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12/9/17

Eurasian Economic Union:  Many Problems, Few Solutions

The squabble between Kazakhstan and Kyrgyzstan was relatively petty, but the cracks that their dispute exposed in the Eurasian Economic Union, a trading bloc to which they both belong, are proving harder than ever to paper over.

In mid-October, days after the outgoing Kyrgyz president lashed out at his counterpart in Kazakhstan with a barrage of insults, a low-intensity trade row erupted. For a period of around six weeks, Kazakhstani border officials intensified checks on cross-border traffic, causing massive delays in the process. Fruits and vegetables piled high in idle vehicles on the Kyrgyz side of the border rotted, leading to significant losses for exporters. At one point, Astana also banned the import of a range of dairy goods from Kyrgyzstan.

While such disputes are not unprecedented in Central Asia, there was something especially awkward about this crisis, given that both countries involved are Eurasian Economic Union (EEU) members. Russia, Belarus and Armenia are the other members of the EEU.

Former Kyrgyz president Almazbek Atambayev, who in November concluded a six-year term as head of state, was livid that the EEU as an organization failed to get invol

For all Atambayev’s irritation, however, the reality is that the EEU in its current form, which has uneasily joined its five mismatched members in 2015, has few efficient mechanisms for tackling such situations. While the job should fall to the bloc’s permanent institutions, in practice members look to figures like Russian President Vladimir Putin to act as a power broker.

“The Eurasian [Economic] Commission has no power to settle disputes. If the problem gets too big, it will go to the level of the Supreme Council for resolution, which means Putin (alongside the other heads of state),” Sean Roberts, an associate professor at George Washington University’s Elliott School of International Affairs, told EurasiaNet.org in an email.

The primary shortcomings of the EEU were engineered unwittingly — or perhaps inescapably — into the bloc at its very inception. The most glaring issues are grossly unequal economies, the highly personalized style of semi-authoritarian leadership typical in the post-Soviet space and the reluctance by any members to yield any significant say over internal policy decisions to supra-national institutions. This combination, said political analyst Denis Berdyakov, will indefinitely hamper the development of the EEU.

“Initially, all the elites wanted to feel the benefits of integration, but they didn’t want to relinquish a share of political sovereignty,” Berdyakov said. “Other global blocs are quickly growing strong and the EEU is just not keeping up with them.”
 
Read moreL Eurasian Economic Union:  Many Problems, Few Solutions | EurasiaNet.org

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