The Impact of WTO Membership: A Comparative Analysis of China, Russia and Ukraine
A complex analysis of the social and economic consequences of China, Ukraine, and Russia’s accession to the WTO was used to identify recommendations for the most successful adaptation of Russia to WTO standards. Russia tries to adapt to the WTO standards. The study focuses on the Chinese experience. China’s membership in the WTO is extremely useful for Russia from due to China’s positive influence on the development of its economy , as there has been expansion in the industrial and production sectors of its economy and promotion of goods in world markets, as well as an opportunity to use the WTO’s legal instruments for national domestic market protection.
China’s positive experience as a WTO member somehow contrasts with the described experience of Ukraine. An assessment of Ukraine’s versatile policy and its association with the EU allowed concluded that it is impossible for Ukraine to follow two ways at once: that of Eurasian integration and that of European integration.
Recently, the aggravated trade, economic and political confrontations between Russia and its American and European partners spurred radical changes in Russia’s economic strategy. Areas of such transformations can be determined by understanding both the positive and negative experiences of Russia’s old trade partners, namely China and Ukraine as they joined the world economic environment.
Over the years of WTO work, the inconsistency of positions on individual issues between countries, as well as groups of countries, has often led to a deadlocks in the solution of certain trade and political problems. However, the joint search for mutually beneficial, compromise ways, the willingness of participants to Dialogue at the WTO platform demonstrated the viability of the multilataral trading system.
This book directly confronts uncomfortable questions that many prefer to brush aside: if economists and other scholars, politicians, and business professionals understand the causes of economic crises, as they claim, then why do such damaging crises continue to occur? Can we trust business and intellectual elites who advocate the principles of Realpolitik and claim the "public good" as their priority, yet consistently favor maximization of profit over ethical issues?
Former deputy prime minister of Russia Grigory Yavlinsky, an internationally respected free-market economist, makes a powerful case that the often-cited causes of global economic instability—institutional failings, wrong decisions by regulators, insufficient or incorrect information, and the like—are only secondary to a far more significant underlying cause: the failure to understand that universal social norms are essential to thriving businesses and social and economic progress. Yavlinsky explores the widespread disregard for moral values in business decisions and calls for restoration of principled behavior in politics and economic practices. The unwelcome alternative, he warns, will be a twenty-first-century global economy in the grip of unending crises.
Grigory Yavlinsky is a Russian economist and founder and member of the Russian United Democratic Party (YABLOKO). As deputy prime minister of Russia in 1990, he wrote the first Russian economic program for transition to a free-market economy, 500 Days. He lives in Moscow.
“Grigory Yavlinsky’s book is an important contribution to understanding the interplay between social norms and modern economy. The current global crisis makes his analysis especially relevant.”—George Soros
“Reading Grigory Yavlinsky's remarkable book, I was reminded of Adam Smith, also a moral philosopher concerned with the correlation between individual aspirations and the enlightened evolution of society. It is invaluable to have the perspective of an intellectual such as Yavlinsky writing in the shadow of swiftly moving events on the global stage. He explains how market mechanisms influence international developments ranging from instability in European markets to the recent ‘Great Recession’ in the United States.”—Vartan Gregorian, President, Carnegie Corporation of New York
“Yavlinsky provides a new and in-depth interpretation of the events leading to the current recession and broader interpretations of how to avoid future ones. Realeconomik has my enthusiastic endorsement.”—Michael D. Intriligator, University of California, Los Angeles
“With clarity and eloquence, Yavlinsky argues that the deepest cause of the global recession was the erosion of the world economy’s moral dimensions. As a professional economist who has long been a leader of the Russian opposition, he knows how to splice politics and economics. As a politician who has repeatedly declined high office on grounds of principle, he lends the book additional authority. Realeconomik is a work that will, I believe, help to spark a public debate on issues of profound importance for humankind.”—Peter Reddaway, George Washington University
The economic crisis has revealed three particularly vulnerable development in Russia in the last decade: a growing resource of expertise, aging equipment and the lag in scientific and technological progress, institutional obstacles to the growth of the market economy. The article discusses the components of economic growth. How quickly evolving new economy and whether overcome monocultural specialization of the country? How to make this growth sustainable and irreversible, everything been done to enhance scientific and technological potential of the Russian Federation, that these arguments comes from the myths that Russia - the best country in the world, and that reflects the actual trends that and that helps prevent the escalation of Russia from the industrial society to a post-industrial society.
The paper examines the structure, governance, and balance sheets of state-controlled banks in Russia, which accounted for over 55 percent of the total assets in the country's banking system in early 2012. The author offers a credible estimate of the size of the country's state banking sector by including banks that are indirectly owned by public organizations. Contrary to some predictions based on the theoretical literature on economic transition, he explains the relatively high profitability and efficiency of Russian state-controlled banks by pointing to their competitive position in such functions as acquisition and disposal of assets on behalf of the government. Also suggested in the paper is a different way of looking at market concentration in Russia (by consolidating the market shares of core state-controlled banks), which produces a picture of a more concentrated market than officially reported. Lastly, one of the author's interesting conclusions is that China provides a better benchmark than the formerly centrally planned economies of Central and Eastern Europe by which to assess the viability of state ownership of banks in Russia and to evaluate the country's banking sector.
The paper examines the principles for the supervision of financial conglomerates proposed by BCBS in the consultative document published in December 2011. Moreover, the article proposes a number of suggestions worked out by the authors within the HSE research team.