East European countries East European countries outside Russiaoutside Russia
Economic GeographyEconomic GeographyI. International Business bachelor study programme (BA)I. International Business bachelor study programme (BA)Spring term 201Spring term 20144/201/20155..CUB Department of Economic Geography and Futures StudiesCUB Department of Economic Geography and Futures Studies
dr. Jeney Lászlódr. Jeney LászlóSenior lecturerSenior lecturer
[email protected]@caesar.elte.hu
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State of economic State of economic development of Ukraine development of Ukraine among the post-Soviet among the post-Soviet countriescountries
GDP per capita, PPP in the post-Soviet countries, 2010Source of data: Worldbank
0
5000
10000
15000
20000
25000
Estonia
Russian
Fed
eration
Lithu
ania
Latvia
Belar
us
Kaza
khsta
n
Azerba
ijan
Turkmen
istan
Ukraine
Armen
ia
Geor
gia
Uzbe
kistan
Moldov
a
Kyrg
yz R
epub
lic
Tajik
istan
curr
ent
inte
rnati
onal $
East European countriesOther successor countires
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Strong economic ties to Russia
SU times: countries were tied closely together After transition: UA and BY prefer greater
independence Old connections hard to break
– Eastern UA: most important iron and steelmaking region industries depend on: import oil and natural gas (mainly from Russia) 85% energy needs
– BY: heavy industry 50% of trade with Russia New connections difficult to form
– SU: developed heavy industry equipment was not kept up to date
33
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Economy of UkraineEconomy of Ukraine
Till 1970’s: belonged to the growth poles of the SU– Main supplier of food and heavy industrial centre– Share in the SU: 18,5% of population, 26% of coal production,
36% of iron industry– Heavy industry: 80% of industrial employment, 90% of
investments, 70% of production Conservation of bad economic structure after transition
– Role of heavy industry, agriculture remained– Critical dependency of oil and natural gas supply (from Russia,
Kazakhstan and Turkmenistan)– Soviet connections are hard to break, out-of-date firms are not
competitive Economic lagging
– Per capita GDP, 1990: 4700$ (94% of the SU average of the former SU) mid-position in the rank
– Living conditions (living area, salaries of employees, savings): also under the post-Soviet average
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Ukrainian EmploymentUkrainian Employment
Ukrainian employment– Manpower: 22.3 mn
But: unemployment rate: 2.7%
– Rate of skilled workers: 50% But: lack of management
– Sectoral composition: Employment: A: 25%, I: 20%, S: 55% GDP: A: 17% I: 43% S: 40% But: rising global prices for steel
– 2005: important changes
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Economic Geography of Economic Geography of UkraineUkraine
66
Ukrainian employment– Manpower: 22.3 mn
(unemployment rate: 2.7%)– Rate of skilled workers: 50%– Empl: A: 25%, I: 20%, S: 55%– GDP: A: 17% I: 43% S: 40%– 2005: important changes
Regional differences– East: Russian minority, heavy
industry more developed– West: Ukrainian majority,
Hungarian, Polish, Romanian minority
Regional development inequalities 2000
Better state of Belorussian economy
Russian: main trading partner
1991: Russian – Belarusian Federation
Cheap Russian oil and natural gas vulnerable
77
888888
Southern Caucasus Southern Caucasus (Transcaucasus)(Transcaucasus) Georgia, Armenia
– Mountainous (peaks above 5000 m)– Georgia: East Orthodoxy, Armenia: autocephaly
Christianity Azerbaijan
– More flat (Caspian Sea coast: areas below sea level)– Muslim stronger linkages towards Asia
Historical states– BC 100: historic Armenia: also East part of contemporary
Turkey (mount Ararat)– From the AD 1000 to 1200: Georgia– Turkish occupancy– Russian rulers till 1991
88
999999
Economy of Southern Economy of Southern CaucasusCaucasus In SU times (till 1991)
– Georgia: 90% of SU’s tea and citrus fruits– Armenia: fruits (mainly grapes)
2000s: steadily improved Economies suffered greatly from the ethnic
conflicts Increasing industrial and service sectors
– Black Sea: SE part of ex-’Soviet Riviera’ (Batumi, Suchumi)
Developing trading relationship with US, EU and Iran– Georgia: reduction dependency on Russia 99
Ethnic based conflicts and Ethnic based conflicts and their economic impactstheir economic impacts
1010
Area of Russian influences
Periods of Russification1) Early 1800s2) Soviet times
Permanent movements within the SU– Out-migration of Russians
to Belarus and Ukraine till 1989 to industrial concentrations
Share of ethnic Russians– Belarus: 13% (63% speaks
regularly Russian)– Ukraine: 22% Crimean
Peninsula, industrial areas of Eastern Ukraine, cities
– Russia: 82% (re-migration)1111
Russia: mixture of political units
52 % of the minorities: autonomous territorial units:– 15 national autonomous
republics– 2 autonomous districts
(okrug) Homelands in European
Russia– North Europe, Urals and
Middle Volga: relative higher share of Russians
– North Caucasus: Russian minority
90 numerically significant recognized nationalities– 55 nationalities without
republic status (homeland)1212
Official constitutional position of republics
1990s: the Kremlin gave up much of its power– Also other official language besides Russian– 1350 newspapers, 300 TV and 250 radio channels in 50
minority languages and also in the federal TV and radio broadcasting
– 75 minority languages taught in 10 thousand schools– Minority organisations (2000)
2000s: the Kremlin took it back– European Council: discrimination in legislation– Public actions are hampered– Lots of minorities are out of minority education– Lack of minority teachers, books– Maintenance of minority culture is insufficient
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Ethnic conflicts in Caucasus Region
Economic and cultural similarities: mountaineer identity
Ethnically and linguistically one of the most complex area of the World: Christians and Muslims
Russian control from mid 1800s Soviets divided minorities
– Karbardians (have more in common with Cherkessians), but grouped together with Balkars
– Division of Ossethians– Armenians in Azerbaijan
(Nagorno-Karabakh) War between 2 member states (Armenia and Azerbaijan) during the SU regime
– Azeri Exclave: Nakhichevan
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Resistance against Russian rule
North Caucasus: remained part of Russia– 1991: Chechnya also attempted its independence
2 bloody wars in Russia (1994–1996 and after 1999 more 100 thousand victims)
South Caucasus: independent states: Georgia, Armenia and Azerbaijan
Ethnic based tensions in the successor states– Georgia: Abkhazia (Abkhasians), South Ossetia
(Ossetians)– Azerbaijan: Nagorno-Karabakh (Armenians)– Moldova: Transdnistria (Russians)– Ukraine: East Ukraine, Crimean Peninsula
(Russians)1515
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Conflicts and closed Conflicts and closed bordersborders Georgia: conflict with Russia
– Abkhazia: occupied by Russia (entrance from Georgia)
– South Ossetia– Closed Georgian Russian border– Good relationship to the West (EU and NATO)
Armenia: conflict with Turkey and Azerbaijan– Armenian genocide by Turkey (not declared by Turk.)– Lost territories (Mt. Ararat) in Turkey– Karabakh question: Armenians in Azerbaijan– Closed Arm–Turk and Arm–Azeri borders– Good relationship with Russia
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