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On the Development of Regional Cooperation Between Russia and Mongolia

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On the Development of Regional Cooperation Between Russia and Mongolia On the development of regional cooperation between Russia and Mongolia Potaev V.S. ‐ Doctor of Economic Sciences, Professor of Buryat State University 1 The relevance of scientific research • In the current conditions of globalization and growing dynamism, the problems of the development of regions, in particular the border areas, come to the fore. The changes taking place in the functional component of the state borders necessitate the development of a new vision, a rethinking of a number of fundamental concepts, the development of conceptual bases for border development as an element of the national economy system. • For the Republic of Buryatia, this circumstance determines the urgency of analyzing the social and economic situation in the Russian‐Mongolian border regions at the present stage, identifying problems and inconsistencies in their development, and developing proposals for their solution. Territorial‐spatial studies of the economies of Mongolia and Russia show a deterioration in the structure of the economies of countries and the irrational concentration of productive forces in the regions, particularly in the border areas. 2 Purpose and objectives of research • The goal: to develop a set of measures and a mechanism to improve the development of social and economic relations between the border areas of Russia and Mongolia, which will allow to form an effective regional policy in the field of social and economic development of border regions capable of bringing international cooperation between the border regions of Russia and Mongolia to a new stage of development. • Tasks: • 1. Analysis of modern theories and concepts containing the scientific substantiation of conditions, factors and trends in the development of the country's border area; • 2. Study of interstate integration in the border area as a factor of increasing competitiveness and efficiency of the economy of the Russian Federation and Mongolia; • 3. Assessment of the current socio‐economic development of Russia and Mongolia at the regional level; • 4. Definition of the basic social and economic directions on problems of a border area of two countries; • 5. Development of a set of measures and a mechanism to improve the development of social and economic relations of the border territories of Russia and Mongolia. 3 Degree of scientific elaboration of the problem • The theoretical basis of our research is the scientific theory of the classics of economic thought, such as I. Tünen, V. Launhardt, A. Weber, A. Lesh, A. Smith, D. Ricardo, E. Heckscher and B. Olin, • As is known, foreign and Russian authors engaged in scientific research in the development of the regional economy: Alampiev P., Aleksandrov I., Anokhin A., Balshakov S., Valentey S., Granberg A., Gutman G., Zakharova E., Kolossovsky N. ., Lapaeva M., Nekrasov N., Novoselov A., Smirjagin L., Khasaev G., Shtulberg B., Jacobson L. et al. • The study of trade and economic ties between Mongolia and Russia, in conjunction with the problems of market transition and socio‐economic development of the two countries, are reflected in the writings of Russian scientists. Among them we can distinguish such names: Atanov NI, Mangataeva DD, Osodoev PV Namzhilova B.E. Kilgydai A.C., Damdin OS, Dabiev DF, Lebedev V.I. Sharaldaev B.B. A.A. Gerbov, A.V. Golikh, V.R. Nazirov, G.S. Yaskina, L.A. Anosov, M.E. Tregubenko, S.K. Roshin, Yu.V. Kuzmin, as well as modern Mongolian scientists G. Purevbaatar, T. Dorzh, D. Boldbaatar, C. Davadaorg, A. Davaasuren, P. Luvsandorj, D. Sergelen, N. Otgonsaihan, and others. 4 Methodological approach and methodic of research • In the methodological approach and methodic of research, according to the classification of A.G. Granberg, we proposed to distinguish three levels of borderland, on the basis of which it is expedient to distinguish the following characteristics: • Micro‐level ‐ settlements directly entering the state border and included in the border zone. • Meso level is administrative areas in the larger regions, part of whose external borders coincide with the state border, as well as enterprises and organizations operating within these regions. • The macro level is the border region as a whole. • The information base of the research is made up of legislative, normative and analytical documents of the state and municipal government of the region, data from the periodical press, Internet sources, and expert analysis results. 5 Regulatory documents governing the cooperation of Russia and Mongolia • "The Treaty on Friendly Relations and Cooperation between the Russian Federation and Mongolia" (1993), • "Agreement on border points and simplified communication through the Russian‐Mongolian state border" (1994), • "Agreement between the Government of the Russian Federation and the Government of Mongolia on cultural and scientific cooperation" (1995), • "Agreement between the Government of the Russian Federation and the Government of Mongolia on trade and economic and cultural cooperation of the Republic of Buryatia and aimag of Mongolia" (1998), • "Agreement on cooperation between border aimaks of Mongolia and the republics, regions, territories of the Russian Federation" (2000) • The Ulaanbaatar Declaration (2000), the Moscow Declaration (2006), • Declaration on the development of strategic partnership between Russia and Mongolia (2009), • "Agreement between the Government of the Russian Federation and the Government of Mongolia on the training of underage citizens of Mongolia in Russian educational institutions with additional educational programs aimed at conducting military training for underage citizens" (2010), • "An agreement between the Government of the Russian Federation and the Government of Mongolia on temporary labor activity of citizens of one state in the territory of another state (2012), • Medium‐term program for the development of strategic partnership between the Russian Federation and Mongolia (2016) 6 Table 1. ‐ Foreign trade turnover of Russia and Mongolia for 2012‐2016. ($ million) Foreign trade turnover Including: Export Import Year USD million rate of USD million rate of USD million rate of growth of growth of growth of chain (%) chain (%) chain (%) 2012 1927,0 +11,97 79,6 ‐17,34 1847,4 +13,71 2013 1623,6 ‐15,74 61,8 ‐22,36 1561,9 ‐15,45 2014 1610,9 ‐0,78 61,6 ‐0,32 1549,3 ‐0,81 2015 1097,9 ‐31,85 76,9 +24,84 1021,0 ‐34,10 2016 936,2 ‐14,73 55,8 ‐27,44 880,4 ‐ 13,77 7 Table 2. ‐ Structure of Russia's exports to Mongolia in 2015‐2016 (%) № Product group 2015 2016 Deviation 1. Mineral products 74,11 60,34 ‐ 13,77 2. Food and agricultural products 11,11 18,29 + 7,18 3. Machinery, equipment and 4,68 8,32 + 3,64 vehicles 4. Chemical products 5,04 7,17 + 2,13 5. Metals and metal products 2,52 2,42 ‐ 0,1 6. Other product groups 2,54 3,46 + 0,92 8 Table 3. ‐ Structure of imports of Russia from Mongolia in 2015‐2016 (%) № Product group 2015 2016 Deviation 1. Mineral products 81,34 75,08 ‐ 6,26 2. Food and agricultural products 14,70 18,83 + 4,13 3. Textiles and footwear 2,29 5,89 + 3,60 4. Machinery, equipment and 1,36 0,04 ‐ 1,32 vehicles 5. Other product groups 0,31 0,16 ‐ 0,15 ов 9 The border territories of Russia and Mongolia • The border regions on the Russian side are the Altai, Tyva, Buryatia, Zabaikalsky Krai, the Mongolian side ‐ the aimaks Bayan‐Ulgiy, Uvs, Zavkhan, Khuvsugul, Orkhon, Selenge, Bulgan, Hantiy, Dornod. • The Republic of Buryatia is bordered by aimaks Selenge, Bulgan and Khovsugul. In Buryatia the bordering regions with Mongolia are Kyakhta, Dzhidinskiy, Okinsky and Zakamensky. 10 Table 4. ‐ Socio‐economic indicators of Mongolia and the border regions of the Russian Federation (as of 01.01.2016) Territory, Population, Unemployment Density of thousand thousand rate, % population, square meters people. people / thousand. sq. m. km Mongolia 1564,9 3057,8 7,9 1,9 The Republic of 351,3 982,3 10,4 2,8 Buryatia Altai Republic 92,6 215,3 11,5 2,3 Tyva Republic 168,6 313,7 20,8 1,9 Transbaikal region 431,5 1082,6 10,3 2,5 Total for the 1044 2593,9 13,3 2,4 border regions of Russia 11 Normative‐legal acts of the Republic of Buryatia • Law of the Republic of Buryatia "On the implementation of certain provisions of the federal law" On the Basics of Cross‐Border Cooperation "on the territory of the Republic of Buryatia. Ulan‐Ude 08‐Nov‐2011 • Agreement between the Government of the Republic of Buryatia (RF) and the City of Ulan Bator (Mongolia) on trade, economic, scientific, technical and cultural cooperation December 22, 2003 • Agreement between the Government of the Republic of Buryatia (Russian Federation) and the Government of the ARVM (PRC) of 22.12.2003. February 25, 1999 • Agreement between the Government of the Russian Federation and the Government of Mongolia on cooperation between RB and Mongolia • Ordinance of the Government of the Republic of Belarus 07 November. Order of the Government of the Republic of Buryatia No. 729‐r of November 7, 2016 "On the provision of favorable conditions for the performance of export activities by foreign economic activity participants" • Ordinance of the Government of the Republic of Belarus on 23 June 2016 No. 356‐g .Order of the Government of the Republic of Buryatia No. 356‐r of June 23, 2016 "On approval of the Action Plan for the Roadmap for Promoting Goods Produced in the Republic of Buryatia to the Mongolian and Chinese Markets for 2016‐2017" 12 Table 5. ‐ Foreign trade turnover of the Republic of Buryatia (million US dollars) 2016 2012 2013 2014 2015 2016 as% of 2012 Total 1202,1 1463,1 1425,0 1680,2 1019,1 84,8 including: with far abroad 1056,1 1316,1 1331,5 1540,3 973,2 92,2 countries With Mongolia 45,2 42,2 33,5 32,2 34,6 76,5 with CIS 146,0 147,0 93,5 139,9 45,9 31,4 countries 13 Table 6.
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