Aleksei Kudrin: the economy driver of the EAEU for the next 6 years is a digital integration

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November 29, 2019
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Integration associations are becoming a new pole of attraction for countries, and the Eurasian Economic Union (EAEU) can take on the role of one of the centers of development. The Chairman of the Accounts Chamber Aleksei Kudrin shared this opinion at the XIV Annual International Conference “Eurasian Economic Integration”.

He noted that trade is one of the key tools for global integration. In recent years, good exchange in the EAEU countries has grown faster than the global rate of increase. In 2018, mutual trade with Russia grew by 13%. However, now the Head of the Accounts Chamber sees risks in trade and currency wars that slow down the potential of global trade, which will affect the economic growth of the Union countries.

Moreover, according to the Chairman of the Accounts Chamber, the EAEU should increase its integration and mutual trade regardless of what is happening in the world. «Those who pursue a policy of common standards, technical requirements for products, food, and ecology will benefit more. We should understand what markets and standards we are affiliated with or if we take an active part and help to establish these standards», Aleksei Kudrin explained.

Aleksei Kudrin also dwelt on the incentives for the economic growth of the Eurasian Union. First of all, in his opinion, it is necessary to reduce the costs of resident companies of the EAEU. An equally important objective is the development of IT-technologies and digitalization. High-tech solutions are increasingly entering markets and are already setting their standards there.

«We should set a mission of the digital integration, creating joint projects in the field of technology and digital integration,” the head of the Accounts Chamber said. - This will be our driver in the next 5-6 years. According to our estimates, digitalization will provide up to a third of the increase in our performance and GDP in the next 6-10 years».  

According to Aleksei Kudrin, until 2025 a common financial market will be formed in the banking and insurance sectors. The securities market will be integrated, and the common oil and gas market will be implemented. Moreover, it is supposed to create a supranational financial regulatory authority. «Of course, it will not take on all the roles of the Central Bank and the Ministry of Finance, but it will create new opportunities and will coordinate more», he said