On the Issue of World Regional Economic Integration Groups

Jandri Zarandia Doctor of Economics, Associated Professor, Sokhumi University

The major characteristic of modern world civilization development is intensification of globalization and regional integration processes, development of the external economic relations into the most significant factor of development of the individual country.

In current conditions integration is conditioned by political relations and international division of labor. Actually, implements its substance in close relations between the countries, unifying of the actions and creation of the regional political-economic blocks.
Integration between the countries is conditioned by many factors. Among them are economic, political strategy and tactics. General national and general continental requirements of the countries, their population increasingly influence the integration processes. It should be noted that the integration processes in any industry necessarily require certain geographical area. [1]
Geographical science differs the terms of geographical area and geographical territory, though sometimes they are used with similar contents. The concept of “territory” differs from the concept of the “area” with its specific nature, its link to certain coordinates on the Earth surface. [2]
It is clear that study of the impact of globalization and regional integration processes on development of economy is of special significance. Though globalization and regionalization are opposing trends, they do not exclude one another; rather they even strengthen one another, as world globalization, actually, occur through regional integration consolidation and within the later integration is strengthened by globalization. No one rejects the fact that globalization has changed the role of the national state, the borders were not removed, though their crossing is much easier; capital, goods and services – and at lesser extent – the people became more mobile and it is impossible to make them stay within the borders of one state. New technologies allows for breaking of the relations of production, including the science intensive industries with certain territories. This process takes place at two levels. Both of them are called “regional”, according to the context it implies inter-state (in general national respect) and intra-state. [3]
Criteria for distribution of the countries by relevant groups are quite many-sided. First, the regional approach could be applied relying on the division of the world into the historical-cultural regions. The simplest geographical scheme is grouping of the countries by the continents. Unification of the countries in the world has gradually revealed major zones and directions, regional organizations of international political and economic integration. Let us consider some of them.
Integration process in the Europe became especially prominent after the World War Two. It was conditioned by creation of the socialistic block. In the fifties and sixties in the Western Europe number of alliances was created for implementation of the financial & economic, as well as defense projects. Within the European continent the significant organization is European Union (EU) established in 1951. European Union is characterized with very high level of integration. Here the labor, goods and services move freely and they have single currency – Euro. EU supranational organizations system includes European Council, European Parliament, EU Council, European Commission and European Court.
European Council is one of the most significant and oldest EU institutions. Activities of the European Council include the following key directions: human rights, mass media, legislative collaboration, health, education, culture, heritage, sports, youth issues, local and regional direction and environment protection. European Council consists of three major institutes: Cabinet Council, Parliament Assembly and Congress of European Local and Regional Governments. Formation of the European Union was logically followed by creation of the European Free Trade Association (EFTA).
In 1992, in Istanbul the Organization of Black Sea Economic Cooperation (BSEC) was established. Within the scopes of BSEC there are: International Secretariat, Parliament Assembly, Business Council, Black Sea Trade and Development Bank. It should be noted that BSEC was established by the incentive of Turkey. [1]
In the American Countries the regional economic organization implement three forms of economic integration:

Free trade zone:
North American Free Trade Agreement (NAFTA) provides for customs duty exemption in mutual trade.
Common market:
Southern Cone Common Market (MERCOSUR)
Central American Common Market (CACM)
The following is provided: customs duty exemption, free movement of the capital and labor, introduction of the common tariffs, coordination of the economic currency financial policies.
Economic association and common market:
Caribbean Community and Caribbean Common Market (CARCOM).OM
Andes Group (AISA)
Organization of Eastern Caribbean States (OECS)
OAS – Organization of the Americas States was established in 1984.
Its members are: Antigua and Barbuda, Argentina, Bahamas, Barbados, Belize, Olivia, Brasilia, Venezuela, Guyana, Guatemala, Honduras, Grenada, Dominica, Dominican Republic, Canada, Columbia, Costa Rica, Cuba, Mexico, Nicaragua, Paraguay, Peru, Salvador, St. Vincent and Grenadine, St. Kits and Nevis, St. Lucia, USA, Surinam, Trinidad and Tobago, Uruguay, Chile, Ecuador, Jamaica.
CARICOM – Caribbean Community and Caribbean Common Market was established in 1973, members of Caribbean Community are 14 countries and 3 associated members. Regional members are: Antigua & Barbuda, Bahamas, Barbados, Belize, Guyana, Moserat, Grenada, Dominica, St, Vincent & Grenadine, St. Kits & Nevis, St. Lucia, Suriname, Trinidad & Tobago, Jamaica. Associated members include: British Virgin Islands and Tercs and Caycos Islands.
NAFTA – North American Free Trade Agreement zone was established in 1994 between USA, Canada and Mexico. NAFTA organizational structure is as follows: the central institute is the Free Trade Commission, at the level of the ministers of foreign trade. Commission oversees fulfillment of the agreement and coordinates activities of various committees and work groups. Results achieved in result of integration in agriculture, energy and investments spheres in result of regional integration.
AISA – Andes Group (or Andes Pact) was made in 1969. Its members are five countries: Olivia, Venezuela, Columbia, Peru and Ecuador.
MERCOSUR – Common Southern Market was established in 1961 and includes: Argentina, Brazil, Paraguay and Uruguay. In 1996 the agreement with the Association was signed by Chile, Bolivia and the free trade zone was formed.
MERCOSUR area accounts for 45% of the continent population, or 200 million people and 50% of GDP, amounting to 1.0 trillion US dollars. Supranational governance bodies are: Common Market Council; Common Market Group, Advisory Public Forum; Administrative Secretariat, Arbitration Court.
MERCOSUR Common Market Council is composed on the ministers of exterior and economics of the member countries, their main goal is strategic decision making. One of the key institutes is the United Parliament Commission as well, which works on harmonization of legislation.
Rapid economic growth of Asian-Pacific Region was promoted by regional collaboration (APEC, ASEAN), within the scopes of sub-regional institutes. In Asia, the major form of economic integration, in all five active regional organizations is economic cooperation. Coordination of economic and social policies, support to the trade within the region, industrial collaboration, free capital circulation etc.
APEC – Asian-Pacific Economic Cooperation was established in 1989. Its members are 18 states: Australia, Brunei, Hong Cong, Canada, China, Kiribati, Malaysia, Marshal Islands, Mexico, New Zealand, Papua-New Guinea, Republic of Korea, Singapore, USA, Thailand, Taiwan, Philippines, Chile. In 1997 Russian Federation was accepted in APEC.
ASEAN – Association of South-East Asia Nations was established in 1967. Its members are nine states: Brunei, Vietnam, Indonesia, Cambodia, Laos, Malaysia, Philippines, Singapore and Thailand.
CAEU – Council of Economic Arab unity was established in 1964. Its members are twelve countries: Egypt, Iraq, Jordan, Yemen, Kuwait, Libya, Mauritania, United Arab Emirates, Palestine, Syria, Somalia, Sudan.
ECO – Economic Cooperation Organization was established in 1985. Its members are 10 countries: Azerbaijan, Afghanistan, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkmenistan, Turkey and Uzbekistan. Economic cooperation and activities against drug addiction and drug abuse
In the African countries regional economic integration is provided within the framework of four economic associations:
UDEAC – Central African States;
ECOWAS – Western African states;
SAOC – South African Countries
COMESA – Eastern and Southern African states.
All these organizations are economic groups which have declared common market – free circulation of the goods, capital and labor.
UDEAC – Customs and Economic Union of the Central African Countries was established in 1966. It is composed of 6 countries: Gabon, Cameroon, Congo, Central African Republic, Chad and Equatorial Guinea.
ECOWAS – Economic Community of Western African States was established in 1975. its members are 16 countries: Benin, Burkina Faso, Cote d’Ivoire, Cape Verdi, The Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone, and Togo.
SAOC – South Africa Development Community was established in 1992. It has 11 member countries: Angola, Botswana, Zambia, Zimbabwe, Lesotho, Malawi, Mozambique, Namibia, Swaziland, Tanzania, South African Republic.
COMESA – Common Market of Eastern and Southern Africa was established in 1994. Its members are 20 countries: Angola, Burundi, Zaire, Zambia, Zimbabwe, Kenya, Comoro Islands, Lesotho, St. Maurice, Madagascar, Malawi, Mozambique, Namibia, Rwanda, Swaziland, Sudan, Tanzania, Uganda, Eritrea, Ethiopia.
WAEMU – Western African Economic and Monetary Union was established in 1994. Its members are: Benin, Burkina Faso, Cote d’Ivoire, Mali, Niger, Senegal, Togo. [2]
Among numerous factors, conditioning economic development of the regions, one of the key factors is providing of the civilization and institutional conditions, which, in the current circumstances, may be even more significant for economic effectiveness of the regions than the natural resources.
For the recent years, the focal point of the researches in the sphere of world economy moved to the analysis of the individual regions. In addition, the pragmatic goal of application of the models and mechanisms developed in the countries and regions with well developed market economy. It is well known that regulation of the international relations, at first, commenced from the national organizational forms. These processes at first led to the international coordination among the governments of the individual countries and later to formation of the international institutions (at regional level).
In the special scientific literature there are several models of world regional classification; among them we regard as the most adequate the scheme of dividing of the cultural-historical regions. Cultural-historical regions are more or less entire territories in historical, cultural and economic respects. In such approach, e.g. America is divided into:
English-speaking North America – USA, Bermuda, Greenland, Canada, St. Pierre and Miquelon.
Spanish and Portugal speaking South America and Caribbean Basin: Caribbean Basin: Anguilla, Antigua & Barbuda, Aruba, Barbados, Bahamas, Virgin Islands (USA), Virgin Islands (Britain), Guadeloupe, Grenada, Dominica, Dominican Republic, Jamaica, Cayman Islands, Cuba, Martinique, Montserrat, Nederland Antilles, Puerto-Rico, St, Vincent & Grenadines, St. Kits & Nevis, St. Lucia, Terks & Caycos Islands, Trinidad & Tobago, Haiti.
Central America: Belize, Guatemala, Costa-Rica, Mexico, Nicaragua, Panama, Salvador, Honduras.
South America: Argentina, Bolivia, Brazil, Guyana, Ecuador, Venezuela, Columbia, Paraguay, Peru, Southern Georgian – Southern Sandwich Islands, French Guiana, Surinam, Uruguay, Falkland Islands (Malvinas), Chile.

Europe is divided as:
Eastern Europe: Belarus, Bulgaria, Moldova, Poland, Romania, Russia, Slovakia, Ukraine, Hungary, Czechia,
Northern Europe: United Kingdom, Denmark, Estonia, Ireland, Iceland, Latvia, Lithuania, Norway, Svalbard & Jan Mayen, Faeroe Islands, Finland, Sweden.
Southern Europe: Albania, Andorra, Bosnia-Herzegovina, Gibraltar, Spain, Vatican, Italy, Macedonia, Malta, Portugal, Greece, Saint Marino, Serbia-Montenegro, Slovenia, Croatia.
Western Europe: Austria, Belgium, Germany, France, Lichtenstein, Luxemburg, Monaco, The Netherlands, Switzerland.

Asia includes:
Eastern Asia: China, Hong Cong, Macau, Korea, Peoples Democratic Republic of Korea, Japan, Mongolia, Taiwan, distant USA islands.
South-Central Asia: Afghanistan, Bangladesh Bhutan, Turkmenistan, India, Iran, Maldives, Nepal, Pakistan, Tajikistan, Uzbekistan, Kazakhstan, Kyrgyzstan, Sri Lanka.
South-East Asia: British territories in Indian Ocean, Brunei, Vietnam, Indonesia, Cambodia, Laos, Malaysia, Myanmar, Singapore, Thailand, Ti-Mor-Leste, Philippines.
Western Asia: Azerbaijan, United Arab Emirates, Bahrain, Iraq, Turkey, Yemen, Jordan, Israel, Cyprus, Lebanon, Oman, Saudi Arabia, Georgia, Syria, Armenia, Kuwait, Qatar.

Africa is divided as:
Eastern Africa: Burundi, Ethiopia, Eritrea, Zambia, Zimbabwe, Kenya, Comoros, Madagascar, Mauritius, Malawi, Mozambique, Reunion, Rwanda, Seychelles, Somalia, Tanzania, Uganda, Djibouti.
Central Africa: Angola, Gabon, Ecuatorial Guinea, Cameroon, Congo, Democratic Republic of Congo, Sao Tome & Principe, Chad, Central African Republic.
Southern Africa: Botswana, Bove, Lesotho, Mayotte, Namibia, South Africa, Swaziland, French Southern Territories.
Northern Africa: Algeria, Western Sahara, Egypt, Libya, Morocco, Sudan, Tunisia.
Western Africa: Benin, Burkina Faso, Gambia, Ghana, Guinea, Guinea Bissau, Capa Verde, Cote d’Ivoire, Liberia, Marcitania, Mali, Niger, Nigeria, Senegal, St. Elena, Sierra Leone, Togo.
Oceania includes the following regions:
Australia, New Zealand, Melanesia, Micronesia and Polynesia [4].
Dividing of the cultural-historical regions is the most natural division of the world and comprises the universal approach to study of the region, with regard of its natural-climatic, historical, cultural and economic conditions. This is the scheme of regionalization of the world providing basis for our vision of research of “the regions economy”.
Tel: 187848; 877-791917
E-mail: jani-zarandia@mail.ru

References:
Baratashvili N. Oceania includes the following regions:
Essays from the Sphere of Political and Economic Integration of the States. Tb. 1999
Veshapidze Sh., Kekashvili E., Grishikashvili A., Aslamazishvili N. World Economy. Tb. 2008.
Baratashvili E., Zarandia J., Abralava A. Regionalism: Theory and Practice.
Classificator of the Wrold Countries, Tb. 2003.