REGIONAL COOPERATION AND ECONOMIC INTEGRATION

REGIONAL COOPERATION AND ECONOMIC INTEGRATION REGIONAL COOPERATION AND ECONOMIC INTEGRATION

25.12.2014 Views

Macedonia REGIONAL TRADE AGREEMENTS AND REGIONAL COOPERATION Macedonia (Graph 5) shows different levels of relative total performance from the falling behind to the second line of developed category. Most cases – 9 indexes from 19 – are the catching up layer, which is the 16,5-33% of the best performances on OECD basis. The best relative performance the country expresses in economic freedom and human development; however the global competitiveness results are much more under the performance of other countries both in terms of the whole range in the research as well as of the selected ten countries. The relative material underdevelopment can also be seen in the GDP index of the Human Development Index. In case one links it to the sub-indexes of the GCI, it turns out that it is not the level of production which appears as bottleneck but rather the efficiency of production as well as its innovative potential. A high level relative performance appears in reducing the government size and environment stresses. Shrinking the role of state in the economy as well as liberalisation are important factors of transition; however these elements are quite far a distance from competitiveness, though the relatively better performance in human factors (education) and in the possibility to launch business are promising and may help increasing the performance of many fields that used to be produced by the state. The international rankings also reflect Macedonia in the contradiction of opening markets and enterprises poisoned with a relatively high level of corruption. The environmental factor improves the overall performance of the country; however it is worth noting that even if the natural and mental aspects of the environment are relatively well off, the social and institutional capacity of Macedonia to make use of the environmental advantages is quite low. Bulgaria Overall, Bulgaria (Graph 6) shows a performance one category higher than Macedonia: low middle layer. 4 indexes are in the high middle part or above, 5 low middle cases, 5 belong to the catching up category and in 4 cases the country is falling behind. These latter are all indexes of the global competitiveness. In the case of Bulgaria not only the efficiency and innovation factors are weak – which is a general feature of the region – but also the basic requirements. Romania is another example of relatively low basic competitiveness but in her case the innovation and efficiency factors contribute more to global competitiveness. Like in the case of Macedonia the environmental and economic freedom issues enhance the relative performance of Bulgaria on OECD basis. Bulgaria however shows better results in freedom to launch business, which is linked to a higher level of freedom from corruption. In terms of the environmental sustainability the natural reservation is either not supported too much with social and institutional capacities, though at a higher rate than in Macedonia. This better performance, however, goes together with a much lower level of global stewardship. In this respect the highest contradiction appears again in the case of Romania where a leading performance of environmental systems (81,4) and reducing environmental stresses (90,6) are blocked by the relatively lowest level of global stewardship and second lowest in social and institutional capacity. The human factor shows a quite interesting picture. Bulgaria has the highest score in the 65

PART I: Educational index of the Balkan countries (excluded Slovenia, which belongs to the leading team at OECD level too in terms of education). What is more interesting and promising that this human factor is linked to a relatively better GDP index, the highest again among Balkan countries (excluded Slovenia again, which is regularly debated as a Balkan country at the same time). The bottleneck of a human development lead model in Bulgaria can be the very low level of life expectancy, the lowest of all countries in the survey. CONCLUSIONS 1. The Lisbon Strategy is facing fundamental challenges in the coming years. On the one hand it has to find the way how to develop a knowledge based economy of high competitiveness on the wide interpretation of sustainability. On the other hand the Lisbon process should count with the further enlargement of the integration. The sustainability and enlargement processes demand new approach in quantification of the performance of the member states as well as that of the candidate countries. Our suggestion is the development of an indicator from international rankings (Relative Total Performance) that both expresses the different interpretations of sustainability with much background information as well as gives an opportunity for a comprehensive comparison of different countries. 2. The various international rankings reflect the values of the Euro-Atlantic world: their concept of modernisation as it had shaped during the past centuries together with the more up-to-date concept of sustainable development. Thus our respective statements and conclusions regarding the sustainability and catching up of the Balkan and East Central European economies and societies are only valid if interpreted within this set of values. The rankings themselves provide a certain picture, but their palette-type examination enables the indices of various aspects, based on relative performances, to provide a more uniform image; and the several hundreds of indicators behind the indices allow us to have a more detailed overview of the domestic processes as well as the international perception thereof. 3. By the Relative Total Performance of most of the indicators the discussed region belongs to the catching up and low middle range category on an OECD basis. However, it is important to stress that catching up does not mean an absolute level of economic output but a relative performance in terms of a wide range of indicators and hence catching up refers to structural features and efforts. As a general feature the survey shows that the Balkan region, even if on a solid level relative to OECD, has a stronger potential in the human and environmental factors than in the economic-technical environment. The differences in these factors are much smaller too among the countries of the research, though each reflects a unique structure and development model. 4. The above contradictions are further burdened by the fact that they do not appear in an improving international position. A significant part of the catching up energies of the countries invested into maintaining the competitiveness level: a typical feature of the catching up and middle range is the constant fight to get 66

PART I:<br />

Educational index of the Balkan countries (excluded Slovenia, which belongs to the leading<br />

team at OECD level too in terms of education). What is more interesting and promising<br />

that this human factor is linked to a relatively better GDP index, the highest again among<br />

Balkan countries (excluded Slovenia again, which is regularly debated as a Balkan country<br />

at the same time). The bottleneck of a human development lead model in Bulgaria can be<br />

the very low level of life expectancy, the lowest of all countries in the survey.<br />

CONCLUSIONS<br />

1. The Lisbon Strategy is facing fundamental challenges in the coming years. On the<br />

one hand it has to find the way how to develop a knowledge based economy of high<br />

competitiveness on the wide interpretation of sustainability. On the other hand the<br />

Lisbon process should count with the further enlargement of the integration. The<br />

sustainability and enlargement processes demand new approach in quantification<br />

of the performance of the member states as well as that of the candidate countries.<br />

Our suggestion is the development of an indicator from international rankings<br />

(Relative Total Performance) that both expresses the different interpretations of<br />

sustainability with much background information as well as gives an opportunity<br />

for a comprehensive comparison of different countries.<br />

2. The various international rankings reflect the values of the Euro-Atlantic<br />

world: their concept of modernisation as it had shaped during the past centuries<br />

together with the more up-to-date concept of sustainable development. Thus our<br />

respective statements and conclusions regarding the sustainability and catching<br />

up of the Balkan and East Central European economies and societies are only<br />

valid if interpreted within this set of values. The rankings themselves provide a<br />

certain picture, but their palette-type examination enables the indices of various<br />

aspects, based on relative performances, to provide a more uniform image; and<br />

the several hundreds of indicators behind the indices allow us to have a more<br />

detailed overview of the domestic processes as well as the international perception<br />

thereof.<br />

3. By the Relative Total Performance of most of the indicators the discussed region<br />

belongs to the catching up and low middle range category on an OECD basis.<br />

However, it is important to stress that catching up does not mean an absolute<br />

level of economic output but a relative performance in terms of a wide range of<br />

indicators and hence catching up refers to structural features and efforts. As a<br />

general feature the survey shows that the Balkan region, even if on a solid level<br />

relative to OECD, has a stronger potential in the human and environmental<br />

factors than in the economic-technical environment. The differences in these<br />

factors are much smaller too among the countries of the research, though each<br />

reflects a unique structure and development model.<br />

4. The above contradictions are further burdened by the fact that they do not appear<br />

in an improving international position. A significant part of the catching up<br />

energies of the countries invested into maintaining the competitiveness level: a<br />

typical feature of the catching up and middle range is the constant fight to get<br />

66

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