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From Disintegration to Reintegration: Eastern Europe and the Former Soviet Union in International Trade
Binding: Paperback, 1 edition, 440 pages
Publisher: World Bank Publications
Weight: 1.95 pound
Dimension: H: 0.75 x L: 9.8 x W: 0.52 inches
ISBN 10: 082136197X
ISBN 13: 9780821361979
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Book Description:
As the world marketplace becomes ever more globalized, much is at stake for the prosperity of hundreds of millions of people in Europe and Central Asia as the region s transition process continues through its second decade. Understanding the underlying dynamics shaping the contours and most salient impacts of international integration that have emerged and likely to emerge prospectively in the region is thus a crucial challenge for the medium term economic development agenda, not only for policymakers in the countries on themselves, but also for their trading partners, the international financial institutions, the donor community and the future of the world trading system as a whole. This book addresses this challenge. The study finds that a hallmark of the transition from communism to capitalism in Europe and Central Asia (ECA) and the disintegration of the Soviet trade bloc is the region coming full circle albeit not ending up where it started reintegrated into international commerce. ECA as a whole has experienced rapid trade flows and now trades largely in line with comparable regions in the world. But two new intra regional trade blocs have emerged, one fast growing and tending toward the advanced countries in Europe, the other registering significantly slower growth and pulling back towards a Russia centric sphere, still dominated by commodity trade and risking non participation in the international division of labor. There is a way out: as elsewhere, ECA countries that have liberalized trade and judiciously implemented complementary domestic, behind the border policies have been more effective in leveraging international integration to raise growth rates. Further trade policy reforms need to be pursued by virtually all the countries in the region, with some still requiring fundamental changes. The larger unfinished agenda concerns behind the border reforms, which will necessitate economy wide efforts in boosting domestic inter enterprise competition and market flexibility, strengthening basic market institutions and incentives, developing trade facilitating infrastructure, deregulating services sectors and attracting cutting edge foreign direct investment. Meeting these challenges will require certain policy reforms by developed countries and assistance from donors. But the lion s share of actions will need to come from the countries in the region themselves.

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