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- International Journal of Management (IJM)
Volume 11, Issue 5, May 2020, pp. 230-239, Article ID: IJM_11_05_023
Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=11&IType=5
Journal Impact Factor (2020): 10.1471 (Calculated by GISI) www.jifactor.com
ISSN Print: 0976-6502 and ISSN Online: 0976-6510
DOI: 10.34218/IJM.11.5.2020.023
© IAEME Publication Scopus Indexed
REGIONAL TRANSFORMATIONAL
PROCESSES IN THE SYSTEM OF MODERN
INTERNATIONAL RELATIONS
Larysa Hromozdova
SHEE Kyiv National Economic University named after Vadym Getman, Kyiv, Ukraine
Yana Derbenova
Taras Shevchenko National University of Kyiv, Kyiv, Ukraine
Ihor Franiv
Lviv Polytechnic National University, Lviv, Ukraine
Volodymyr Darmograi
V.I. Vernadsky Taurida National University, Kyiv, Ukraine
Natalia Chechetova
O.M. Beketov National University of Municipal Economy, Kharkiv, Ukraine
Tatiana Chechetova-Terashvili
Simon Kuznets Kharkiv National University of Economics, Kharkiv, Ukraine
ABSTRACT
Modern international relations of the countries of the world depend to a great
extent on the challenges of globalization processes. International experience shows
that globalization is not a unidirectional and unambiguous process, and has the
potential to strengthen and weaken interconnections between countries and regions of
the world.
The purpose of the article is to determine the essence of regional processes of
integration and disintegration, their factors at different stages of globalization, to
guide the author's matrix model of periodization of disintegration activity in the world
in 1914-2018, to identify threats and opportunities of both integration and
disintegration processes in international economic relations.
The article proposes the author's definition of the categories "economic
integration" and "economic disintegration", and the paradox of the interdependence
and contradiction of these phenomena is determined. The results of a detailed study of
the key causes of regional economic disintegration are presented, and specific
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- Regional Transformational Processes in the System of Modern International Relations
historical examples of this phenomenon are highlighted. The factors of integration and
disintegration tendencies coexisting in the process of world development are
considered. Disintegration factors are formulated and systematized according to
institutional, political, legal, economic and socio-cultural dimensions. In the process
of proving the results of the research, the emphasis is on such dimensions of
disintegration as political, economic, social, examples of its manifestation in different
regions of the world are given.
Key words: Integration, International Relations, Globalization, Regional Economic
Disintegration
Cite this Article: Larysa Hromozdova, Yana Derbenova, Ihor Franiv, Volodymyr
Darmograi, Natalia Chechetova and Tatiana Chechetova-Terashvili, Regional
Transformational Processes in the System of Modern International Relations.
International Journal of Management, 11 (5), 2020, pp. 230-239.
http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=5
1. INTRODUCTION
In modern conditions, the process of globalization is experiencing both the tendencies of
strengthening and the weakening of interrelations and relations between countries. Each
historical period can be described as one that is dominated by integration or disintegration
tendencies. The analysis shows that any system of international relations is simultaneously
characterized both by integration processes and disintegration processes; in addition, modern
systems of international relations demonstrate a paradox of dissociation – the strengthening of
opposing trends: integration and disintegration. Deployment of an integration trend is always
associated with various disintegration processes, which are either its prerequisite, or
consequence, or accompanying it.
Integration and disintegration as a means of transforming the system of international
relations affect its foundations, are accompanied by a transformation of the structures, forms
and methods of economic activity, a change in its target orientation.
Entering into an integration association, countries significantly change the quality of
relations with subjects of the external environment and other participants. However, under the
influence of regional disintegration trends, national economies are experiencing periods of
systemic transformation of international relations.
2. ANALYSIS OF RECENT RESEARCH AND PUBLICATIONS
Special studies devoted to the problems of regional integration and disintegration are few in
the economic literature. Foreign authors in analyzing the disintegration of interstate
associations carry out historical analogies with the collapse of various multinational states and
empires that existed in Europe in the XIX-XX centuries. Scientists such as Viner J. (1950)
Röpke W. (1959), Balassa B. (1961), Lindberg Leon N., and Scheingold Stuart A. (1970)
investigated the essence and interrelation of the concepts of integration and disintegration,
features of these processes. Michael J. Hiscox (2001) investigated features and predictions of
disintegration in Europe, highlighted the positive and negative roles of supranational
institutions. Thomas Köllen (2012) examined the impact of enlargement of the EU on the
risks of disintegration, considered social, economic and political factors. Henrik Scheller and
Annegret Eppler (2014) studied dimensions and theories of European disintegration.
In economic literature, most theories devoted to international economic integration cover
various aspects of the creation and functioning of integration associations and their
implications for the development of international trade. Very relevant for the research are the
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- Larysa Hromozdova, Yana Derbenova, Ihor Franiv, Volodymyr Darmograi, Natalia Chechetova and
Tatiana Chechetova-Terashvili
processes of breaking ties between countries that function as integration systems – these
processes in the scientific literature called the economic disintegration. Western researchers
often consider the processes of economic disintegration from a practical point of view, and the
consideration of the theoretical foundations of the disintegration of the internal laws of
development of this process remains beyond the scope of their scientific interests. An
overview of the scientific, literary heritage indicates that the mutual influence of the processes
of integration and disintegration, the factors of regional integration and their influence on the
essence of the system of international relations needs further consideration.
3. OBJECTIVES OF THE STUDY
The purpose of the article is to determine the essence of regional processes of integration and
disintegration, their factors at different stages of globalization, to guide the matrix model of
periodization of disintegration activity in the world in 1014-2018 years, to identify threats and
opportunities of integration and disintegration processes for the system of international
economic relations.
4. MAIN RESULTS OF THE STUDY
Disintegration is the opposite of integration, the process of reducing the number and intensity
of system elements interactions - the process of decay, destruction, separation, isolation. This
process increases the relative autonomy and independence of the elements (Streeten, 1964).
However, it is impossible to consider each destruction, each disintegration because such
processes do not always lead to the fact that the elements of the decaying system acquire the
independent existence of the pre-integration period.
The essence of the term “disintegration” as the opposite of “integration” can be
formulated as separation into parts of the whole structure, weakening, and breaking of
connections in a single system. Consequently, if integration allows one to obtain benefits
from the unification of separate parts into a single whole (from the complementarily of the
economies of the participating countries), then disintegration weakens their mutual
dependence (Schweitzer, 1960). Integrative and disintegrative trends are present
simultaneously in each integration group (Filipenko, 2018). The dominance of the integrative
trends ensures its sustainable existence. Otherwise, the disintegration creates a threat to the
integrity of the integration association, which confirms the contradictions in the European
Union, which appeared during the global financial and economic crisis.
Further discussion of disintegration suggests understanding it as a process of deepening
economic boundaries, whose goal, in the context of the existing interweaving of national
economies, is to reduce the level of dependence on the negative effects of global economic
phenomena. It should be emphasized that disintegration does not lead to a simple separation
into the constituent parts since interconnections have been formed between them and the
interconnection of economies, the social and political sphere of national economies has taken
place (Eppler et al., 2016). Therefore, disintegration can only mean the transformation of the
links between the components of the previously integrated system, the loss of the stability of
these links and finds the need to find new forms of stabilization of foreign economic relations.
Manifestations of disintegration are varied:
increased differentiation of states;
reorientation of regional economic complexes to countries that are not members of an
integration association;
termination of the regional association;
fragmented economic space within the integration group;
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- Regional Transformational Processes in the System of Modern International Relations
withdrawal or suspension of individual members of an existing association,
a conflict between national and supranational interests.
Foreign authors in analyzing the disintegration of interstate associations carry out
historical analogies with the collapse of various multinational states and empires that existed
in Europe in the XIX-XX centuries. (Austro-Hungarian, USSR, Yugoslavia) – Bieling, H.-J
(2013), E. Grande (2012) or focus on the socio-political laws of the problem – Scheller H.,
Eppler A. (2016). Studies in the post-Soviet countries are more focused on attempts to explain
the collapse of the USSR economic stagnation, which occurred as a result of a centralized,
secretive, very inflatable bureaucratic management system. Thus, we propose to systematize
periods of intensification of disintegration processes and to find out their manifestations in a
particular historical period (Table 1).
Table 1 Matrix model of periodization of disintegration activity in the world of 1914-2018 years
Stages Characteristics of historical, economic and political events
I stage The period of decline after the First World War and the Great Depression (1914-1933 years)
The period of weak disintegration activity, in connection with the stability of the economies of the
leading countries of the world: the USSR and the USA; African countries achieve their independence
II stage
through anti-colonial struggle; cases of forced disintegration (Indonesian occupation of East Timor);
In Europe, the emergence of Euroscepticism (1934-1990 years)
The dissolution of the Council for Mutual Economic Assistance and the Warsaw Pact, the collapse of
the USSR.
III stage The process of the collapse of the Socialist Federal Republic of Yugoslavia and the formation of six
independent countries and a partially recognized country.
Georgia's Exit from the CIS (2008).
IV stage The global economic crisis and the crisis in the EU, CIS countries.
US position on NAFTA revision, suspension of Transatlantic (TTIP) and Trans-Pacific (TPP)
V stage agreements.
UK course to exit from EU after referendum (Brexit).
Integration cannot be considered a purely spontaneous process since the mutual adaptation
of national economies in the modern economy is unthinkable without a certain degree of state
intervention and appropriate regulation of the external economic sphere. It is within the
framework of the state policy that interstate agreements on the formation of regional
integration groupings are developed. Also, within the framework of the state policy, decisions
are made on joining the already existing groupings, and their main directions and mechanisms
of implementation are determined.
Integration associations have much in common. All of them are aimed at creating a wide
economic space, maintaining peace and stability in the region, strengthening its options in the
world, improving the quality of life of citizens. At the same time, they differ in time of
existence, the number of participants, degree of development of integration (Dzwigol et al.
2019; Olshanska, 2011). The nature of integration processes is largely determined by the
economic model operating in countries and the level of their socio-economic development.
Integration associations in the modern world have undergone certain changes (Fig. 1).
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- Larysa Hromozdova, Yana Derbenova, Ihor Franiv, Volodymyr Darmograi, Natalia Chechetova and
Tatiana Chechetova-Terashvili
The
European The
Union Others European
19% 26% Union
28%
NAFTA
7% CEDEAO
Others 1%
51% ACN
АSEАN 1%
8% Mercosur
4%
CIS
6% CIS
CEDEAO ACN Mercosur 4% АSEАN NAFTA
4% 1% 4% 4% 32%
Figure 1 The share of integration processes in the world in 2008 and 2018.
Thus, it is necessary to systematize the factors of disintegration tendencies, which will
enable to find out the causal relationships between internal and external processes in the
regional economy in the historical perspective and to identify the prevailing tendencies for
integration or disintegration in modern conditions (Table 2).
Table 2 Factors of disintegration
Levels of
Political and legal
disintegration Institutional dimension Economic dimension Socio-cultural
dimension
factors
Structure of
geoeconomic system.
Centres of Economic
Distribution of resources.
Imperfection of Global and Political Power. Clash of customs,
Competitiveness of the
Global level Regulatory Mechanisms The nature of the mentality,
regions. Cycle of systems
(WTO, IMF) relationship between traditions
development.
the centre and the
periphery of force.
Protectionism.
Incompatibility of legal
norms and laws of the
Supranational control and
integration association to the Historical,
limitation of possible
interests of all its cultural, and ethnic
The presence of instruments of the
participants. Inadequate peculiarities of the
The level of various explicit and economic policy of
perception of supranational development of
the integration hidden goals of the member states. Indicators
institutions by member relations between
association members of the of trade, investment,
states. Limitation of the the population of
association labour migration before
capabilities and functions of countries in the
and after the formation of
the states in making integration union.
the integration association
decisions on internal and
foreign policy
The level of political
The quality of the
and economic Differences in socio- The reluctance of
institutional environment in
influence and the economic development, the population to
the country. Preparation of
State-level coincidence of the structure of economies, accept other
the institutional system for
goals of different foreign trade, trade cultures and
the adoption and application
interest groups in the conditions of countries. migrants.
of supranational norms.
country
Let's examine in more detail the key causes of regional economic disintegration and
concrete historical examples.
The reasons for disintegration include the following: focused efforts of third countries
aimed at weakening the functioning integration group or its conscious split, global financial
and economic crises, military-political conflicts.
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External impact of third countries on integration processes between countries. Including in
the integration processes of the border territories of the adjacent states, the EU, as a stronger
side, seeks to spread its norms and standards there, to direct cooperation in areas that are
beneficial for themselves (Warleigh-Lack, 2006). It can be argued that to some extent, EU
cross-border programs are aimed at strengthening the EU's ties with the surrounding
territories and ensuring stable cooperation at the borders. This geopolitical approach is
particularly clear in EU relations with Ukraine, Moldova, and the Republic of Belarus.
Hungary, Romania, Lithuania are actively working in this direction. On the initiative of the
Polish side within the framework of the Eastern Partnership, within the next 10-20 years, five
eastern neighbours of the EU (Ukraine, Moldova, Georgia, Azerbaijan and Armenia) should
be prepared for joining the European Union through the approximation of their economic and
political system with the EU. At the same time, the EU has approved three indicative national
programs detailing the priorities for each country.
World crises, on the one hand, stimulate disintegration, but, on the other hand, strengthen
cooperation with active joint anti-crisis actions on the initiative of hegemonic countries
(Vollaard, 2008). This is confirmed by the experience of MERCOSUR, EU (Katzenstein,
2000).
Military-political conflicts hinder integration processes in the face of armed conflict,
which has been manifested in the territory of Cyprus, the former Yugoslavia, Abkhazia, South
Ossetia, Nagorny Karabakh. These conflicts have created a new phenomenon when one part
of the national-state formation is integrated into the EU, and the other is not (Cyprus). This
precedent has become the benchmark for some, reactionary, Moldovan leaders, for the partial
integration of the country into the EU without the Transdniestrian (Prydnistrovsʹka) Republic.
Losing the leader country of authority and support. Provided that the hegemonic country
no longer suits some of the participants, the search for new strategic partners begins. If, in the
process of integration, the leading country, according to other states, does not provide them
with the integration benefits from access to its capacious market, does not fulfil the role of
resource, technology and investment donor, tries to link subsidies in exchange for loyalty to
their initiatives or compliance the established rules (criteria) for the participants, then the
former partners of the association are beginning to seek new, more advantageous strategic
partners outside the bloc. This situation is explained by a number of factors.
Lack of real interest in cooperation, as former partners turn into competitors in the
markets of common space, because by virtue of similar structures, economies can export the
same type of products to the domestic and regional markets. Indicators of such disintegration
will be the reduction of the share of intra-regional trade, and the same structure of exports, the
prevalence of inter-sectoral trade, the prevailing development of bilateral relations (Vollaard,
2008).
The leader country oppresses its authority and the number of votes in making decisions in
interstate or supra-state institutions. CIS countries often blame Russia for dominating its
interests, and any initiatives of the Russian Federation to intensify integration often correlate
with the "restoration of the USSR". From the point of view of critical analysts from Central
Asian countries, integration in the Eurasian space is an integration of the countries of the
region with Russia, and under the integration processes in Central Asia meant the restoration
of the USSR in one form or another, which explains the predominance of disintegration
processes in the post-Soviet space and the failures of the free trade area (FTA) CIS (1994).
Change in geopolitical landmarks and development vectors. This was typical for the Baltic
states, the Visegrad Four, which saw a more promising orientation towards the EU. The
reluctance of Azerbaijan and Turkmenistan to decide on the issue of joining the CIS FTA.
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- Larysa Hromozdova, Yana Derbenova, Ihor Franiv, Volodymyr Darmograi, Natalia Chechetova and
Tatiana Chechetova-Terashvili
Loss of confidence in supranational authorities. Disintegration manifests itself in the
emergence of contradictions between the decisions of national and supranational institutions
in the integration union, the loss of confidence by the population, which does not feel
involved in decision-making and the ability to influence the activities of supranational
authorities (Köllen, 2012). According to a poll funded by the European Commission, in 2012,
only 1/3 of Europeans believed that their voice was important at the EU level (Pera, 2016).
According to the population of Southern Europe, the immediate causes of a decline in the
economy, mass unemployment, worsening living standards are cutting costs in order to reduce
the budget deficit to comply with Maastricht criteria. In this regard, in the wake of the crisis,
states that have doubts about the prospects of European integration or want to return to the
competence of the states previously transferred to the EU structures (Great Britain) appeal to
"national interests", causing a surge in nationalism and EU scepticism.
The behaviour of dissatisfied members of the group puts pressure on supranational or
intergovernmental bodies and, thus, on the whole system. Member States use two
mechanisms, that is, exit from unification and voting to express dissatisfaction that can trigger
processes or individual actions to reform the integration system (Pera, 2016).
The exit may be physical and institutional (non-participation or cancellation of
membership in any institution), voting – individual or collective petitions through appeals to
higher bodies with requirements for change in management or through expanding their role
and contribution to the affairs of the organization (Hiscox, 2001). These voices can be
expressed through official and unofficial channels for complaints, a system of representation.
To use the expression of dissatisfaction through voting causes not only reluctance to come
from unification, adherence to an organization, on the basis of solidarity, trust, sense of
community, identity, and uncertainty associated with the exit. The outcomes create an
uncertain situation for them, and the costs associated with leaving the existing group may be
more significant than the expression of the voice in the organization. Often, the exit from the
system leads to economic losses on such a scale that cannot be overcome by the possible
benefits of independent sovereign existence (Söderbaum, 2009).
Thus, the development of the integration system is based on the unity of the interests of
countries in one or another sphere of international relations, on the one hand, and overcoming
the contradictions that arise in the processes of a collision of interests and objectives of the
states or their groups that lead to disintegration, on the other.
Analyzing the globalization processes on the chosen factors, one should note the increase
in the frequency of manifestations of disintegration tendencies in the world economy since the
2000s, which is observed in the following phenomena:
growth of the number of restrictions on foreign FDI in times of crisis, in particular in 2008-
2009 and 2014-2015;
reduction of the number of concluded regional trade agreements since 2008;
Policy of protection of national industries, import substitution;
Exit countries from integration associations;
restrictions on branches and volumes of foreign investments;
reduction of foreign trade volumes (and, respectively, the index of openness of economies)
and investments from 2011;
Restrictions on immigration and obtaining work permits, a residence for foreign citizens.
It should be emphasized that, unlike integration, where each stage and manifestation are
recorded in the form of a normative document (memorandum, agreement, contract),
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- Regional Transformational Processes in the System of Modern International Relations
disintegration can occur in the integral system as a consequence of certain factors and not
necessarily obtain documentary expression. Political conflicts, a change in the cultural or
social vector of the country, in the face of an unstable internal situation, can lead to
disintegration within the country when certain territories or groups of the population intend to
separate themselves from it. Examples of such external and intra-regional disintegration
tendencies are mainly related to events in Europe: the UK's decision to withdraw from the
European Union, the strengthening of the positions of radical parties in the elections in France
and Germany, the results of the referendum on the Association Agreement between the EU
and Ukraine in the Netherlands, Permanent attempts by Catalonia to leave Spain and so on.
Similar processes occur not only in Europe. It should be noted the intention of the US
president to withdraw from the agreement on the association of free trade NAFTA (USA,
Canada, Mexico).
The considered factors of integration and disintegration tendencies intertwined in the
process of globalization can formulate the threats and opportunities that they generate at each
of the proposed stages of development (Table 3).
Table 3 Threats and opportunities of integration and disintegration processes for international
economic relations
Direction of
1900-1930s 1940s-80s 1990s-till now
influence
Increase the rate of spread of crisis
phenomena.
Sharpening of global problems of the present
A radical change in the concepts and
day (geopolitical, food, the balance of
components of national security.
Environmental and resources, international terrorism).
The Dependence of Global
technological threats to the Americanization of world culture.
Threats Competitiveness and Sovereignty on
safety of people and the Confirmation of the global regulatory role of
the Degree of Technological
environment international economic and financial
Development.
organizations.
The threat of sovereignty by
Intensification of international competition
supranational structures and
international financial organizations.
Unification of the system of human
Increased mobility of communication.
Activation of tourist flows, needs.
Reducing spatial and temporal obstacles for
study of cultural diversity of The emergence of a single
communications.
the world. information space and the ability to
Expansion of cooperation to world scale.
Opportunities Expansion of the volume and conduct transactions online.
Intensive inclusion in the structure of
attraction of virtually all Harmonization of standards
international business of small and medium
countries of the world into (technological, environmental,
enterprises.
trade statistical, financial), providing global
Internationalization of services and tourism
competition.
5. RESULT AND DISCUSSION
The contents of the journal are peer-reviewed and archival. The journal publishes scholarly
articles of archival value as well as tutorial expositions and critical reviews of classical
subjects and topics of current interest.
The modern system of international relations has entered the orbit of globalization – the
construction of integrational economic paradigms of transnational format.
The degree of development of integration, as well as its potential usefulness, directly
depends on the main socio-economic indicators of the region. The highest level of welfare is
observed in NAFTA (mainly due to the United States) and the European Union (Fig. 2).
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- Larysa Hromozdova, Yana Derbenova, Ihor Franiv, Volodymyr Darmograi, Natalia Chechetova and
Tatiana Chechetova-Terashvili
90 6
80 5.2
5 5
70
4.4
60 4
50
3
40 2.8
2.5 2.5
30 1.9 2
20
1
10
0 0
EU NAFTA АSEАN CIS Mercosur ACN CEDEAO
Figure 2 GDP per capita in countries included in the main integration associations, %
The current stage of the deployment of globalization processes is characterized by an
increase in the indicators of differentiation of states, conflicts of national and supranational
interests, which is reflected in changing the foreign policy directions of the most developed
countries of the world, focusing on protecting the internal markets and the interests of
citizens; intensification of multi-direction in the interests of the member-countries of
integration groups, taking into account their socio-economic changes; the way out or
suspension of membership in existing associations of countries. All these processes in the
global economy are signs of international economic disintegration, which manifests itself at
different levels of interaction – from the cross-border, between neighbouring states, to
supranational – between the integration associations of different regions of the world.
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