Running Head: A Study on the Asia- Pacific Region

The Prospects for Multilateral Cooperation in the Asia-Pacific Region in the Field of Economy,
Energy, Transport and Environment: A Study on Russian Integration in the Region

Pace University

ABSTRACTT

Asia-Pacific Region is the fastest growing region in the world for the past two decades.
Currently, the share of the Asia-Pacific region accounts for 54% of global GDP and 43% of the
volume of the world trade. This region is very diverse because it connects two civilizations, the
East and the West, wealth coexists with extreme poverty, and ancient traditions with high
technological development. Another notable feature of the region is that it includes countries
with different economic development and growth. On one hand, there are economic giants like
the United States, China and Canada. On the other, smaller states, such as Brunei and Vietnam.
Such long-term economic growth of the Asia-Pacific Region happened because of the
international integration processes and multilateral projects, which allowed most of the countries
make a serious leap in advancing sectors of the economy, along with increasing international
competitiveness. From this perspective, the integration processes in the Asia-Pacific region is a
great interest for research, because the growth of multilateral agreements in this subject is
accelerating quite rapidly. In 2000 there were 32 such agreements in the Asia-Pacific region, by
2010 their number exceeded by 200, among which 60 projects are at the stage of negotiations.

Introduction: The current position of the Asia-Pacific region: the economy, energy, transport,
environment

Asia-Pacific region consists of very different countries, and each in their own way is
wealthy, some countries are rich with natural resources, such as Australia and Russia, some are
advanced in the field of technology, such as Japan, South Korea. The aim of this research paper
is to examine the prospects for multilateral cooperation in the Asia-Pacific region in the field of
economy, energy, transport, environment, as well as assessment of the role and prospects of
Russia's participation in the region as it is being economically isolated by the western countries.
The objectives of the paper are:
A. Review and preliminary analysis of the current status in the Asia-Pacific region in the field
of economy, energy, transport and environment;
B. Review of the current status of multilateral cooperation in the area, including existing
integration associations, and assessment of the role of Russia in the framework of
multilateral cooperation.
Before looking at the current status of the study area, it is necessary to shortly get into the
history of the Asian-Pacific region, from the moment when it started its rapid economic growth.
The region began to flourish in the period after the Second World War. Although at the end of the
1940s, experts of the United Nations recently organized by the Organization believed that
economic growth in the region would be short-lived, they were wrong. In the early 1950s, Japan
began a sharp economic upturn (Mussa). Many experts at the time wondered what the
phenomenon was. Japan, after all, like many Asia-Pacific countries, was following traditional
economic development. However, it suddenly appeared at the peak of production rise. Here there
was a combination of two important factors: the adoption and implementation of the Marshall
Plan to rebuild Europe, which created favorable conditions on foreign markets, and the rise to
power of intelligent, educated and patriotic people, who set a new course for Japan's export-

oriented economy. At the same time, a movement for the quality of products , which began in the
struggle to be free from defects in products, has risen in Japan. Later, it evolved into a powerful
quality management system. All of this has strengthened the international competitiveness of
Japan and gave it a strong push for a new round of economic growth. After Japan, other countries
began to develop. South Korea, switched from import substitution to export-oriented model of
economic development, as well as Malaysia, Singapore, Hong Kong, Thailand, Indonesia,
Brunei, the Philippines, later called newly industrialized countries (NICs). Today, the AsiaPacific region is the fastest growing entity of the global economy. Many experts already consider
the region as the center of the global economy. If we analyze the situation, its pace of
development, it is obliged to active integration processes taking place within the Asia Pacific
region. Since 2000, the number of integration agreements exclusively grew within the subject of
the world economy has increased more than 6 times, with more than half of such agreements
relating to 60 major projects under negotiations stage (Renner). It is worth noting that most of
the integration agreements affecting the studied areas are two-way signed, allowing countries in
the Asia-Pacific Region to select the most suitable partners. The formation and strengthening of
integration groupings actively happens within the region. The goal is the creation of free trade
areas, customs unions, including the creation of common markets.
Currently, Russia is a potential partner for many major Asia-Pacific countries, primarily
in the field of economy and energy. Russia has a huge amount of natural resources, and its
domestic market in many sectors of the economy is very promising in terms of growth even
though the country is currently experiencing a decline in its economics. Such potential
cooperation is inextricably linked to the participation in integration associations of the Asia-

Pacific, with the most promising cooperation for Russia in APEC, in which Russia participates,
and ASEAN, in which Russia has recently participated as an observer.
The paper is mainly going to be concentrated on the questions, Is it possible for Russia
to develop its economics in the Asia-Pacific region due to its isolation and economic sanctions
by the western countries?
Economics
Overall, the Asia-Pacific region continues to make a significant contribution to the world
economy at the conclusion of the biggest recession since the Great Depression. It made a special
contribution to the Chinese economy with the GDP growth of 10.3% in 2010, the top five
ASEAN countries - 6.9% for the same period, and NIS countries - 8.4%. Among the ASEAN
countries, the crisis did not affect Indonesia that much, by 2010 GDP growth returned to its
previous level of 6.2% (FocusEconomics). As for Thailand, the situation with it was not easy:
despite the positive trends in the manufacturing sector, the country experienced a decline in real
GDP, as referring to the unstable political situation, the country has not received income from
tourism, which constitute a substantial portion of the national budget; but in the end of 2010, the
country achieved the economic growth of GDP at 7.9% (The High Cost Stability).
Energy
In the period of 2000-2020 years, global energy consumption is expected to grow by
approximately 1.5 times, with the fast-growing Asia-Pacific region which has a large part of the
energy consumption. In 2010, according to various estimates, the share of energy consumption of
Asia-Pacific countries was 27-28%. Despite such an active energy consumption, countries such
as China continue to face an acute shortage of oil, gas and coal to meet the growing needs of
their economies. Already, China is considered the most capacious and promising market of oil

and gas. In addition, currently the Asia-Pacific countries, in particular the countries of East and
South-East Asia are one of the largest LNG importers. This situation increases the pressure on
the geopolitical areas of carbon energy production. If we look at the current situation in terms of
energy resources, the most popular resources, of course, are oil, gas and coal. As for oil, starting
with 1965, oil consumption has increased by 6 times, while the development of its own deposits
only increased the production by 17%. The main suppliers of oil to Asia-Pacific countries is the
Middle East, namely Saudi Arabia, UAE, Kuwait, Iran, Iraq, Qatar and Oman, and this
dependence has created a special energy relationship between the two regions. The oil
consumption of the Asia-Pacific region is a key factor in the energy policy of the OPEC
countries, as well as on world oil prices. The countries-exporters of oil are currently only three
countries: this is Malaysia, Vietnam and Indonesia. A similar situation exists with the gas. For
this reason, the Asia-Pacific region is highly dependent on imports of energy resources. As
mentioned above, the main suppliers of the Asia-Pacific countries are OPEC member countries
in the region currently 75% dependent on imports from these countries, and this figure could
increase. In this regard, at present, some countries are in an effort to ensure its energy security,
looking for ways to diversify their sources of energy (Towards an Energy Plus). In this regard,
the most promising might be Russian counterpart in mind geographical proximity, as well as
significance in stocks of raw materials.
Transport
Regarding the transport sector, it is currently the most developed maritime traffic in the
Asia-Pacific region, and it is actively developing its air traffic which is necessary for the growing
number of tourists coming to the region. From the land vehicle, the most promising is rail, but
only on the mainland of Eurasia. Another direction is the development of pipeline transport, and

therefore there are great prospects opening up for Russia. Regarding waterway, currently the
most actively working in this direction, China, creating new major ports on the eastern coast, and
successfully implementing the projects on construction of sea ports in the DPRK (Democratic
Peoples Republic of Korea). Developed countries are most interested in LNG (Liquefied Natural
Gas) transportation, such as the Republic of Korea has the largest port in Busan, where three
LNG reception terminal built, and this activity will expand. Russia is also interested in the export
of liquefied natural gas to the east - is outside the scope of Strategy 2020, which clearly indicated
on the partners to diversify in energy exports, in connection with which Sakhalin is currently
being built two terminals by sending ships with LNG, planned construction of a third terminal
and a liquefied natural gas plant. However, not only thanks to one LNG in the study region the
development of water transport network: the region is a major global sea transport hub,
connecting the New World to the Old. The big push to the development of container freight ,
since it is here that produced a variety of types of goods, from electronics to cars and other types
of heavy industry, particularly in the countries of the NIS, and developing countries in Asia. On
the south side, namely from Australia and New Zealand, all over the world are sent to court,
specialized in the transportation of frozen meat, especially beef. Summarizing, we can say that
sea transport is one of the most popular and effective ways to cargo and passenger transport, and
is often almost the only way to reach some parts of the region where uneconomical to arrange air
travel, for example, countless island states.
Ecology
There are already international agreements in the world on compulsory reduction of
greenhouse gases among the participating countries. One of them was Kyoto Protocol. The Asia
Pacific region does not remain on the sidelines of this global problem, but the rapid growth of the

economies of the region's only obstacle to the fulfillment of norms and requirements of
international agreements. Heavily involved in this area of the developed countries of Asia and
the NIS countries, which during the years of rapid growth in the second half of the twentieth
century, has accumulated a large capital. These countries are currently involved in the invention
and introduction of energy saving technologies, technologies using alternative energy sources, as
well as very exotic projects that can help in the fight for the reduction of greenhouse gas
emissions worldwide. Such projects may include non-waste at home in South Korea, the island,
poured out of the garbage in Singapore, high-rise farm in Japan and other very interesting
projects, most of which are commercial projects.
The current state of multilateral cooperation in the Asia-Pacific Region
The region is going through integration processes. A distinctive feature of these processes
is that in the Asia-Pacific region has only one inter-state organization, which would set the
political, economic and ideological course of development of the entire region. Instead, within
the Asia-Pacific region, there are several regional organizations, each of which does not claim to
be the leader of the development of the most promising region in the world. At the heart of
multilateral cooperation and integration there is the desire of countries to have mutual assistance,
mutual benefit and good neighborliness with countries that are geographically, historically or
culturally close to each other.
Existing groups in the Asia-Pacific region and the prospects for the development of these groups
Each country has in abundance by various resources necessary for efficient and healthy
growth: some countries have the technology, while others have cheap labor, sub-third rich in
natural and mineral resources. In this regard, the integration processes are completely natural,
with the aim of really mutually beneficial cooperation, which allows many experts to look with

hope to the region, promising him prosperity and a great future. It should also be noted that the
integration processes are different from the processes that led to the unification of Europe and the
establishment of the EU as an essential factor in the development of integration processes is a
growing sentiment in favor of Asian solidarity, as well as search for the so-called pan-Asian
values, which corresponds to the Asian ideology are which is what is needed to take the best
that there is in the West and the East, and to combine it so that it turned into a benefit for the
Asian countries. Also it should be noted that in the framework of the Asia-Pacific subregional
integration formed ties based on geographical proximity and close economic policy, developed
over many decades, an example of which can serve as NAFTA (The North American Free Trade
Agreement), ASEAN (Association of Southeast Asian Nations) and ANZCERTA (Australia New
Zealand Closer Economic Agreement).
Russia's participation in the groups Asia-Pacific Region
Currently, Russia is a potential partner for many major Asia-Pacific countries, primarily
in the field of economy and energy. Russia has a huge amount of natural resources, and its
domestic market in many sectors of the economy is very promising in terms of growth. Such
potential cooperation is inextricably linked to the participation in integration associations of the
Asia-Pacific, with the most promising cooperation for Russia is in APEC, in which Russia
participates, and ASEAN, in which Russia has recently participated as an observer.It is worth
noting that the ruling Party of the Russian Federation, including the President, are interested in a
more active participation in the integration groupings Asia-Pacific region. By participating in the
Asia-Pacific regional groupings and developing multilateral cooperation with the Member States
of such organizations as ASEAN and APEC, Russia has several important goals. Firstly, in
cooperation with the APEC countries, Russia will be able to move away from excessive

orientation to the West: the US and EU. This point is extremely important in terms of deepening
Russia into the world economy and the diversification of its foreign trade partners. Second, the
gradual development of cooperation will contribute to the industrial development of Russia, in
particular, the industrialization of Russian exports, as in the region demand not only energy, but
they are the foundation of the Asian-Russian relations, but also the production of chemical
industry, nuclear energy, transport and telecommunications services. Thanks to cooperation with
individual countries, Russia will be able to effectively increase the competitiveness of its
technology and high-tech products and promote it in the world market. Third, in the Asia-Pacific
region rapidly developing multilateral cooperation. Already 221 agreement was signed in 2010
for 112 major projects, 60 of which are in the stage of negotiations. At the same time in 2000,
such agreements were only 32. Even if only based on these figures, we can say that in this region
strongly growing interest in cooperation with other countries, and such interest is far from
saturation. It is for this reason that Russia still has and will have the opportunity to prove himself
as an important partner in the Asia-Pacific Region. Currently, the most active countries in terms
of external cooperation are Singapore, Japan and Thailand. These countries have accumulated a
significant amount of savings and are potential investors, because the domestic market is
saturated with these countries. Promising areas include energy, transport and environment.
Russia's role in multilateral cooperation in the Asia-Pacific Region
Russia's participation in the integration associations of the Asia-Pacific region is
important in terms of the development of bilateral and multilateral economic relations. It will be
beneficial for all the countries participating in these associations: on the one hand, Russia will
get quite serious investment in its economy, and will also be easier access of Russian companies
to foreign markets in the region, and on the other hand, the corporation Pacific Rim countries get

deeper access the Russian market than companies in other countries, that will give an
incomparable competitive advantage in the development of the Russian domestic market, and, in
addition, will receive preferential treatment in terms of energy imports.
Conclusion
Thus, the Asia-Pacific region is the most dynamic and promising region in the world.
Many experts in the field of economy are predicting a new so-called Asian era when the study
region will stand at the head of the world economy, as well as the engine of scientific and
technical progress. In 2008, when the international financial crisis broke out, and in the coming
years countries in the region have shown a serious resistance to international shocks, which
confirms forecasts of experts. All this makes it relevant to study the prospects of multilateral
cooperation with the region, including prospects for Russia.
The current position of the region in the field of economy, energy, transport and the
environment is such that these areas are developing dynamically and attract an increasing
number of foreign partners, and we can confidently say that the thirst for cooperation in the AsiaPacific region is not saturated. In economic terms, the region makes a significant contribution to
global GDP, is the largest industrial and major financial center in the world. Sustainable
economic growth, as shown in the years of crisis, suggests that the region is making a decisive
contribution to the international community out of the crisis. As for energy, the region is a net
importer of energy, with consumption on the volume avoids many developed countries, and this
trend will continue until 2035. Currently, countries in the region are mostly trying to diversify its
suppliers, as recently more acute is the question of energy security. From the viewpoint of the
transport sector, the region has a major maritime hub in the world passes through it, one way or
another, more than half of all maritime cargo and passenger traffic. This is due to the fact that

most countries in the region are island states, so the development of land transport modes is
limited, and maritime traffic is the most beneficial way of transportation. However, many
countries have accumulated a significant amount of savings, and actively implementing them in
the form of investment in air traffic. The ultimate goal is to create an air transport hub of the
global scale, which would be an alternative way to the West and the East connection. Also, the
developed countries in the region to actively invest in the environmental sphere, as recently more
acute is the question of human influence on the environment, global warming, energy efficiency
and conservation. In this regard, compliance with the most stringent environmental standards,
participation in international agreements in the field of ecology is not regarded as just another
item of expenditure and a competitive advantage, as well as the consciousness of the people is
changing and draws this aspect a lot of attention. In addition, the environmental sphere is
inextricably linked to innovation and innovation development, since pushing to the study of new
technologies in the above sectors.
The special features of integration in the region can be attributed the fact that within it
there is a leading integration association. And the existing sub-regional integration associations
are based not only on territorial, historical and cultural proximity, but also on the real mutually
beneficial cooperation. Of course, this item is available for any integration organization, but in
reality most of them are pursuing the interests of the most powerful countries. And in this region
is really a lot of attention paid to the mutual benefit based including the search for the so-called
"pan-Asian" values, and the ability and willingness to invest in their partners.
Currently Russia's role in multilateral cooperation is not high, but the prospects for the
Asia-Pacific region for our country great. The main area of cooperation with Asia-Pacific
countries is, above all, the energy sphere. However, as the engine of cooperation in energy sector

affects greatly and many related areas, including the economy, transport and the environment. In
addition, Russia will be able to become a strategic partner in the implementation of major
multilateral projects in the aforementioned sectors. A distinctive feature of our country is not
only a wealth of natural resources, but also convenient geographical location, which will allow
us to develop land, sea and air modes of transportation.
Prospects for multilateral cooperation in the Asia-Pacific region in the field of economy,
energy, transport, environment, as well as assessment of the role and prospects of Russia's
participation in the region were discussed in this paper. I reviewed and analyzed the current state
of the Asia-Pacific region in the field of economy, energy, transport and environment. I also
reviewed the current state of multilateral cooperation, including the integration associations and
assessed the prospects of Russia's participation in these integration associations, as well as
existing multilateral projects in the field of economy, energy, transport and environment. Finally,
I analyzed and assessed the prospects for multilateral cooperation, including have been
considered and assessed the prospects of Russia in the field of multilateral cooperation.

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