ERI FEB RAS

The Russian Far East in the Asia-Pacific Region : Materials of field studies (24 October - 5 November, 2005 ; Khabarovsk) / edited by Minakir P.A. ; Russian Academy of Sciences, Far Eastern Branch, Economic Research Institute ; The Sasakawa Peace Foundation. - Khabarovsk : RIOTIP, 2006. - 48 p.

            The volume contains materials of field studies which took place 24 October - November 5, 2005 under the project by the Sasakawa Peace Foundation and ERI FEB RAS for investigating the problems of international economic cooperation between the Russian Far East and Asia-Pacific countries. The course of research has resulted in obtaining estimates of experts from research institutions in Singapore, Bangkok, Beijing, Shanghai, Hong Kong, and Seoul on the problems of economic policy and integration processes, energy security, environmental management of APR countries.

            The book is designed for a wide circle of Russian and foreign politicians and businessmen, researchers, graduate students, government workers.

            Key words: the Russian Far East, Japan, the Republic of Korea, China, Thailand, Malaysia, Singapore, Hong Kong, economic integration, energy security, free trade.

INTRODUCTION

     Integration relations of the Russian Far East with the countries of the Asia-Pacific Region have a considerable impact on the development of the region. The dynamics of the processes occurring in Russia is also reflected in the geopolitical and economic conditions of the region. The project The Russian Far East in the Asia-Pacific Region, initiated in 2004, is aimed at studying the processes and long-term consequences of the international economic cooperation between the Russian Far East area and the APR countries.

     The stage Strengthening Economic Ties between the Russian Far East and the Asia-Pacific Region is a logical follow-up of the Russian Far East in Asia-Pacific Region project. Its objectives and goals are to broaden and deepen the project tasks, as well as to consider a set of issues connected with the estimation of the potential and long-term dynamics of foreign trade and investment cooperation between the RFE and the APR countries, in particular  Northeast and Southeast Asian countries. Field studies have been given a special attention at this stage of research. The main objective of the research is a detailed account of new variants of cooperative relations of the Russian Federation and the Russian Far East with the APR countries and evaluation of the influence of the new factors and conditions on the scope and structure of the economic cooperation in context of the current economic condition of the APR countries and on the basis of the expertise of leading scientists and specialists in economy, energy and environment securities of the region.

     Two groups of researchers were formed to visit a number of countries and organizations of Northeast and Southeast Asia within the period from the 24^th of October to the 5^th of November 2005.

GROUP I : SEOUL, SINGAPORE, BANGKOK

In the course of the field studies, a group consisting of the Russian Academy of Sciences Far Eastern Branch Economic Research Institute (ERI RAS) researchers (doctor of economics Prof. S.N. Leonov, candidate of economics O.M. Prokapalo, and candidate of economics V.V. Kuchuk) visited a number of institutes and organizations in the Republic of Korea (ROK),  Singapore and the Kingdom of Thailand.

Seoul

• Korea Institute for International Economic Policy (KIEP),
• Presidential Committee on Northeast Asian Cooperation Initiative,
• Korea Transport Institute (KOTI).

In Seoul, discussions were held on the following issues: adopting a state strategy that would take into account integration of the ROK and the RF in the APR; the effect of the trilateral agreements about free trade (between China, Japan and the ROK) produced on the region and on the ROK; the prospects of the Tumangan zone development; free economic zones of the region; and transport infrastructure in Northeast Asia.

Singapore

• Institute of Southeast Asian Studies,
• National University of Singapore, Department of Economics.

Among the subjects brought up at the meetings with the staffers of the institute and the university, contemporary condition of the ASEAN grouping, economic growth in Southeast Asia, its future integration in and interaction with Northeast Asian (NEA) countries,  the potential role of Russia and her Far East areas as suppliers of energy resources to the region, were discussed.

Bangkok

• Chulalongkorn University, Institute of Security and International Studies;
• Chulalongkorn University, Institute of Asian Studies.

      In discussions with the workers of these institutions, formation of a regional policy and approaches to its gains assessment, as well as the issues of estimation of shadow economy in the forestry of Malaysia and the possibilities for cooperation between the RFE and the APR countries were addressed.

GROUP II:  BEIJING, SHANGHAI, HONG KONG, SEOUL

Group II, consisting of  Prof. Alexander Sheingauz, Dr. Elena Devayeva,  Dr. Victor Kalashnikov,  and Mrs. Valentina Buldakova, visited the following institutions:

            Beijing:

• Euro-Asian Social Development Research Institute,
• Development Research Center, State Council of the PRC,
• Institute of Geographical Sciences and Natural Resources Research,
• Chinese Academy of Sciences,
• Energy Research Institute, National Development and Reform Commission,
• Energy and Environmental Technology Center, Tsinghua University.

            The meetings were devoted to perspectives of economic cooperation between China and Russia. The Chinese representatives emphatically spoke of the need for a more distinctly outlined Russia's policy in regard to the Far East, and of the possibility of a substantial growth of  trade turnover between our countries, including natural resources imports. Also the perspectives of energy supplies from Russia to China were addressed in connection with the growing demand of China for energy resources, especially for electricity.

            Shanghai  

• Russian Studies Center, East China Normal University;
• Shanghai Academy of Social Sciences;
• Shanghai Institute for International Studies.

            At the meetings in Shanghai, geopolitical questions concerning the APR were discussed, also the possibilities of the creation of the East-Asian community, strategic groupings ASEAN+Korea, ASEAN+Japan, ASEAN+China, Korea, Japan, etc., and the formation of a Korea-China-Japan economic zone. Development of the Russian Far East and its integration in the APR were made conditional on Moscow policy-making activity, without which that development would be hardly feasible. Although representatives of Shanghai institutes often visit Russia, they know little of her Far Eastern parts. During one of the meetings it was emphasized that cooperation between our countries has good prospects, but the two countries' governments do not give sufficient attention to this opportunity, the level of bilateral trade being extremely low. Particularly broad perspectives are provided by natural resource imports. The issue of energy resources imports was addressed to a considerable extent.

            Hong Kong

• Department of Geography, Chinese University of Hong Kong,
• Department of Electrical and Electronic Engineering, the University of Hong Kong,
• Institute of Economics and Business Strategy, the University of Hong Kong

       Meetings held in universities of Hong Kong were conducive to a better cognizance of the Chinese power supply system and the country's growing demands for electricity. Possibilities of electricity supply from the Eastern parts of Russia, as well as geopolitical issues linked with the creation of the East Asian community were also discussed. On the whole, the meetings showed that Hong Kong scientific institutions limit themselves with researches related to the Hong Kong area proper and the islands adjacent to it. They know little of the RFE, although they do take a keen interest in it.

              Seoul

• Korea Energy Economics Institute,
• Korea Institute for Industrial Economics and Trade,
• Institute of East & West Studies, Yonsei University.

              At these meetings questions of the economic and energy condition in Korea were brought up. In addressing the relevant issues, the ROK showed its interest in expanding economic cooperation with Russia in context of formation of the economic community in the NEA, especially in the areas of natural resources, power supply, transportation and tourism.

              During the field studies, the participants of the project intended to identify the possibilities of the integration of the Russian Far East in the APR's economy, and to study the opinion of the local specialists about the way such integration may become a reality. The visit was useful and informative. The meetings and discussions resulted in a clear understanding of how scientists of the APR view geopolitical and economic characteristics of their region in the near future, and what role in shaping these characteristics is given to Russia in general and to the Far East in particular. As was clarified, the perspectives of the economic integration do not look too promising. In the APR, formation of various groups of countries and free trade zones  (ASEAN+3, ASEAN+China, Korea, Japan, FTA China-Korea-Japan, etc.) is considered, but  Russia's presence in them is not assumed. Neither Russia, nor its Far Eastern area is viewed in the region as a competitive partner, they are looked on rather as a source of raw materials, especially energy resources, for the region.

              In more detail the outcome of the field studies is described in the subsequent sections.

              On the whole, the research has been quite useful as it contributed to gathering relevant information, to sharing scientific ideas within the framework of the research tasks, and to  an establishment of new scientific relations.

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