Methods and types of the international economic integration

In the literature of the subject, two methods of economic integration are presented - functional method (liberal, free market) and institutional one (authoritarian).

The first o them, is a result of objective necessity and a natural outcome of development of manufacturing forces, while, in institutional method, usually predominate political motives.

Supporters of the first of mentioned methods - functional one- think, that, a right process of integration should come from working of market mechanism and competition, While, a role of international institutions, which come into being in the process of integration and the state, should be limited to elimination all obstacles in flow of goods and production factors. According to this method, countries taking part in the integration process, should not create close regional groupings, and the market mechanism should lead to integration of the world economy, in free market conditions, and at the same time, to increase complementarity between individual countries.

The second method of integration - institutional one - has more numerous group of supporters. By this method, the economic integration is coordination and then unification of economic politics of integrating countries. In practice, it means, that these countries give a part of their functions and competence in economic politics, to a common international integrative institutions.

Presented methods of integration, are theoretical solutions and none of them exists in practice, in a pure form. Real processes of integration go according to a method, which uses, in different level elements, typical for both functional and institutional method.

Speaking about methods of integration, it is worth to remind of basic models of international economic integration. The model of integration is a total shape of integrative grouping, containing its main charts, especially a division of competitiveness, between international and over national organs and governments of member countries. In the literature of the subject, there are presented two models of integration in the market economy: model of international integration and, the model of over national integration [2, p. 178-179].

In the model of international economic integration ( also called liberal no regulated model ), all decisions, concerning ties of a group of countries, are made only by national institutions, whereas, an international centre has only coordinative functions. Recommendations of international integrative bodies, are prepositions and suggestions, towards member countries, and the latter ones can, but do not have to submit them.

The model of over national economic integration (also called the model of regulated or institutional integration) characterizes a fact, that over national centre of integration, on the base of information, passed by national integration centers, makes decisions obligatory to economic subjects in member countries - enterprises and national integration centers. They take a form of directives and orders. A range of decisive competitiveness of over national integration center, depends on decision of member countries and during the integration process, there is a gradual transfer of bigger and bigger part of authorities, from national to over national centers [2, p.373-379].

In a context of taking new countries, with different level of social- economic development, to the integrative grouping, appears an idea of diversity integration. It is searching a new model of integration, which allows to agree basic targets and rules, accepted by all member countries, with aspiration of countries, less or more engaged in the process of integration. Models of diversity integration, appear both in political science and in economic theories of integration .

Among ideas of diversity integration, a special attention, need four conceptions: the model of many speeds, the model of changeable geometry, the model of individual options and the mode centre-peripheries.

The model of many speeds sets, that member countries accept the same targets, and realize the same politics of actions, but in different speed. The model of 'changeable geometry' appears also in a version of 'concentric circles', 'strengthened cooperation (partnerships)' and 'flexibility' one. This conception sets that more advanced countries, develop a wider cooperation, over normal integrative process. The model set on individual options, when it comes to a range of integration, called also ' Europe a la carte', 'integrative menu', conception is chosen Europe, allows countries to choose some programs and politics from obligatory law order, and resignation with the rest of them. The model centre-peripheries sets a division for countries of a core (avant-garde) , which are the main heart of economic and political development, and countries of peripheries (catching up ones).

A part of integration model, is a mechanism of integration. By a notion of mechanism of economic integration, you should understood rules of functioning of a market, in the integrative grouping. This notion contains functions of international market such as: international money, rates of currencies, international prices, international settlements, as well as, their connections with parameters of national markets. In the theory, there are two kinds of mechanism of integration -the mechanism of free market and the mechanism of regulated trade market [2, p.372].

In countries of the market economy, the main factor of integration is the mechanism of the market and competition. In economic practice, we speak about the regulated market mechanism. It means, that pro integrative politics and creation a grouping of integrative character go to facilitate of market mechanism working and a right direction or correction of its working.

In case of developing countries, where a mechanism of competition often does not work properly, to initiate a real process of economic integration, it is necessary to use other means. For example they can be: a trial to coordinate the economic development of a group of countries, free setting of chosen investments in the industry and infrastructure, coordination of chosen branches of economic politics, and, where it is possible and intentional, also gradual opening and joining national markets, in chosen branches of production.

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