Реферат: Stereotypes influences on economic relations between the European Union countries and Russian Federation

Actuality ofresearch

 The EU is themain source of technology, know-how and investment for Russia. As regardsforeign direct investment, companies from EU Member States are the majorforeign investors in Russia. The EU has a vital interest in promoting prosperityin its largest neighbor. The European and  Russian markets are fundamentallycomplementary: both the EU and Russia each have strengths that could be sharedto mutual benefit. The EU is a knowledge-based economy that, simultaneously,needs to lift its long-term growth prospects; while Russiais a high-growthemerging economy necessitating a knowledge base able to exploit its

historicstrengths in advanced science and technology. Trade and investment flowsbetween the EU and Russia are already significant but they tend to beconcentrated in sectors where barriers are low and regulatory systems arecompatible. For their part EU companies wanting to invest in Russia have oftenbeen held back by legislative and bureaucratic obstacles, as well as by high tariffs,for example on imported components. Such barriers reduce our sharedcompetitiveness. Negative influence of stereotypes on economic relations canform obstacle for economic collaboration.  Apparently both Russia and theEuropean Union will benefit from the increase of trade operations, investmentsand travel. Private capital cannot be locked by national borders, and moneytends to go to the regions that provide more favorable conditions, includingprotection of capital investments, and where profits are reputed to be thehighest. Russia's primary attention, therefore, ought to be attached toeliminating the obstacles obstructing the development of contacts andcooperation at any level — from reducing the duration of cargoes' and vehicles'customs clearing procedures to cutting the «red tape» in the relations betweenRussia and the European Union. So the EU and Russia are interested indefinition and destroying of stereotypes for successful business relations.

Problem ofresearch: Stereotypes influences on economic relations between the EuropeanUnion countries and Russian Federation.

Objects ofresearch: economic relations

Subject ofresearch: The influence of stereotypes on economic relations.

The aim ofresearch is to identify influence of stereotypes on economic relations betweenthe European Union countries and Russian Federation.

Steps to befollowed:

1.To identifystereotypes that influence economic relations between EU and Russia.

2.To find outconsequences of influence of stereotypes on economic relations between EU andRussia.

3.To find outa possible solutions for the problem of negative influence of stereotypes.

4.Toinvestigate results  of the first attempts solving  problem.

5.To makegeneral conclusion.


Researchmethods: Theoretical analysis and synthesis information.

Main body.

Step 1.Stereotypes that influence on economicrelations  between the European Union countries and Russia.

In spite ofpowerful impulses encouraging the development of strategic partnershiprelations between Russia and the European Union their future relations arelargely predetermined by the success Russia will achieve in its domestic systemtransformation, on the one hand, and by

the finalresults of the EU radical transformation, on the other. The uncertaintysurrounding the process of future democratic and socio-economic transformationsin Russia is viewed as the main hindrance in the relations between Russia andthe European Union. Since the 1990s

Europe hasexperienced serious apprehensions about the prospects of the democratic reformin Russia. All those apprehensions have caused many other problems in therelations between Russia and the European Union: absence of any strategic goalsin the EU-Russia relations which may create a risk of the growing gap betweenthe unifying Europe and Russia.

Theuncertainty with regard to the prospects of Russian democracy seems to havebeen induced by the following three factors. First, by the stereotypesjuxtaposing Russian and European values as incompatible. Second, by the Sovietsyndrome. Third, by the mistakes made by the Russian leaders in the past decade(the use of force for resolving Russia's internal political crisis in October1993; the warfare in Chechnya; implementation of controlled democracy) whichimpelled Europe to question Russia's adherence to democratic principles. The EUcountries, as well as Western countries as a whole, however, were not impartialobservers and they often showed neglectful and cynical attitude toward Russia'svested interests. On the one hand, they flouted the premise that Russiandemocracy could only succeed under the conditions of favorable externalenvironment instilled by them; on the other, they showed distrust to the futuredemocratic transformations in Russia giving preference to stability rather thandemocracy in Russian society. The absence of any long-term concept of therelations between Russia and the European Union and the strategic objectivesdetermining their current policies is viewed as the main obstacle preventingRussia and the European Union from working out the principles of effectivepolicy with regard to one another. The last reasonsare internal political development in Russia and fears of its Western partnersconcerning the direction in which it is moving. One of the most widely spreadWestern stereotypes is that there is an unfathomable, an almost genetic, gapbetween the Russian and EU values. It is said that Russians have an inbredtendency for authoritarianism. Large-scale study on the image of Russianbusiness abroad, carried out by the Center of Knowledge Management (CKM) of theMikhailov and Partners Company bears witness to the highly skepticalrelationship of the West towards all that is happening in Russia. Undoubtedly, there is an objective premise for this.  But at the sametime, the negative perceptions of many processes and occurrences in Russianbusiness are based upon antiquated stereotypes, the tendencies of mass mediaand unavoidable projections of the image of the country in the reputation ofits corporate citizens.  The fundamental factor currently determining theperceptions of Russian business abroad is Russia's image, which unfortunatelystill has a negative influence  In contrast to prominent foreigntransnational companies, Russian business is still not able to distance itselffrom its country's image because it does not have an image of its own.  Itis perceived in the West through the prism of many unfavorable stereotypes,some arising from the time of the “cold war” (the KGB, the enemy of WesternDemocracy, totalitarianism), some from the time of reform (criminals,corruption, the politicization of business, imperial ambitions), and othersduring the presidency of Boris Yeltsin and Vladimir Putin. A poll taken in 2003at the request of the Putin government highlighted the depths of theproblem.  Europeans were asked to name 10 things they associate withRussia.  Most of the audience named communism, the KGB, snow and themafia.  A single positive association — Russian art and culture — appearedlast in the list.

Themajority of those who took part in the recent survey, who are journalists forboth Russian and foreign publications, named corruption, the influence of statepower in all socio-intellectual spheres, the ineffectiveness of the legalsystem, totalitarian tendencies and tight control of information as keycomponents in the image of modern Russia.

The«YUKOS affair», the scandal surrounding the law on NGOs and the gasconflict between Russia and Ukraine have all had a negative impact on the imageof Russia, with state influence and totalitarian tendencies playing some partin these events.

Thereis however, a small audience that views Russia and its business differently.These are Western businessmen working on the Russian market or directors ofprojects with Western companies. They see the high lucrative ness of investingin Russian economics and the serious economic possibilities of Russianpartners.  However, this audience is limited to representatives ofprominent businesses connected to the fuel-energy and metallurgic industriesand the finance sector.  They are well informed in their spheres and donot add greatly to the public image of Russian companies in their owncountries. Besides the stereotypes of Russia and the country's image, thenegative view of Russian business in the West also stems from a lack ofinformation about companies, their public strategies and perspectives and, inparticular, the lack of outstanding persons (headliners).  Without such“ambassadors” and prominent public events Russian business is simplyuninteresting for mass publications and channels. The non-Russian perceptions of Russiaand the Russian culture are quite stereotype: «Russia is an unstable andin many ways backward country that needs to develop significantly before it canjoin the family of pluralistic, predictable Western states.» The Westernway of responding to this view of Russia is to take upon itself to educate theRussians, while another keep an arm’s length distance. The often highlyeducated Russians are naturally offended by the one-dimensional way theWesterners view them.


Step2.Consequences of influence of stereotypes on economic relations between EU andRussia.

Russiancompanies also underestimate the role of mass media in forming an image in theeyes of its foreign audience. Russian business therefore, until now, hasremained “a cat in the bag” and because of this is feared.  Fundamentally,its shape is formed de-facto by three figures: YUKOS, Roman Abramovich andGazprom, with the latter having the greatest influence at the current time. Theeffect of this is that too often Russian business is associated with the systemof political power itself in Russia. The “political” functioning of Gazprom (forexample, in the conflict with Ukraine) has a negative influence on its image asa business-structure. Many Russian players are actually capable ofseriously competing with Western companies and because of this must build areputation and form an image of their own in the eyes of the Western audience.Breathing upon Russian businessmen is not  personal problem but a problem ofRussia: that is a part of struggling the process of its entering the worldeconomic area, that implies disruption of its prestige and the direct damagingas excluding Russian companies from the international exchange involvesmillions of dollars that will not find heir way into the Russian treasury,reduction of production in Russia followed by unemployment and a threat ofsocial outbreak as a result. That is why Russia must fight the facts ofdiscrediting its businessmen on an official level. They in the West must know — Russia understands the true reasons of the libel campaign and will not tolerateit. Moreover media projects developed by Russian organs of power and directedtowards improving the image of Russia in foreign audiences are considered withskepticism.


Step 3. Possible solutions for the problem of negativeinfluence of stereotypes

Russiancompanies should not ignore the basic questions and specific demands of theforeign press, for it plays a key role in the formation of a reputation ofRussian business in other countries.  One of the possible solution for theproblem of negative influence of stereotypes is strengthening internationalcredibility or establishment economic contacts .The formation of four commonspaces can solve the this problem. St. Petersburg initiative, which providesfor creating four common spaces — a common economic space; a common space offreedom, security and justice; a space of cooperation in the field of externalsecurity; and a space of research and education, including cultural aspects. Support for democratic transformations and gradual extension of Europe'sstability and prosperity zone were laid in the foundation of the EU enlargementprocess. This inevitable process will involve a major reform aimed at factualabolition of national borders. The EU domestic market concomitantly envisagesmore pronounced external borders, unparticular, the Schengen Treaty. Thisprocess, however, is bound to have a bearing on Russia which lies outside theperimeter of the EU enlargement even though the EU has taken several steps inthat direction (the program «Northern Dimension» is the only European regionalprogram in which Russia is a full-fledged participant).

The EuropeanUnion emphasizes that the legal norms regulating the process of integration ofthe Central and Eastern European countries into the EU common market should notobstruct the ongoing reorganization of economic relations between Russia andthe Central and Eastern

Europeancountries nor inflict any damage on Russian economy. Russia's general anxietydue to the enlargement of the European Union is predicated by the fact thatthis process can further augment the gap between the EU and the Central andEastern European countries, on the one hand, and between Russia and theEuropean Union, on the other.

The idea ofthe four common spaces, and mainly the common economic space, is extremelyimportant in this respect. But the common economic space cannot be createdwithout the development of a free trade zone, at least in a distant future, asa fundamental prerequisite for dynamic economic interaction. Thus Russia willbe able to enhance their economic status on the world stage show consistencyand development of the Russian economy.

MoreoverRussia accession to the WTO will help solve many problems.

Cooperation inthis area aims at further integration of Russia into the world economy and atpreparation for Russia’s accession to the World Trade Organization  (WTO). The EUrecognizes the fundamental role that WTO membership plays in integrating Russiainto the world economy and in anchoring and consolidating Russia’s economicreforms.

Advantagesstemming from Russia’s accession to the WTO will be reciprocal. It will providemore stability and predictability, better terms of access, increased legalsecurity for

EU investmentsin Russia. Russian exporters will have guaranteed channels of exports to all EUmarkets and to other WTO members.

The other viewshared by various people both in the EU and in Russia purports that in view ofwidening and deepening of the European integration and with consideration ofthe new threats and challenges to European security the relations betweenRussia and the EU should be brought

to a highernew level of cooperation which the 1997   Partnership and Cooperation Agreementcannot provide. Such new level of cooperation could be attained through anAgreement on Establishing a Special Association between the Russian Federationand the European Union. This goal fully meets long-term interests of bothEurope and Russia. On the one hand, such an Agreement on Association perse doesnot imply Russia's aspiration to join the EU as its member. On the other hand,such an agreement would provide solid legal basis for the relations evolvingbetween the EU and Russia. It would contribute to the convergence of Russianand EU political, economic and legal systems; enhance sustainable developmentof their economies; promote further development of democracy in Russia, andensure closer cooperation of its parties in all directions including securitymeasures. The «special association» implies that the EU agreement with Russiadraws a distinct line between this and other agreements on association withconsideration of Russia's importance and status, its role in the termination ofthe «cold war,» as well as its input in the anti terrorist coalition.Undoubtedly, an Agreement on Association perse won't resolve all problems inthe EU-Russia relations but together with some other measures and programs suchan agreement would bridge the existing gap between the unifying Europe andRussia, which is likely to lead to the emergence of a new dividing line on theEuropean continent. The success of future partnership between Russia and theEuropean Union will depend on the impact which the processes of widening anddeepening of European integration, first and foremost, its institutionaltransformations in the enlarged European Union will have on its viability andits efficiency as Europe's primary international institution.


Step 4.Resultsof first attempts solving problem.

Finallya major difficulty in creating a corporate image in the West is a serious lackof people representing Russian companies in the public sphere. The frequency ofRussian companies and their directors being mentioned in prominent foreign presstestifies to the serious scarcity of “individuals” in the public sphere. Morerecently the formation of an objective economic premise to improve the image ofRussian companies has begun.  This is tied to the increasing number offoreign investors in Russia and the growing presence of Russian business andassets in Europe .During this process businesses not only need to deepen mutualtrust and establish stable connections but Russian companies must also moreactively and openly work with foreign mass media.  There needs to benewsworthy public figures, capable of eliciting an informal interest fromWestern audiences.

Thereputation of Russian businessmen is improving and this is connected with thegrowing number of companies known to Western audiences, the “acclimatization”of foreign audiences to the stream of news about Russian companies and thefavorable indices of Russian economics. Investors are ready to invest money inthe development of Russia.  The Russian stock market last year grew 80% and,in the opinion of investors, overcame risks.  This fact is, for many, moreimportant than the image of business and the country in which it isunfolding. But Russia's business structure and businessmen remain,all the same, on the edge of ambiguity.

The Partnershipand Co-operation Agreement (PCA) ,economic relations between the EU and Russia.It was signed in 1994 and entered into force on 1st December 1997. Under theterms of the PCA, Russia receives Most- Favored -Nation (MFN) status, wherebyno quantitative limitations are applied except on exports of certain steelproducts (which represent only 4% of bilateral trade). On 27 April, Russiaagreed to extend the PCA to the ten new EU Member States from 1 May 2004. The basis of the PCA is the shared principles andobjectives of the two partners: “the promotion of international peace andsecurity, support for democratic norms and

for politicaland economic freedoms.” It covers an extensive range of policy areas from tradeand financial cooperation through science and technology and education to thecooperation on the prevention of illegal activities.While the PCA created a framework for political dialogue, the most importantaspect for Russia was that it created a way to gain access to the EU market.

ThePartnership and Co-operation Agreement established a complex institutionalstructure for regular consultations.

Inthe economic realm the significance of the PCA was that it declared Russia tobe a “transit economy” which was a step beyond its earlier status of statetrading economy. In this realm the long term aim is to eventually establish afree trade area between Russia and the EU.13 Pointing in this direction, it didaway with most of the quantitative restrictions for Russian goods, with theexception of steel, textiles and nuclear material.

This is alsopart of the rationale behind the Common Economic Space, which should contributeto anchor Russia in the European and to fully benefit from the recent EUenlargement. At the EU-Russia Summit of May 2001, the EU and Russia launcheddiscussions on the establishment of a Common Economic Space. The main objectiveof this initiative, which covers essentially all trade and economic issues, isthe elimination of trade barriers between the EU and Russia mostly throughregulatory convergence. Indeed, regulatory convergence would allow economicagents to operate subject to common rules in a number of fields throughout theenlarged EU and Russia which represent a market of around 600 Millionconsumers.

The EU-RussiaSummit on 21 May 2004 has discussed the next steps to develop the four Spaceslaunched at the EU-Russia Summit in St. Petersburg in May 2003, and notably theneed to agree on an action plan on the Common Economic Space in the comingmonths.


Step 5.General conclusion

During our research we found thatthroughout the entire post-Soviet period, the European Union has been Russia’smain partner in trade and economy and will remain so at least until 2015-2020.The further expansion of trade with the EU is necessary for Russia indeveloping its entire complex of foreign-economic relations.

Apparentlyboth Russia and the European Union do not have the issue of Russia's accessionto the EU on their agendas because neither party is prepared to meet with sucha contingency. This issue, however, is frequently debated theoretically, and ithas its advocates and opponents both in Russia and in the EU countries,Russia's great dimensions being one of the principal arguments against Russia'smembership in the European Union: it will «always be too large for Europe.»

The advocatesof Russia's gradual integration into European structures contend, however, thatbased on its economic potential, its demographic trends and the evolution ofits armed forces Russia may soon be rated as an average European country.

Negativeperceptions of many processes and occurrences in Russian business are basedupon antiquated stereotypes, the tendencies of mass media and unavoidableprojections of the image of the country in the reputation of its corporatecitizens.  The fundamental factor currently determining the perceptions ofRussian business abroad is Russia's image, which unfortunately still has anegative influence

At the moment one of the main issues on theEU-Russia agenda is the expiration of the Partnership and Co-operationAgreement in 2007 and thus the need and the opportunity to rethink the basis ofEU-Russia relations. The two sides want the new agreement to reflect thechanges that have taken place in both entities and the new goals that resultedfrom these changes. Currently the two sides are only in the stage ofpreparatory work, while the formal EU position is expected by the end of 2006or the beginning of 2007. The basic principles will remain embedded in the newagreement as well.17 At the same time, the partners want to come up with asolution that would be “capable of promoting the future evolution of relations,including the perspective of enhanced trade and economic integration onceRussia has joined the World

Trade Organization  (WTO).” As it is possiblethat coming up with a new agreement may take longer than the old PCA is validfor, the two sides agreed to allow the document to stay in force until the newagreements comes into effect.

 
еще рефераты
Еще работы по экономике