Analysis of integration and disintegration in the digital age
Analysis of the causes of modern processes of disintegration and integration. The essence of globalization. The problems of the EU countries in the process of further integration. Regionalism and Nation-State Effect. The sovereignty of the modern state.
Рубрика | Международные отношения и мировая экономика |
Вид | статья |
Язык | английский |
Дата добавления | 14.03.2022 |
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Analysis of integration and disintegration in the digital age
Corina Gribincea, PhD, univ.lect., Free International University of Moldova (ULIM),
Susan khaldoun Kessei, student, Free International University of Moldova (ULIM)
Integration is a process that is multifaceted and dynamic.
In the modern world, integration and its opposite-disintegration-coexist or change each other concurrently at each point of the growth of countries and of integration associations. If incorporation, from the complementarity of the economies of the participating countries, makes the advantages of integrating disparate parts into a single whole, then disintegration weakens their mutual dependence. The new system of integration should ensure, in general, active human growth. The article explores the key directions of modernization that are appropriate to the Sustainable Development Strategy, allowing, through maintaining national identity and traditional spiritual values, a shift in the living conditions of the population. The processes for choosing life strategies, which is directly influenced by either integration or the other, are transformed by ideas about the environment, culture, and themselves. The task of disintegration is not only to oppose integration, but to create momentum for a new space for regional configuration. The processes of integration and disintegration in the world's modern political system are becoming more common. In a globalized world, the article analyses the key causes of modern processes of disintegration and integration. Due to internal and external causes, there are multiple forms and manifestations of disintegration. Some of the most important problems facing, for instance, EU countries in the process of further integration were listed, according to the findings of a poll sponsored by the European Commission. In summary, the article concludes that the key reasons for these problems today are the inconsistencies between the decisions taken by national and supranational institutions in the integration union, the lack of trust in the integration union by the EU community, which does not feel a sense of participation in decision-making, and the ability to influence the activities of supranational authorities. The threats of radical changes that can be associated with the erosion of local social and cultural identity, the devaluation of traditional spiritual values, etc., are also characterized by globalization processes and their complexities of incorporation into modern society.
Key words: integration, disintegration, regional integration, globalization, information technology (IT), human growth.
Інтеграція - це багатогранний і динамічний процес. У сучасному світі інтеграція та її протилежність - дезінтеграція співіснують або змінюють одна одну одночасно в кожній точці зростання країн та інтеграційних асоціацій. Якщо інтеграція, завдяки взаємодоповнюваності економік країн-учасниць, створює переваги об'єднання різнорідних частин у єдине ціле, то дезінтеграція послаблює їх взаємну залежність. Нова система інтеграції повинна забезпечити в цілому активне зростання ролі людини. У статті досліджено ключові напрямки модернізації, які відповідають Стратегії сталого розвитку, дозволяючи, завдяки збереженню національної ідентичності та традиційних духовних цінностей, змінити умови життя населення. Процеси вибору життєвих стратегій, на які безпосередньо впливає або інтеграція, або дезінтеграція, трансформуються уявленнями про навколишнє середовище, культуру та себе. Завдання дезінтеграції полягає не лише у протистоянні інтеграції, а й у створенні імпульсу для нового простору для регіональної конфігурації. Процеси інтеграції та дезінтеграції у сучасній світовій політичній системі стають все більш поширеними. Проналізовано ключові причини сучасних процесів дезінтеграції та інтеграції у сучасному глобалізованому світі. Внаслідок внутрішніх та зовнішніх причин існують різні форми та прояви розпаду інтеграційних об'єднань. Досліджено деякі найважливіші проблеми країн ЄС у процесі подальшої інтеграції згідно з результатами опитування, яке спонсоровано Європейською комісією. У статті зроблено висновок, що сьогодні головними причинами цих проблем є невідповідність рішень, що приймаються національними та наднаціональними інституціями в інтеграційному союзі, відсутність довіри до інтеграційного союзу з боку спільноти ЄС, що не вбачає сенсу участі у прийнятті рішень та здатності впливати на діяльність наднаціональних органів влади. Загрози радикальних змін, які можуть бути пов'язані з ерозією місцевої соціальної та культурної ідентичності, знеціненням традиційних духовних цінностей тощо, характеризуються також процесами глобалізації та складністю їх включення у сучасне суспільство.
Ключові слова: інтеграція, дезінтеграція, регіональна інтеграція, глобалізація, інформаційні технології (іТ), зростання ролі людини
Problem statement and analysis recent publications. The method of both integration and disintegration, which has no definitive typology, is difficult. The problem of integration research is directly linked to the real-world integration process, which recognizes general patterns, triggers, circumstances, and fundamental features of this phenomenon. The modern integration method must achieve active human development. This is the key standard and value of the modern world, and it also constitutes an institutional working structure according to the standards. Integration influences the growth trends of the developed world since global governance affects the global structure. This integration process, as opposed to the disintegration process yet these mechanisms, are closely associated. As new opportunities and new threats emerge in the contemporary globalizing community, this study aims to describe the complexities of the future of society with potential solutions.
There are not many special inquiries in economic literature dedicated to the problems of disintegration. From an economic point of view, it is noteworthy the work of Villard G., T. Kyleena, Ozmedir H., Etzioni A., dedicated to the research of the causes of disintegration patterns in the European Union countries.
In a globalized world, the article analyses the key causes of modern processes of disintegration and integration. Due to internal and external causes, there are multiple forms and manifestations of disintegration. Some of the most important problems facing, for instance, EU countries in the process of further integration were listed, according to the findings of a poll sponsored by the European Commission. In summary, the article concludes that the key reasons for these problems today are the inconsistencies between the decisions taken by national and supranational institutions in the integration union, the lack of trust in the integration union by the EU community, which does not feel a sense of participation in decision-making, and the ability to influence the activities of supranational authorities. The threats of radical changes that can be associated with the erosion of local social and cultural identity, the devaluation of traditional spiritual values, etc., are also characterized by globalization processes and their complexities of incorporation into modern society.
Research Methods
The study approach consists of evaluating direct and indirect knowledge sources. The main research information was acquired through direct observation of the philosophical, methodological, and socio-economic study methods of the processes. In addition to research institutions, journals, international books, and regional and international Internet information, secondary sources were information provided during previous research, from national, international, and mega-survey statistics.
Understanding regional integration
The history of regional integration is as ancient as recorded attempts to achieve the peaceful union of sovereign nations, efforts defined in the past under the words “federation,” “leagues,” and “alliances.” The question of whether ultimate authority rests with the central or the local governments was emphasized in the study of federations, whether the will to be a country was greater than the urge to be locally independent. The assumption in favour of the primacy of the political aims of the actors militated against raising the issue of whether practical issues could give rise to political consensus. The focus has been reversed after the end of World War II. Scholars (and many actors), impressed by government's constantly growing powers to deal with almost all facets of life, particularly economic welfare, began to be interested in exploring the link between business, social and technical transaction patterns and the growth of popular or converging goals among important actors. In addressing regional integration, questions of social structure, demography, migration, economic growth and psychological distance were added to the earlier concern with military and armament issues.
Western Europe, specific regional integration proposals (such as the Schuman and Pleven plans in 1950) aimed at building a possible political federation on the basis of a substructure of closer relations and common practical concerns created by institutional measures that combine certain vital sectors of the national economies and defence establishments have been established. Furthermore, as an unintended consequence of structural and programmatic patterns in the fields of defence and economic welfare, many common and centrally determined proposals emerged.
The initial tasks and powers of several organizations (such as the Organization for European Economic Cooperation, OEEC; the Organization of the North Atlantic Treaty Organization, NATO; the Organization of American States, OAS; and the Economic Commission for Latin America of the United Nations, ECLA) have proved ineffective and have led to unplanned development in functionally limited areas. In parallel, a new body of law established and governed new forms of practical transactions for the states concerned. With the failure of two frontal attempts to create a united Western Europe through a political federation (Council of Europe, 1949-1951; European Political Community, 1952-1954), the idea of “community” has gained broad currency, especially in the sense of ambitious efforts to use the process of economic integration and the development of “common markets” as a function of economic integration.
Then follows the actors in regional integration, like, in the initially merged economic sectors, expanding community aspirations are emerging among industrialists, dealers, and trade unions. As well as a desire to establish means of political influence over these larger problems, a desire to put as yet unintegrated but closely linked economic sectors under the central rules is manifest. Also, in the relationships between civil servants, national government departments, central banks and professional advisors, the mechanism asserts itself. No infinite sabotage of collective decisions is allowed by a commitment to the realization of negotiated economic objectives. Integration is advanced by the inability to stay away from the mechanism of governments and private parties outside of the framework of states undergoing integration.
Regionalism and Nation-State Effect
Regional integration is a mechanism in which neighbouring states enter into an agreement with a view to enhancing cooperation through shared institutions and laws. The mechanism by which two or more nation-states agree to collaborate and work closely together to achieve peace, prosperity, and wealth is also known as Regional Integration. In Maurice W. Schiff's (an economist with research interest in International Migration, International Trade & Regional Integration) book on Regional Integration and Growth, it is reported that there are some explanations why a country in a region makes agreements with other countries.
1) The urge of governments to tie themselves to better policies, like democracy, and to signal to domestic and foreign investors such binds.
2) A willingness to gain access to major markets more securely.
3) The forces of globalization are pushing companies and nations, through wider markets, to pursue productivity, to increase competition and to access foreign technology and investment.
4) The urge of governments to preserve hegemony by pooling it with others in economic management areas where the majority of nation-states are too small to behave alone.
5) A willingness to force the multilateral mechanism in selected areas to take quicker and deeper action.
6) A willingness to help stabilize and prosper neighbouring countries.
Joining a Regional Integration Agreement (RIA) inevitably requires some immediate influence over policymaking to be given up and some political sovereignty to be lost. However, some regional cooperation goes deeper than that, building institutions for shared decision-making. As the integration of the EU has deepened, for example, decision-making has gradually shifted away from the national capitals to Brussels, and much of the current debate is influenced by the assumption that the development of an integrated economic entity must inevitably follow some sort of political unification. By combining sovereignty, the members of the Regional Integration Agreement can by forming a united front against external pressures or by joining forces in international negotiations, be able to maintain and expand it thereby strengthening themselves. In addition, the voices of all small nations can be strengthened through regional cooperation. Owing to their poor bargaining power and high negotiating costs, these countries also face serious disadvantages in dealing with the rest of the world.
Economic development or economic growth can be influenced by regional integration as well. A nation with the highest economic level would have more influence and authority than other members of the world. In addition, it will improve competition in the tradeable goods market. The increased competition will lead to productivity gains, lower mark-ups and higher demand for inputs in these sectors, thus raising the relative demand for capital further. Integration can also influence capital goods prices. Lower tariffs and trade costs on imports of capital equipment may result in lower investment goods prices higher yield and accumulation rates. Increased competition from foreign goods could also promote greater productivity of the domestic capital goods industry.
As previously mentioned, regional integration will affect the territorial authority, the sovereignty of the nations, and the economic growth of the members. Indeed, cooperation in a region can have both a positive and a negative effect. As we know, regional integration members are not only a country with strong economic growth strength, but also a country that is still underdeveloped and needs to be helped by the other members. On the one hand, collaboration between countries will lead to rivalry so that each country can give its strength to be the best, by producing a better product than others, they can use all natural resources to prove their existence, authority and sovereignty of the nations. But as a member, this disorder may also have a detrimental effect on developing countries. While they have ample natural resources to be used, they are sometimes not ready and cannot compete with the wealthy nations. This is the problem, it is possible to ignore the poor and less power, so they were unable to compete with other countries and thus became more and more backward. However, the other effect is that trade globalization (free trade area) among the members is going to take place. Thus by establishing agreement and commitment between countries in regional integration, supranational activities such as in Asia (ASEAN) can be created when we want to go to other countries that do not need a visa as a prerequisite in one region (Southeast Asia). This will mean that there are no borders between the members of the organization anymore.
Results of Regional integration in The Modern World
Regional convergence has become an integral part of the global space of modernity. Nearly every nation is engaged in regional integration processes (economic, political, and sociocultural) in one way or another. The process of regional integration is understood in the broadest sense to be the development of a new group of diverse parts, the acquisition of a new quality of a single entity, and the creation of common spaces on this basis: economic, political, social, and cultural spaces. The development of stable ties between territorially separate economic systems (national economies) is an economic phenomenon of regional integration. The ideal and full integration of divided economic structures is probably essentially impossible.
Consequently, regional economic integration is not so much a result of a mechanism of increasing interconnection between national economies. In this regard, and as opposed to integration, disintegration refers to a process which is embodied in the reduction of countries ` economic relations, the breakdown of existing links, structures, and institutions, which contributes to the separation of economic systems that are already integrated. This mechanism enhances independence. At each point of developed countries and integration associations, both phenomena coexist concurrently in the industrialized world or alter each other.
National economies are experiencing phases of systemic transformations, becoming subsystems of an even more complex economic system. The disintegration of a large complex economic system, in line with the system approach, leads to the formation within it of several independent new systems, the operating and development can also lead to a new integration process. In turn, it is only based on the purposeful and organized actions of the economic agents of all the national subsystems, which have been, included in the integrated economic system that progressive growth. Processes of integration and disintegration are therefore closely related to each other. The first depends on the intensity of the causes, which not only contribute to it, but also counteract the tempo, direction, and types. If they start to dominate, they will disrupt the ongoing integration process, even if it has a traditionally justified and progressive nature.
Presentation of research results
The role of Human Conscience. The global economic challenges have already shown that involved in modernization is not just economics, politics, culture, but also the human conscience. Globalization gives rise to contentious issues and has a significant effect on the various levels of integration, especially regional ones. As a result, we have to rethink the methods for integration today. The traditional approach to regional integration research, centered on the rationale of the `Free Trade Zone - Customs Union - Common Market - Monetary Union' paradigm, no longer reflects contemporary globalization processes. The digital age needs to move forward in a new way!
For example, today the outflow of capital in the form of foreign direct investment plays an important role in the deepening of globalization. This is the key factor contributing to the driving force for the export of development processes outside national borders. It should be known that multinational companies account for the bulk of foreign direct investment, thus serving as the key catalyst of the processes of globalization at the various levels of leadership.
Regionalism is being along well with globalism nowadays, as previously discussed. Several facts suggest that regional economic systems, through intensifying contact between their institutions, lead to the more desirable inclusion of the global economy. The integration of nations with diverse levels of economic growth, with different characteristics of the economy and of foreign trade, based on the old frameworks of state control, poses major barriers to the creation of a shared economic region and needs better estimates of the impacts of globalization and integration on the country's economy and the implementation of self-development.
The growth of productive forces because of scientific and technological advancement triggers fundamental changes in the structure of social activity and the international division of labour.
Sovereignty in the modern time
The sovereignty of the modern state was founded in mutually exclusive territories in the Age of Globalization, and the concentration of sovereignty in nations. It is important to know about the effect of the Regional Integration Agreement on the autonomy of countries in order to preserve their presence and authority (sovereignty) in the light of developing globalization. To compete with other countries by using their influence or using the resources they have.
Political and Institutional Reasons
In the development of integration processes, political and institutional reasons play an active role: the same direction of the internal and foreign policy vectors of the united countries; the similarity of the political goals associated with the operation of the association; recognition of the need to move from mutual rivalry to the convergence of efforts to fight global competition; the timely transition to the supranational level of part of the national authority and the creation of supranational institutions; support for all segments of the population, etc.
The existence of a certain national agreement on the key issues of economic cooperation by the member countries is the most significant requirement for the evolutionary growth of regional economic integration.
Integration has internal mechanisms, self-development capacity, and relational growth. Such a `high amount' of positive factors can be gained. Also, the lack of such a “critical amount” of factors, on the other hand, triggers the process of disintegration today. Stable socio-economic growth and success in the foreign market have been achieved in today's developing world countries based on the functioning of the national innovation system. The primary objective of public policy is the formation of each state and the effective interaction of the elements of the national innovation system.
The Essence of Modern Integration and Globalization
The formation of a new international order is the dominant trend of the 21st century. A factor in the growth of modern society is the expansion of global knowledge. It allows positive transformation to be carried out and the current challenges to be solved.
In all areas of human life, information technology has become a force in fundamental changes. A new order focused on the transformation of information capital has been laid down by the world community. Through information technology (IT), individuals become part of the global community, able to communicate freely, and access real-time information. Information is interpreted into goods and services that transform economic, technical, and social growth. This is the conversion of information resources into information products and services in the modern world. The number of people working in the field of information services is one of the conditions for society's transition to the stage of information growth. In that case, the organization is regarded as informative if the rate reaches 50 percent. The digital system helps the economy to transition towards the massive use of advanced information technology. As a result, the market is formed of knowledge and information, which are the factors of production.
In accordance, there is mainly human capital in today's world, i.e. highly skilled scientists and engineers and exciting scientific and technological advances. In determining variable integration, the growth of international scientific and technical cooperation has become one of the most important factors. Capital consists of financial flows viewed as a global system and powered by digital communications. Thus, this digital information has become an important factor that provides stability and flexibility for post-industrial economies. Intelligence, along with natural resources, labor, and money, is a big asset and a modern unique resource that is commonly used in the world today (Fig. 1).
Fig. і. The results of a poll conducted by citizens of the EU countries regarding the persecution of the countries of the EU in the next 10 years
Disintegration's Core and the European Union (EU)
In terms of causes, there are the following types of disintegration: embedded, disintegration of multilevel structures, and the lack of a nation-kernel because of the leadership's loss of authority.
To begin with, the key aspect of embedded disintegration is the existence in the integration process of initially formed internal contradictions while forming an integration association that leads to the integration system's self-liquidation at a certain point. Moving on, a rise in the socio-economic, political, and cultural diversity, which creates difficulties for mutual benefits among participating countries, is the explanation for the disintegration of multilevel structures. Supranational interests, which are more generally defended by politicians, are at odds with the weaker participants' national interests or with the leaders' own national interests. The disintegration of the multi-level structure is reflected in the contradiction between the decisions taken by the national and supranational institutions in the integration union, the lack of a sense of participation in decisionmaking, and the ability to control the activities of supranational institutions. For example, following the lack of confidence of the EU community, just 1/3 of Europeans believe that their voice is relevant at the EU level, as per a survey financed by the European Commission. In this regard, states that challenge the prospects for European integration or risk the repatriation of national powers, historically shifted to the supranational structures of the EU, call for national interests, causing nationalism to increase.
The survey findings illustrate some of the most critical issues facing the EU;
1) Satisfaction with Europe's level of democracy. Most people expressed satisfaction with the degree of democracy in just one country-in Denmark. Countries are aiming for more integration where most people are not happy with the degree of democracy.
2) According to Europeans, it is doubtful that Britain will be the only nation in the next ten years to leave the European Union (Fig. 1).
3) It is doubtful that EU citizens will allow the UK to sign a free-trade deal with the EU after leaving the EU, which, as British citizens insist, won't involve the compulsory right of EU citizens to live and work in the UK. Most individuals feel that it is better not to enter into free trade agreements with the United Kingdom, rather than to agree to free trade without freedom of movement (Fig. 2).
4) The greatest problem for Europeans is immigration. For these four nations, immigration has been described as the most significant problem: the United Kingdom, Denmark, Germany, and Sweden. And this issue is considered less relevant only by Poland, Spain, and Romania.
Alexey Gromyko's Russian perspective & the impacts of the current pandemic on our globalised world. To Alexey Gromyko's Russian perspective & the impacts of the current pandemic on our globalized world: “There are decades when little happens. And there are weeks when decades happen” (Alexey Gromyko, 2020). The COVID-19 pandemic has proven this expression true. The pandemic has had a deep impact on politics, the economy, and public mentality. Some of the most dramatic changes we have seen in decades are currently facing society, providing us with challenges and opportunities to reassess long-held concepts, systems, and ways of being.
When we speak about the modern world economy today, we presume that political agendas exist in certain situations. In modern times, it is difficult to prevent this. Economic, technical, and information-based rivalry, among others, became prominent with the COVID-19 outbreak. Not unexpectedly, globalization has changed from a self-regulated economic mechanism to a political instrument used to counter rivals in the industry.
As of 2020, the primary issues that triggered the 2008-2009 recession have not been addressed. Only those issues were exacerbated by the pandemic. The global economy is suffering from asymmetrical shock, with supply and demand weakening concurrently. There have been tremendous injections of money to alleviate the effects of the pandemic. Toxic debts are once again accumulating. The US and its European allies' military decoupling persists. Generally speaking, systemic and structural developments in international affairs and global and regional governance are reinforcing the patterns that have been reinforced in previous years.
The replacement of global integration by regional integration is a key aspect of the new stage of globalization. Thus, regressive, higher-level disintegration processes are followed by rising demand at the lower, regional level for integration processes. Trade wars between the US and China, for instance, or limits imposed by the European Union on foreign investment, are part of global disintegration. In the shadow of the new EU Industrial Strategy, leadership in the European economy will rise, market mechanisms will become more distorted, and protectionism will grow to promote one's own competitiveness.
In December 2019, the current European Commission declared itself a diplomatic one. One of its key priorities has been to provide the EU, with the aid of the Green Movement, digitalization, and the new industrial strategy, with global leadership in international trade, legislation, standards, and benefit chains. The Green Deal envisages the EU's transformation into a `climate-neutral' zone by 2050. To accomplish this, many steps are expected by the EU, including the implementation of a carbon tax on the external borders of the Single Market and the development of a Just Transition Fund with a budget of approximately EUR 1 trillion. These preparations are in jeopardy due to the pandemic and the colossal cost of battling it.
The most recent actions taken by the European Union were On 29 October 2020, EU leaders met via video conference and addressed the need to improve the global effort to tackle the COVID-19 pandemic. They concentrated on policies for testing and tracing, and on vaccinations. Leaders agreed that testing and tracing are crucial to reducing the spread of the virus and will allow the situation to be better managed. They expressed opinions about how a standard approach to mutual identification, implementation and use of rapid tests can be progressed. They will work on the basis of a recommendation from the Commission presented on 28 October 2020 on research strategies.
On tracing, EU leaders addressed the interoperability initiative between the applications placed on the table by the Commission and worked on a generic Passenger Locator Type, which would also make tracing easier. The prospect of harmonising the length of quarantines was also discussed (Fig. 2).
On vaccinations, they highlighted four key areas for the growth of cooperation:
1) Proportional allocation of Member States.
2) Criteria for establishing priority groups.
3) Оrganizational problems and bottlenecks.
4) Correspondence with respect to vaccines.
Fig. 2. The results of a poll of EU citizens on the conclusion of the UK-UK Free Trade Agreement after its exit from the EU
integration globalization regionalism sovereignty
Conclusion
We should have a cohesive socio-economic policy, able to unite society and set the course of the “vector” evolution, to overcome the effect of the negative trends of globalization. The lack of an economic policy is the supreme issue of a society's evolution, contributing to the predominance of economic chaos. In the twenty-first century, the transition to modern national structural and institutional policies characterizes the key path of the evolution of public policies in countries with developed market economies, where government, business, and public institutions are partners in their growth and execution, each member having specific strategic decision-making rights and resilience.
In these circumstances, active efforts should be made to establish a national strategy for the development of a sustainable economic structure established jointly by government officials, companies, science and civil society organisations to define the most competitive business sectors capable of attracting the resources of Western multinational corporations and the most competitive ones. This is now possible for large companies of machinery, metallurgy and chemistry, which can combine under a single leadership and then transform to a vertically integrated structure. In particular, this is possible for the oil-processing and petrochemical industries, power generation and chemical companies to build sustainable, high- value-added manufactured corporations demanded in domestic and global markets.
Moreover, depending on theoretically high-quality human resources, private companies could engage more effectively in the development of new-economy systems gaining from the widespread use of current innovative advantages of information technologies. The steady convergence of the quality of the domestic macro-and micro-competitive climate and the expectations of entrepreneurial firms with equivalents on the world market is the true path to moving into the global economic field. The right to use the resources of the world market (including public enterprises) as systems already established (financial, innovation, investment, distribution, information, advertising, etc.) must be paid for, including through domestic companies, by selling stock market shares, in particular to foreign investors, as mergers and acquisitions have recently become successful instruments of acquisition. Given the intellectual strength of high-tech industries and products in human resources, like defence equipment one the transformations aimed at creating highly competitive companies can be carried out through the development of horizontally integrated corporate structures, although this implies more drastic restructuring steps.
Sustainable growth, in particular the modernization of the national technology infrastructure, should be one of the key priorities of the business community, with the doubling of state involvement and the need to establish and strictly implement economic reproduction legislation. In the sense of changing the conventional paradigm, this approach helps us to expose the details of value creation in modern society, to examine the role of local factors in ensuring the community's compensatory response to the dynamics of global change, to establish a theoretical and methodological basis for measuring the dynamics of regional integration processes. The value obtained of prospective state macroeconomic policies, in particular, the tax, credit, financial, fiscal, monetary, customs, and depreciation policy indicators that decide the factors for business development, are becoming increasingly important in taking the path of sustainable economic growth for the implementation of national structural policies.
Following a detailed study, with deeper integration at the regional level, additional stimuli may be achieved to reinforce mutual dependency within the EU. For example, owing to the corona crisis, the joint Franco-German initiative to establish, under the sponsorship of the European Commission, a EUR 750 billion fund to assist Member States may become the most relevant contribution to strengthening the federal elements of the EU.
Most recently, the first steps toward creating the European Health Union should be continued by the European Commission. New policies should, taking lessons from the current crisis, ensure better preparedness and response during the current and future health crises. They include measures to reinforce the EU system for health protection and strengthen the position of key EU agencies in crisis preparedness and response. A fourth contract was also approved by the Commission with the pharmaceutical companies BioNTech and Pfizer, which provides for the initial procurement on behalf of all EU Member States of 200 million doses, plus an option to request up to a further 100 million doses to be provided once the vaccine has proven safe and effective against COVID-19.
The historical process's practical effects take place in the context of the disintegration of a single system, and in the form of the introduction of a new type of system, that is, the alternation between the integration and disintegration processes. This conclusion is reinforced by the accumulated and modern world experience of setting up and ending the lives of multiple integration formations, and then the emergence of others.
Main Findings
The historical process's practical effects take place in the context of the disintegration of a single system, and in the form of the introduction of a new type of system, that is, the alternation between the integration and disintegration processes. This conclusion is reinforced by the accumulated and modern world experience of setting up and ending the lives of multiple integration formations, and then the emergence of others.
Without regional and global integration, the country has no other prospect of being an isolated closed economy, exchanging low-value-added agricultural and industrial goods for unpredictable prices of high-tech products and high- value-added intellectual services, born in the depths of competitive innovation by international companies.
Furthermore, qualitative changes (which give rise to the completion of the process of transition to a new phase of internationalisation) do not affect its material basis: the international social division of labour, the growing interdependence of national economies, the development of the material conditions for their economic integration, are still working as in the past. We learn that traditional internationalization tools of the world economy include:
1) Foreign exchange.
2) The export of resources.
3) The creation of collaboration between enterprises of different countries on the basis of contractual agreements and their transfer to the stage of globalization are complementary and depend on more radical methods.
The dominant role of local factors in ensuring the community's compensation response to the dynamics of global transformation is to promote the modernization of production and social infrastructure, implemented in the construction of transnational transport infrastructure, communications, energy, main pipelines, international science facilities, education, health, recreation, sport, all of them capable to bring the economy to a qualitatively higher level of social development. The direction of integration is determined by the idea of building an intellectually developed society, the basis of our economic strategy which should include the mechanisms of sustainable socio-economic development: the creation of a socially-oriented market economy; adherence to human values; creation of open economic structures; formation of systems of economic forecasting using knowledge about evolutionary laws; improvement of methods of state regulation of foreign economic activity.
We also understand that the creation of the integration system is dependent, on the one hand, on a convergence of the interests of countries in one or another field of international relations and, on the other, on the overcoming of the contradictions arising from the collision processes between the interests and objectives of some states or groups leading to disintegration. Interstate and supranational integration institutions have the challenge of catching and counteracting emerging mechanisms of disintegration in a timely manner. Experience demonstrates that because of the political will and joint efforts of leaders, most of the causes can prevent disintegration, leaving one party fortified incorporation out of the crisis, while others are demolished.
On the basis of maximizing integration, it can therefore be inferred that organisations must first be focused on the basic aspirations of the participating elites in order to extend their mission. While they do not need to share a deep consensus on ends or means, their aims must still be parallel or convergent. On the basis of different paths of thinking, they may achieve their agreement, and their ability to work together can be solely pragmatic or driven by sheer expediency. However, their principles must be sufficiently congruent in order to make possible, for solely instrumental reasons, collaboration in shared institutions. In a cooperative organization, elites lacking even this rudimentary exchange of ideals would prove to be unprepossessing partners.
There is general recognition that some economic and social policies would have to be harmonized; two examples are minimum wage legislation and corporate income taxes. However, it is agreed that within the context of a tightly integrated common market, very significant variations in some tax rates and in some social policies can be maintained. The high degree of economic interdependence fostered by a union, combined with a fixed-exchange-rate regime, clearly reduces one country's freedom to pursue a substantive employment policy that is independent of its partners. There is no way within a union to separate one country's balance of payments from the impact of inflation of that country's aggregate demand by currency depreciation or import-reduction tax and quota policies.
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