Presentation of a comparative analysis of existing models of the regional economy

Presentation of a comparative analysis of existing models of the regional economy

1. The most effective example of how integration promotes development is cooperation within the European Union. If Central Asia needs all-round economic development, it can and should be guided by the lessons of Europe. This is also favored by some parallels in the history of the integration of the two regions, based on which states can build a strategy for close regional cooperation. In addition, Europe itself can contribute to the development of regional mechanisms in the region.
2. Like the EU, Central Asia has vital sectors and resource gaps on which the functioning of the economy depends. In Europe of the last century, the production of steel and coal had to become accountable to a regional coordinating center in order to reduce tension between France and Germany. Having solved the problem of coal and steel, Europe began to integrate in the transport sector, then in trade, in agriculture, and so on. The “spillover” concept of E. Haas says that success in integrating one sector of the economy inevitably leads to success in another sector. In Central Asia, water use and energy supply are the stumbling blocks, and this is where regional cooperation initiatives have focused. Thus, if the countries of the region manage to mutually recognize that water is a common resource and resolve the problems of water use, they will automatically be able to agree on energy supply. If they integrate the transport sector, then this will force them to cooperate in trade and customs policy, etc.
3. In addition, there was a situation where, despite talk of unity, EU members also introduced non-tariff barriers to protect their economies from competition. This process has also materialized in Central Asia: for example, in 2000, Kazakhstan unilaterally abandoned tariff and non-tariff regulation of trade in Central Asia. In turn, the policy of Uzbekistan in relation to currency regulation also acted as a serious obstacle to integration.
4. The task of the EU, according to the researchers, is to promote a new regulatory and institutional framework to create a better business and investment climate in this part of the world. That is why Europe focuses on democratization and respect for human rights as important conditions for promoting economic diversification and liberalization. In response, Central Asia is also trying to liberalize certain sectors of the economy, with varying degrees of success. Despite all the contradictions in the policies of the countries of the region, the main agenda is always the development and growth of economic indicators, including the human development index. In this regard, Europe acts as a kind of value orientation for the peoples of Central Asia, which is also important for future relations between the regions.