Kyrgyzstan’s Membership in the Eurasian Economic Union: Some Results in Economic Sphere

Abstract

International economic integration has become one of the characteristic features of modern international economic relations. It became obvious that without the development and strengthening of economic, political, cultural and other ties between the countries, none of them can successfully develop. Over the past 30 years, various regional integration processes have been taking place in the post-Soviet space, because of which regional integration associations have emerged. One of these regional integration associations is the Eurasian Economic Union. Kyrgyzstan joined this regional association on August 12, 2015, becoming the fifth and so far, the last member of the Eurasian Economic Union. Joining a regional association of this size is always accompanied by advantages and disadvantages for new members. In this regard, the thesis examines both the advantages and disadvantages of Kyrgyzstan’s accession to the Eurasian Economic Union. The dependence of the Kyrgyz economy on migrant remittances has become a decisive factor in the country’s entry into the regional association. Since remittances affect the income of the population and its purchasing power, the growth of the country’s GDP. Another advantage was the establishment of the Russian-Kyrgyz Development Fund. The Fund’s activities have had a positive impact on the country’s financial market, domestic production, employment, and the structure of the country’s foreign trade. The main disadvantage of Kyrgyzstan’s accession to the Eurasian Economic Union is associated with the low level of development of the country’s economy. There was no constant inflow of foreign direct investment into the economy of Kyrgyzstan from the countries participating in the integration association. The possible increase in agricultural exports to the countries of the Eurasian Economic Union, which was predicted before joining, has become unreachable. On the contrary, there were cases of unilateral closure of the border by Kazakhstan, there were cases of return of agricultural products from Russia and Kazakhstan. The thesis notes that Kyrgyzstan needs to use natural resources, hydro resources and tourism potential for the development of the country’s economy within the framework of participation in the Eurasian Economic Union. Kyrgyzstan’s membership in the Eurasian Economic Union is only five years old, it is too early to draw final and full conclusions and results about the real impact on the socio-economic development of the country.