Ukraine President Petro Poroshenko will speak in Sydney on 12 December at a Lowy Institute function:
Why is he doing this? And why it is a bad idea!
When trying to change a country or region it makes lot of sense to try to integrate economic goals with those political so that the two facilitate each other. But, there can be two types of problems in doing this.
One type of problem is that the economic and political actions are not sufficiently coordinated, with the result that there is under-achievement of both. The second type of problem arises when one type of action is intended and used as a way of forcing change in the other; and in this case there the results can be worse than underachievement – indeed, they can be quite destructive!
The basic idea of the work of Group 21 is that the Customs Union of Russia, Belarus and Kazakhstan should gradually become some sort of “Eurasian economic area” – and over the “longer term” become part of an eventual Eurasian economic and free trade area stretching from the Atlantic to Pacific Ocean. That is, it would eventually include the EU. There are several shorter-term goals, including some sort grouping mainly involving “CIS” countries which allows for macro-economic (including monetary policy) coordination, and regional reserve currency status for the Russian ruble. A series of steps are set out to achieve both shorter term and longer term goals.
Jeff says that ….