From Disintegration to Reintegration : Eastern Europe and the Former Soviet Union in International Trade

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 regions transition process continues through its second decade. Understanding the underlying dynamics shaping the contours and most salient impacts of international integration that have emergedand likely to emerge prospectivelyin 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 circlealbeit not ending up where it startedreintegrated 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 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 lions share of actions will need to come from the countries in the region themselves. From Disintegration To Reintegration: Eastern Europe And The Former Soviet Union In International Trade Finds That, With The Transition From Communism To Capitalism And The Disintegration Of The Soviet Trade Bloc, The Region Is Coming Full Circle--albeit Not Ending Up Where It Started - Reintegrated Into International Commerce. The Region 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 Are Emerging, One Tending Toward The Advanced Countries In Western Europe And Enjoying Relatively High National Incomes, The Other Significantly Poorer And Pulling Back Toward A Russia-centric Sphere, Still Dominated By Commodity Trade And Risking Nonparticipation In The Modern International Division Of Labor. As A Result, Much Is At Stake For The Prosperity Of The Hundreds Of Millions Of People In The Region.--jacket. Introduction -- Trade Patterns And Performance Of Eastern Europe And The Former Soviet Union Since The Transition -- Trade Policies And Institutions -- Roles Of Domestic Competition And Governance In The Region's International Integration : A Two-way Street -- Trade-facilitation : Challences And Opportunities In Eastern Europe And The Former Soviet Union -- Services Trade And Investment In Eastern Europe And The Former Soviet Union -- Linkages Between Foreign Direct Investment And Trade Flows -- Policy Agenda, Reform Linkages, And Action Plan. Edited By Harry G. Broadman. Map On P. [2] Of Cover. Includes Bibliographical References (p. 385-400) And Index. 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#x92;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#x97;and likely to emerge prospectively#x97;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 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. This book addresses this challenge of understanding the underlying dynamics shaping the impacts of international integration that have emerged in this region