on transport communications.

Numerous research conducted by the scientists of Institution of Economics (Siberian Branch of Russian Academy of Science) showed that it is transportation on renewed basis that represents the linking infrastructure of regional (on the scale of one country), national (on the continental scale) and transcontinental economies, that is the economies on the planetary scale. Countries of the Asia-Pacific region, having the most rapid economic development rates are highly interested in using Russian transport communications.10But Russia has real competitors in this kind of transit services. Thus, China, the USA and EC are very active in lobbying the creation of new УSilk RouteФ off the territory of Russia (arterial roadТs project TRACECA).11

The territory of Western Siberia in meridian direction is crossed by the two world largest riverways navigable over their whole lengths Ч the Ob and the Enisej. In the latitude direction Russia is crossed by Trans-Siberian Railway. Moreover, much is talked about the project of the North Russian Eurasian railway main line (Barentzkoamur Ц Sevsib Ц the Baiнkal-Amur Railway) which will stretch from the port of Indiga in the Barentz Sea and in the perspective will go up to the port of Vanino on the coast of Tatarsky Streit, thus bringing a big growth impact to the freight traffic in these directions and stimulating the economic activнity in the neighbouring territories. There is one more prospective railway main line, a Central Trans-Siberian Railway which will stretch up to the Korean Peninsula and Japan uniting railнway lines of Sahalin and Hoccaido (picture 1). As a result, the two latitude transportation channels within borders of the Asian part of Russia will be integrated into one frontier transнcontinent South- Eastern Asia Ц Europe connecting not only their in-land but also island regions.

In meridian direction it is important to maintain the North Eastern Passage with freights from the proнvincial regions of Siberia, treasured as reserve centres of the countryТs security and the prospective guarantee of its economic revival.

The development of new cross-pole air routes minimising the distance between American and Asian regions (TP Ц 1 (transcontinental passage) from North America to Pakiнstan and India and TP Ц 2 through Siberia to South-Western Asia, see picture 2) is very promising. The development of transportation airway channels is being debated in the official circles. Thus, the adminiнstration of Novosibirsk Region and RF Minister of Transport are examining documents concerning airнport Tolmachevo and its ambition to be included into the list of airports foreseen by the internaнtional agreement between Europe and South-Eastern Asia. In particular, the problem with technical landings in Tolmachevo of German Airline Company Lufthansa Cargo has already been solved.

Generally speaking we talk about optimisation of the world transport interconnections and freight traffic. It will be highly advantageous for the economies of Europe and Asia-Paнcific region as well as for Siberia itself. For example, Japan and Korea may reduce their transportation costs in the turnover with Europe by 15Ч20 percent using Trans-Siberian Railway at the same time facilitating their financial transactions.

It is obvious that together with development of SiberiaТs economy and construction of new international transportation channels, Russia will have to work out new and more effecнtive transportation tariffТs strategy. An active use of enormous inner potential of Siberia let us considerably broaden borders and increase its level of economic interaction with other counнtries, built on qualitatively new bases in the perspective.

The Wealth of Siberia will be enriched Е by Siberia

Siberia is rich in mineral resources and lacks capital. In reality, colonisation of the terнritory is slowly making it a social and ecological desert. Can we use its natural wealth to raise the welfare of its population?

However, outflow of resources and depletion of national wealth make the situation quite the opposite. Economy based on the extraction of natural resources and excessive power consumption deprives itself of the future growth and badly effects the natural environment. Let us show you some facts. The great majority of Siberian and Far-Eastern regions act as financial donors, not of domestic but of world economies, with the total balance volume of produced and consumed regional product comparable to the volume of capital outflow from Russia.12 Today 2/3 of all currency flows is being formed in Siberian regions, but these regions are not known as the leaders of investment.

Leading enterprises of Siberian industry are mainly exporting their products. The best example of this statement is represented by Krasnojarsky Region with its world-largest faciliнties of nickel and aluminium production (Krasnojarsky Aluminium plant) Ц 90% of its output is consumed by foreign markets.

Territories without such enterprises are gradually becoming zones of depression or Уsocial desertsФ. It the state development strategy is not reviewed in a short period, we will observe further disintegration and decay of RussiaТs regions.

Vast spaces become a source of problems instead of being a source of wealth: it is necessary to supply northern regions (the so-called north delivery) and maintain long-stretching transportation ways. These territories are located far from the places where ecoнnomic decisions are made.

It is conditioned by historical causes that the basic industry of Siberia has always been extractive industry and military-industrial complex. If the former had no difficulties in adнjusting itself to export-oriented models of development in both directions (oil, gas, wood, non-ferrous metals) with considerable loss of profits in relation to the producing regions, the latter, including enterprises of aircraft and machine Ч building hasnТt found its place in this model yet.

What can be offered as an alternative? Where are the growth points, which will create the wealth of Russia, instead of depleting it? Russia is in need of well-thought state industrial policy in order to attract investments which can be attracted only by commercial profit. This policy should be based on the unity of science and production and create favourable condiнtions for venture capital, able to meet high risks.

It is widely known that human resources and Уknow-howФ technologies represent the basic factor of geo-economic competition in the era of globalisation.

In the Soviet period in 1960s-1970s several Siberian regions, such as Novosibirsk, Tomsk, Krasnojarsk and Irkutsk were actively creating various scientific research centres which still retain lots of it attraction for giant hi-tech corporations.

Information networks development being carried out in these centres let us solve the issue of the first priority for our country, namely it let us attract foreign venture investments for developing the technical base of these very centres (computer software, biotechnology, environment monitoring). To out regret, all poor and developing economies are characterised by Уbrain-drainФ. Many scientists prefer to work at home but for western money and for the welfare of western economy. However, the achievements in the field of hi-tech technologies canТt be called УnationalФ, as they tend to be spread very quickly and in the end the whole mankind is able to enjoy its benefits.

УNew economyФ for Siberia

Recent years created favourable conditions for successful development of science. It is no longer preoccupied with theoretical analysis and concentrates mainly on practical impleнmentation of scientific achievements. Science has become Уwell-soldФ in the respected meaning of this world, and great numbers of businessmen began to value scientific elaboraнtion as the future source of their success.

Today the return from investments into manufacturing, based on particular scientific innovations, may be two times as quick as in any other field of business.

Siberian scientists have many projects, which may become innovations with appropriнate investments. However, mass production of these innovations is not always a success.

Sergei Svezchkov, the general director of the fund УThe Centre of strategic elaboration УSiberiaФФ says that as a result we confront a paradoxical situation: УRussian scientists sell their projects abroad, as they canТt put them into practice in their own country, while Russian companies buy the same projects in foreign countries, as we donТt have a high-tech technolнogy marketФ13.

Meanwhile the biggest success in innovation the field of hi-tech technologies is achieved by small companies, created by former employees of scientific institutions.

Thus, about 150 hi-tech firms work only in Novosibirsk Academic Center. The numнber of employees of such companies varies from 20 to 100 and sales volume is ranging from 200.000 to 1 mln. rubles per one employee.

We can compare these figures with the statistics of the Institute of Applied Microelecнtronics and see that they have only 218 thousand roubles a year per one employee.

Big research institutions which have to maintain considerable tangible assets and lead fundamental research canТt survive without support of the state. Two years ago an association of software companies УSibacadem SoftФ was created, and this year witnessed the formation of the hi-tech firms association УSibacadem InnovationФ. The total cost of its programmers contracts is $18-39 mln.

Quick expansion of Russia into the foreign hi-tech market may be facilitated by a new project УStartФ, the essence of which is in creating a special economic zone on the territory of Novosibirsk Academic Centre.

This project unites the most optimal models of widely discussed multivariant apнproaches, takes into consideration the world practise of problem-solving and is based on modern technological and scientific infrastructure.

This project creates three structures:

  • a special economic zone УResearch CentreФ with the special status of academic CRI (Scienнtific Research Institutes) functioning, which let all the participants commercialise science
  • a special economic zone УTechnical-implementation CentreФ with the special status of small and medium technological companies functioning, which let us effectively transнform scientific technologies into ready- made products.
  • Siberian venture fund as an instrument of hi-tech projects financial investment.

According to S. Sverchikov, Уwith time the Soviet model of science marked by the foнcus on defence industry is being transformed into the following model: RAC (Russian Academy of Science Ц small and medium hi-tech business Ц industrial clusters (large corpoнrations). It is necessary to add that intelligent and talented managers should help Russia become the leading monopolist in the scientific market by the year of 2015.

Summary

Summing it all up, the following conclusions can be made. Russia and its regions may successfully incorporate into the process of globalisation if their domestic and international policies take into consideration modern trends of world economic development. Power of the state remains to be the main actor of international relationships. It should rely on the increase of the stateТs competitive advantages in view of the near perspective.

A) In the field of resource potential the situation is more difficult because of the fact that resource sector (excluding agriculture) is less dependant upon direct state support and at the same time plays the role of a large-scale tax-payer. Taking into consideration inevitable budget reductions, which are in store for Russian economy, the share of the resource sector will not only diminish but also increase considerably. It is necessary to carry out a more careнful processing of resources at the place of their extraction. Moreover, resource regions (the North of Western Siberia) should be granted a larger share of financial resources to use it in investment projects.

B) On the one hand, the transition to the active support of technological advantages will demand sacrifice on the side of resource sector. On the other hand, this transition will make it necessary to attract large- scale financial resources into manufacturing industry (big industrial enterprises in Siberian towns). While resource sector can provide itself with investнment on condition of favourable state policy, industrial sector has greater degree of dependence upon state (chemical and petrochemical industries, metallurgy and machine-building).

C) We should target our activity at innovation breakthrough and do our best to deнvelop technical bases (science towns) in the centres of academic and applied science of Sibeнrian Branch of Russian Academy of Science.

The major difficulties are caused by the lack of finance and the absence of technology transfer. In this sphere, it is much cheaper to render financial support, but in order to do it, we need well-thought organising models and mechanisms. At the same time a great number of high-skilled professionals available in Russia make the stimulation of innovative activity rather logical and necessary.

As far as the space in the state domestic and international is concerned the advantage of Russia lies in its location as a Уfront borderФ in the Eurasian space between two poles.

RusiaТs interests would be well served by the convergence of transit routes in southern Siberia and the southern Urals, in the form of a Russian-supported УPacific geo-economic bridgehead within the mainlaind.Ф Such a strategy would provide an alternative to the counнtryТs current excessive dependence on the united EuropesТs economy by setting Russia up as the western frontier of the Asia-Pacific regionТs geo-economic space.

[*] Yudina, Irina. States and Regions Role Transformation in the Era of Globalization // The Regional Cooperation of Northeast Asia and RussiaТs Globalization for the 21st Century, Seoul, Korea. 22-24 June 2003.

REFERENCES

See Literature

1 See Huntington, 1996.
2 The notion of large self-organising scapes around a new core-centers of attraction or centralities let us re-evaluate the importance of state borders in globalizing economy. For the idea of Russia in the image of Уshred blanketФ see Segbers, p. 68Ц69.
3 Famous American expert Thomas Graham was quite right saying the following: УThinking about the future of Russia, we mustnТt forget about one very serious historic lesson: great states bloom and collapse; some states even perish... The decline of Russia that we witness now, may as well be temporary, but rapid changes of modern world, contemporary tendencies of political, economic and military development in Europe and Asia, increase the possibility of this decline being final and definite.Ф See Graham, p.7. He is supported by Zbignew Brzezinski who draws the image of УconfederateФ Russia with its western part being a constituent of Уtransatlantic EuropeФ, and its eastern part characterised by dominant Chinese influence (see Brzezinski).
4 SeeУO merakh po sovershenstvovaniju gosudarstvennogo regulirovanija ehkonomiki i korrektirovke ehkonomicheskoj reformyФ (Analytical report of the Federation Council of Federal Assembly RF).
5 Gusakov and Zotova, p. 146.
6 The notion Уgeo-economicsФ came from political establishment at the end of 1980s due to Edward Luttwak, National Security Counsel and State Department consultant, who was the first to mention this term defining the scientific branch which deals with international competition issues with states being their chief participants. Geo-economics became the branch of geopolitical planning, which deals with resource flows and reveals ways of their regulation, that may help to strengthen or undermine the power of states or other political subjects. See Luttwak, Jean and Savona, Neklessa.
7 MacKinder is known as the author of the УheartlandФ theory, originally stated in 1904 and revised in 1919 and 1943. In this theory he proposes that north-central Eurasia, because of its geographical isolation and vast natural resources, would eventually be the heart of the worldТs controlling political power.
8 Moreau Defarges, p. 120.
9 See Tsymbursky, p.141Ц142.
10 See Bandman.
11 Kemp and Harkavy, p.12.
12 In 1999 out of 22 Siberian and Far-Eastern regions had positive balance of produced and consumed Gross Regional Product (positive trade balance). On the whole the considered balance on the scale of macro-region is $11,1 billion (especially Kransnojarsky Region, Republic of Soha (Jakutia) and Tymenskay oblast). See Granberg , p. 190.
13 See Popov, p.8.

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