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  1. 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 http://www.iaeme.com/IJM/index.asp 230 editor@iaeme.com
  2. 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 http://www.iaeme.com/IJM/index.asp 231 editor@iaeme.com
  3. 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; http://www.iaeme.com/IJM/index.asp 232 editor@iaeme.com
  4. 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). http://www.iaeme.com/IJM/index.asp 233 editor@iaeme.com
  5. 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. http://www.iaeme.com/IJM/index.asp 234 editor@iaeme.com
  6. Regional Transformational Processes in the System of Modern International Relations 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. http://www.iaeme.com/IJM/index.asp 235 editor@iaeme.com
  7. 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), http://www.iaeme.com/IJM/index.asp 236 editor@iaeme.com
  8. 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). http://www.iaeme.com/IJM/index.asp 237 editor@iaeme.com
  9. 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. REFERENCES [1] Balassa, B. The Theory of Economic Integration. Greenwood Press. Greenwood Publishing Group, 1961, pp.173-185. [2] Bieling, H.-J. European Financial Capitalism and the Politics of (De-) financialization. Competition & Change, Vol.17, No. 3, 2013, pp. 283-298. [3] Dzwigol, H., Aleinikova, O., Umanska, Y., Shmygol, N., Pushak, Y. An Entrepreneurship Model for Assessing the Investment Attractiveness of Regions. Journal of Entrepreneurship Education, 22, (SI1), 2019, 1-7. [4] Eppler, A., Anders, L.H., Tuntschew, T. Europe's political, social, and economic (dis-) integration: Revisiting the Elephant in times of crises, 2016 available at http://irihs.ihs.ac.at/4093/1/wp_143.pdf. [5] Filipenko, A. International economic disintegration: a methodological account, 2018 [6] Grande, E. Das europäische Imperium und seine Grenzen. In: Zur kritischen Theorie der politischen Gesellschaft. Festschrift für Michael Th. Greven zum. Wiesbaden: VS Verlag für Sozialwissenschaften, 2012, pp. 255-274. [7] Hiscox, M. J. Political Integration and Disintegration in the Global Economy: The Effects of Globalization on Incentives to Alter the Structure of Governance, 2001. [8] Hufbauer G. C., Schott J. J., Elliott K. A., Oegg B. Economic Sanctions Reconsidered. 3rd ed. Washington, 2007, D.C.: Peterson Institution for International Economics. [9] Katzenstein, P. J. Regionalism and Asia. New Political Economy, Vol.5, No. 3, 2000, pp. 353-368. http://www.iaeme.com/IJM/index.asp 238 editor@iaeme.com
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