Category Archives: Eurasia

The Customs Union through the Eyes of Belarusian SMEs

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Russia, Belarus, and Kazakhstan formed a Customs Union in 2010 to integrate the three economies more by removing trade barriers across borders. The member states have shared a single economic space since the beginning of 2012.

The Institute of Privatization and Management (IPM) based in Minsk, Belarus surveyed 400 small and medium-sized enterprises (SMEs) in 2012 to understand better how SMEs view the Customs Union. The survey results showed that Belarus’ membership in the Customs Union poses challenges for small and medium-sized enterprises due to the difficulty of competing with Russian and Kazakh SMEs.

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Expanding Access to Information on Economic Issues in Kyrgyzstan’s Regions

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According to Freedom House’s Freedom of the Press 2013 report, Kyrgyzstan’s media environment remains ‘not free’ with little improvement in press freedom over the last ten years.

Though the situation is not as bleak as in the rest of Central Asia, when reporting on politically-sensitive issues in Kyrgyzstan, media outlets practice self-censorship to avoid threats or harassment. When reporting on economic topics, however, journalists often simply lack the skills or background to provide comprehensive analysis. As a result, the Kyrgyz public lacks information about important economic trends, events, and issues. As access to information is a crucial component of free societies, the poor information flow in Kyrgyzstan hinders the country’s democratic and market-economic transition.

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A Different Way to Experience International Law

 

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Maksim Karliuk is a CIPE-Atlas Corps Think Tank LINKS  Fellow serving at the Cato Institute.

This year I had a great privilege to serve as a judge at the International Rounds of the Philip C. Jessup International Law Moot Court Competition – the world’s largest moot court competition, with participants from over 550 law schools in more than 80 countries. The Competition is a simulation of a fictional dispute between countries before the UN International Court of Justice. The best teams worldwide qualify for the International Rounds, which are held yearly in Washington, DC.

In 2009 I was among such participants, representing Belarus at the International Rounds as a member of the team from the Belarusian State University. It was a great experience that allowed me to broaden my knowledge, practice real application of international law, acquire important skills, and meet the best international law students and professionals from around the world.

This time I was on the other side, which was a completely different but still rewarding experience. It is indeed inspiring when you see incredibly capable, intelligent, and skillful individuals pleading their case in front of you. No less outstanding were the benches of judges I was privileged to be part of – legal professionals from all over the world.

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Strengthening Economic Freedom through Microfinance

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Providing the poor with access to credit at reasonable interest rates does seem to be a panacea for alleviating poverty. With credit, a person can produce a good or provide a service that will generate an income with which basic needs can be met. Credit also allows a person to utilize their talents, skills, and initiative to fill a niche in the market, spurring economic and entrepreneurial growth in a community and country. In rural Guatemala, for example, a woman bakes bread every morning in a stove bought with a small loan and sells the loaves to a shop in her village. In Nepal, a man buys five water buffalo with a small loan and sells the milk each morning to his neighbors.

Though it is difficult to estimate the affect of such micro-entrepreneurial activities on a country’s overall GDP, the impact on individuals and society is immeasurable. Small loans stimulate private entrepreneurship and expand economic freedoms crucial to building a market economy and democracy. They empower the poor with the freedom to make choices regarding how they use and save their income. If spent on food, health care, shelter and education, individuals can more easily escape the poverty trap. Raising the income level and standard of living among the world’s poor also builds a middle-income class that is more able to participate in civic activities and demand greater accountability from the government.

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European Issues Discussed in America

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Maksim Karliuk is a CIPE-Atlas Corps Think Tank LINKS  Fellow serving at the Cato Institute.

Before coming to the U.S. for the Think Tank LINKS Fellowship, I presumed I would only be engaged with U.S.-based affairs (including political, economic, and regulatory issues). This was dictated by my general interest in these issues, but also by my desire to study how things work in practice in the United States so I could bring back practical lessons to my home country.

However, since my Think Tank LINKS fellowship started in January, I have found myself going almost exclusively to conferences, presentations, and panel discussions on European affairs. Many of the events feature prominent European and American speakers. The latest events I attended were with Madeleine Albright at Georgetown University Mortara Center for International Studies, where the former U.S. Secretary of State presented her new book, Prague Winter; the EU crisis discussion featuring former president of the Czech Republic Václav Klaus at the Cato Institute; a talk on the Transition in Central and Eastern Europe at the Woodrow Wilson Center for Scholars; and a presentation of a book on the Economics and Culture of Transition in Central Europe by the former Minister of Finance of Hungary Lajos Bokros. On its way is a talk on Portugal and the Euro Area with Portuguese Minister of State and Finance Vítor Gaspar at the Brookings Institution.

There is always an opportunity to engage in discussions at these events by publicly asking questions, or by having personal conversations with the speakers and many professionals that attend the events. I was happy to personally discuss one of my current research interests regarding the Eurasian economic integration process with Václav Klaus (hopefully) without any politically sensitive constraints. Klaus is generally very critical of integration processes which go beyond establishing free trade. In this respect he is a pronounced critic of the EU. In his view the Eurasian integration, which has seen the creation of the Customs Union and a Common Economic Space between Belarus, Kazakhstan and Russia, and heads to create the Eurasian Economic Union, is no different.

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Russian Businesses Learn Benefits of WTO Membership

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The World Trade Organization (WTO) welcomed Russia in August of last year as its 156th member — the last of the world’s large economies to join. The process, taking nearly two decades, had been steeped in anxiety and high expectations within Russia.

Now that Russian firms and their foreign counterparts can better grasp the practical consequences of WTO membership, corporate executives, entrepreneurs, and regional development officials are turning to the nuts and bolts of membership. Moscow-based CIPE partner the International Institute of Management for Business Associations (IIMBA) is at the forefront of these efforts, holding a raft of classes and webinars designed to help Russian businesses understand the promises and pitfalls of WTO membership. IIMBA is helping shape the discussion on the issue, taking a no-nonsense approach free of the sparring which grabs headlines having to do with U.S. agricultural imports and Russian rules benefitting the automobile industry.

betsy-headshotOn March 5, CIPE helped introduce a highly-informed U.S. point of view into IIMBA’s ongoing WTO series with a presentation by Elizabeth Hafner, Deputy Assistant U.S. Trade Representative for Russia and Eurasia at the Office of the U.S. Trade Representative. Hafner, based in Washington DC, first gave a presentation on  the benefits of WTO membership for Russian businesses via webcast from CIPE’s Washington office. She then took live questions from some of the 182 participants connected to the webinar from Kazakhstan, Uzbekistan, and a host of Russian cities including St. Petersburg, Volgograd, Moscow, and Ufa. Watch a webcast of the presentation.

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Georgia Justice Minister Outlines Reform Agenda

Georgia's Justice Minister Tea Tsulukiani is interviewed on Georgian television.

Georgia’s Justice Minister Tea Tsulukiani is interviewed on Georgian television.

In October 2012, Georgia’s parliamentary elections resulted in the unseating of the incumbent United National Movement party by the opposition coalition, Georgia Dream, with 55 percent of the vote. In the wake of the post-Saakashvili era, the newly elected government is working tirelessly to define the priorities for democratic reform, governance, and rule of law.

Speaking at the Carnegie Endowment for International Peace in Washington, DC on February 22, Georgia’s newly appointed Minister of Justice Tea Tsulukiani — previously a renowned human rights lawyer — outlined her agenda for judicial reform. Throughout her speech, transparency, accountability, and impartiality were stressed as cross-cutting themes for reform initiatives.

Three key reforms highlighted by Tsulukiani included: universal free access to laws and penal codes; inclusion of civil society and the private sector in the drafting of new legislation; and strengthening the position of the defendant before a judge in the criminal procedure code.

This attention to democratic reform of the judiciary was warmly welcomed by many, as Georgia’s judicial system is perceived as highly corrupt with little to no independence from the regime. It is nearly impossible for ordinary citizens to win a court case against the state – the acquittal rate in Georgia is a miniscule 0.01 percent. This stark statistic comes into the light when you consider the fact that there are 300 state prosecutors, yet only 33 defense investigators. What this means is that judges are provided overwhelmingly with evidence for the prosecution, rather than a balanced argument.

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