<?xml version="1.0" encoding="UTF-8"?>
<rss version="2.0"
	xmlns:content="http://purl.org/rss/1.0/modules/content/"
	xmlns:wfw="http://wellformedweb.org/CommentAPI/"
	xmlns:dc="http://purl.org/dc/elements/1.1/"
	xmlns:atom="http://www.w3.org/2005/Atom"
	xmlns:sy="http://purl.org/rss/1.0/modules/syndication/"
	xmlns:slash="http://purl.org/rss/1.0/modules/slash/"
	>

<channel>
	<title>Amber Bridge Fund &#187; Sweden</title>
	<atom:link href="http://en.abfund.org/?feed=rss2&#038;tag=sweden" rel="self" type="application/rss+xml" />
	<link>http://en.abfund.org</link>
	<description>Amber-Bidge</description>
	<lastBuildDate>Tue, 08 Mar 2016 21:48:18 +0000</lastBuildDate>
	<language>en-EN</language>
		<sy:updatePeriod>hourly</sy:updatePeriod>
		<sy:updateFrequency>1</sy:updateFrequency>
	<generator>https://wordpress.org/?v=3.9.40</generator>
	<item>
		<title>Features of innovation policy in developed countries of the Baltic region</title>
		<link>http://en.abfund.org/?p=1089</link>
		<comments>http://en.abfund.org/?p=1089#comments</comments>
		<pubDate>Mon, 29 Jun 2015 19:59:11 +0000</pubDate>
		<dc:creator><![CDATA[Admin]]></dc:creator>
				<category><![CDATA[Amber Bridge. Journal of Regional Studies]]></category>
		<category><![CDATA[№2 (5) 2015]]></category>
		<category><![CDATA[Denmark]]></category>
		<category><![CDATA[Finland]]></category>
		<category><![CDATA[Germany]]></category>
		<category><![CDATA[Innovation]]></category>
		<category><![CDATA[Innovation Policy]]></category>
		<category><![CDATA[Norway]]></category>
		<category><![CDATA[Sweden]]></category>

		<guid isPermaLink="false">http://en.abfund.org/?p=1089</guid>
		<description><![CDATA[Mikhaylova Anna Alekseyevna – Ph.D. student, analyst of Marketing and Analytics Division, Office of Development and Strategic Planning, Immanuel Kant Baltic Federal University, Russia  The study examines the characteristics of the formation and implementation of national and regional innovation policies in the developed countries of the Baltic region: Denmark, Finland, Germany, Norway, and Sweden. Building [&#8230;]]]></description>
				<content:encoded><![CDATA[<div class="page" title="Page 102">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><strong><span style="color: #4c4c4c;">Mikhaylova Anna Alekseyevna </span><span style="color: #4c4c4c;">– Ph.D. student, analyst of Marketing and Analytics Division, Office of Development and Strategic Planning, Immanuel Kant Baltic Federal University, Russia </span></strong></p>
<p><em>The study examines the characteristics of the formation and implementation of national and regional innovation policies in the developed countries of the Baltic region: Denmark, Finland, Germany, Norway, and Sweden. Building on in-depth case studies of the given countries, the author has conducted retrospective analyses of the processes of formation of the innovation policy, which is treated as a result of combining the individual instruments and mechanisms of the scientific and technological, educational, industrial and regional policies in a single set of influence on the innovation system. The article assesses the innovation development of Denmark, Finland, Germany, Norway, and Sweden; it presents the current scheme of their national innovation systems with a special emphasis on the most significant actors. The author highlighted the key trends and characteristics of the innovation policies of the given countries at the present stage with a focus on the tools used in five thematic areas: education, basic science, applied science and entrepreneurship, regional development, internationalization. Additionally the paper highlights the issue of regional participation in the process of strategy elaboration and subsequent implementation of the chosen course of innovative development.</em></p>
<p>&nbsp;</p>
<p><strong>Introduction</strong></p>
<p>The interest in innovation as a source of economic development and welfare of the society began to form in the beginning of the twentieth century under the influence of scientific ideas developed by A. Marshall, JA Schumpeter, ND Kondratyev, P. Sorokin, S. Kuznets and other outstanding scientists of that time. Addressing the multi-faceted innovative economy, complex in its multidimensional image, researchers throughout the twentieth century set themselves the task not only to grasp the essence of the phenomenon of innovation and scientific category, but to identify a set of spacial-temporal, institutional, social, cognitive and other regularities of innovative processes and its impact on the development of territorial socio-economic systems of different level and scale. The fundamentals of the innovation theory evolved in close connection with the development of theories and concepts focus on the cyclical nature of the processes in the economy, specific placement of productive forces, international division of labour and competitiveness, internationalization, regionalization and territorial capital.</p>
<p>Since the end of the twentieth century there is a growing need for applied research that can create and enrich the knowledge base for political decision-making in the field of science and technology, and also innovations. There was a number of scientific concepts, that to some extent were reflected in the strategic and program documents, securing the long-term objectives and priorities for national and regional innovation development, that acted as a basis for the development of mechanisms and tools of the innovation policy. The most common were concept of clusters, national and regional innovation systems, triple spiral, networking, open innovations, regional knowledge, innovation environment, knowledge triangle, entrepreneurial university, global challenges, service innovations, social innovations and innovations in the public sector, live labs, technopolis, competence centers and others.</p>
<p>Empirical studies are also in demand, whose task is to study and analyze the experience of different countries and regions of the world in solving important and essential problems in the innovation. As a rule, such research is thematic and narrowly focused, with a strong territorial binding, but as a whole it allows to catch and to generalize current development trends of the global innovation system and is often the basis for new up-to-date concepts or the improvement and adaptation of existing ones, taking into account changes of contextual factors and conditions.</p>
<p>This article is the result of such study, when the author tries to reveal the features of the innovative policies of developed European countries, based on the comparative assessment of innovation systems of five Baltic countries: Sweden, Denmark, Norway, Finland and Germany. It should be specified, that under the innovation one means a comprehensive view of the state policy, which is a formation of scientific, technological and industrial policies implemented at national and regional levels.</p>
<p><strong>Characteristics of innovation development of the Baltic region</strong></p>
<p>The choice of the countries for the study is not accidental and is due to the innovative nature of sustainable development for a long period, what to some extent can be considered as an indication of the effectiveness of innovation policy, implemented at the state level. The results of a comparative evaluation of scientific and technical potential of the Baltic region [1, 3, 8] and the analysis of a series of periodic international rankings, dedicated to innovation and competitiveness, demonstrate consistently high positions of Sweden, Norway, Denmark, Finland and Germany not only compared to the Baltic countries, Poland and Russia, but also among the countries of the European Union and the world, which allows to assign them to a group of &#8220;global innovation leaders&#8221; (Table 1).</p>
<p>Table 1</p>
<p>Level of innovation development of the countries in the Baltic region, 2014</p>
<table width="472">
<tbody>
<tr>
<td rowspan="4" width="54">Country</td>
<td colspan="16" width="419">Index</td>
</tr>
<tr>
<td colspan="3" width="82">globalinnovative</td>
<td colspan="3" width="106">globalcompetitivity</td>
<td colspan="4" width="78">Innovation panel of EU</td>
<td colspan="3" width="83">Economy of knowledge*</td>
<td colspan="3" width="70">knowledge*</td>
</tr>
<tr>
<td rowspan="2" width="32">value</td>
<td colspan="2" width="50">rank</td>
<td rowspan="2" width="35">value</td>
<td colspan="2" width="71">rank</td>
<td rowspan="2" width="35">value</td>
<td colspan="3" width="43">rank</td>
<td width="37">value</td>
<td colspan="2" width="46">rank</td>
<td rowspan="2" width="31">value</td>
<td colspan="2" width="39">rank</td>
</tr>
<tr>
<td width="29">world</td>
<td width="20">BR</td>
<td width="43">world</td>
<td width="28">BR</td>
<td width="28">ЕC28</td>
<td width="12">BR</td>
<td width="29">world</td>
<td width="16">BR</td>
<td width="23">world</td>
<td width="16">BR</td>
</tr>
<tr>
<td width="54">Sweden</td>
<td width="32">62,29</td>
<td width="29">3</td>
<td width="20">1</td>
<td width="35">5,41</td>
<td width="43">10</td>
<td width="28">3</td>
<td width="35">0,75</td>
<td width="28">1</td>
<td width="12">1</td>
<td colspan="2" width="39">9,43</td>
<td width="29">1</td>
<td width="16">1</td>
<td width="31">9,38</td>
<td width="23">1</td>
<td width="16">1</td>
</tr>
<tr>
<td width="54">Finland</td>
<td width="32">60,67</td>
<td width="29">4</td>
<td width="20">2</td>
<td width="35">5,50</td>
<td width="43">4</td>
<td width="28">1</td>
<td width="35">0,68</td>
<td width="28">4</td>
<td width="12">4</td>
<td colspan="2" width="39">9,33</td>
<td width="29">2</td>
<td width="16">2</td>
<td width="31">9,22</td>
<td width="23">2</td>
<td width="16">2</td>
</tr>
<tr>
<td width="54">Denmark</td>
<td width="32">57,52</td>
<td width="29">8</td>
<td width="20">3</td>
<td width="35">5,29</td>
<td width="43">13</td>
<td width="28">5</td>
<td width="35">0,73</td>
<td width="28">2</td>
<td width="12">2</td>
<td colspan="2" width="39">9,16</td>
<td width="29">3</td>
<td width="16">3</td>
<td width="31">9,00</td>
<td width="23">5</td>
<td width="16">3</td>
</tr>
<tr>
<td width="54">Germany</td>
<td width="32">56,02</td>
<td width="29">13</td>
<td width="20">4</td>
<td width="35">5,49</td>
<td width="43">5</td>
<td width="28">2</td>
<td width="35">0,71</td>
<td width="28">3</td>
<td width="12">3</td>
<td colspan="2" width="39">8,90</td>
<td width="29">8</td>
<td width="16">5</td>
<td width="31">8,83</td>
<td width="23">10</td>
<td width="16">5</td>
</tr>
<tr>
<td width="54">Norway</td>
<td width="32">55,59</td>
<td width="29">14</td>
<td width="20">5</td>
<td width="35">5,35</td>
<td width="43">11</td>
<td width="28">4</td>
<td width="35">0,48</td>
<td width="28">-</td>
<td width="12">6</td>
<td colspan="2" width="39">9,11</td>
<td width="29">5</td>
<td width="16">4</td>
<td width="31">8,99</td>
<td width="23">6</td>
<td width="16">4</td>
</tr>
<tr>
<td width="54">Estonia</td>
<td width="32">51,54</td>
<td width="29">24</td>
<td width="20">6</td>
<td width="35">4,71</td>
<td width="43">29</td>
<td width="28">6</td>
<td width="35">0,50</td>
<td width="28">13</td>
<td width="12">5</td>
<td colspan="2" width="39">8,40</td>
<td width="29">19</td>
<td width="16">6</td>
<td width="31">8,26</td>
<td width="23">21</td>
<td width="16">6</td>
</tr>
<tr>
<td width="54">Latvia</td>
<td width="32">44,81</td>
<td width="29">34</td>
<td width="20">7</td>
<td width="35">4,50</td>
<td width="43">42</td>
<td width="28">8</td>
<td width="35">0,22</td>
<td width="28">27</td>
<td width="12">9</td>
<td colspan="2" width="39">7,41</td>
<td width="29">32</td>
<td width="16">8</td>
<td width="31">7,15</td>
<td width="23">33</td>
<td width="16">8</td>
</tr>
<tr>
<td width="54">Lithuania</td>
<td width="32">41,00</td>
<td width="29">39</td>
<td width="20">8</td>
<td width="35">4,51</td>
<td width="43">41</td>
<td width="28">7</td>
<td width="35">0,29</td>
<td width="28">24</td>
<td width="12">7</td>
<td colspan="2" width="39">7,80</td>
<td width="29">37</td>
<td width="16">7</td>
<td width="31">7,68</td>
<td width="23">40</td>
<td width="16">7</td>
</tr>
<tr>
<td width="54">Poland</td>
<td width="32">40,64</td>
<td width="29">45</td>
<td width="20">9</td>
<td width="35">4,48</td>
<td width="43">43</td>
<td width="28">9</td>
<td width="35">0,28</td>
<td width="28">25</td>
<td width="12">8</td>
<td colspan="2" width="39">7,41</td>
<td width="29">38</td>
<td width="16">9</td>
<td width="31">7,20</td>
<td width="23">39</td>
<td width="16">9</td>
</tr>
<tr>
<td width="54">Russia</td>
<td width="32">39,14</td>
<td width="29">49</td>
<td width="20">10</td>
<td width="35">4,37</td>
<td width="43">53</td>
<td width="28">10</td>
<td width="35">-</td>
<td width="28"> -</td>
<td width="12">-</td>
<td colspan="2" width="39">5,78</td>
<td width="29">55</td>
<td width="16">10</td>
<td width="31">6,96</td>
<td width="23">43</td>
<td width="16">10</td>
</tr>
</tbody>
</table>
<p>Remark: * on data of 2012; BR – Baltic region</p>
<p>Source: [14, 15, 18, 19]</p>
<p>&nbsp;</p>
<p>Table 2 contains statistic indicators of innovation system development in these countries at present. In general, it is characterized by significant accumulation of human resources, what is due to priority of national authorities to support the education system and focus on the flow-in of skilled workers. More than 30% of the population in Finland, Norway and Sweden have higher education, slightly less in Denmark &#8211; 27%, and 24.1% in Germany. For comparison, in Russia, according to the census 2010, the share of the population with higher education was 23.4% [6], which can be comparable with Germany, however, is significantly lower than in the Nordic countries. On average, about 39% of the total economically active population in Sweden, Denmark, Germany, Finland and Norway are engaged in the field of science and technology, accounting for nearly 27% of the total population. The leaders in terms of the concentration of human resources in science and technology sector are Denmark (40.5%) and Sweden (39.3%). Another characteristic of innovation systems in these countries is the level of employment in high-tech industry (3.9%), which is higher than the EU average both in production sector and service.</p>
<p>Table 2</p>
<p>Indicators of innovation development of developed countries of the Baltic region, 2013</p>
<table width="469">
<tbody>
<tr>
<td width="199">Indicator</td>
<td width="54">Sweden</td>
<td width="54">Denmark</td>
<td width="54">Germany</td>
<td width="59">Finland</td>
<td width="48">Norway</td>
</tr>
<tr>
<td width="199">Share of population with higher education, %</td>
<td width="54">30,3</td>
<td width="54">27,0</td>
<td width="54">24,1</td>
<td width="59">32,1</td>
<td width="48">32,4</td>
</tr>
<tr>
<td width="199">Engaged in science and technology to economically active population, %</td>
<td width="54">39,3</td>
<td width="54">40,5</td>
<td width="54">36,4</td>
<td width="59">38,4</td>
<td width="48">38,7</td>
</tr>
<tr>
<td width="199">Engaged in high-tech spheres of industry and service to economically active population, %</td>
<td width="54">4,9</td>
<td width="54">5,5</td>
<td width="54">4,1</td>
<td width="59">5,7</td>
<td width="48">3,6</td>
</tr>
<tr>
<td width="199">Volume of venture investments to GDP, %</td>
<td width="54">0,4</td>
<td width="54">0,6</td>
<td width="54">0,2</td>
<td width="59">0,3</td>
<td width="48">0,2</td>
</tr>
<tr>
<td width="199">Export of high-tech products as a share of all export, %</td>
<td width="54">13,0</td>
<td width="54">9,3</td>
<td width="54">14,2</td>
<td width="59">6,2</td>
<td width="48">…</td>
</tr>
<tr>
<td width="199">Share of innovative products in full turnover *, %</td>
<td width="54">6,1</td>
<td width="54">13,9</td>
<td width="54">13,0</td>
<td width="59">11,1</td>
<td width="48">5,2</td>
</tr>
<tr>
<td colspan="6" width="469">Expenses for research and development, %</td>
</tr>
<tr>
<td width="199">To country’s GDP</td>
<td width="54">3,3</td>
<td width="54">3,1</td>
<td width="54">2,9</td>
<td width="59">3,3</td>
<td width="48">1,7</td>
</tr>
<tr>
<td width="199">From general expenses of state budget</td>
<td width="54">1,6</td>
<td width="54">1,8</td>
<td width="54">2,0</td>
<td width="59">1,7</td>
<td width="48">1,8</td>
</tr>
<tr>
<td colspan="6" width="469">Expenses structure on research and development on source of funding, %</td>
</tr>
<tr>
<td width="199">Business</td>
<td width="54">61,0</td>
<td width="54">59,8</td>
<td width="54">66,1*</td>
<td width="59">60,8</td>
<td width="48">43,1</td>
</tr>
<tr>
<td width="199">State</td>
<td width="54">28,2</td>
<td width="54">29,3</td>
<td width="54">29,2*</td>
<td width="59">26,0</td>
<td width="48">45,8</td>
</tr>
<tr>
<td width="199">High education</td>
<td width="54">1,0</td>
<td width="54">0,0</td>
<td width="54">0,0*</td>
<td width="59">0,2</td>
<td width="48">0,5</td>
</tr>
<tr>
<td width="199">Non commercial companies</td>
<td width="54">3,1</td>
<td width="54">3,8</td>
<td width="54">0,4*</td>
<td width="59">1,4</td>
<td width="48">1,0</td>
</tr>
<tr>
<td width="199">Foreign sources</td>
<td width="54">6,8</td>
<td width="54">7,2</td>
<td width="54">4,3*</td>
<td width="59">11,5</td>
<td width="48">9,5</td>
</tr>
<tr>
<td colspan="6" width="469">Applications for patents in the European Patent Office *, pcs</td>
</tr>
<tr>
<td width="199">For mln citizens</td>
<td width="54">289,9</td>
<td width="54">223,2</td>
<td width="54">278,2</td>
<td width="59">270,6</td>
<td width="48">111,7</td>
</tr>
<tr>
<td width="199">For bln EUR of internal expenses on research and development</td>
<td width="54">197,9</td>
<td width="54">164,3</td>
<td width="54">287,8</td>
<td width="59">213,9</td>
<td width="48">86,6</td>
</tr>
</tbody>
</table>
<p>Remark: * data of 2012</p>
<p>Source: compiled based on data of Eurostat [11]</p>
<p>&nbsp;</p>
<p>One of the most important indicators of the dynamics of the innovation system includes the volume of financing research and development activities (R &amp; D). In Sweden, Finland, Denmark and Germany the ratio of expenditure on research and development to gross domestic product (GDP) is well ahead of the average for the EU (2%) and Baltic region (1.95%). Sweden and Finland show solvent high levels of funding in the long run. Since 2000 the share of R &amp; D expenditures in the GDP of these countries did not fall below 3.2%. However, one should note the tendency for decrease of the level of funding of scientific and technical sphere in Sweden, due to lower expenditures for the development of technologies for defense.</p>
<p>Denmark and Germany on the contrary show a significant increase in the share of research and development expenditures in the said period. If in the early 2000s the ratio of R &amp; D spending to GDP was slightly more than 2%, in 2013 it amounted to 3% with a positive dynamics. It should be noted that these high rates are due to structure of R &amp; D funding,prevailing in these countries, where the main role belongs to business sector (60%). The exception is Norway, where the contribution of the state and business in the research and development is nearly equivalent: 45.8 and 43.1% respectively in 2013. As shown in Table 2, lack of high interest from Norwegian business in investments in R &amp; D, even with share of budgetary allocationscomparable with other countries in the Baltic region, has a negative impact on the total value of the financing of the innovation system of Norway. During 2000 &#8211; 2013 the share of expenditure on research and development in the country&#8217;s GDP fluctuated around 1.6%, without reaching the EU average.</p>
<p>An essential role in encouraging innovation is played by high-risk investments in companies that are engaged in development of new products and / or technologies, but not listed on the stock market. The need for its finance is formed in early stages of development (seed and start-up), and later (growth and expansion). The highest level of venture capital investment to GDP is in Denmark and Sweden: 0.6 and 0.4% respectively. This indicator is higher than in other EU countries and Baltic region, but the dynamics of such investments is unstable and still below the real needs (Pic. 1).</p>
<p>Pic. 1 –  Dynamics of volume of venture investments to GDP of Denmark, Sweden, Germany, Finland, Norway, %</p>
<p>Source: compiled based on data of Eurostat [11]</p>
<p>&nbsp;</p>
<p>As the result of innovation Table 2 indicates the share of innovative products in total trade, exports of high technology products and patents. Germany shows the highest return on investment in research and development. Bearing in mind 2.9% expenses on R &amp; D of GDP, Germany shows the highest performance in turnover and export of high-tech products, as well as higher patent activity in terms of unit costs, compared with other developed countries of the Baltic region.</p>
<p><strong>Innovation policy in Sweden</strong></p>
<p>The innovation system in Sweden evolved throughout the twentieth century with limited natural resources and domestic market, which was the main driving factor for the development of technology and export industry with high added value. The need to enter international markets and compete led to the formation of several large transnational companies that currently are the main investors in research and development. The participation of small and medium-sized companies (SMEs) in the innovation process is relatively small, so the state is forced to use various motivating mechanisms for their involvement in R &amp; D. In order to overcome the negative effects of industrial policy of 1980 &#8211; 90 and stimulate economical growth Sweden developed a long-term strategy of innovative development «Innovative Sweden», which presented a nationwide vision of Sweden as a competitive, dynamic and knowledge-based economy, attractive for investments of large and small high-tech companies.</p>
<p>In 2012 Sweden adopted a new long-term innovation strategy «The road to a world-class innovation climate 2020», which became a continuation of the ideas of pan-European growth strategy «Europe 2020». The strategy is aimed at improving the quality of life and sustainable development through the maintenance of competitiveness and job creation in the global knowledge-driven economy. The main principles of its implementation are the creation of favourable conditions for innovation; support of people, business and organizations that are systematically engaged in innovation; implementation of a holistic approach based on a common vision. The structure of the modern national innovation system of Sweden is shown in Picture 2.</p>
<p>Picture 2 – National innovation system of Sweden</p>
<p>Source: compiled based on [13, 16]</p>
<p>&nbsp;</p>
<p>The Government of Sweden is responsible for the development of innovation policy at the national level. The main role in this process is assigned to the Ministry of Education and Science and the Ministry of entrepreneurship and innovation. In 2001 their department established two major agencies: Swedish Research Council and Swedish governmental agency for Innovation Systems (VINNOVA), whose tasks included the implementation of the main directions of the state innovation policy. The activity of Swedish Research Council focuses on the support and development of basic scientific research. VINNOVA is strengthening cooperation between all actors of the innovation system, co-financing of research initiatives with further monitoring and control of its implementation, as well as support of international collaboration. In addition, support functions and the financing of industrial R &amp; D were split between several dozens of specialized state research councils and agencies that focus on meeting the needs in knowledge of the society in individual spheres. An alternative to government agencies and large industrial companies in funding R &amp; D is various para-public and private research funds, which have their own budgets. For example, Swedish Foundation for Strategic Research (SSF), Knowledge Foundation (KKS), Foundation for Strategic Environmental Research (MISTRA), Swedish Foundation for International Cooperation in Research and Higher Education (STINT), Swedish Foundation for health care sciences and allergy research (Vårdal), Knut and Alice Wallenberg Foundation, Swedish Cancer Society, and others.</p>
<p>A characteristic feature of the innovation system of Sweden is a relatively small number of research institutes established in the second half of the twentieth century and united in holding «RISE group» in order to improve the efficiency of use of financial, material and human resources and enhance its expertise and complementarity. The consequence of a lack of research institutions engaged in applied research and development has become the laying of their functions to universities with the increase in financial support of the latter. According to the Parliament decision dd. 1979 [17] University in Sweden combines three missions: education, basic research, interaction with business, being transformed from a classic structure in the enterprise.</p>
<p>One of the most urgent problems of the Swedish innovation system is the lack of commercialization of university research. It reflects the emergence of the concept of «the Swedish paradox» [7, 13], when a large amount of expenses for research and development and education shows a disproportionately low return of innovation. In many respects it is a consequence of the negative impact of legislation («teacher&#8217;s correction», laws on the public domain and state acquisition and others [5, 9]) and insufficiency of venture capital on initial stages.</p>
<p>Overcoming the effect of «the Swedish paradox» is done through the implementation of the state policy of promoting the commercialization and innovation in the framework of realization of strategic ideas of national «knowledge triangle», what brings together education, research and innovation. The main efforts of the government in this area are aimed at increasing the efficiency of the implementation capacity of universities by strengthening and deepening cooperation with other actors of the innovation system. Swedish universities dispose a developed network of incubators and science parks, as of 2010 they have created Bureau of innovative interaction &#8211; contact interuniversity platforms to improve the efficiency of R &amp; D and stimulate innovation.</p>
<p>It should be noted that such measures of stimulating innovative economy as tax incentives and credits for businesses carrying out R &amp; D did not gain widespread in Sweden. The most widely used tools are venture capital financing; subsidized loans for small and medium-sized business; state guarantees; grant support on a competitive basis (at the individual, institutional level) in the framework of national programs; advisory services; assistance in the training of personnel; creation of special areas for cooperation of participants of actors «triple spiral», etc. In recent years, active work has been carried in order to liberalize the law on state acquisition in order to use it as a driver for innovation in social sectors: infrastructure, health and welfare, environment. Particular attention is paid to support of small and medium-sized businesses, including issues related to the expansion of the participation in research and development and implementation of international activities (program «Explore and grow» and «VINN NU»). A number of organizations of supporting infrastructure were created: investment companies («ALMI Invest», Industrial Development Fund and others), technology transfer centers (Swedish organization to support innovation and technology transfer (SNITTS) and others), agency for attracting investment («Business Sweden» and others), network organizations, bringing together participants of «triple spiral» (Swedish Entrepreneurial Forum and others).</p>
<p>Important areas of ​​modern innovation policy of Sweden are regional development and support of the creation of innovation clusters. As of 2001 has been launched a national flagship initiative «Vinnväxt &#8211; Regional growth through dynamic innovation systems», whose aim is to promote sustainable regional growth by developing internationally competitive innovations in priority areas. In 2007 the idea of ​​a differentiated approach to regional development and growth gained formal acknowledgement in the «National strategy for regional competitiveness, entrepreneurship and employment in 2007-2013»; expanded long-term strategy «National strategy for regional growth and attractiveness 2014-2020» , whose base was cross-sectoral approach, multi-level control mechanism for dialogue between participants and collective training, as well as clear focus on results, entered into force in 2014.</p>
<p>In recent years, the authority of the regions of Sweden to participate in the development of regional policy has greatly increased. Currently each region is obliged to form and implement its own development strategy, including vision, goals and long-term priorities, taking into account regional characteristics and competitive advantages. Regional development strategy should contribute to the coordination of initiatives in the field of regional development, held at different levels. It should be noted that we mean regions of level NUTS 3, i.e. län or regions in which the responsibility for the implementation of national policies is traditionally divided between the county administrative boards (länsstyrelsen) &#8211; representatives of the national government at the regional level and regional district councils (landsting). By 2015 each of the 21 regions of Sweden has already formed its own regional development strategy with a planning horizon until 2020, maximum until 2025 or 2030. A number of them have also developed a strategy of innovative development, for example, the regions of Skåne and Blekinge, focusing on strengthening of its competitive advantage through the development of cooperation and the formation of clusters and internationalization.</p>
<p><strong>Innovation policy of Denmark</strong></p>
<p>Denmark as well as Sweden shows high level of innovation development among the world, Europe and Baltic region. Historically, the Danish economy is based on traditional sectors: agriculture, fishery, manufacturing. At the beginning of the twentieth century the country was highly competitive in agricultural production, which allowed it to consolidate its status as one of the world&#8217;s leading exporters of meat and dairy products. The logical consequence of active development of the agricultural sector which even at present forms the demand for qualified personnel and new technologies, was the establishment of the educational and research system of the country. Its basis was established in 1769 with the formation of the Royal Danish Agricultural Society, under whose support later were established various schools, colleges and universities that are still operating. A strong manufacturing sector of Denmark is the result of industrial and technological policy in 1960 – 1970es. Currently, the country was able to implement the industrial potential in sectors such as engineering and metalworking, food processing, chemical industry and oil refining, pharmaceuticals and medical equipment, electronic and electrical industries.</p>
<p>Danish modern economy is export-oriented with a growing share of service export (about 39% in 2013 with a positive trend in the long run [4]). On one hand, it is based on the success achieved in the traditional industries, and on the other hand – it demonstrates the commitment to the development of new high-tech sectors (ICT, biotechnology, alternative energy, bioeconomy, medical technology and others). The employment of the majority of the working population is provided by SMEs. Large businesses cover a major share of Danish exports, as well as a considerable amount of investment in research and development. It should be noted that the Danish economic model developed in a relatively low domestic resource capacity and low capacity of the national market that unites it with the Swedish, is characterized by a strong dependence on the situation on the international markets. It most strongly appeared during the economic crisis of 2008-2009. Maintaining the effectiveness of such model requires government&#8217;s continuous work to improve the investment and business climate, improve the system of science and education, improve the overall competitiveness of the economy, creation of favourable innovation environment.</p>
<p>The answer to the current challenges of the world economy was the development in 2010 of the national strategy «Denmark 2020: knowledge &#8211; growth &#8211; prosperity – welfare», which was based on the principle of more effective use of internal resources due to the consolidation of public finances, increasing productivity, increasing commercialization of R &amp; D results by universities and public research organizations, introduction of new technologies (especially with a positive environmental impact), development of health care, reduction of bureaucracy level, strengthening of the competitive environment, greater involvement of the country and its regions in the process of internationalization and international cooperation (incl. scientific sphere). Innovation policy in this context is one of the key tools in achieving the strategic objectives of a long-term development of the country.</p>
<p>In 2012 it adopted a long-term national innovation strategy «Denmark – country of decisions. Strengthening cooperation and improving the innovation systems on enterprises», considerable attention in it is paid to the formation of an effective mechanism for the transformation of budgetary allocations for science and education to economic development, employment growth and improvement of social welfare. Key issues to be addressed in 2020 are associated with slow economic growth, insufficient level of productivity, need to shift from European markets to the world ones, weak position of SMEs in niche markets, imbalance in support of thematic research and development towards the dominance of certain sectors (pharmaceuticals, biotechnology, energy). The strategy developed a set of 27 tools in three areas of the innovation policy:</p>
<p>1. «Innovations in solving social problems»: optimization of the national innovation system through restructuring a number of government research councils, agencies and foundations; increasing transparency and easier access to government programs of innovation support; Danish participation in the expansion of EU initiatives on the principles of co-financing; issue of the catalog «INNO +», that identified key strategic areas of investment in innovation (transport, environment, urban development, food and bioeconomy, health, ICT, energy, innovative production); launch of initiatives to create social innovation and pilot partnerships in regions with strong scientific and business positions;</p>
<p>2. «The transformation of knowledge into innovation»: support of clusters and networks; involvement of SMEs in innovative activity (the program «Industrial PhD», «Promotion of Innovation», «Startups graduates», system of innovation vouchers (small lines of credit to finance R &amp; D expenses), development of Danish network of international innovation centers); optimization of the number of incubators by increasing critical mass of residents; facilitating the exchange of knowledge between research and business sector by increasing public funding of joint projects, expansion of the target audience of Danish science e-library, document flow, creation of additional jobs for researchers;</p>
<p>3. «Strengthening the innovation potential through education»: increase in the practice at all levels of education; support innovation in education, including new forms and methods of training; systematic support of young talents; development of innovative and entrepreneurial skills of students; strengthening cooperation between business and educational institutions.</p>
<p>Picture 3 shows present structure of the national innovation system in Denmark after the optimization carried out at the level of institutions, which formed and implemented innovation policy, and at the level of direct participants of the innovation process (for example, by consolidating universities).</p>
<p>Pic. 3 – National innovation system of Denmark</p>
<p>&nbsp;</p>
<p>The document dd. 2008 «Research 2015», identifying priority areas for research and development, was replaced by a new one in 2012 – «Research 2020». The current index, which was a result of joint work of universities, research organizations, ministries and research councils, represented a common vision of Sweden as a healthy, high-tech, competitive, inclusive society, developing «green» economy with a powerful innovative potential, strengths and competencies and high quality of life. According to this document, by 2020 Denmark should be among the top five OECD countries among the share of innovative SMEs, the level of private investment in R &amp; D relative to GDP and the share of employees with higher education in the commercial sector.</p>
<p>Among the most important instruments of national innovation policy, in addition to the above, one should note personal tax credits for foreign researchers and other high skilled employees in Danish companies and research institutions, in force as of 1992; tax credits for income tax for the companies involved in R &amp; D spending; framework and project grants provided by national programs supporting research and innovation; loans and loan guarantees provided by the Danish SME Development Fund; investment in large-scale infrastructure in the framework of the Roadmap for the development of research infrastructures (2011) and others.</p>
<p>Regional level of innovation policy is implemented through regional forums of economic growth, in force since 2006 in five regions of Denmark (Capital Region, North and Central Jutland, South Denmark, Zealand) and, separately, on the island of Bornholm. It is advisory bodies to the regional councils that do not have their own fund and are re-elected every 4 years. Among their main functions one can note development of regional business strategy, monitoring of trends in regional and local economies, development of recommendations for co-financing of regional measures to support entrepreneurship and innovation. All regional forums for economic growth closely cooperate with the Danish Board of economic growth in order to coordinate national and regional innovation policy. From 2007 to 2012 regional forums of economic growth were responsible for the preparation of medium-term or long-term development strategies for each region, taking into account its specific character, strengths and weaknesses, as well as national priorities. Despite the significant differentiation in the level of economic and innovative development of the regions, common to all strategies were emphasis on public education, training and attracting skilled labour, support for entrepreneurship, new technologies and innovations. Among the main measures of regional innovation policy one should mention public-private partnerships, cluster policy, open innovations, government acquisitions and innovation in the public sector, support of start-ups and innovative SMEs, promoting the exchange of knowledge, development of intellectual demand and innovation in the service sector. An important mechanism to support Danish regions is the EU framework program, funding of which is used also on creation of cross-border clusters (the most successful – «Medicon Valley») [2].</p>
<p><strong>Innovation policy in Germany</strong></p>
<p>In accordance with the principle of the federal government, enshrined in the German constitution, the responsibility for the formation of innovation policy is divided between the federal authorities and the authorities of 16 states with the release of exclusive questions and sharing knowledge. At the federal level, a significant role is played by two ministries: Education, Economy and Energy. Other ministries are involved in the development of research programs and support research within its field of competence, including the establishment of research institutes. All government institutions under the jurisdiction of the federal ministries are united in the association «Working Group of department research institutions». State authorities and management in Germany have a number of advisory bodies that assess the overall dynamics of the innovation system of the country and develop recommendations to strengthen it. The most significant and oldest is the German Council of Applied Sciences and Arts, established in 1957 by an administrative agreement between the Federal Government and the states. In addition to consulting services on higher education and scientific research, the Council carries out accreditation of non-state universities and severally liable with the German Research Foundation for funding the advanced university research within the framework of a comprehensive program «Excellence initiative».</p>
<p>The basis of innovation policy at the federal level is stated in a number of strategic and program documents, the most important of which is a comprehensive strategy in research and innovation «Strategy of high technology». It was launched in 2006 and combined a wide range of government initiatives and programs. In 2010 the country adopted an updated version of the document till 2020, where it fixed the key areas of development of promising markets and technologies (biotechnology, nanotechnology, micro-optical systems, new materials and production technology, aeronautical engineering and ICT); increased cooperation between science and business; coordination of political initiatives on both federal and regional levels. Also appeared separate national strategies on building research infrastructure, including international importance («National roadmap for research infrastructures», 2013); development of bioeconomy as an alternative to non-renewable energy sources («National research strategy bioeconomy 2030», 2013); internationalization of research activities («Strengthening of the role of Germany in the global scientific society», 2008); support for higher education and growing need for highly qualified professionals («Higher education pact 2020», 2007) and a number of others which form the basis for regional initiatives.</p>
<p>Federal states possess broad authority to develop and implement research and educational policies. Each land forms its own legal framework in this area and the budget to finance public higher education institutions and non-university research organizations and institutions. Some of the most innovative active regions developed comprehensive development strategy (North Rhine-Westphalia, Berlin, Brandenburg, and others) and issued series of program documents (Bavaria, Hesse, and others). The centerpiece of the current regional innovation policy in Germany is concluded in the idea of ​​smart specialization, based on the existing regional differences in the innovative development of land; support for SMEs, whose activities are focused on innovation; formation of strong regional clusters. A joint scientific conference, whose members are the Ministers of relevant ministries, was established in 2007 to coordinate the activity of the Federal Government and state governments in research policy. The range of issues within the conference is quite broad and incorporates financial, strategic and international areas of focus.</p>
<p>Funding of research and innovation in Germany is implemented through a wide range of government (federal, regional and joint), semi-public and private non-profit foundations, which include scientific and academic, party, church, industrial and other types. Basic tools of stock support are focused on three areas: research projects, promising young personnel, innovative SMEs. The Association of German research funds is designed to assist in overcoming disunity between funds in the implementation of its programs.</p>
<p>Research and development sector of the country is represented by a wide variety of participants, some of which trace their history from the beginning of the twentieth century and earlier: public and private universities, academia, public research organizations and institutions of basic and applied research, scientific research centers, companies with R &amp; D divisions, etc. The major research associations in Germany are four non-university public research organizations: Fraunhofer Society, Helmholtz Association of Research Centres, Leibniz Association, Max Planck Society, who has its own research funds. It should be noted that, traditionally, German research organizations and industry are characterized by close cooperation ties and, as a consequence, persistently high level of funding of science and research business, which is largely a result of strong government technology policy of the second half of the twentieth century. Modern innovation system of the country is represented in Picture 4.</p>
<p>Pic. 4 – National innovation system of Germany</p>
<p>&nbsp;</p>
<p>One of the main tools of the innovation policy in Germany is the development and financing of programs to support research and development projects: a) private or thematic, which are based on long-term frameworks in specific areas of technology (biotechnology, nanotechnology, ICT, medicine and health, environmental protection, space etc); b) open, which support more versatile research and are not intended to thematic restrictions. By the beginning of 2013 the total number of programs was 242, of which 92 were federal (including 20 &#8211; open) and 150 &#8211; regional (incl. 115 &#8211; open) [10]. In order to improve the efficiency of research activities, most of the thematic programs are focused on the use of public-private partnership. Table 3 shows the major government initiatives to support research and innovation in Germany.</p>
<p>Table 3</p>
<p>Main initiatives on support of science research and innovations in Germany</p>
<table width="475">
<tbody>
<tr>
<td width="198">Program</td>
<td width="276">Main lines and tools</td>
</tr>
<tr>
<td colspan="2" width="475"><em>Initiatives to support innovative SMEs and start-ups</em></td>
</tr>
<tr>
<td width="198">«Innovative SMEs», «Central innovation program for SMEs», «Program Venture Capital», «EXIST Program», «Industrial collective research», «SIGNO», «Go-Inno» and others.</td>
<td width="276">facilitating the access to finance research activities of SMEs; increasing transparency and reducing costs for SMEs, including the purchase of R &amp; D and specialized services, management of innovation networks, staff; financing of start-ups (direct equity investments in the seed stage, co-financing of private investment in the early stages, repeated investment and the provision of state. guarantees in the later stages, preferential loans with below-market rate%); improving the framework conditions for the development of entrepreneurship in universities (grant support start-ups and spin-offs created by academics); facilitating access to the results of research and development for SMEs; grant support for the formation of self-organizing research associations; co-financing the costs of patenting; consulting services</td>
</tr>
<tr>
<td colspan="2" width="475"><em>Initiatives to improve the system of higher education</em></td>
</tr>
<tr>
<td width="198">«Initiative: Qualification for Germany», «Promotion through education: open universities» and others.</td>
<td width="276">improving the quality of higher education in order to create a pool of qualified professionals; funding on a competitive basis, and initiatives to improve the integration of university curriculum</td>
</tr>
<tr>
<td colspan="2" width="475"><em>Initiatives in the field of regional development and the creation of innovation clusters</em></td>
</tr>
<tr>
<td width="198">«innovative concept», «innovative regional growth centers»,  «potential growth centers», «Center of Innovation Competence», «Innovation Forum», «InnoProfile», «ForMaT», «Twenty 20 &#8211; Partnership for Innovation», «Competition of advanced clusters»  «Innovative alliances» (subsequently merged into «Entrepreneurial regions») and others.</td>
<td width="276">strengthening of smart specialization through the creation of innovation clusters; stimulating creative thinking and the development of competencies; support for cooperation of large industrial conglomerates and government organizations of R &amp; D to develop innovations that require long-term studies; funding of innovation in the priority areas; systematic support of the regions in East Germany; reimbursement of labour costs, establishment and development of infrastructure, equipment and staff training, purchase of consulting and research services; grants, tax breaks (including by reducing social security contributions)</td>
</tr>
<tr>
<td colspan="2" width="475"><em>Initiatives to support young talents</em></td>
</tr>
<tr>
<td width="198">«Initiative of excellence», «Germany sholarship», «Joint Initiative for Research and Innovation», «Qualification initiative», «Increasing scholarship» joint programs with various foundations and others.</td>
<td width="276">postgraduate funding of young scientists; long-term contracts with young researchers in universities; grants, student loans, scholarships to young talents; support of non-traditional research approaches; increased scholarships for students; supporting women researchers; funding for joint research projects and the participation of German researchers in international conferences</td>
</tr>
</tbody>
</table>
<p>&nbsp;</p>
<p>In addition to the above initiatives, Germany used a number of additional tools and mechanisms, such as fiscal incentives for the creation of a more favorable environment for financing start-ups and innovative SMEs at the early stages (new laws on venture capital and equity participation, 2008); the mechanism of state acquisition of innovative products (a joint initiative of six federal ministries «Decision to step up innovation-oriented state acquisition», 2007; Act, encourage competition, 2009); liberalization of immigration laws in order to increase the flow-in of highly skilled experts and scientists (German Immigration Act, 2005; «Labour migration helps to ensure a sufficient number of skilled workers in Germany», 2008; «The recognition of foreign skills», 2012); creating a legal framework to ensure the continued co-funding of universities by the Federal Government and the states (federal law to provide assistance in training, German Basic Law (Art. 91b) in ed. 2014) and others.</p>
<p><strong>Innovation policy in Norway</strong></p>
<p>A switch to innovation policy in Norway is due to the desire of national authorities to restructure the economy in order to reduce dependence on traditional industries, which became very crucial in the second half of the twentieth century as a result of an open and active development of oil and gas. At present, products of oil and gas sector is the basis of the country&#8217;s export, and major oil companies («Statoil», «Norsk-Hydro» and others) are the main investors in research and development. One of the mechanisms linking actors of industrial and research sphere is an instrument of «goodwill agreement», involving the provision of benefits to companies for the acquisition of exploration rights in return for the purchase of specialized R &amp; D and services produced in the country. It should be noted that despite the high profitability, such model of economy is quite vulnerable to fluctuations in world oil prices, and its vital resource is limited by proven hydrocarbon reserves. The maintaining of the existing system of connections increases the risk of a sharp collapse of investment in research and development as a result of negative trends in the commodity sector.</p>
<p>The desire to achieve greater stability and balanced development of the country prompted the national authorities for increased support of alternative sectors of the economy, such as biotechnology and bioeconomy, ICT, new materials, aquaculture and others and transfer their experience in innovation, known in traditional sectors: mining, agriculture, navigation and fishing. Because of the limited number of large national companies focused on R &amp; D, priority is given to the development of small and medium-sized businesses, capable of forming strong competitive clusters in the regions (especially agricultural and peripherals). The main tool to stimulate innovation in Norway is a tax credit system to support «Skattefunn», introduced in 2002 for SMEs, and since 2003 spread to all enterprises subject to taxation within the country. Ten years&#8217; experience of this system proved its high efficiency, including comparison with other innovation policy instruments (grants, subsidies, etc), which has pushed the government to significantly increase the size of tax deductions in 2014.</p>
<p>In the field of science and education in connection with the new national development priorities one can outline a number of trends: firstly, decentralization and focus on support for innovation, resulting from the research activities of the regional universities and colleges; secondly, creation and implementation of social and environmental innovation. The result of the reorganization of the leading organizations and institutions of the institutional infrastructure, done in the 2000s, was the formation of the modern structure of the innovation system in Norway, shown on Picture 5.</p>
<p>Pic. 5 – National innovation system of Norway</p>
<p>&nbsp;</p>
<p>The Parliament and the Government of Norway are responsible for the course of the innovation policy of the country. A key role in this process is assigned to the Ministry of Education and Science, which is responsible for coordinating the overall efforts of other ministries and is the main source of financing educational and research spheres. Other ministries are involved in supporting R &amp; D within the framework of its specialization. Some of the largest budgets for research are granted by the Ministry of Health and Social Welfare and the Ministry of Commerce, Industry and Fisheries. The fundamental document for the development of science, education and innovation are the white book «Innovative and Sustainable Norway» (2009), «The long-term plan for research and higher education in 2015 – 2024» (2014), «The strategy of cooperation in research field with Europe» (2014). To support the priority technology areas and industries Norway also developed a number of thematic research and innovation strategies, including bioprospecting (2009), environment, biotechnology (2011), nanotechnology (2012), ICT (2013).</p>
<p>In 1993, as a result of the merger of five research councils in the innovation sector of the country appeared a large state player &#8211; The Research Council of Norway (RCN), which received the right to participate in the development of science and technology policy, to fund research and act as a communication platform for «triple spiral». RCN accumulates funds of all ministries. The level of funding from each ministry is different and depends on the tasks facing it. Currently RCN uses four groups of instruments for financing research activities [12]: a) «research programs» (support on a grant basis of collective, strategic and targeted research initiatives, promote the commercialization of innovations in a certain subject area); b) «independent projects» (funding of individual projects in the field of basic science, which are not linked to specific research programs); c) «infrastructure and institutional arrangements» (creation of the innovation infrastructure, various research institutions, purchase of scientific equipment, databases / collections); d) «network partnership event» (strategic initiative to create partnerships between actors within the country and international cooperation).</p>
<p>In 2003 it created a government agency – «Innovation Norway», whose tasks included the simplification of the formation and development of innovation and supporting infrastructure; strengthening of relations between regional development, innovation and internationalization; representation of national interests in the sphere of trade abroad. At the moment, «Innovation Norway» is acting as the center of the support for Norwegian business and innovation at all levels of management with a wide range of tools: high- and low-risk loans, grants, venture capital, consulting and advertising services, development of business networks and clusters. Also, the Agency is implementing main directions of the state regional policy: a) regional innovation clusters (strengthening and revitalization of the cluster cooperation, increase of innovation and competitiveness of regional businesses); b) business network (support of SMEs in the value chain, forming strategic partnership); c) development of competencies (improving the availability of new knowledge for regional business community through collaboration with universities and university colleges); d) program of regional development (expertise of regional programs for restructuring, management and control of its implementation).</p>
<p>Another important actor in the innovation system of Norway is the state company «Industrial Development Corporation of Norway» (SIVA). Being established in 1968 in the department of the Ministry of Commerce, Industry and Fisheries, by 1990 &#8211; 2000 it has expanded its role in stimulating innovation development at national level through the creation and support of innovation infrastructure (business incubators, business – «gardens», science parks in the community colleges, regional venture capital and seed funds), investment in commercial real estate and consulting services. In the 2000s, RCN, SIVA and «Innovation Norway» formed the Triple Alliance, which aim is to provide a complete package of services and public funding for science and innovation. Significant joint initiative of the Union was to launch three cluster programs that involve long-term financial, technical and consulting support on a competitive basis: «Arena» in 2003, «Norwegian competence centers» (NCE) in 2006 and «Global competence centers» (GCE) in 2014. Currently, they are combined into a single integrated multi-level program «Innovation clusters of Norway».</p>
<p>There is a relatively little number of funding sources for R &amp; D sector, that are independent from the triple alliance. Among them are some large industrial companies and organizations in the service sector, private foundations, funding specialized studies (Norwegian Cancer Society (NCS), National Public Health Association (NAPH) and others) and individuals. The EU Framework programmes are an important source of foreign funding.</p>
<p>Describing the participation of regional authorities, represented by the districts (fylkeskommuner) and the municipalities of the third level, in the formation of innovation policy, one should note the tendency to expand the area of ​​its responsibility for the selection of priority areas of development, management, coordination and co-financing activities in the area of ​​innovation. The main mechanisms to involve regions in the government initiatives to support the competitive regional innovation systems is the «regional program of research, development and innovation» (2007), including complex financial instruments, notably the creation of regional research funds.</p>
<p>Research and development works in Norway are carried out by universities, specialized and regional university colleges, research institutes of two types («research» and «with research») and R &amp; D divisions of large Norwegian companies. In 2000 as a result of merging of Norwegian Council of Universities and Norwegian Council of University Colleges was formed the Norwegian Association of higher educational institutions (UHR), which serves as a coordinating body between universities and university colleges and represent it on key issues in education and science questions in cooperation with public authorities. Since the beginning of the 2000s higher education has become actively involved in the creation of technology transfer centers, science parks and incubators. The cooperation on a contractual basis between universities and research institutes was enhanced, what established a separate joint research organizations to conduct case studies.</p>
<p><strong>Innovation policy in Finland</strong></p>
<p>Finland is one of the first countries that adopted the concept of national innovation system as a fundamental idea of ​​the strategic development of the state and the basis for the formation of innovation policy. Its innovation system has evolved over a long period and can be considered as the oldest in the Baltic region. A critical factor for changing the Finnish industrial and technological policy of the second half of the twentieth century and its subsequent transition to a comprehensive innovation policy, was the need to maintain national competitiveness through gradual restructuring: from a traditional resource-based model of industrial growth in the economy, and subsequently innovation. The process of formation of the Finnish national innovation system includes four significant periods: a) «institutionalized» (1960 &#8211; 1970es), which can be characterized by the creation of the institutional framework of the system (key institutions and links between them), development of a conceptual framework, principles and mechanisms for scientific and technical policy, implementation of measures to promote education and support industrial R &amp; D; b) «target orientation» (1980es), associated with the beginning of the implementation of national technology programs and a set of measures for the commercialization of research results (also through the creation of science parks, competence centers, etc.); c) «systemic innovation» (1990es), uniting four basic ideas of new economy, «knowledge», «education», «innovation environment» and «internationalization» as the strategic guidelines for national development, maintained by the appropriate level of public financing; d) «optimization» (2000es), characterized by enlargement of main institutions of the innovation system of the country and the consolidation of their resources, structural reforms aimed at strengthening the interdisciplinary and social significance of the research activities, deepening of international cooperation, development of innovative services, improving the effectiveness of existing mechanisms for attracting foreign direct investment.</p>
<p>Current structure of Finnish innovation system has some similarities with the innovation systems in Sweden and Norway (see Pic. 6). Among its important characteristics one should note system integrity; high institutionality and significant role of state support; focus on applied research and commercialization of R &amp; D; strong educational component; accumulated social capital and, as a consequence, development of network connections based on trust; high degree of integration of business and science in the international context. Key themes of the innovative development are bioeconomy, alternative energy, information and communications technology and health care. Also, considerable attention of Finnish government is paid to the area of ​​innovative services and creative industries.</p>
<p>Pic. 6 – National innovation system of Finland</p>
<p>&nbsp;</p>
<p>Implementation of the basic principles of national innovation policies is carried out through a set of tools, including <em>tax incentives</em> (tax credits for tax on personal income for invited foreign experts and researchers and on income tax for companies in terms of labour expenses for personnel engaged in R &amp; D; the postponement of the payment of capital gains tax for business angels, who provide venture capital to SMEs, tax credit for SMEs engaged in research activities, accelerated depreciation, etc.); the <em>mechanism of state acquisition</em> of innovation, aimed at promoting advanced energy and environmental solutions (such as «green» technologies), increase of the participation of SMEs in innovative activity, increase in the number of new small innovative companies; <em>venture capital financing</em>; long-term <em>investment loans, grants,</em> provided on a competitive basis through various support programs, including public and semi-public funds; <em>targeted subsidies</em>, etc.</p>
<p>Regional innovation policy in Finland is formed mainly at the national and pan-European (through structural programs EU) levels. Its main purpose is to increase the competitiveness, sustainable development and the creation of a balanced regional structure. The main instrument of innovation development of Finnish regions for nearly 20 years has been the program «Centres of excellence», transformed as of 2014 into the program «Innovative City». Events of old and new programs are focused on strengthening strategic competencies of regions and creation of competitive innovation centers (clusters). The participation of regional and municipal authorities (councils) in the formation of regional innovation policy is limited. The regional councils are responsible for the overall development of regions, forming the regional plan and a strategic program based on targets of regional development, developed at other levels, including the sphere of innovation (Pic. 7). Municipal councils are involved in supporting the system of universities of applied sciences (polytechnics otherwise) and participate in the creation of campuses.</p>
<p>Pic. 7 – Formation and implementation of regional development policy in Finland</p>
<p>&nbsp;</p>
<p><strong>Conclusion</strong></p>
<p>According to the analysis the innovation policy in the developed countries of the Baltic region is being held since the late 1990s, but its basis was laid much earlier &#8211; in the middle of the twentieth century in the framework of industrial, scientific, educational and technological policies that were formed in parallel and in conjunction with the formation of key institutions, that subsequently formed the core of national innovation systems. Features of modern innovation policy of Sweden, Denmark, Norway, Finland and Germany are largely a consequence of the tasks facing their governments throughout the twentieth century to restructure national economies in order to increase competitiveness in the international arena. Context conditions that accompanied the transition to the development of high-tech activities in these countries, as a rule, advocated a small domestic market capacity, resource constraints (human resources, investment, natural resource, etc.), high dependence on the international situation, increasing negative impact on the ecology. Common to the developed countries of the Baltic region at the current stage is the pursuit of sustainable and dynamic development by improving productivity, ensuring high standards of living, overcoming imbalances in territorial development and deepening integration into the global community. Innovation policy in this context is the main instrument for achieving the strategic guidelines.</p>
<p>The common features of national innovation policies are systematicity, integrity, continuity, result-orientedness, goal orientation and a high degree of institutionalization. Note that the process of formation and implementation of innovation policy in Sweden, Denmark, Norway, Finland and Germany simultaneously affects several hierarchical levels: pan-European, national, regional and local, but in different degree. Because of the involvement of regional authorities in the development of innovative policy we have identified three country groups: those with a strong position of the regions (Germany), moderate (Denmark, Sweden, Norway) and weak (Finland). Developed countries of the Baltic region, as well as others, that implement an innovative model of the economy, still see relevance of issues related to lack of venture capital, need to attract highly qualified specialists, weak involvement of SMEs in research activities, mismatch of volume of commercialized R &amp; D results to state investments in the research sector, strong differentiation of regions in terms of innovation, lack of patent activity, etc. Each of the countries, taking into account the general line of the European Union, is developing its range of innovation policy tools aimed at addressing these problems, but in general, there are five clusters of influence: education, basic science, applied science and entrepreneurship, regional development, internationalization. Among the most striking trends in innovation policy of the countries in question until 2020 we marked interdisciplinarity and intersector approach, focus on consolidation of internal resources and improve of the efficiency of its use, development of ideas for smart specialization of regions, increased attention to the social and environmental importance of innovations, more active support of the internationalization of SMEs, implementation of the concept of open innovation, strong educational component, associated with the support of talented youth.</p>
<p><strong> </strong></p>
<p><strong>List of references</strong></p>
<ol>
<li>Voloshenko K.Yu., Mikhaylova A.A. Rossiyskiy nauchno-tehnologicheskiy potentsial v sopostavlenii s drugimi stranami Baltiyskogo regiona // Potentsial vzaimodeystviya Rossii i ES v innovatsionnoy sfere na Baltike: monografiya / pod red. A. P. Klemesheva, G. M. Fedorova. — Kaliningrad: Izd-vo IKBFU, 2013. S. 26-67.</li>
<li>Mikhaylov A.S. Geografiya mezhdunarodnyih klasterov v Baltiyskom regione // Baltiyskiy region. 2014, №1. S. 149-163.</li>
<li>Mikhaylova A.A. Sravnitelnyiy analiz nauchno-tehnicheskogo potentsiala Rossii i stran Baltii // Baltiyskiy region. 2013, № 1(15). С. 128-142.</li>
<li>Osnovnyie makroekonomicheskie pokazateli Danii, 2013. Ministerstvo ekonomicheskogo razvitiya Rossiyskoy Federatsii. URL:  http://www.ved.gov.ru/files/images/kai/Daniya/Osnovnyye_makroekonomicheskiye_pokazateli_Danii_(po_sostoyaniyu_na_2013g).pdf (Data obrascheniya: 10.06.2015)</li>
<li>Redin H. O zakonah, prepyatstvuyuschih shvedskim innovatsiyam // Periodicheskiy byulleten Instituta obschestvennogo proektirovaniya. Innovatsionnyie trendyi.2011, № 7. С. 27-29.</li>
<li>Rossiyskiy statisticheskiy ezhegodnik. Federalnaya sluzhba gosudarstvennoy statistiki, 2014. URL: http://www.gks.ru/bgd/regl/b14_13/IssWWW.exe/Stg/d01/07-03.htm (Data obrascheniya: 28.05.2015)</li>
<li>SYorvik Y. Mezhdu krupnyimi korporatsiyami i gosudarstvom suschestvovali osobyie otnosheniya // Periodicheskiy byulleten Instituta obschestvennogo proektirovaniya. Innovatsionnyie trendyi. № 7. 2011. С. 7-10.</li>
<li>Fedorov G.M., Voloshenko E.V., Mikhaylova A.A., Osmolovskaya L.G., Fedorov D.G. Territorialnyie razlichiya innovatsionnogo razvitiya Shvetsii, Finlyandii i Severo-Zapadnogo federalnogo okruga RF // Baltiyskiyregion. 2012, № 3(13). С. 87-102.</li>
<li>Yuhansson O. Duh predprinimatelstva v gosudarstve vseobschego blagosostoyaniya // Periodicheskiy byulleten Instituta obschestvennogo proektirovaniya. Innovatsionnyie trendyi. 2011, № 7. С. 5-6.</li>
<li>Eickelpasch А. Innovation policy in Germany. Strategies and programmes at the federal and the regional level. Report. IRPET. 2013. 39 p.</li>
<li>Eurostat Database, 2013. URL: http://ec.europa.eu/eurostat/data/database (Датаобращения: 24.05.2015)</li>
<li>Funding schemes. The Research Council of Norway. URL: http://www.forskningsradet.no/en/Funding_schemes/1138882212929 (Дата обращения: 14.06.2015)</li>
<li>Hallonsten O. ERAWATCH Country Reports 2013: Sweden. Joint Research Centre. Institute for Prospective Technological Studies. 2014. 53 p.</li>
<li>Innovation Union Scoreboard 2014. European Union, 2014. URL: http://ec.europa.eu/enterprise/policies/innovation/files/ius/ius-2014_en.pdf (Дата обращения: 18.05.2015)</li>
<li>KEI and KI Indexes. World bank, 2012. URL: http://info.worldbank.org/etools/kam2/KAM_page5.asp (Дата обращения: 27.02.2013).</li>
<li>Melin G., Håkansson A., Thorell N. Mini Country Report: Sweden. Thematic Report 2011 under Specific Contract for the Integration of INNO Policy Trend Chart with ERAWATCH (2011-2012). 2011. 22 p.</li>
<li>OECD Reviews Of Innovation Policy Sweden 2012. 2013. URL: http://www.vinnova.se/upload/EPiStorePDF/OECDReviewsOfInnovationPolicySweden2012.pdf (Дата обращения: 29.05.2015)</li>
<li>Schwab K., Sala-i-Martín X. The Global Competitiveness Report 2014–2015: Full. World Economic Forum. Geneva. 2014. URL: http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2014-15.pdf (Датаобращения: 18.05.2015)</li>
<li>The Global Innovation Index, 2014. URL: http://www.globalinnovationindex.org/content.aspx?page=gii-full-report-2014#pdfopener (Датаобращения: 18.05.2015)</li>
</ol>
<p>&nbsp;</p>
</div>
</div>
</div>
</div>
]]></content:encoded>
			<wfw:commentRss>http://en.abfund.org/?feed=rss2&#038;p=1089</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Germany&#8217;s trade with the Baltic countries</title>
		<link>http://en.abfund.org/?p=1069</link>
		<comments>http://en.abfund.org/?p=1069#comments</comments>
		<pubDate>Mon, 29 Jun 2015 19:31:39 +0000</pubDate>
		<dc:creator><![CDATA[Admin]]></dc:creator>
				<category><![CDATA[Amber Bridge. Journal of Regional Studies]]></category>
		<category><![CDATA[№2 (5) 2015]]></category>
		<category><![CDATA[Crude]]></category>
		<category><![CDATA[Denmark]]></category>
		<category><![CDATA[Energy]]></category>
		<category><![CDATA[Estonia]]></category>
		<category><![CDATA[Finland]]></category>
		<category><![CDATA[Foreign trade]]></category>
		<category><![CDATA[Germany]]></category>
		<category><![CDATA[Latvia]]></category>
		<category><![CDATA[Lithuania]]></category>
		<category><![CDATA[Natural Gas]]></category>
		<category><![CDATA[Oil Products]]></category>
		<category><![CDATA[Poland]]></category>
		<category><![CDATA[Russia]]></category>
		<category><![CDATA[Sweden]]></category>
		<category><![CDATA[Trade Statistics]]></category>

		<guid isPermaLink="false">http://en.abfund.org/?p=1069</guid>
		<description><![CDATA[Maria Vladimirovna Gracheva — Ph.D. in Economics, leading researcher of Institute of World Economy and International Relations, Russian Academy of Sciences, Moscow.  The article of Maria Gracheva examines the characteristics of Germany’s trade with the countries that along with the FRG are the members of the Council of the Baltic Sea states. The analysis is [&#8230;]]]></description>
				<content:encoded><![CDATA[<div class="page" title="Page 21">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span style="color: #4c4c4c;">Maria Vladimirovna Gracheva </span><span style="color: #4c4c4c;">— Ph.D. in Economics, leading researcher of Institute of World Economy and International Relations, Russian Academy of Sciences, Moscow. </span></p>
<div class="page" title="Page 4">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span style="font-style: italic; color: #333333;">The article of Maria Gracheva examines the characteristics of Germany’s trade with the countries that along with the FRG are the members of the Council of the Baltic Sea states. The analysis is based on the statistics of German federal statistical office (Statistisches Bundesamt) in the period of 1992-2014. The author considers such indicators as the share of Baltic states in the German foreign trade turnover, the volumes of Germany’s trade with the particular countries, the trade’s breakdown into the commodity groups. The main Germany’s trade partner countries and the key trade growth/downturn drivers among Baltic countries are identified. Special attention is paid to the peculiarities of the commodity structure of the Germany’s trade with the particular countries, including their comparison with the relevant indicators of the total German foreign trade. The main commodities of the Germany’s export/import to/from Baltic countries by the three-digit classification are analysed as well as the roles of the particular countries as the German buyers and suppliers. Some important facts of the period of 2008-2014 are registered, such as the decline of the oil/gas import from Norway and Russia and the growth of the oil products’ import from Russia. The data of German- Baltic trade’s reduction in the first quarter of 2015 are presented and explained chiefly by the negative dynamics of the Russian import due to the termination of the compensation by means of the oil products. The author comes to the conclusion, that in two-three years already Russia can come down to the Germany’s second-class trade partners, and within the Baltic region the main beneficiaries thereon will be Poland, Sweden and Norway. </span></p>
<p>The Baltic States are important trade partners of Germany: in 2014 their share in the foreign trade turnover of Germany amounted to 13.3%, including 12.2% in exports from Germany and 14.6% in imports into the Federal Republic of Germany (the rest of European countries accounted for 56.0% of the German turnover, including 55.8% of exports and 56.4% of imports)[1].</p>
<p>&nbsp;</p>
<p><strong>Pic. 1. Role of the Baltic States in the foreign trade of Germany</strong></p>
<p><strong> </strong></p>
<p>(Share of import from the Baltic States in the cumulative import to Germany</p>
<p>Share of export to the Baltic States in the cumulative export from Germany)</p>
<p><strong> </strong></p>
<p>In 1992-2008 indicators of the Baltic countries showed a relatively constant growth: from 8.8 to 14.2% of turnover, including a growth from 8.1 to 13.4% of exports from Germany and a growth from 9.6 to 15.0% of imports into Germany (see. Fig. 1), while the share of the rest of European countries declined (turnover &#8211; from 66.1 to 58.5%, exports from Germany &#8211; from 68.9 to 61.1%, and imports into Germany &#8211; from 63.1 to 55.4%). Since 2009, there has been a downward trend in the role of both the Baltic States and other European countries in the foreign trade of Germany (the importance of the countries of Asia &#8211; primarily China, by contrast, has increased). Information on the volumes of German trade with individual countries of the Baltic region is presented in Tables 1 and 2.</p>
<p>&nbsp;</p>
<p><strong>Table 1. Trade between Germany and the Baltic States in 1992-2014.</strong></p>
<table style="height: 635px;" width="673">
<thead>
<tr>
<td rowspan="3" width="86"><strong>Country</strong><strong>/<br />
</strong><strong>group of countries</strong></td>
<td colspan="11" width="424"><strong>1992-2014</strong></td>
</tr>
<tr>
<td colspan="3" width="119"><strong>Turnover, Germany</strong></td>
<td colspan="3" width="113"><strong>Export from Germany </strong></td>
<td colspan="3" width="121"><strong>Import into Germany </strong></td>
<td colspan="2" width="71"><strong>Balance for Germany </strong></td>
</tr>
<tr>
<td width="43"><strong>Bln euro</strong></td>
<td width="36"><strong>%</strong></td>
<td width="40"><strong>position </strong></td>
<td width="39"><strong>Bln euro</strong></td>
<td width="36"><strong>%</strong></td>
<td width="39"><strong>position </strong></td>
<td width="40"><strong>Bln euro</strong></td>
<td width="36"><strong>%</strong></td>
<td width="44"><strong>position </strong></td>
<td width="35"><strong>Bln euro</strong></td>
<td width="36"><strong>%</strong></td>
</tr>
</thead>
<tbody>
<tr>
<td width="86"><strong>Poland</strong></td>
<td width="43">919,9</td>
<td width="36">3,07</td>
<td width="40">1</td>
<td width="39">518,2</td>
<td width="36">3,18</td>
<td width="39">1</td>
<td width="40">401,7</td>
<td width="36">2,95</td>
<td width="44">2</td>
<td width="35">116,5</td>
<td rowspan="10" width="36"></td>
</tr>
<tr>
<td width="86"><strong>Russia </strong></td>
<td width="43">855,2</td>
<td width="36">2,86</td>
<td width="40">2</td>
<td width="39">387,8</td>
<td width="36">2,38</td>
<td width="39">2</td>
<td width="40">467,4</td>
<td width="36">3,43</td>
<td width="44">1</td>
<td width="35">-79,6</td>
</tr>
<tr>
<td width="86"><strong>Sweden </strong></td>
<td width="43">580,3</td>
<td width="36">1,94</td>
<td width="40">3</td>
<td width="39">342,2</td>
<td width="36">2,10</td>
<td width="39">3</td>
<td width="40">238,1</td>
<td width="36">1,75</td>
<td width="44">4</td>
<td width="35">104,1</td>
</tr>
<tr>
<td width="86"><strong>Denmark </strong></td>
<td width="43">472,7</td>
<td width="36">1,58</td>
<td width="40">4</td>
<td width="39">260,7</td>
<td width="36">1,60</td>
<td width="39">4</td>
<td width="40">212,0</td>
<td width="36">1,56</td>
<td width="44">5</td>
<td width="35">48,7</td>
</tr>
<tr>
<td width="86"><strong>Norway </strong></td>
<td width="43">431,0</td>
<td width="36">1,44</td>
<td width="40">5</td>
<td width="39">125,1</td>
<td width="36">0,77</td>
<td width="39">6</td>
<td width="40">305,9</td>
<td width="36">2,25</td>
<td width="44">3</td>
<td width="35">-180,9</td>
</tr>
<tr>
<td width="86"><strong>Finland </strong></td>
<td width="43">280,7</td>
<td width="36">0,94</td>
<td width="40">6</td>
<td width="39">150,1</td>
<td width="36">0,92</td>
<td width="39">5</td>
<td width="40">130,6</td>
<td width="36">0,96</td>
<td width="44">6</td>
<td width="35">19,5</td>
</tr>
<tr>
<td width="86"><strong>Lithuania </strong></td>
<td width="43">51,9</td>
<td width="36">0,17</td>
<td width="40">7</td>
<td width="39">32,3</td>
<td width="36">0,20</td>
<td width="39">7</td>
<td width="40">19,6</td>
<td width="36">0,14</td>
<td width="44">7</td>
<td width="35">12,6</td>
</tr>
<tr>
<td width="86"><strong>Latvia</strong></td>
<td width="43">29,2</td>
<td width="36">0,10</td>
<td width="40">8</td>
<td width="39">19,6</td>
<td width="36">0,12</td>
<td width="39">8</td>
<td width="40">9,6</td>
<td width="36">0,07</td>
<td width="44">8</td>
<td width="35">10,0</td>
</tr>
<tr>
<td width="86"><strong>Estonia </strong></td>
<td width="43">26,2</td>
<td width="36">0,09</td>
<td width="40">9</td>
<td width="39">18,8</td>
<td width="36">0,12</td>
<td width="39">9</td>
<td width="40">7,4</td>
<td width="36">0,05</td>
<td width="44">10</td>
<td width="35">11,4</td>
</tr>
<tr>
<td width="86"><strong>Iceland</strong></td>
<td width="43">16,0</td>
<td width="36">0,05</td>
<td width="40">10</td>
<td width="39">6,7</td>
<td width="36">0,04</td>
<td width="39">10</td>
<td width="40">9,3</td>
<td width="36">0,07</td>
<td width="44">9</td>
<td width="35">-2,6</td>
</tr>
<tr>
<td width="86"><strong>Total Baltic States </strong></td>
<td width="43">3.663,1</td>
<td width="36">12,24</td>
<td width="40"></td>
<td width="39">1.861,4</td>
<td width="36">11,41</td>
<td width="39"></td>
<td width="40">1.801,7</td>
<td width="36">13,23</td>
<td width="44"></td>
<td width="35">59,7</td>
<td width="36">2,22</td>
</tr>
<tr>
<td width="86"><strong> </strong></td>
<td width="43"></td>
<td width="36"></td>
<td width="40"></td>
<td width="39"></td>
<td width="36"></td>
<td width="39"></td>
<td width="40"></td>
<td width="36"></td>
<td width="44"></td>
<td width="35"></td>
<td width="36"></td>
</tr>
<tr>
<td width="86"><strong>Whole world </strong></td>
<td width="43">29.926,6</td>
<td width="36">100,00</td>
<td width="40"></td>
<td width="39">16.307,5</td>
<td width="36">100,00</td>
<td width="39"></td>
<td width="40">13.619,1</td>
<td width="36">100,00</td>
<td width="44"></td>
<td width="35">2.688,4</td>
<td width="36">100,00</td>
</tr>
</tbody>
</table>
<p>Note: The Baltic States are presented in descending order of their turnover with Germany in 1992-2014.</p>
<p>&nbsp;</p>
<p><strong>Table</strong><strong> 2. </strong><strong>Main partner countries of Germany in its trade with the Baltic States in 1992 and in 2014. </strong></p>
<table width="510">
<thead>
<tr>
<td rowspan="2" width="56"><strong>Indicator </strong></td>
<td rowspan="2" width="141"><strong>Country </strong></td>
<td colspan="2" width="58"><strong>1992</strong></td>
<td rowspan="2" width="55"><strong>Indicator </strong></td>
<td rowspan="2" width="141"><strong>Country </strong></td>
<td colspan="2" width="60"><strong>2014</strong></td>
</tr>
<tr>
<td width="28"><strong>Bln euro</strong></td>
<td width="30"><strong>%</strong></td>
<td width="31"><strong>Bln euro</strong></td>
<td width="28"><strong>%</strong></td>
</tr>
</thead>
<tbody>
<tr>
<td rowspan="6" width="56"><strong>Turnover </strong><strong><br />
</strong><strong>Germany – Baltic States </strong></td>
<td width="141"><strong>Sweden</strong></td>
<td width="28">14,7</td>
<td width="30">24,9</td>
<td rowspan="6" width="55"><strong>Turnover </strong><strong><br />
</strong><strong>Germany – Baltic States</strong></td>
<td rowspan="2" width="141"><strong>Poland</strong></td>
<td rowspan="2" width="31">87,5</td>
<td rowspan="2" width="28">32,1</td>
</tr>
<tr>
<td rowspan="2" width="141"><strong>Denmark</strong></td>
<td rowspan="2" width="28">14,0</td>
<td rowspan="2" width="30">23,7</td>
</tr>
<tr>
<td rowspan="2" width="141"><strong>Russia</strong></td>
<td rowspan="2" width="31">67,7</td>
<td rowspan="2" width="28">24,8</td>
</tr>
<tr>
<td width="141"><strong>Poland</strong></td>
<td width="28">8,4</td>
<td width="30">14,3</td>
</tr>
<tr>
<td width="141"><strong>3 main countries, total</strong></td>
<td width="28">37,1</td>
<td width="30">62,9</td>
<td width="141"><strong>2 main countries, total </strong></td>
<td width="31">155,0</td>
<td width="28">56,9</td>
</tr>
<tr>
<td width="141"><strong>Turnover Germany – Baltic States, total</strong></td>
<td width="28">59,0</td>
<td width="30">100,0</td>
<td width="141"><strong>Turnover Germany – Baltic States, total</strong></td>
<td width="31">272,8</td>
<td width="28">100,0</td>
</tr>
<tr>
<td rowspan="4" width="56"><strong>Export<br />
from Germany to the Baltic States </strong></td>
<td width="141"><strong>Sweden</strong></td>
<td width="28">7,5</td>
<td width="30">26,9</td>
<td rowspan="4" width="55"><strong>Export<br />
from Germany to the Baltic States</strong></td>
<td width="141"><strong>Poland</strong></td>
<td width="31">47,7</td>
<td width="28">34,4</td>
</tr>
<tr>
<td width="141"><strong>Denmark</strong></td>
<td width="28">6,6</td>
<td width="30">23,8</td>
<td width="141"><strong>Russia</strong></td>
<td width="31">29,3</td>
<td width="28">21,1</td>
</tr>
<tr>
<td width="141"><strong>2 main countries, total </strong></td>
<td width="28">14,1</td>
<td width="30">50,8</td>
<td width="141"><strong>2 main countries, total</strong></td>
<td width="31">77,1</td>
<td width="28">55,5</td>
</tr>
<tr>
<td width="141"><strong>Export from Germany to the Baltic States, total</strong></td>
<td width="28">27,8</td>
<td width="30">100,0</td>
<td width="141"><strong>Export from Germany to the Baltic States, total</strong></td>
<td width="31">138,9</td>
<td width="28">100,0</td>
</tr>
<tr>
<td rowspan="6" width="56"><strong>Import<br />
from the Baltic States to Germany </strong></td>
<td width="141"><strong>Denmark </strong></td>
<td width="28">7,3</td>
<td width="30">23,5</td>
<td rowspan="6" width="55"><strong>Import<br />
from the Baltic States to Germany</strong></td>
<td rowspan="2" width="141"><strong>Poland</strong></td>
<td rowspan="2" width="31">39,8</td>
<td rowspan="2" width="28">29,7</td>
</tr>
<tr>
<td rowspan="2" width="141"><strong>Sweden</strong></td>
<td rowspan="2" width="28">7,2</td>
<td rowspan="2" width="30">23,1</td>
</tr>
<tr>
<td rowspan="2" width="141"><strong>Russia</strong></td>
<td rowspan="2" width="31">38,4</td>
<td rowspan="2" width="28">28,7</td>
</tr>
<tr>
<td width="141"><strong>Norway</strong></td>
<td width="28">4,7</td>
<td width="30">14,9</td>
</tr>
<tr>
<td width="141"><strong>3 main countries, total</strong></td>
<td width="28">19,2</td>
<td width="30">61,6</td>
<td width="141"><strong>2 main countries, total </strong></td>
<td width="31">78,2</td>
<td width="28">58,4</td>
</tr>
<tr>
<td width="141"><strong>Import from the Baltic States to Germany, total </strong></td>
<td width="28">31,2</td>
<td width="30">100,0</td>
<td width="141"><strong>Import from the Baltic States to Germany, total</strong></td>
<td width="31">133,8</td>
<td width="28">100,0</td>
</tr>
<tr>
<td rowspan="4" width="56"><strong>Balance for Germany – cumulative surplus </strong></td>
<td rowspan="2" width="141"><strong>Sweden</strong></td>
<td rowspan="2" width="28">0,3</td>
<td rowspan="2" width="30">90,0</td>
<td rowspan="4" width="55"><strong>Balance for Germany – cumulative surplus</strong></td>
<td width="141"><strong>Poland</strong></td>
<td width="31">8,0</td>
<td width="28">32,0</td>
</tr>
<tr>
<td width="141"><strong>Sweden</strong></td>
<td width="31">7,4</td>
<td width="28">29,6</td>
</tr>
<tr>
<td width="141"><strong>1 main country, total </strong></td>
<td width="28">0,3</td>
<td width="30">90,0</td>
<td width="141"><strong>2 main countries, total</strong></td>
<td width="31">15,4</td>
<td width="28">61,7</td>
</tr>
<tr>
<td width="141"><strong>Cumulative surplus for Germany, total </strong></td>
<td width="28">0,3</td>
<td width="30">100,0</td>
<td width="141"><strong>Cumulative surplus for Germany, total</strong></td>
<td width="31">25,0</td>
<td width="28">100,0</td>
</tr>
<tr>
<td rowspan="4" width="56"><strong>Balance for Germany – combined deficit </strong></td>
<td width="141"><strong>Norway</strong></td>
<td width="28">-1,8</td>
<td width="30">47,6</td>
<td rowspan="4" width="55"><strong>Balance for Germany – combined deficit</strong></td>
<td rowspan="2" width="141"><strong>Norway</strong></td>
<td rowspan="2" width="31">-10,7</td>
<td rowspan="2" width="28">53,7</td>
</tr>
<tr>
<td width="141"><strong>Denmark</strong></td>
<td width="28">-0,7</td>
<td width="30">19,2</td>
</tr>
<tr>
<td width="141"><strong>2 main countries, total </strong></td>
<td width="28">-2,5</td>
<td width="30">66,8</td>
<td width="141"><strong>One main country, total </strong></td>
<td width="31">-10,7</td>
<td width="28">53,7</td>
</tr>
<tr>
<td width="141"><strong>Combined deficit for Germany, total </strong></td>
<td width="28">-3,7</td>
<td width="30">100,0</td>
<td width="141"><strong>Combined deficit for Germany, total </strong></td>
<td width="31">-20,0</td>
<td width="28">100,0</td>
</tr>
</tbody>
</table>
<p>Note. The main partners are listed as countries in descending order with the largest volume of trade, export, import and balance, which together accounted for more than 50% of the respective indicators in 1992 and 2014.</p>
<p>&nbsp;</p>
<p>Within the whole period of 1992-2014, Germany&#8217;s main partners among the ten Baltic States were the following four countries &#8211; <strong>Poland, Russia, Sweden and Norway</strong>, including:</p>
<p>- Poland, Russia, Sweden &#8211; in turnover and exports from Germany,</p>
<p>- Russia, Poland, Norway &#8211; in imports to Germany,</p>
<p>- Poland and Sweden &#8211; in surplus for Germany,</p>
<p>- Norway – in deficit for Germany.</p>
<p>&nbsp;</p>
<p>For more than twenty years there have occurred major shifts: in 1992, the most important contractors were Sweden, Denmark, Norway and Poland; now Denmark is not among them, and Sweden and Norway have been overshadowed by Poland and Russia.</p>
<p>In 1992-2014 Germany formed a surplus in trade with the Baltic countries totaling 60 billion euros, but its share in the German foreign trade surplus as a whole (2.7 trillion euros) was only 2.2% &#8211; much lower than the corresponding figures of turnover (12.2 %), exports from Germany (11.4%) and imports to Germany (13.2%). This situation is due to the sustained deficit in German trade with Norway and Russia (these countries are on the second and third places after the Netherlands in terms of the German trade deficit). In 1992-2003 the German-Baltic trade balance was variable with a predominance of the negative balance for Germany. Since 2004 it has become steadily positive for Germany (mainly due to a rapid increase of surplus in the trade with Poland).</p>
<p>Key countries to determine the dynamics of the German trade with the Baltic States are shown in Tables 4 and 5. The most powerful driving forces in general over the last 22 years were Poland and Russia (they were the main factors of growth both in exports from Germany, as well as in imports into Germany, and in 1992-2014 provided respectively 37 and 28% of growth of the German-Baltic turnover). Sweden and Norway took the second place (with growth of 10% and 9%).</p>
<p>&nbsp;</p>
<p><strong>Table 4. Key forces – countries of the German – Baltic trade in 1992-2014, 1992-2000 and in 2000-2008.</strong></p>
<table width="510">
<tbody>
<tr>
<td rowspan="4" width="64"><strong>Country/group of countries </strong></td>
<td colspan="4" width="140"><strong>Total change </strong><strong>2014/1992</strong></td>
<td colspan="4" width="150"><strong>Change </strong><strong>2000/1992</strong></td>
<td colspan="4" width="156"><strong>Change </strong><strong>2008/2000</strong></td>
</tr>
<tr>
<td colspan="2" width="66"><strong>Export from Germany </strong></td>
<td colspan="2" width="74"><strong>Import into Germany </strong></td>
<td colspan="2" width="74"><strong>Export from Germany </strong></td>
<td colspan="2" width="77"><strong>Import into Germany </strong></td>
<td colspan="2" width="78"><strong>Export from Germany </strong></td>
<td colspan="2" width="79"><strong>Import into Germany </strong></td>
</tr>
<tr>
<td width="27"><strong>Growth</strong></td>
<td width="39"><strong>Growth share </strong></td>
<td width="35"><strong>Growth </strong></td>
<td width="39"><strong>Growth share </strong></td>
<td width="34"><strong>Growth </strong></td>
<td width="40"><strong>Growth share </strong></td>
<td width="34"><strong>Growth </strong></td>
<td width="42"><strong>Growth share </strong></td>
<td width="33"><strong>Growth</strong></td>
<td width="44"><strong>Growth share </strong></td>
<td width="33"><strong>Growth </strong></td>
<td width="45"><strong>Growth share</strong></td>
</tr>
<tr>
<td width="27"><strong>Bln euro</strong></td>
<td width="39"><strong>%</strong></td>
<td width="35"><strong>Bln euro </strong></td>
<td width="39"><strong>%</strong></td>
<td width="34"><strong>Bln euro</strong></td>
<td width="40"><strong>%</strong></td>
<td width="34"><strong>Bln euro</strong></td>
<td width="42"><strong>%</strong></td>
<td width="33"><strong>Bln euro</strong></td>
<td width="44"><strong>%</strong></td>
<td width="33"><strong>Bln euro</strong></td>
<td width="45"><strong>%</strong></td>
</tr>
<tr>
<td width="64"><strong>Poland</strong></td>
<td width="27">+43,5</td>
<td width="39">+39,2</td>
<td width="35">+35,5</td>
<td width="39">+34,6</td>
<td width="34">+10,3</td>
<td width="40">+34,3</td>
<td width="34">+7,7</td>
<td width="42">+23,5</td>
<td width="33">+26,2</td>
<td width="44">+35,3</td>
<td width="33">+13,9</td>
<td width="45">+24,3</td>
</tr>
<tr>
<td width="64"><strong>Russia</strong></td>
<td width="27">+26,1</td>
<td width="39">+23,5</td>
<td width="35">+34,5</td>
<td width="39">+33,6</td>
<td width="34"></td>
<td width="40"></td>
<td width="34">+10,8</td>
<td width="42">+33,1</td>
<td width="33">+25,7</td>
<td width="44">+34,5</td>
<td width="33">+22,4</td>
<td width="45">+39,1</td>
</tr>
<tr>
<td width="64"><strong>Sweden</strong></td>
<td width="27"></td>
<td width="39"></td>
<td width="35"></td>
<td width="39"></td>
<td width="34">+6,0</td>
<td width="40">+20,1</td>
<td width="34"></td>
<td width="42"></td>
<td width="33"></td>
<td width="44"></td>
<td width="33"></td>
<td width="45"></td>
</tr>
<tr>
<td width="64"><strong>Growth in the Baltic countries </strong></td>
<td width="27">+111,1</td>
<td width="39">+100,0</td>
<td width="35">+102,7</td>
<td width="39">+100,0</td>
<td width="34">+30,1</td>
<td width="40">+100,0</td>
<td width="34">+32,7</td>
<td width="42">+100,0</td>
<td width="33">+74,3</td>
<td width="44">+100,0</td>
<td width="33">+57,3</td>
<td width="45">100,0</td>
</tr>
</tbody>
</table>
<p>&nbsp;</p>
<p><strong>Table 5. Key forces – countries of the German – Baltic trade in 2008-2014 and 2012-2014.</strong></p>
<table width="510">
<tbody>
<tr>
<td rowspan="4" width="43"><strong>Country/group of countries </strong></td>
<td colspan="8" width="241"><strong>Change </strong><strong>2014/2008</strong></td>
<td colspan="8" width="227"><strong>Change </strong><strong>2014/2012</strong></td>
</tr>
<tr>
<td colspan="4" width="127"><strong>Export from Germany </strong></td>
<td colspan="4" width="114"><strong>Import into Germany </strong></td>
<td colspan="4" width="114"><strong>Export from Germany </strong></td>
<td colspan="4" width="114"><strong>Import into Germany </strong></td>
</tr>
<tr>
<td width="35"><strong>Growth</strong></td>
<td width="35"><strong>Decline</strong></td>
<td width="28"><strong>Growth share </strong></td>
<td width="28"><strong>Decline share </strong></td>
<td width="29"><strong>Growth </strong></td>
<td width="28"><strong>Decline </strong></td>
<td width="28"><strong>Growth share </strong></td>
<td width="28"><strong>Decline share </strong></td>
<td width="23"><strong>Growth </strong></td>
<td width="28"><strong>Decline </strong></td>
<td width="29"><strong>Growth share </strong></td>
<td width="34"><strong>Decline share </strong></td>
<td width="23"><strong>Growth </strong></td>
<td width="27"><strong>Decline </strong></td>
<td width="30"><strong>Growth share </strong></td>
<td width="34"><strong>Decline share </strong></td>
</tr>
<tr>
<td colspan="2" width="71"><strong>Bln euro</strong></td>
<td colspan="2" width="56"><strong>%</strong></td>
<td colspan="2" width="57"><strong>Bln euro </strong></td>
<td colspan="2" width="56"><strong>%</strong></td>
<td colspan="2" width="50"><strong>Bln euro</strong></td>
<td colspan="2" width="64"><strong>%</strong></td>
<td colspan="2" width="50"><strong>Bln euro</strong></td>
<td colspan="2" width="64"><strong>%</strong></td>
</tr>
<tr>
<td width="43"><strong>Poland</strong></td>
<td width="35">+7,0</td>
<td width="35"></td>
<td width="28">+65,4</td>
<td width="28"></td>
<td width="29">+13,9</td>
<td width="28"></td>
<td width="28">+85,2</td>
<td width="28"></td>
<td width="23">+5,9</td>
<td width="28"></td>
<td width="29">+62,1</td>
<td width="34"></td>
<td width="23">+6,7</td>
<td width="27"></td>
<td width="30">+77,7</td>
<td width="34"></td>
</tr>
<tr>
<td width="43"><strong>Russia</strong></td>
<td width="35"></td>
<td width="35">-3,0</td>
<td width="28"></td>
<td width="28">-76,4</td>
<td width="29"></td>
<td width="28"></td>
<td width="28"></td>
<td width="28"></td>
<td width="23"></td>
<td width="28">-8,8</td>
<td width="29"></td>
<td width="34">-99,5</td>
<td width="23"></td>
<td width="27"></td>
<td width="30"></td>
<td width="34"></td>
</tr>
<tr>
<td width="43"><strong>Norway</strong></td>
<td width="35"></td>
<td width="35"></td>
<td width="28"></td>
<td width="28"></td>
<td width="29"></td>
<td width="28">-3,1</td>
<td width="28"></td>
<td width="28">-82,0</td>
<td width="23"></td>
<td width="28"></td>
<td width="29"></td>
<td width="34"></td>
<td width="23"></td>
<td width="27">-7,0</td>
<td width="30"></td>
<td width="34">-59,7</td>
</tr>
<tr>
<td width="43"><strong>Growth in the Baltic States </strong></td>
<td width="35">+10,7</td>
<td width="35"></td>
<td width="28">+100,0</td>
<td width="28"></td>
<td width="29">+16,3</td>
<td width="28"></td>
<td width="28">+100,0</td>
<td width="28"></td>
<td width="23">+9,5</td>
<td width="28"></td>
<td width="29">+100,0</td>
<td width="34"></td>
<td width="23">+8,7</td>
<td width="27"></td>
<td width="30">+100,0</td>
<td width="34"></td>
</tr>
<tr>
<td width="43"><strong>Decline in the Baltic States </strong></td>
<td width="35"></td>
<td width="35">-3,9</td>
<td width="28"></td>
<td width="28">-100,0</td>
<td width="29"></td>
<td width="28">-3,8</td>
<td width="28"></td>
<td width="28">-100,0</td>
<td width="23"></td>
<td width="28">-8,8</td>
<td width="29"></td>
<td width="34">-100,0</td>
<td width="23"></td>
<td width="27">-11,8</td>
<td width="30"></td>
<td width="34">-100,0</td>
</tr>
</tbody>
</table>
<p>Note. The main factors are countries listed in descending order with the largest increase/reduction of export/import, which total share in the growth/decline of the corresponding indicators was more than 50%.</p>
<p>&nbsp;</p>
<p>In certain periods the following countries were the main trade partners:</p>
<p>- In 1992-2000: for exports from Germany &#8211; Poland and Sweden (growth factors), for imports into Germany &#8211; Russia and Poland (growth factors);</p>
<p>- In 2000-2008: for exports from Germany &#8211; Poland and Russia (growth factors), for imports into Germany &#8211; Russia and Poland (growth factors);</p>
<p>- In 2008-2014 years in general and in 2012-2014 in particular: for exports from Germany &#8211; Poland (growth factor) and Russia (recession factor), for imports into Germany &#8211; Poland (growth factor), and Norway (recession factor).</p>
<p>Poland would return as a source of positive pulses after each case of decrease of the indicators of its trade with Germany in 1992-2014. Russia, too, managed to do this for 20 years, but in the last two years it has dramatically changed its role, becoming the brake of the German-Baltic trade instead of its accelerator. The share of Poland in the foreign trade turnover of Germany rose from 1.3% in 1992 to 4.3% in 2014, the corresponding indicator for Russia rose from 1.1 to 3.3% (maximum &#8211; 4.0% &#8211; was achieved in 2012).</p>
<p>As for the remaining six of the Baltic countries, among them are two larger counterparts of Germany &#8211; Denmark and Finland, and four smaller &#8211; three post-Soviet states (Lithuania, Latvia, Estonia) and Iceland. Both in 1992-2000 and in 2000-2008, all six countries were factors of growth for the trade between Germany and the Baltic States (being inferior to a group of four countries mentioned above). But in 2008-2014 only the new European trio played a positive role, while the “old Europeans” generated negative pulses (Finland and Iceland &#8211; in both directions of trade, Denmark &#8211; for imports to Germany). As a result, the total share of Lithuania, Latvia and Estonia in the foreign trade turnover of Germany rose from 0.1% in 1992 to 0.4% in 2014, thus indicating that the growth rate of Germany&#8217;s trade with these countries turned out to be the highest within the Baltic region.</p>
<p>Distribution of the indicators of the German trade with the Baltic countries and the whole world for four product groups, that are classified in accordance with the increase in the degree of processing of the goods (and, consequently, increase of the share of value added in the value of goods), is presented in Tables 6 and 7.</p>
<p>&nbsp;</p>
<p><strong>Table</strong><strong> 6. </strong><strong>Structure of the goods of the German – Baltic trade in 2014, % of turnover between Germany and the Baltic States </strong></p>
<table width="510">
<tbody>
<tr>
<td colspan="3" width="99"><strong>Indicator/goods group (code, name) </strong></td>
<td width="35"><strong>Poland</strong></td>
<td width="28"><strong>Russia</strong></td>
<td width="35"><strong>Sweden</strong></td>
<td width="36"><strong>Norway</strong></td>
<td width="31"><strong>Denmark </strong></td>
<td width="46"><strong>Finland</strong></td>
<td width="43"><strong>Lithuania</strong></td>
<td width="35"><strong>Estonia</strong></td>
<td width="35"><strong>Latvia</strong></td>
<td width="35"><strong>Iceland</strong></td>
<td width="49"><strong>Turnover Germany – Baltic States, total </strong></td>
</tr>
<tr>
<td rowspan="4" width="42"><strong>Export from Germany </strong></td>
<td width="14"><strong>1-4</strong></td>
<td width="43"><strong>Food</strong></td>
<td width="35">1,5</td>
<td width="28">0,4</td>
<td width="35">0,5</td>
<td width="36">0,2</td>
<td width="31">1,0</td>
<td width="46">0,3</td>
<td width="43">0,1</td>
<td width="35">0,0</td>
<td width="35">0,1</td>
<td width="35">0,0</td>
<td width="49">4,2</td>
</tr>
<tr>
<td width="14"><strong>5</strong></td>
<td width="43"><strong>Raw materials</strong></td>
<td width="35">0,2</td>
<td width="28">0,0</td>
<td width="35">0,1</td>
<td width="36">0,0</td>
<td width="31">0,3</td>
<td width="46">0,0</td>
<td width="43">0,0</td>
<td width="35">0,0</td>
<td width="35">0,0</td>
<td width="35">0,0</td>
<td width="49">0,6</td>
</tr>
<tr>
<td width="14"><strong>6</strong></td>
<td width="43"><strong>Semi-processed goods</strong></td>
<td width="35">1,6</td>
<td width="28">0,2</td>
<td width="35">0,3</td>
<td width="36">0,1</td>
<td width="31">0,3</td>
<td width="46">0,2</td>
<td width="43">0,0</td>
<td width="35">0,1</td>
<td width="35">0,0</td>
<td width="35">0,0</td>
<td width="49">2,8</td>
</tr>
<tr>
<td width="14"><strong>7-8</strong></td>
<td width="43"><strong>Finished products</strong></td>
<td width="35">14,1</td>
<td width="28">10,4</td>
<td width="35">7,0</td>
<td width="36">2,9</td>
<td width="31">4,5</td>
<td width="46">2,8</td>
<td width="43">0,8</td>
<td width="35">0,5</td>
<td width="35">0,5</td>
<td width="35">0,1</td>
<td width="49">43,6</td>
</tr>
<tr>
<td rowspan="4" width="42"><strong>Import into Germany </strong></td>
<td width="14"><strong>1-4</strong></td>
<td width="43"><strong>Food</strong></td>
<td width="35">1,7</td>
<td width="28">0,1</td>
<td width="35">0,1</td>
<td width="36">0,2</td>
<td width="31">1,2</td>
<td width="46">0,0</td>
<td width="43">0,1</td>
<td width="35">0,0</td>
<td width="35">0,0</td>
<td width="35">0,0</td>
<td width="49">3,5</td>
</tr>
<tr>
<td width="14"><strong>5</strong></td>
<td width="43"><strong>Raw materials</strong></td>
<td width="35">0,3</td>
<td width="28">10,2</td>
<td width="35">0,3</td>
<td width="36">6,1</td>
<td width="31">0,3</td>
<td width="46">0,0</td>
<td width="43">0,0</td>
<td width="35">0,0</td>
<td width="35">0,0</td>
<td width="35">0,0</td>
<td width="49">17,3</td>
</tr>
<tr>
<td width="14"><strong>6</strong></td>
<td width="43"><strong>Semi-processed goods</strong></td>
<td width="35">1,2</td>
<td width="28">3,7</td>
<td width="35">0,8</td>
<td width="36">0,6</td>
<td width="31">0,2</td>
<td width="46">0,6</td>
<td width="43">0,1</td>
<td width="35">0,0</td>
<td width="35">0,0</td>
<td width="35">0,1</td>
<td width="49">7,3</td>
</tr>
<tr>
<td width="14"><strong>7-8</strong></td>
<td width="43"><strong>Finished products</strong></td>
<td width="35">10,8</td>
<td width="28">0,7</td>
<td width="35">3,8</td>
<td width="36">0,4</td>
<td width="31">2,3</td>
<td width="46">2,0</td>
<td width="43">0,3</td>
<td width="35">0,1</td>
<td width="35">0,1</td>
<td width="35">0,0</td>
<td width="49">20,7</td>
</tr>
<tr>
<td colspan="3" width="99"><strong>Turnover Germany – Baltic States, total*</strong></td>
<td width="35">31,4</td>
<td width="28">25,7</td>
<td width="35">12,9</td>
<td width="36">10,5</td>
<td width="31">10,2</td>
<td width="46">5,9</td>
<td width="43">1,5</td>
<td width="35">0,8</td>
<td width="35">0,8</td>
<td width="35">0,3</td>
<td width="49">100,0</td>
</tr>
</tbody>
</table>
<p>* excluding returned, replaced and not allocated by commodity groups goods.</p>
<p>Note. The Baltic countries are presented in descending order of their turnover with Germany in 2014.</p>
<p>&nbsp;</p>
<p><strong>Table</strong><strong>  7. </strong><strong>Structure of the goods of the German &#8211; Baltic trade and the overall German foreign trade in 2014, % of export/import/turnover of certain countries, Baltic States and the whole world. </strong></p>
<table width="510">
<thead>
<tr>
<td colspan="3" width="88"><strong>Indicator/goods group (code, name)</strong></td>
<td width="36"><strong>Poland</strong></td>
<td width="31"><strong>Russia</strong></td>
<td colspan="2" width="37"><strong>Sweden</strong></td>
<td colspan="2" width="43"><strong>Norway</strong></td>
<td colspan="3" width="31"><strong>Denmark</strong></td>
<td colspan="3" width="39"><strong>Finland</strong></td>
<td width="31"><strong>Lithuania </strong></td>
<td width="41"><strong>Estonia</strong></td>
<td width="36"><strong>Latvia</strong></td>
<td width="36"><strong>Iceland</strong></td>
<td width="35"><strong>Baltic States, total </strong></td>
<td colspan="2" width="26"><strong>Whole world</strong></td>
</tr>
</thead>
<tbody>
<tr>
<td rowspan="5" width="14"><strong>Export from Germany </strong></td>
<td width="21"><strong>1-4</strong></td>
<td width="53"><strong>Food</strong></td>
<td width="36">8,4</td>
<td width="31">4,0</td>
<td colspan="2" width="37">6,8</td>
<td colspan="2" width="43">7,4</td>
<td colspan="2" width="31">16,4</td>
<td colspan="3" width="39">8,4</td>
<td colspan="2" width="32">11,6</td>
<td width="41">7,7</td>
<td width="36">10,2</td>
<td width="36">12,1</td>
<td width="35">8,2</td>
<td colspan="2" width="26">6,0</td>
</tr>
<tr>
<td width="21"><strong>5</strong></td>
<td width="53"><strong>Raw materials </strong></td>
<td width="36">1,2</td>
<td width="31">0,3</td>
<td colspan="2" width="37">0,9</td>
<td colspan="2" width="43">0,4</td>
<td colspan="2" width="31">4,4</td>
<td colspan="3" width="39">0,4</td>
<td colspan="2" width="32">0,4</td>
<td width="41">0,5</td>
<td width="36">0,9</td>
<td width="36">0,2</td>
<td width="35">1,2</td>
<td colspan="2" width="26">1,6</td>
</tr>
<tr>
<td width="21"><strong>6</strong></td>
<td width="53"><strong>Semi-processed goods </strong></td>
<td width="36">9,0</td>
<td width="31">1,7</td>
<td colspan="2" width="37">4,4</td>
<td colspan="2" width="43">3,2</td>
<td colspan="2" width="31">5,1</td>
<td colspan="3" width="39">6,1</td>
<td colspan="2" width="32">3,5</td>
<td width="41">10,1</td>
<td width="36">4,3</td>
<td width="36">2,3</td>
<td width="35">5,5</td>
<td colspan="2" width="26">5,6</td>
</tr>
<tr>
<td width="21"><strong>7-8</strong></td>
<td width="53"><strong>Finished products </strong></td>
<td width="36">81,4</td>
<td width="31">94,0</td>
<td colspan="2" width="37">88,0</td>
<td colspan="2" width="43">89,1</td>
<td colspan="2" width="31">74,1</td>
<td colspan="3" width="39">85,1</td>
<td colspan="2" width="32">84,5</td>
<td width="41">81,7</td>
<td width="36">84,6</td>
<td width="36">85,4</td>
<td width="35">85,1</td>
<td colspan="2" width="26">86,9</td>
</tr>
<tr>
<td colspan="2" width="74"><strong>Export from Germany, total </strong></td>
<td width="36">100,0</td>
<td width="31">100,0</td>
<td width="36">100,0</td>
<td colspan="2" width="43">100,0</td>
<td colspan="3" width="31">100,0</td>
<td colspan="3" width="39">100,0</td>
<td colspan="2" width="32">100,0</td>
<td width="41">100,0</td>
<td width="36">100,0</td>
<td width="36">100,0</td>
<td width="35">100,0</td>
<td colspan="2" width="26">100,0</td>
</tr>
<tr>
<td rowspan="5" width="14"><strong>Import into Germany </strong></td>
<td width="21"><strong>1-4</strong></td>
<td width="53"><strong>Food</strong></td>
<td width="36">11,9</td>
<td width="31">0,6</td>
<td width="36">2,8</td>
<td colspan="2" width="43">2,8</td>
<td colspan="2" width="31">28,6</td>
<td colspan="3" width="39">1,1</td>
<td colspan="3" width="32">21,2</td>
<td width="41">6,0</td>
<td width="36">14,8</td>
<td width="36">17,2</td>
<td width="35">7,1</td>
<td width="26">8,5</td>
<td width="0"></td>
</tr>
<tr>
<td width="21"><strong>5</strong></td>
<td width="53"><strong>Raw materials </strong></td>
<td width="36">2,4</td>
<td width="31">69,6</td>
<td width="36">5,8</td>
<td colspan="2" width="43">83,6</td>
<td colspan="2" width="31">7,7</td>
<td colspan="3" width="39">0,6</td>
<td colspan="3" width="32">2,5</td>
<td width="41">9,8</td>
<td width="36">9,1</td>
<td width="36">2,7</td>
<td width="35">35,6</td>
<td width="26">11,6</td>
<td width="0"></td>
</tr>
<tr>
<td width="21"><strong>6</strong></td>
<td width="53"><strong>Semi-processed goods </strong></td>
<td width="36">8,7</td>
<td width="31">25,2</td>
<td width="36">16,0</td>
<td colspan="2" width="43">7,8</td>
<td colspan="2" width="31">5,9</td>
<td colspan="3" width="39">21,0</td>
<td colspan="3" width="32">16,1</td>
<td width="41">14,0</td>
<td width="36">11,0</td>
<td width="36">68,4</td>
<td width="35">15,1</td>
<td width="26">8,7</td>
<td width="0"></td>
</tr>
<tr>
<td width="21"><strong>7-8</strong></td>
<td width="53"><strong>Finished products </strong></td>
<td width="36">77,0</td>
<td width="31">4,6</td>
<td width="36">75,4</td>
<td colspan="2" width="43">5,8</td>
<td colspan="2" width="31">57,8</td>
<td colspan="3" width="39">77,3</td>
<td colspan="3" width="32">60,2</td>
<td width="41">70,2</td>
<td width="36">65,1</td>
<td width="36">11,7</td>
<td width="35">42,2</td>
<td width="26">71,2</td>
<td width="0"></td>
</tr>
<tr>
<td colspan="2" width="74"><strong>Import to Germany, total </strong></td>
<td width="36">100,0</td>
<td width="31">100,0</td>
<td width="36">100,0</td>
<td colspan="2" width="43">100,0</td>
<td colspan="2" width="31">100,0</td>
<td colspan="3" width="39">100,0</td>
<td colspan="3" width="32">100,0</td>
<td width="41">100,0</td>
<td width="36">100,0</td>
<td width="36">100,0</td>
<td width="35">100,0</td>
<td width="26">100,0</td>
<td width="0"></td>
</tr>
<tr>
<td rowspan="5" width="14"><strong>Turnover of Germany </strong></td>
<td width="21"><strong>1-4</strong></td>
<td width="53"><strong>Food </strong></td>
<td width="36">10,0</td>
<td width="31">2,0</td>
<td width="36">5,3</td>
<td colspan="2" width="43">4,2</td>
<td colspan="2" width="31">21,2</td>
<td colspan="3" width="39">5,1</td>
<td colspan="3" width="32">15,1</td>
<td width="41">7,4</td>
<td width="36">11,5</td>
<td width="36">15,2</td>
<td width="35">7,6</td>
<td width="26">7,1</td>
<td width="0"></td>
</tr>
<tr>
<td width="21"><strong>5</strong></td>
<td width="53"><strong>Raw materials </strong></td>
<td width="36">1,7</td>
<td width="31">39,7</td>
<td width="36">2,8</td>
<td colspan="2" width="43">58,1</td>
<td colspan="2" width="31">5,7</td>
<td colspan="3" width="39">0,5</td>
<td colspan="3" width="32">1,1</td>
<td width="41">2,5</td>
<td width="36">3,2</td>
<td width="36">1,7</td>
<td width="35">18,0</td>
<td width="26">6,0</td>
<td width="0"></td>
</tr>
<tr>
<td width="21"><strong>6</strong></td>
<td width="53"><strong>Semi-processed goods </strong></td>
<td width="36">8,9</td>
<td width="31">15,1</td>
<td width="36">8,8</td>
<td colspan="2" width="43">6,4</td>
<td colspan="2" width="31">5,4</td>
<td colspan="3" width="39">12,8</td>
<td colspan="3" width="32">8,1</td>
<td width="41">11,0</td>
<td width="36">6,2</td>
<td width="36">42,4</td>
<td width="35">10,2</td>
<td width="26">7,0</td>
<td width="0"></td>
</tr>
<tr>
<td width="21"><strong>7-8</strong></td>
<td width="53"><strong>Finished products </strong></td>
<td width="36">79,4</td>
<td width="31">43,2</td>
<td width="36">83,1</td>
<td colspan="2" width="43">31,3</td>
<td colspan="2" width="31">67,6</td>
<td colspan="3" width="39">81,6</td>
<td colspan="3" width="32">75,6</td>
<td width="41">79,1</td>
<td width="36">79,1</td>
<td width="36">40,8</td>
<td width="35">64,2</td>
<td width="26">79,9</td>
<td width="0"></td>
</tr>
<tr>
<td colspan="2" width="74"><strong>Turnover Germany – Baltic States, total*</strong></td>
<td width="36">100,0</td>
<td width="31">100,0</td>
<td width="36">100,0</td>
<td colspan="2" width="43">100,0</td>
<td colspan="2" width="31">100,0</td>
<td colspan="3" width="39">100,0</td>
<td colspan="3" width="32">100,0</td>
<td width="41">100,0</td>
<td width="36">100,0</td>
<td width="36">100,0</td>
<td width="35">100,0</td>
<td width="26">100,0</td>
<td width="0"></td>
</tr>
</tbody>
</table>
<p>* excluding returned, replaced and not allocated by commodity groups goods.</p>
<p>Note. The Baltic countries are presented in descending order of their turnover with Germany in 2014.</p>
<p>&nbsp;</p>
<p>The main part of the German-Baltic trade (52.6% of the turnover) is in:</p>
<p>- German exports of finished products into Poland (14.1%), Russia (10.4%) and Sweden (7.0%),</p>
<p>- Import of finished products from Poland (10.8%) and raw materials from Russia (10.2%).</p>
<p>&nbsp;</p>
<p>A substantial component is also import of raw materials from Norway (6.1%). In other cases, the share of product groups by country does not exceed 5%. Germany has a positive balance in the German-Baltic trade of food and finished products, and a negative balance – in the trade in raw materials and semi-processed goods. The total surplus for Germany consists mainly of excess surplus in finished products (Poland and Sweden) over the deficit of raw material (Norway and Russia).</p>
<p>The structure of German exports to the Baltic States and the overall German exports are very similar: the maximum difference (the share of food) is only slightly more than two percentage points. German imports from the Baltic States, by contrast, strongly deviates from the overall German import: on the one hand, by the shares of raw materials and semi-finished goods (the German import from the Baltic States has, respectively, 24 and 6 percentage points more than the overall German import); on the other hand, by the share of finished products (the German import from the Baltic States has 29 percentage points less than the overall German import). As a result, the basis of turnover of Germany with the world and with the Baltic States is the same &#8211; products with a higher degree of processing, namely finished products (64 and 80%, respectively), but the value of the goods with a low and medium degree of processing &#8211; raw materials and semi-finished products &#8211; in the German – Baltic trade is much larger (28%) than in the foreign trade of Germany as a whole (13%).</p>
<p>The structure of German exports in each of the Baltic countries is characterized by a common main feature &#8211; a strong dominance of finished products (ranging from 74.1% in Denmark to 94.0% in Russia; average Baltic and average world indicators are, respectively, 85.1 and 86.9%). At the same time, six countries have an additional focus: on food &#8211; Denmark (16.4%), Iceland (12.1%), Lithuania (11.6%), Latvia (10.2%) with the average Baltic and average world level of, respectively, 8.2 and 6.0%; semi-processed goods &#8211; Estonia (10.1%) and Poland (9.0%) with the average Baltic and average world level of, respectively, 5.5 and 5.6%. In four countries (Norway, Sweden, Finland, Russia) there are no such focuses.</p>
<p>As sources of the German import certain Baltic countries show considerable specificity. The most striking peculiarity is that of these three importers with an extremely low share of finished products (Russia &#8211; 4.6%, Norway &#8211; 5.8%, Iceland &#8211; 11.7%). For the rest of the Baltic countries this figure ranges from 57.8 to 77.3%, the average Baltic value is 42.2%, the world average is 71.2%. The above mentioned three countries are specialized in: Norway and Russia &#8211; raw materials (83.6 and 69.6%, respectively), Iceland – semi-processed goods (68.4%). Russia has an additional emphasis on semi-processed products (25.2%), Norway and Iceland do not have it. Since the absolute volume of imports of semi-processed products from Iceland is very small, the above-noted important role of the Baltic States for Germany as a source of raw materials and semi-processed products is concentrated in only two of the ten countries &#8211; Russia (raw materials and semi-processed products) and Norway (raw materials).</p>
<p>Among the other seven importers, who are leaders in finished products, two groups with additional focuses can be distinguished:</p>
<p>• focus on food &#8211; Denmark (28.6%), Lithuania (21.2%), Latvia (14.8%), Poland (11.9%) with the world average of 8.5%;</p>
<p>• on semi-processed products &#8211; Finland (21.0%), Lithuania (16.1%), Sweden (16.0%), Estonia (14.0%) with the world average of 8.7%.</p>
<p>The concretization of these features in the context of three-digit product classification is presented in Tables 8 and 9.</p>
<p>&nbsp;</p>
<p><strong>Table 8. Main goods of the German export in the Baltic States in 2014.</strong></p>
<table width="513">
<thead>
<tr>
<td rowspan="2" width="43"><strong>Country</strong></td>
<td colspan="4" width="323"><strong>Main goods of export from Germany to a country </strong></td>
<td colspan="2" width="147"><strong>Main goods of the additional export focus of the country </strong></td>
</tr>
<tr>
<td width="133"><strong>Goods (code, name) </strong></td>
<td width="45"><strong>Share in the export from Germany to a country, %</strong></td>
<td width="73"><strong>Share of a country in the overall German export of these goods, %</strong></td>
<td width="73"><strong>Position of the country in the overall German export of the goods </strong></td>
<td width="101"><strong>Goods position (code, name) </strong></td>
<td width="46"><strong>Share in the export of Germany to a country, %</strong></td>
</tr>
</thead>
<tbody>
<tr>
<td width="43"><strong>Norway</strong></td>
<td width="133">885. Passenger cars</td>
<td width="45">19,2</td>
<td width="73">1,3</td>
<td width="73">18</td>
<td colspan="2" width="147"></td>
</tr>
<tr>
<td width="43"><strong>Latvia</strong></td>
<td width="133">885. Passenger cars</td>
<td width="45">12,4</td>
<td width="73">0,1</td>
<td width="73">48</td>
<td width="101">423. Strong alcohol beverages</td>
<td width="46">1,2</td>
</tr>
<tr>
<td width="43"><strong>Sweden</strong></td>
<td width="133">885. Passenger cars</td>
<td width="45">11,6</td>
<td width="73">2,0</td>
<td width="73">14</td>
<td colspan="2" width="147"></td>
</tr>
<tr>
<td width="43"><strong>Iceland</strong></td>
<td width="133">885. Passenger cars</td>
<td width="45">9,9</td>
<td width="73">0,0</td>
<td width="73">78</td>
<td width="101">206. Fish, shellfish, mussels</td>
<td width="46">2,1</td>
</tr>
<tr>
<td width="43"><strong>Estonia</strong></td>
<td width="133">861. Equipment for production and distribution of electricity</td>
<td width="45">9,2</td>
<td width="73">0,3</td>
<td width="73">44</td>
<td width="101">669. Oil products</td>
<td width="46">4,3</td>
</tr>
<tr>
<td width="43"><strong>Finland</strong></td>
<td width="133">885. Passenger cars</td>
<td width="45">8,4</td>
<td width="73">0,6</td>
<td width="73">27</td>
<td colspan="2" width="147"></td>
</tr>
<tr>
<td width="43"><strong>Russia</strong></td>
<td width="133">884. Automobile components</td>
<td width="45">8,3</td>
<td width="73">3,3</td>
<td width="73">10</td>
<td colspan="2" width="147"></td>
</tr>
<tr>
<td width="43"><strong>Poland</strong></td>
<td width="133">884. Automobile components</td>
<td width="45">8,2</td>
<td width="73">5,1</td>
<td width="73">6</td>
<td width="101">669. Oil products</td>
<td width="46">3,7</td>
</tr>
<tr>
<td width="43"><strong>Denmark</strong></td>
<td width="133">861. Machinery for production and distribution of energy</td>
<td width="45">5,3</td>
<td width="73">1,7</td>
<td width="73">18</td>
<td width="101">204. Meat and meat products</td>
<td width="46">3,9</td>
</tr>
<tr>
<td width="43"><strong>Lithuania </strong></td>
<td width="133">834. Pharmaceutical products</td>
<td width="45">5,0</td>
<td width="73">0,2</td>
<td width="73">49</td>
<td width="101">395. Other foods of plant origin</td>
<td width="46">1,6</td>
</tr>
</tbody>
</table>
<p>Note: The Baltic countries are presented in descending order of the proportion of the main export commodity in the exports from Germany in 2014.</p>
<p><strong>Table 9. Main goods of the German import from the Baltic States in 2014.</strong></p>
<table width="514">
<thead>
<tr>
<td rowspan="2" width="46"><strong>Country</strong></td>
<td colspan="4" width="320"><strong>Main goods of the import into Germany from a country </strong></td>
<td colspan="2" width="148"><strong>Main goods of the additional import focus </strong></td>
</tr>
<tr>
<td width="132"><strong>Goods (code, name) </strong></td>
<td width="43"><strong>Share in the import into Germany from a country, %</strong></td>
<td width="74"><strong>Share of a country in the overall German import of these goods, %</strong></td>
<td width="72"><strong>Position of a country in the overall German imports of the goods </strong></td>
<td width="106"><strong>Position of the goods (code, name) </strong></td>
<td width="43"><strong>Share in the import into Germany from a country, %</strong></td>
</tr>
</thead>
<tbody>
<tr>
<td width="46"><strong>Norway</strong></td>
<td width="132">518. Oil and natural gas</td>
<td width="43">82,0</td>
<td width="74">18,9</td>
<td width="72">2</td>
</tr>
<tr>
<td width="46"><strong>Russia</strong></td>
<td width="132">518. Oil and natural gas</td>
<td width="43">66,6</td>
<td width="74">30,8</td>
<td width="72">1</td>
<td width="106">669. Oil products</td>
<td width="43">16,3</td>
</tr>
<tr>
<td width="46"><strong>Iceland</strong></td>
<td width="132">645. Aluminum and aluminum alloys, including waste and scrap</td>
<td width="43">64,3</td>
<td width="74">5,6</td>
<td width="72">8</td>
</tr>
<tr>
<td width="46"><strong>Finland</strong></td>
<td width="132">708. Paperandcardboard</td>
<td width="43">20,4</td>
<td width="74">19,0</td>
<td width="72">2</td>
<td width="106">608. Semi-finished products of cellulose fiber</td>
<td width="43">5,5</td>
</tr>
<tr>
<td width="46"><strong>Poland</strong></td>
<td width="132">884. Automobile components</td>
<td width="43">13,2</td>
<td width="74">10,6</td>
<td width="72">3</td>
<td width="106">
<ol start="6">
<li>Fish, shell fish, mussels</li>
</ol>
</td>
<td width="43">2,0</td>
</tr>
<tr>
<td width="46"><strong>Sweden</strong></td>
<td width="132">708. Paper and cardboard</td>
<td width="43">12,1</td>
<td width="74">21,3</td>
<td width="72">1</td>
<td width="106">608. Semi-finished products of cellulose fiber</td>
<td width="43">4,2</td>
</tr>
<tr>
<td width="46"><strong>Estonia</strong></td>
<td width="132">815. Items made of wood (apart from furniture)</td>
<td width="43">11,6</td>
<td width="74">2,2</td>
<td width="72">10</td>
<td width="106">607. Lumber</td>
<td width="43">5,7</td>
</tr>
<tr>
<td width="46"><strong>Lithuania </strong></td>
<td width="132">875. Furniture</td>
<td width="43">10,0</td>
<td width="74">1,3</td>
<td width="72">18</td>
<td width="106">206. Fish, shell fish, mussels</td>
<td width="43">7,1</td>
</tr>
<tr>
<td width="46"><strong>Latvia </strong></td>
<td width="132">709. Plywood and plywood sheets, chipboards</td>
<td width="43">8,2</td>
<td width="74">2,6</td>
<td width="72">11</td>
<td width="106">383. Oil cake</td>
<td width="43">5,2</td>
</tr>
<tr>
<td width="46"><strong>Denmark</strong></td>
<td width="132">834. Pharmaceutical products</td>
<td width="43">6,9</td>
<td width="74">2,1</td>
<td width="72">11</td>
<td width="106">204. Meat and meat products</td>
<td width="43">6,7</td>
</tr>
</tbody>
</table>
<p>Note. The Baltic countries are presented in descending order of the share of the main imported goods in the imports of Germany in 2014.</p>
<p>&nbsp;</p>
<p>Passenger cars belonging to the product group &#8220;finished products&#8221; are the main commodity items of the overall German exports (0.9%), German exports to the Baltic States (6.9%) and German exports into five Baltic countries (Norway, Latvia, Sweden, Iceland , Finland). “Automotive components”, which are close to the group of passenger cars, are the leader in exports from Germany to Russia and Poland. Only in three cases, the leading role is played by other products, also belonging to the group of “finished products”- equipment for the production and distribution of electricity (Estonia and Denmark) and pharmaceutical products (Lithuania). Five countries (Poland, Russia, Sweden, Norway, Denmark) are in the top twenty of the German consumers for the corresponding main goods, with the highest position &#8211; the sixth in export of automobile components from Germany –is held by Poland. Two countries (Estonia and Poland) have the same additional export emphasis on semi-finished products (oil products), and there is no unity for countries with a focus on food.</p>
<p>Oil and natural gas belonging to the commodity group &#8220;raw material&#8221; are the main position of the overall German imports (9.5%), German imports from the Baltic States (32.9%) and German imports from Norway and Russia. Imports from Iceland to Germany are focused on aluminum (group &#8220;semi-finished products&#8221;). Specialization on the group &#8220;finished products&#8221; is characteristic of German imports from the other seven Baltic countries, including: specialization on products related to the processing of wood &#8211; from Finland, Sweden (paper and cardboard), Estonia (wood products except furniture), Lithuania (furniture), Latvia (plywood); on automotive components &#8211; from Poland, for pharmaceutical products – from Denmark. All Baltic countries are in the top twenty of the German suppliers of the relevant main products, with the highest &#8211; the first – positions held by Russia (oil/gas) and Sweden (paper/cardboard). Semi-finished products as an additional import emphasis are closely related to the main item: in Russia &#8211; oil products (to oil/gas), in Finland and Sweden &#8211; semi-finished products made of cellulose (paper/cardboard), Estonia – lumber (with woodwork).</p>
<p>Norway offers the highest shares in the main goods both in the export from Germany, and in the imports to Germany, but if for passenger cars, the figure is 19.2% of German exports, for oil/gas it is extremely high &#8211; 82.0% of German imports. Concentration of German imports on a single goods group is also characteristic of Russia (oil/gas &#8211; 66.6%) and Iceland (aluminum/aluminum alloys &#8211; 64.3%), while in other countries the figure is in the range of 6, 9 to 20.4%. In fact, German import from Norway, Russia and Iceland is monocultural, and monocultural are items of low-grade processing. Before the crisis, which began in autumn 2008, this one-sidedness did not prevent active growth of imports from these countries, but in 2008-2014 the cumulative decline in German imports from the Baltic States in the context of the four commodity groups appeared to be by about 3/5 due to the reduction of imports of oil/gas from Norway and Russia: Norway had more than ⅓, and Russia &#8211; about ¼ of this recession. As a result, imports from Norway in 2008-2014 decreased by 13.8%, while imports from Russia increased by 3.5%. However, this happened only because reduction of Russian imports of oil/gas was more than offset by a rise in imports of Russian oil products.</p>
<p>In the first quarter of 2015 this compensation was no longer valid. Trade turnover between Germany and Russia showed the most negative dynamics among the Baltic countries. Changes in the German-Baltic trade in the first quarter of 2015 compared to the same period in 2014 are presented in Tables 10 and 11.</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p><strong>Table</strong><strong>  10.</strong><strong> </strong><strong>Trade between Germany and Baltic States in 2014-2015.</strong></p>
<table width="519">
<thead>
<tr>
<td rowspan="3" width="68"><strong>Country/Group of countries </strong></td>
<td colspan="3" width="126"><strong>Turnover </strong></td>
<td colspan="3" width="132"><strong>Export from Germany </strong></td>
<td colspan="3" width="121"><strong>Import into Germany </strong></td>
<td colspan="2" width="72"><strong>Balance for Germany </strong></td>
</tr>
<tr>
<td width="38"><strong>January – March </strong><strong> 2014</strong></td>
<td width="39"><strong>January – March </strong><strong>2015</strong></td>
<td width="49"><strong>Change, </strong><strong>2015/2014</strong></td>
<td width="42"><strong>January – March, </strong><strong>2014</strong></td>
<td width="38"><strong>January – March, </strong><strong>2015</strong></td>
<td width="52"><strong>Change, </strong><strong>2015/2014</strong></td>
<td width="36"><strong>January &#8211; March</strong><strong> 2014</strong></td>
<td width="36"><strong>January – March </strong><strong>2015</strong></td>
<td width="49"><strong>Change, </strong><strong>2015/2014</strong></td>
<td width="36"><strong>January – March, </strong><strong> 2014</strong></td>
<td width="36"><strong>January – March </strong><strong> 2015</strong></td>
</tr>
<tr>
<td colspan="2" width="77"><strong>Bln euros</strong></td>
<td width="49"><strong>%</strong></td>
<td colspan="2" width="80"><strong>Bln euros </strong></td>
<td width="52"><strong>%</strong></td>
<td colspan="2" width="72"><strong>Bln euros </strong></td>
<td width="49"><strong>%</strong></td>
<td colspan="2" width="72"><strong>Bln euros</strong></td>
</tr>
</thead>
<tbody>
<tr>
<td width="68"><strong>Poland</strong></td>
<td width="38">20,9</td>
<td width="39">23,3</td>
<td width="49">111,2</td>
<td width="42">11,4</td>
<td width="38">12,4</td>
<td width="52">109,5</td>
<td width="36">9,6</td>
<td width="36">10,8</td>
<td width="49">113,2</td>
<td width="36">1,8</td>
<td width="36">1,6</td>
</tr>
<tr>
<td width="68"><strong>Russia</strong></td>
<td width="38">18,1</td>
<td width="39">12,4</td>
<td width="49">68,4</td>
<td width="42">7,5</td>
<td width="38">5,0</td>
<td width="52">66,1</td>
<td width="36">10,5</td>
<td width="36">7,4</td>
<td width="49">70,1</td>
<td width="36">-3,0</td>
<td width="36">-2,4</td>
</tr>
<tr>
<td width="68"><strong>Sweden</strong></td>
<td width="38">8,9</td>
<td width="39">9,1</td>
<td width="49">101,8</td>
<td width="42">5,3</td>
<td width="38">5,6</td>
<td width="52">105,4</td>
<td width="36">3,6</td>
<td width="36">3,4</td>
<td width="49">96,5</td>
<td width="36">1,8</td>
<td width="36">2,2</td>
</tr>
<tr>
<td width="68"><strong>Denmark </strong></td>
<td width="38">7,1</td>
<td width="39">7,1</td>
<td width="49">99,8</td>
<td width="42">4,0</td>
<td width="38">4,4</td>
<td width="52">108,5</td>
<td width="36">3,0</td>
<td width="36">2,7</td>
<td width="49">88,3</td>
<td width="36">1,0</td>
<td width="36">1,7</td>
</tr>
<tr>
<td width="68"><strong>Norway</strong></td>
<td width="38">7,3</td>
<td width="39">6,5</td>
<td width="49">89,7</td>
<td width="42">1,9</td>
<td width="38">2,1</td>
<td width="52">106,5</td>
<td width="36">5,3</td>
<td width="36">4,4</td>
<td width="49">83,5</td>
<td width="36">-3,4</td>
<td width="36">-2,4</td>
</tr>
<tr>
<td width="68"><strong>Finland</strong></td>
<td width="38">3,9</td>
<td width="39">4,2</td>
<td width="49">107,5</td>
<td width="42">2,2</td>
<td width="38">2,3</td>
<td width="52">101,1</td>
<td width="36">1,7</td>
<td width="36">2,0</td>
<td width="49">116,0</td>
<td width="36">0,5</td>
<td width="36">0,3</td>
</tr>
<tr>
<td width="68"><strong>Lithuania </strong></td>
<td width="38">1,0</td>
<td width="39">1,0</td>
<td width="49">104,7</td>
<td width="42">0,6</td>
<td width="38">0,6</td>
<td width="52">104,9</td>
<td width="36">0,4</td>
<td width="36">0,4</td>
<td width="49">104,3</td>
<td width="36">0,2</td>
<td width="36">0,2</td>
</tr>
<tr>
<td width="68"><strong>Estonia</strong></td>
<td width="38">0,6</td>
<td width="39">0,5</td>
<td width="49">85,8</td>
<td width="42">0,5</td>
<td width="38">0,4</td>
<td width="52">81,0</td>
<td width="36">0,1</td>
<td width="36">0,1</td>
<td width="49">103,6</td>
<td width="36">0,3</td>
<td width="36">0,2</td>
</tr>
<tr>
<td width="68"><strong>Latvia</strong></td>
<td width="38">0,5</td>
<td width="39">0,5</td>
<td width="49">94,0</td>
<td width="42">0,4</td>
<td width="38">0,3</td>
<td width="52">92,5</td>
<td width="36">0,2</td>
<td width="36">0,1</td>
<td width="49">97,7</td>
<td width="36">0,2</td>
<td width="36">0,2</td>
</tr>
<tr>
<td width="68"><strong>Iceland </strong></td>
<td width="38">0,2</td>
<td width="39">0,2</td>
<td width="49">100,3</td>
<td width="42">0,1</td>
<td width="38">0,1</td>
<td width="52">126,4</td>
<td width="36">0,2</td>
<td width="36">0,1</td>
<td width="49">88,2</td>
<td width="36">-0,1</td>
<td width="36">0,0</td>
</tr>
<tr>
<td width="68"><strong>Baltic countries, total</strong></td>
<td width="38">68,5</td>
<td width="39">64,8</td>
<td width="49">94,6</td>
<td width="42">34,0</td>
<td width="38">33,2</td>
<td width="52">97,7</td>
<td width="36">34,5</td>
<td width="36">31,6</td>
<td width="49">91,4</td>
<td width="36">-0,6</td>
<td width="36">1,6</td>
</tr>
<tr>
<td width="68"><strong> </strong></td>
<td width="38"></td>
<td width="39"></td>
<td width="49"></td>
<td width="42"></td>
<td width="38"></td>
<td width="52"></td>
<td width="36"></td>
<td width="36"></td>
<td width="49"></td>
<td width="36"></td>
<td width="36"></td>
</tr>
<tr>
<td width="68"><strong>World, total</strong></td>
<td width="38">508,9</td>
<td width="39">528,1</td>
<td width="49">103,8</td>
<td width="42">278,3</td>
<td width="38">293,3</td>
<td width="52">105,4</td>
<td width="36">230,6</td>
<td width="36">234,8</td>
<td width="49">101,8</td>
<td width="36">47,6</td>
<td width="36">58,5</td>
</tr>
</tbody>
</table>
<p>&nbsp;</p>
<p><strong>Table</strong><strong> 11.</strong><strong> </strong><strong>Factors of growth/recession in trade between Germany and the Baltic States in 2014-2015.</strong></p>
<table width="510">
<tbody>
<tr>
<td rowspan="3" width="61"><strong>Country/group of countries </strong></td>
<td colspan="4" width="149"><strong>Turnover Germany – Baltic States, </strong><strong>2015</strong><strong>/2014</strong></td>
<td colspan="4" width="151"><strong>Export from Germany into the Baltic States, 2015/2014</strong></td>
<td colspan="4" width="148"><strong>Import into Germany from the Baltic States, 2015/2014</strong></td>
<td width="1"></td>
</tr>
<tr>
<td width="33"><strong>Growth </strong></td>
<td width="40"><strong>Recession</strong></td>
<td width="38"><strong>Share in growth </strong></td>
<td width="38"><strong>Share in recession </strong></td>
<td width="33"><strong>Growth </strong></td>
<td width="40"><strong>Recession </strong></td>
<td width="38"><strong>Share in growth </strong></td>
<td width="40"><strong>Share in recession </strong></td>
<td width="33"><strong>Growth </strong></td>
<td width="40"><strong>Recession</strong></td>
<td width="38"><strong>Share in growth</strong></td>
<td colspan="2" width="38"><strong>Share in recession </strong></td>
</tr>
<tr>
<td colspan="2" width="74"><strong>Bln euros</strong></td>
<td colspan="2" width="76"><strong>%</strong></td>
<td colspan="2" width="74"><strong>Bln euros</strong></td>
<td colspan="2" width="78"><strong>%</strong></td>
<td colspan="2" width="73"><strong>Bln euros</strong></td>
<td colspan="3" width="76"><strong>%</strong></td>
</tr>
<tr>
<td width="61"><strong>Poland</strong></td>
<td width="33">+2,3</td>
<td width="40"></td>
<td width="38">+82,3</td>
<td width="38"></td>
<td width="33">+1,1</td>
<td width="40"></td>
<td width="38">+56,6</td>
<td width="40"></td>
<td width="33">+1,3</td>
<td width="40"></td>
<td width="38">+81,2</td>
<td colspan="2" width="38"></td>
</tr>
<tr>
<td width="61"><strong>Russia</strong></td>
<td width="33"></td>
<td width="40">-5,7</td>
<td width="38"></td>
<td width="38">-86,7</td>
<td width="33"></td>
<td width="40">-2,6</td>
<td width="38"></td>
<td width="40">-95,7</td>
<td width="33"></td>
<td width="40">-3,1</td>
<td width="38"></td>
<td colspan="2" width="38">-69,5</td>
</tr>
<tr>
<td width="61"><strong>Sweden</strong></td>
<td width="33">+0,2</td>
<td width="40"></td>
<td width="38">+5,7</td>
<td width="38"></td>
<td width="33">+0,3</td>
<td width="40"></td>
<td width="38">+15,0</td>
<td width="40"></td>
<td width="33"></td>
<td width="40">-0,1</td>
<td width="38"></td>
<td colspan="2" width="38">-2,8</td>
</tr>
<tr>
<td width="61"><strong>Denmark</strong></td>
<td width="33"></td>
<td width="40">-0,0</td>
<td width="38"></td>
<td width="38">-0,2</td>
<td width="33">+0,3</td>
<td width="40"></td>
<td width="38">+18,0</td>
<td width="40"></td>
<td width="33"></td>
<td width="40">-0,4</td>
<td width="38"></td>
<td colspan="2" width="38">-7,9</td>
</tr>
<tr>
<td width="61"><strong>Norway</strong></td>
<td width="33"></td>
<td width="40">-0,8</td>
<td width="38"></td>
<td width="38">-11,4</td>
<td width="33">+0,1</td>
<td width="40"></td>
<td width="38">+6,7</td>
<td width="40"></td>
<td width="33"></td>
<td width="40">-0,9</td>
<td width="38"></td>
<td colspan="2" width="38">-19,4</td>
</tr>
<tr>
<td width="61"><strong>Finland </strong></td>
<td width="33">+0,3</td>
<td width="40"></td>
<td width="38">+10,4</td>
<td width="38"></td>
<td width="33">+0,0</td>
<td width="40"></td>
<td width="38">+1,3</td>
<td width="40"></td>
<td width="33">+0,3</td>
<td width="40"></td>
<td width="38">+17,4</td>
<td colspan="2" width="38"></td>
</tr>
<tr>
<td width="61"><strong>Lithuania </strong></td>
<td width="33">+0,0</td>
<td width="40"></td>
<td width="38">+1,6</td>
<td width="38"></td>
<td width="33">+0,0</td>
<td width="40"></td>
<td width="38">+1,5</td>
<td width="40"></td>
<td width="33">+0,0</td>
<td width="40"></td>
<td width="38">+1,1</td>
<td colspan="2" width="38"></td>
</tr>
<tr>
<td width="61"><strong>Estonia</strong></td>
<td width="33"></td>
<td width="40">-0,1</td>
<td width="38"></td>
<td width="38">-1,3</td>
<td width="33"></td>
<td width="40">-0,1</td>
<td width="38"></td>
<td width="40">-3,3</td>
<td width="33">+0,0</td>
<td width="40"></td>
<td width="38">+0,3</td>
<td colspan="2" width="38"></td>
</tr>
<tr>
<td width="61"><strong>Latvia</strong></td>
<td width="33"></td>
<td width="40">-0,0</td>
<td width="38"></td>
<td width="38">-0,5</td>
<td width="33"></td>
<td width="40">-0,0</td>
<td width="38"></td>
<td width="40">-1,0</td>
<td width="33"></td>
<td width="40">-0,0</td>
<td width="38"></td>
<td colspan="2" width="38">-0,1</td>
</tr>
<tr>
<td width="61"><strong>Iceland </strong></td>
<td width="33">+0,0</td>
<td width="40"></td>
<td width="38">+0,0</td>
<td width="38"></td>
<td width="33">+0,0</td>
<td width="40"></td>
<td width="38">+1,0</td>
<td width="40"></td>
<td width="33"></td>
<td width="40">-0,0</td>
<td width="38"></td>
<td colspan="2" width="38">-0,4</td>
</tr>
<tr>
<td width="61"><strong>Baltic countries, total</strong></td>
<td width="33">+2,8</td>
<td width="40">-6,6</td>
<td width="38">+100,0</td>
<td width="38">-100,0</td>
<td width="33">+1,9</td>
<td width="40">-2,7</td>
<td width="38">100,0</td>
<td width="40">-100,0</td>
<td width="33">+1,6</td>
<td width="40">-4,5</td>
<td width="38">+100,0</td>
<td colspan="2" width="38">-100,0</td>
</tr>
</tbody>
</table>
<p>Note. The Baltic countries are presented in Tables 10 and 11 in descending order of their turnover with Germany in January-March 2015.</p>
<p>&nbsp;</p>
<p>Russia accounted for more than 80% of decline of the German-Baltic trade, including more than 90% reduction in German exports and almost 70% reduction in German imports. The extent of the fall was 31.6% of turnover (including 33.9% for exports from Germany and 29.9% for imports into Germany). Noticeable, but not as dramatic, contraction of trade with Germany happened also in Estonia (-14.2% in turnover due to the decrease of exports from Germany by 19.0%) and in Norway (-10.3% in turnover due to 16.5% decline of imports in Germany). Two other countries &#8211; Denmark and Latvia &#8211; showed a moderate reduction in trade with Germany. The other five countries had a positive balance, with the biggest step forward made by Poland (it provided more than 80% of the growth of the German-Baltic turnover, including more than 50% of the growth of German exports and over 80% in increase in German imports). As a result, Poland, that was lagging behind Russia in turnover with Germany by 7.4% in 2012, surpassed Russia two-fold on this indicator in the first quarter of 2015.</p>
<p>The main products that led to a sharp collapse of the German-Russian trade:</p>
<ul>
<li>for exports from Germany &#8211; eight positions from the commodity group &#8220;finished products&#8221; (50.1% decline in the context of three-digit classification), namely: automotive components (13.7%), passenger cars (9.3%), aerial vehicles (6.8%), trucks (4.9%), machines without sectoral specialization (4.0%), office and computing equipment (3.9%), pharmaceutical products (3.8%), machinery for mining and construction (3.6%);</li>
<li>for imports into Germany &#8211; one position from the commodity group &#8220;raw material&#8221;, namely: oil/gas (84.4% decline in the context of three-digit classification); the negative trend was reinforced by reduction of imports of semi-finished products, namely oil products (10.7%), which is Russia&#8217;s second most important import goods, that previously performed the role of a shock absorber.</li>
</ul>
<p>The value of Russia as a trading company for Germany decreased markedly. The share of Russia in the export of goods from Germany declined from 2.6% in 2014 to 1.7% in 2015 (only three years ago, in 2012, it was 3.5%). As a German consumer the Russian Federation moved from the 12th place in 2014 to the 15th place in 2015. Russia’s best result was the 11th place in 2011-2012, and the worst – the 20th place in 1999. Russian automotive components descended from the 10th place in 2014 to the 18th place in 2015; Russia’s passenger cars &#8211; from the 15th to the 17th. If this trend persists, Russia can find itself already in two years in the third ten export partners of Germany, as it will cease to represent any serious business interest for Germany.</p>
<p>The share of Russia in the import of goods to Germany fell from 4.2% in 2014 to 3.1% in 2015 (the highest level of this indicator was recorded in 2012 &#8211; 4.7%). As a German supplier, Russia dropped from the 10th place in 2014 to the 12th place in 2015. In 2011-2013, the country kept the 7th place, in 1999 it was on the 16th place. In 2015, the Russian Federation retained the 1st place for the group &#8220;oil/gas&#8221; (its share in German imports amounted to 29.1%), but in the context of four-digit classification it kept the championship only for oil with a share of 28.2%, whereas for gas it moved to the 2nd place (with a share of 30.0%), losing to Norway (34.2%). Russia&#8217;s role in the import of oil/gas in Germany peaked in 2011 (36.8%); since then it has been steadily weakening, and since 2015 this trend has not been blocked, as before, by the increasing role of Russia in the German imports of oil products (2010 &#8211; 10.0%, 2014 &#8211; 23.3%, 2015 &#8211; 18.9%), and the other Russian products are not comparable with those main products in terms of imports in Germany. In the second ten import partners of Germany Russia will stay longer than in the same weight category for exports from Germany, but the probability of a significant reduction in the influence of Russian business on the German market is very high.</p>
<p>International trade, as well as the nature, abhors a vacuum. Collapsing trade relations with Russia will strengthen Germany&#8217;s orientation to other counterparties. Regarding the Baltic States, this would be beneficial, first of all, for Poland, Sweden and Norway: Poland will strengthen its leadership, Sweden will push Russia to the third place in terms of turnover, Norway will close the gap from Russia in terms of imports into Germany.</p>
<p><strong>List of references</strong></p>
<p>Statistisches Bundesamt. Genesis-Online Datenbank. Statistik 51000. Außenhandel. URL: https://www-genesis.destatis.de/genesis/online</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>[1] Here and elsewhere &#8211; calculated according to the Federal Statistical Office of Germany (Statistisches Bundesamt. Genesis-Online Datenbank. Statistik 51000. Außenhandel. URL: https://www-genesis.destatis.de/genesis/online). Dataareperiodicallyupdated. The Baltic countries are understood as countries that along with Germany are included in the Council of the Baltic Sea States (Denmark, Iceland, Latvia, Lithuania, Norway, Poland, Russia, Finland, Sweden, Estonia).</p>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
]]></content:encoded>
			<wfw:commentRss>http://en.abfund.org/?feed=rss2&#038;p=1069</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Political dialogue between Russia and the North European countries: influence of economic sanctions</title>
		<link>http://en.abfund.org/?p=1049</link>
		<comments>http://en.abfund.org/?p=1049#comments</comments>
		<pubDate>Wed, 18 Mar 2015 17:09:19 +0000</pubDate>
		<dc:creator><![CDATA[Admin]]></dc:creator>
				<category><![CDATA[Amber Bridge. Journal of Regional Studies]]></category>
		<category><![CDATA[№1 (4) 2015]]></category>
		<category><![CDATA[Cold War]]></category>
		<category><![CDATA[Crimea]]></category>
		<category><![CDATA[Denmark]]></category>
		<category><![CDATA[Eastern Partnership]]></category>
		<category><![CDATA[Finland]]></category>
		<category><![CDATA[Lithuania]]></category>
		<category><![CDATA[Northern Dimension]]></category>
		<category><![CDATA[Politics]]></category>
		<category><![CDATA[Russia]]></category>
		<category><![CDATA[Sweden]]></category>

		<guid isPermaLink="false">http://en.abfund.org/?p=1049</guid>
		<description><![CDATA[Oleg B. Aleksandrov, Associate Professor, Department of international relations and foreign policy of Russia, MGIMO-University, PhD of political sciences. In this article, the author attempts to analyze the impact of economic sanctions on key aspects of the relations between Russia and the North European countries. The main goal of the author is to show different [&#8230;]]]></description>
				<content:encoded><![CDATA[<p><strong>Oleg B. Aleksandrov, Associate Professor, Department of international relations and foreign policy of Russia, MGIMO-University, PhD of political sciences.</strong></p>
<div class="page" title="Page 4">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span style="font-style: italic; color: #333333;">In this article, the author attempts to analyze the impact of economic sanctions on key aspects of the relations between Russia and the North European countries. The main goal of the author is to show different approaches of the North European countries to relationship with Russia, to assess political and economic costs of economic sanctions, to show their negative influence on political climate in Europe. The main conclusion of the author is that sanctions have considerably worsened the relations between Russia and the North European states, however there is a potential for their gradual improvement. The research methodology is based upon comparative and analytical approach. </span></p>
<p><span style="color: #cc002b;">Key words: </span><span style="color: #4c4c4c;">“Cold war”, Northern Dimension, Eastern partnership, the annexation of Crimea, “Finlandization”. </span></p>
</div>
</div>
</div>
</div>
<p>The relations of Russia with the North European countries have a special place in European politics. The atmosphere of these relations has evolved over many centuries, when countries traded and fought with each other, concluded dynastic alliances, explored the Northern sea and shared cultural and scientific achievements with each other. These relations were deep and multifaceted. Their bloom came in the days of the Hanseatic League, among whose participants were many Russian cities ― Novgorod, Pskov, Tikhvin, Belozersk, Tot’ma, Torzhok, Tver, Velikyi Ustyug, Revel and others. However, not only trade relations determined the nature of mutual relations between Russia and the North European countries, as marriage of state also played an important role. A significant mark in Russian history was left by Empress Maria Feodorovna, born Danish Princess Marie Sophie Frederikke Dagmara, who became the wife of Emperor Alexander III and mother of the last Russian Emperor Nikolay II.</p>
<p>Perhaps the most serious test of the relationship took place during the Great Northern War, when Peter the Great &#8220;cut the window&#8221; into Europe in spite of Sweden and strengthened the military position of Russia on the Baltic Sea. European capitals were not happy about the strengthening of Russia on the Baltic Sea, but after a while Stockholm and Copenhagen admitted the increasing influence of Russia on world politics. A century after Poltava Victory at the beginning of the XIX century, Russia made an enormous contribution to the development of the Finnish state, including it in its membership and granting the broadest autonomy to the Grand Duchy of Finland. Finally, in the XX century, the Soviet Union made a major contribution to the liberation of Europe from fascism; Soviet troops took part in the liberation of North Norway from Nazi troops.</p>
<p>The present stage of this relationship was marked by the &#8220;cold war&#8221;, when during the confrontation between West and East the policy of restraint and neutrality was used by social democratic governments of Sweden and Finland, what helped to create at that difficult time a climate of trust between the countries, belonging to different military-political blocs. Despite the fact that the level of mutual trust at that time was not always very high, it was fully offset by restraint in military and strategic issues, as well as the desire to preserve regional stability.</p>
<p>As you know, three of five North European countries (Norway, Denmark and Iceland) were fully integrated into the North Atlantic alliance, the first two even worked out plans in case of an armed conflict with the Soviet Union, while Sweden and Finland remained neutral. At the same time Finland had a special place in the relations with the West and the Soviet Union. Its sovereignty was partially limited by a treaty with the Soviet Union in 1948, in which both countries made a commitment &#8220;not to conclude any alliance and not to participate in the coalition directed against another High Contracting Parties&#8221;[1].</p>
<p>The disappearance of the USSR and the victory of Western democracy inspired many people to revise previous models of interaction. In the 1990s, the Finnish model was rejected by the supporters of the Euroatlantic choice and new generation of politicians of the North European countries, representing the right-wing conservatists. At the same time due to a misunderstanding were forgotten unique achievements of this model of relationship. Meanwhile, the historical significance of the model &#8220;Finlandization&#8221; lay in the fact that with the help of it Finland, on one hand, significantly reduced the risk of being involved in a confrontation between East and West, and on the other hand ― it was able to take full advantage of the economic benefits of its geographical location and the Soviet-Finnish border. The model of &#8220;Finlandization&#8221; opened access to capacious Soviet market for the high-quality Finnish goods and helped our northern neighbour to avoid confrontation with Moscow, didn’t allow to draw The Country of Thousands of Lakes in dubious military and political maneuvers that could have escalated into an armed conflict.</p>
<p>Whatever it was, already at a new historical stage in the 1990s and the first half of the 2000s, the basis of these relations contained the idea of maintaining a sub-regional stability, improving the climate of trust and sustainable development. Thus the development meant not only an increase in turnover, but also the creation of democratic institutions, which would bring together the political systems of Russia and the North European countries. The indicator of progress in this direction was the emergence of subregional organizations (CBSS, BEAC), as well as the attempt to create a common space of development, expressed in the concept of &#8220;Northern Dimension&#8221;.</p>
<p>This stage of relations between Russia and the North European countries lead to serious contradictions, which had the ideological character. Russia agreed to adopt Western liberal democratic model for the creation and development of the Russian government institutions and local governments, but strongly disagreed with the fact that the Western liberal ideology would completely replace its national identity, abolish religious standards and force Russia to sacrifice its national interests in the nearest countries. For example, the North European countries really did not understand Russia&#8217;s reaction to the infringement of the rights of Russians in the Baltic States, believing that the imperial period of Russian history should have stayed in the past.</p>
<p>From its side, Russia did not understand a lot in the politics and actions of the North European countries. It was difficult to realise, for example, the reason for increased military budgets of Sweden and Finland against the significant reduction of the Russian military capacity after the collapse of the USSR and the subsequent reductions in the 1990s. It was hard to understand, why the withdrawal of the Soviet troops from the Baltic countries was not accompanied with a normalization of relations with Moscow, but instead led to a serious deterioration of relations in almost all important areas ― political, economic and humanitarian. Russia sincerely hoped that the North European countries, which took care of young democracies in the Baltic States, would be able to convince them of the need to ensure the equal rights of Russian-speaking population, especially since similar rights were provided to all national minorities living in the North European countries. Russia did not understand the need of the entry of the Baltic States into NATO, as well as the upsell of the thesis about the &#8220;Russian threat&#8221; by the leadership of the republics.</p>
<p>Over the past 10-15 years Russia&#8217;s relations with the countries of North Europe continued to develop on its special path, alternating the periods of recovery and recession. Significant milestone of this relationship became the restart of the program &#8220;Northern Dimension&#8221; in 2006. As a result, Russia was proclaimed the main target of this initiative, as originally proposed by the author of the idea of &#8220;Northern Dimension&#8221; &#8211; Finland. The program received a new framework document, identified new joint projects. ND had at its disposal two new partnerships ― in the field of transport and logistics (2008), as well as in the field of culture (2011).</p>
<p>However, two years later relations were spoiled by the events in the Caucasus, where Russia came to the defense of the interests of Abkhazia and South Ossetia, and the Scandinavian countries supported Georgia&#8217;s position. Then Swedish Foreign Minister Carl Bildt compared Russia&#8217;s actions to protect its citizens with the actions of Hitler&#8217;s annexation of the Sudetenland. After 8 years, he also condemned Russia&#8217;s annexation of the Crimea, comparing the policies of the President of Russia with the seizure of Kuwait by Saddam Hussein[2]. The fact that these statements were not a spontaneous and short-term splash of emotions, was confirmed by the events of 2008, when Poland and Sweden became the ideological inspirers of &#8220;Eastern Partnership&#8221;, the purpose of which was the gradual integration of the former Soviet Union in Western institutions. Anti-Russian orientation of the initiative was read between the lines.</p>
<p>In fact, the crisis in the Caucasus in 2008 and the promotion of the &#8220;Eastern Partnership&#8221; exacerbated the competition between Russia and the EU for the political dominance in the former Soviet Union, and a very active role in the EU&#8217;s eastern policy was played by two countries ― Poland and Sweden. From the point of view of Western countries, it looked as a competition between a neo-imperial project, which was supported by Russia as the center of Orthodox Slavic civilization and Western liberal project, aimed at establishing the economic, ideological and informational control over the European CIS countries, as well as the states of Transcaucasus. In this case, the coexistence of &#8220;Northern Dimension&#8221; and &#8220;Eastern Partnership&#8221; did not mean a fundamental difference of opinions between Finland and Sweden.</p>
<p>Preserving a common approach and a common strategy towards Russia, Stockholm and Helsinki disagree on tactics: if the project &#8220;Northern Dimension&#8221; is supported by Finland and is aimed at the gradual democratization of Russia and rapprochement with the West, the project &#8220;Eastern Partnership&#8221;, which is backed by Sweden, in fact recognizes that Russia is unlikely to be part of the Western world in the foreseeable future, and aims to establish control over the newly independent states established on the ruins of the Soviet Union.</p>
<p>Political upheaval and civil war in the Ukraine in this sense are not the starting point of the crisis in relations between Russia and the North European countries, but is a new stage of ideological confrontation, which was indicated in the middle of the 2000s. The aforementioned Swedish politician does not hide it as well. According to Carl Bildt, Russia in the 1990s demonstrated commitment to Western values, but with the coming of Vladimir Putin to power Moscow faced tough opposition to the Western policy. Former Minister of Foreign Affairs of Sweden believes that the contradiction between Russia and the West is of a fundamental ideological character: &#8220;The new anti-Western and antidecadent line of Putin is built on deeply conservative orthodox ideas»[3].</p>
<p>It must be noted that the offensive Western policy towards Russia, combined with tough rhetoric of certain Western politicians have almost fully revived the political atmosphere of the &#8220;cold war&#8221;, and the media of the West has begun to carefully sculpt an &#8220;enemy image&#8221; from Russia. How long will the new &#8220;cold war&#8221; be, and how long will be the economic sanctions against Russia? This raises the third question: what is the position of countries on this issue? In particular, what do leaders and leading politicians of the North European countries think about it?</p>
<p>Many years of mutually beneficial cooperation have taught many to conclude that the North of Europe is quite a well-off region and Russia&#8217;s relations with the countries of the region seem to be promising and mutually beneficial. And, in fact, there were no open conflicts in the North of Europe with the participation of Russia, except for those systematic violations of the rights of Russians living in the Baltic states, and they mostly boil down to two main problems: failure of Latvia and Estonia to grant citizenship to all residents, who were born there and lived at the time of the declaration of independence of these countries, as well as the denial of the right of these people, and especially ― their children ― to receive education in their native language. In 2010, Russian initiative was to settle the dispute between Russia and Norway regarding the section of the Barents Sea between two countries. Thus, all potential conflicts in the region have been minimized.</p>
<p>However, it did not prevent the Norwegian oil company Statoil from withdrawing from the joint project of developing the Arctic shelf with Russia; Norway declared that its sanctions and EU sanctions against Russia wouls be cancelled only when Russia changed its policy in Ukraine. Explaining the position of the state, Norwegian Foreign Minister Børge Brende recalled that the sanctions against Moscow were introduced after the annexation of the Crimea, as well as other &#8220;violations of the international law in the eastern regions of Ukraine[4].</p>
<p>It should be noted that Norway not being a member of the EU, was free on the question of participation in the sanctions, as well as on the issue of the degree of its rigidity and duration. For example, Turkey, which, together with Norway being a member of the North Atlantic Alliance, decided not to join the sanctions at all, because it saw it as a threat to its national interests in the Black Sea region.</p>
<p>The fact that Norway did not simply join the sanctions, but chose their toughest variant, signifies either a serious crisis in bilateral relations, or that the foreign policy of Norway on the question of sanctions is completely subordinated to politics of Washington or Brussels. This situation has opened another unpleasant situation for Russia&#8217;s foreign policy: the signing of a bilateral agreement between Moscow and Oslo on the delimitation of the disputed waters of the Barents Sea in 2010 and reciprocal steps by President Medvedev had absolutely no effect on improving the climate of bilateral relations. Nevertheless, even in Norway one can hear louder voices of opposition to the current position of the country with regard to Russia. Thus, ex-Minister of Foreign Affairs Jonas Gahr Støre recalled &#8220;the millennial experience of a peaceful neighborhood&#8221; with Russia.[5].</p>
<p>Thus, the events of the Ukrainian crisis has shown that the most irreconcilable and active critics of Russia&#8217;s actions are the North European countries, namely Sweden, Norway and Denmark. Acuity of their position is not inferior to the positions of the United States and Canada, and on the degree of hardness it’s stronger that one of France and Germany. On the contrary, Finland and Iceland at the outset showed much more balanced position, based on considerations of economic pragmatism dominated the political arguments.</p>
<p>Finland&#8217;s position from the beginning tended to a compromise, and Prime Minister Alexander Stubb has repeatedly spoken out against imposal, extension and tightening of the sanctions, as the importance of Russia for the Finnish economy is too huge[6]. It can be explained by the fact that among all North European countries, Finland faces the greatest losses from the sanctions regime, as well as the impact from Moscow responses, which imposed a total ban on exports of beef, pork, vegetables and fruit, meat, poultry, fish, cheese, milk and dairy products to Russia.</p>
<p>Denmark and the Danish Board of Agriculture and the Economy also warned on the serious impact of Russian counter-sanctions on its economy. According to the National Institute of Statistics of Denmark, exports to Russia in 2013 amounted to 2.14 billion USD, of which 891 million USD accounted for agricultural exports. At the same time, the share of Russia in the exports of Denmark does not exceed 1.9%, which allows the country&#8217;s leaders to insist on the continuation of anti-Russian sanctions. This, in particular, was declared by Prime Minister Helle Thorning-Schmidt[7].</p>
<p>According to the polls carried out in March 2014 by Taloustutkimus, the majority of Finnish society (60%) is foreign to anti-Russian sentiment, and Russia is not perceived as a threat. Finnish President Sauli Niinistë agrees with the opinion of the Finnish society: &#8220;We are neighbours. Unlike other neighbours of Russia, we are not members of NATO. Our relations with Russia are based on bilateral contacts&#8221;[8]. The position of Finland is not opportunistic, but consistent and is based on the mood of the majority of Finnish society, which has been recently shown by the events, when the Finnish leadership voted against the supply of arms of Kiev authorities<sup><sup>[9]</sup></sup>.</p>
<p>Against the balanced and moderate position of Finland Sweden is continuing to demonstrate hardness against Moscow. Swedish Foreign Minister Margot Wallström said that Russia poses a serious threat to the security of Europe, however, along with the pressure on Russia one should continue political dialogue as well[10]. The announcement of Ambassador of Sweden in Russia Veronika Bard Bringus was in similar mode, when she did not exclude the possibility of exit of Swedish companies from the Russian market[11]. The main argument of the Ambassador was the situation with the Swedish concern <em>Oriflame</em>, which was accused by Russian tax authorities of deliberately understating the company&#8217;s revenues for the reduction of tax payments to the Russian budget. After losing the lawsuit in the Russian arbitration court, the company announced its intention to appeal to the international investment arbitration.</p>
<p>It should be noted that the current crisis in Russian-Swedish relations is not accidential. Stockholm has long been regarded Russia as a threat to its security, and therefore critically perceives any Russian actions of political or economic nature, aimed at strengthening the security of Russia in the Baltic Sea, whether it’s laying of the pipeline &#8220;Nord Stream&#8221; or the development of the military infrastructure of the Baltiysk and Kronstadt.</p>
<p>The story of unsuccessful search for &#8220;Russian submarine&#8221; in Swedish territorial waters in October 2014 recalled a similar story from &#8220;cold war&#8221;, when in 1981, a Soviet damaged submarine was discovered close to the Swedish naval base at Karlskrona. Stockholm reacted to Russia&#8217;s actions to ensure security of Abkhazia and South Osetia with obvious disapproval, accusing Moscow of violating the territorial integrity of Georgia. A similar position was taken by the Swedish Ministry of Foreign Affairs in Crimean issue.</p>
<p>Playing the &#8220;Russian card&#8221; and the spread of the thesis of the &#8220;Russian threat&#8221; was the brand style for a number of leading Baltic politicians. The toughest position on the Russian question among the Baltic States has traditionally been shown by President of Lithuania Dalia Grybauskaite. In her opinion, three Baltic countries faced &#8220;Russian threat&#8221; and they should be ready to respond to it during three days at least, until they get assistance from NATO members[12]. However, a different position was shown by Latvian President Andris Berzins, who does not support the imposal of sanctions and calls for their soonest cancellation. His views are shared by Foreign Minister of Latvia Edgar Rinkevich and Ventspils Mayor Aivars Lembergs.</p>
<p>Some political consequences of the deterioration of relations of North European and Baltic countries with Russia within the framework of the Ukrainian crisis followed shortly. In particular, it was reflected with newly resumed talks on accession of Sweden and Finland into NATO, the North European countries and the Baltic States published their plans to deepen cooperation in defense and security. So, the ongoing projects within the North European defense cooperation (Nordic Defence Cooperation ― NORDEFCO) were joined by the Baltic States ― Latvia, Lithuania and Estonia[13].</p>
<p>Minister of Foreign Affairs of Sweden, Margot Wallström was the initiator and inspirer of the plan; she declared that military cooperation between the North European countries and the Baltic countries would decrease defense expenses and improve cooperation on border security. Russia replied immediately by performing tactical flight exercises in the Barents Sea, which were attended by the crews of fighter-interceptor MiG-31 and tactical bomber Sukhoi Su-24M of Central Military District[14].</p>
<p>Thus, Russia&#8217;s relations with the countries of Northern Europe are developing in an unfavorable scenario; however, there is still some potential for a gradual improvement in case of easing policy by the majority of the North European countries in respect of Russia. In this situation, the most pressing question is what position will prevail: the policy of deepening confrontation or a pragmatic and balanced policy aimed at overcoming the sanctions crisis. It seems no one can state the way of further development of relations between Russia and the North European countries, as Brussels and Washington both have a strong impact on the foreign policy of the North European countries. We can only hope for traditional Scandinavian sanity, willingness of all parties to move towards each other and take into account the legitimate interests of Russia.</p>
<p>The list of bibliography:</p>
<p>1.         Dogovor o druzhbe, sotrudnichestve i vzaimnoy pomoshi mezhdu Sojuzom Sovetskikh Socialisticheskikh Respublik i Finljandskoy Respublikoy. URL: http://www.heninen.net/sopimus/1948_e.htm</p>
<p>2.         V Danii opasajutsja posledstviy rossijskikh sankciy URL: http://russian.rt.com/article/44314</p>
<p>3.         Karl Bil&#8217;dt. Putin povel sebja kak Saddam URL: http://www.bbc.co.uk/russian/multimedia/2014/07/140708_v_bildt_hard_talk_int</p>
<p>4.         Litva pugaet Pribaltiku «rossiyskoy ugrozoj». URL: http://www.stoletie.ru/lenta/litva_pugajet_pribaltiku_rossijskoj_ugrozoj_423.htm</p>
<p>5.         MID Norvegii: tol&#8217;ko izmenenie politiki RF v otnoshenyi Ukrainy privedet k snjatiu sankciy. URL: http://versii.com/news/320114/</p>
<p>6.         Nad Barencevym morem proleteli 40 istrebiteley URL: http://www.stoletie.ru/lenta/nad_barencevym_morem_proleteli_40_istrebitelej_555.htm</p>
<p>7.         Norvegiya dolzhna prodolzhat&#8217; politiku dobrososedstva s RF. URL: http://www.norge.ru/news/2015/02/14/26538.html</p>
<p>8.         Nosovich, Aleksandr. Baltijskiy kontrast: Finljandiya otkazalas&#8217; otvorachivat&#8217;sa ot Rossyi. URL: http://www.rubaltic.ru/article/politika-i-obshchestvo/baltiyskiy-kontrast-finlyandiya-otkazalas-otvorachivatsya-ot-rossii/</p>
<p>9.         Posol Shvecyi: v RF sozdajutsja prepjatstviya dlja raboty shvedskihk companiy URL: http://1prime.ru/state_regulation/20150306/804132680.html</p>
<p>10.       Pravoslavie ― glavnaya ugroza dlya Zapadnoy civilizacii: mnenya. URL: http://www.iarex.ru/interviews/47573.html</p>
<p>11.       Prem&#8217;er Finljandiyi: Ukraine ne nuzhna voennay pomoshh&#8217; URL: http://vz.ru/news/2015/2/4/727740.html</p>
<p>12.       Strany Severnoy Evropy I Baltiki dogovorilis&#8217; ukrepit&#8217; voennye svjazi. URL: http://vzgliad.ru/news/2014/11/30/717796.html</p>
<p>13.       Shadrina, Tat&#8217;jana. Finljandijaotkazalas&#8217; otsankcij k Rossii URL: http://www.rg.ru/2014/08/14/finlyandiya-site.html.</p>
<p>14.       Wallström, Margot. Rysslandettallvarligt hot mot Europasfred. // SvenskaDagbladet, 6 mars. URL: http://www.svd.se/opinion/brannpunkt/ryssland-ett-allvarligt-hot-mot-europas-fred_4388101.svd</p>
<p>&nbsp;</p>
<p>[1] Договор о дружбе, сотрудничестве и взаимной помощи между Союзом Советских Социалистических Республик и Финляндской Республикой / <a href="http://en.wikipedia.org/wiki/Finno-Soviet_Treaty_of_1948">Agreement of Friendship, Cooperation, and Mutual Assistance</a> with the Soviet Union. URL: http://www.heninen.net/sopimus/1948_e.htm</p>
<p>[2] http://www.bbc.co.uk/russian/multimedia/2014/07/140708_v_bildt_hard_talk_int</p>
<p>[3] Православие – главная угроза для Западной цивилизации: мнения. / Orthodoxy is main threat to Western civilization . opinions / URL: http://www.iarex.ru/interviews/47573.html</p>
<p>[4]МИД Норвегии: только изменение политики РФ в отношении Украины приведет к снятию санкций. URL: <a href="http://versii.com/news/320114/">http://versii.com/news/320114/</a> / MFA Norway: only changes of Russia’s policy in respect of Ukraine will lead to cancellation of sanctions</p>
<p>[5] Норвегия должна продолжать политику добрососедства с РФ. URL<sup>: </sup><a href="http://www.norge.ru/news/2015/02/14/26538.html">http://www.norge.ru/news/2015/02/14/26538.html</a>. / Norway must continue policy of neighbourliness with Russia.</p>
<p>[6]http://www.rg.ru/2014/08/14/finlyandiya-site.html</p>
<p>[7]<a href="http://russian.rt.com/article/44314">http://russian.rt.com/article/44314</a></p>
<p>[8] Носович, Александр. Балтийский контраст: Финляндия отказалась отворачиваться от России. URL: <a href="http://www.rubaltic.ru/article/politika-i-obshchestvo/baltiyskiy-kontrast-finlyandiya-otkazalas-otvorachivatsya-ot-rossii/">http://www.rubaltic.ru/article/politika-i-obshchestvo/baltiyskiy-kontrast-finlyandiya-otkazalas-otvorachivatsya-ot-rossii/</a> / Nosovich Alexander. Baltic contrast: Finland refused to turn back from Russia</p>
<p>[9]Премьер Финляндии: Украине не нужна военная помощь URL: <a href="http://vz.ru/news/2015/2/4/727740.html%20/">http://vz.ru/news/2015/2/4/727740.html /</a> PM of Finland: Ukraine does not need military aid</p>
<p>[10]Wallström, Margot. Rysslandettallvarligt hot mot Europasfred. // SvenskaDagbladet, 6 mars URL:http://www.svd.se/opinion/brannpunkt/ryssland-ett-allvarligt-hot-mot-europas-fred_4388101.svd</p>
<p>[11]Посол Швеции: в РФ создаются препятствия для работы шведских компаний <a href="URL:http://1prime.ru/state_regulation/20150306/804132680.html%20/">URL:http://1prime.ru/state_regulation/20150306/804132680.html /</a> Ambassador of Sweden: Russia imposes difficulties for activity of Swedish companies</p>
<p>[12] Литва пугает Прибалтику «российской угрозой». URL: <a href="http://www.stoletie.ru/lenta/litva_pugajet_pribaltiku_rossijskoj_ugrozoj_423.htm%20/">http://www.stoletie.ru/lenta/litva_pugajet_pribaltiku_rossijskoj_ugrozoj_423.htm /</a> Lithuania threatens Baltics by “Russian threat”</p>
<p>[13]Страны Северной Европы и Балтики договорились укрепить военные связи. <a href="URL:http://vzgliad.ru/news/2014/11/30/717796.html%20/">URL:http://vzgliad.ru/news/2014/11/30/717796.html /</a> The North European countries and Baltics agreed on strengthening military cooperation</p>
<p>&nbsp;</p>
<p>[14]URL:<a href="http://www.stoletie.ru/lenta/nad_barencevym_morem_proleteli_40_istrebitelej_555.htm">http://www.stoletie.ru/lenta/nad_barencevym_morem_proleteli_40_istrebitelej_555.htm</a></p>
<p>&nbsp;</p>
]]></content:encoded>
			<wfw:commentRss>http://en.abfund.org/?feed=rss2&#038;p=1049</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Is the experience of the Nordic integration applicable to the Eurasian economic union?</title>
		<link>http://en.abfund.org/?p=1109</link>
		<comments>http://en.abfund.org/?p=1109#comments</comments>
		<pubDate>Wed, 24 Dec 2014 17:57:38 +0000</pubDate>
		<dc:creator><![CDATA[Admin]]></dc:creator>
				<category><![CDATA[Amber Bridge. Journal of Regional Studies]]></category>
		<category><![CDATA[№3 (3) 2014]]></category>
		<category><![CDATA[Denmark]]></category>
		<category><![CDATA[EU]]></category>
		<category><![CDATA[European Integration]]></category>
		<category><![CDATA[Finland]]></category>
		<category><![CDATA[Nordic Council]]></category>
		<category><![CDATA[Norway]]></category>
		<category><![CDATA[Sweden]]></category>

		<guid isPermaLink="false">http://en.abfund.org/?p=1109</guid>
		<description><![CDATA[Voronkov Lev Sergeevitch, Doctor of History, Professor the Chair of European integration, MGIMO University, Ministry of Foreign Affairs of the Russian Federation.  This article argues that there are no common standards of integration, applicable to all countries, regardless of their economic situation’s specificity and level of development as well as of the nature of their [&#8230;]]]></description>
				<content:encoded><![CDATA[<p><strong>Voronkov Lev Sergeevitch, Doctor of History, Professor the Chair of European integration, MGIMO University, Ministry of Foreign Affairs of the Russian Federation. </strong></p>
<p><em>This article argues that there are no common standards of integration, applicable to all countries, regardless of their economic situation’s specificity and level of development as well as of the nature of their commonly agreed objectives they seek to achieve by means of integration. The purpose to create a single internal market in the EU has determined the toolkit of the European integration, the nature and powers of the EU institutions through which it is carried out. The author argues that the construction of the integration processes in the post-Soviet space in general and within the Eurasian Economic Union (EAEU), in particular, in the image and likeness of the EU is not only unjustified, but also harmful. The founding treaty of the EAEU does not contain the purpose to construct a single internal market. The article emphasizes the high level of regional integration achieved by the Nordic countries, which has not been affected by the pattern of the EU integration. The Nordic integration began with the formation of a common labor market and creation within its framework of necessary conditions for high labor mobility. The objectives of the integration efforts of the Nordic countries, fundamentally different from the EU, are reflected in the nature of the institutions of regional cooperation and in the methods of their activity as well. The author recommends attentively looking at the Nordic integration experience to use its elements in the post-Soviet space. </em></p>
<p><strong>Introduction</strong></p>
<p>Apart from Europe, integration processes cover today also other regions of the world, including the post-Soviet space. Such processes involve states with different levels of economic development, size, demographics, natural resources, quality of human capital, a position in the international division of labor, degree of development of market relations, participation in various international organizations and agreements and other indicators. It would be at least imprudent to assume that states entering integration processes must obey certain universal laws, undergo the same stages of integration, and create similar bodies with identical powers. The content of integration activities to a certain extent depends on the objectives of a particular state.</p>
<p>The European Union without proper justification is considered to be a benchmark of integration, and an example of how integration processes allegedly should unfold in the former Soviet Union. Common theories of integration, based on the experience of the EU, are designed to ascribe versatility and traits of objective law to the EU integration processes. However, copying of the EU integration experience can have very negative consequences for integration processes in the post-Soviet space. It would be advisable to study more closely the integration experience of other countries, particularly the Nordic countries, examine features of their integration model, and the problems that they solve by means of integration.</p>
<p>Trade and economic relations do not automatically evolve into integration. Free trade zones and customs unions can be considered as means of such relations. However, not all the participating countries are willing to develop integration. The North American Free Trade Agreement (NAFTA) and the European Free Trade Association (EFTA) can serve as examples. Negotiations on a free trade area between the EU and NAFTA do not mean that their member countries are eager to take the path of integration.</p>
<p>A transition to conscious actions enabling convergence and merging of economies of states is equivalent to a strategic choice of ways for their further development. When deciding on joining an integration process one should have a clear idea of its long-term common goals so that participating states could use economic, political, legislative, social and other activities for the achievement of these objectives. A long and gradual character of integration requires reliable protection against fluctuations of the political and economic environment. Therefore a contractual basis is employed for this purpose and integration processes are carried out within the established permanent international intergovernmental organizations.</p>
<p>Initially, western European countries were planning to use development of integration processes to put an end toan infinite chainof warsbetween France and Germany that had been shaking Europe for centuries. Combined withthe continued presence of the troopsof the Western Allieson the territoryof the Federal Republic of Germany andinclusion of the latter in the North Atlantic Treaty integration processes were believed to help create realobstacles for therevivalof German militarismand reliablemonitoring toolsfor theeconomic and political developmentof Germanyafter the SecondWorld War.</p>
<p>These initial policy objectives, as they were successfully achieved, gradually began to take second place. The progressive extension of the EEC membership created a need for efficient development of its growing economic space, reduction of costs in cross-border commercial activities, providing conditions for profitable operation of companies in the participating states. As a result, integration processes within the EEC began to focus on the creation of a single internal market of the Community and on ensuring the most favorable conditions for the most competitive economies and companies of the member states not taking into consideration domestic production of each country.</p>
<p>The adoption of the Single European Act and the introduction of free movement of goods, services, capital and persons have determined the main tools for the creation of such a market. Efforts for consolidation of a single EU internal market and expansion of its rules to other states are camouflaged with attractive formulations such as &#8220;cohesion policy&#8221;, &#8220;neighborhood policy&#8221;, &#8220;Eastern Partnership&#8221;, etc. These perform more likely the functions of &#8220;soft power&#8221; of the EU rather than reflect the true essence of such activities. The European Commission has received the exclusive power to fully protect and improve the single internal market on the so-called &#8220;supranational&#8221; level, which is the most favorable for the most competitive economies and companies.</p>
<p>Often, the so-called &#8220;European idea&#8221; seems to be an ideological forerunner of the Western European integration. Some Russian and foreign experts believe that we will soon witness a political union of the member states of the EU capable of becoming a new state formation. Cooperation of the EU member states in the field of foreign policy, security and defense, domestic policy and justice and many other areas should be regarded as a step in this direction. However, the new Head of the European Commission Jean-Claude Juncker said he was not going to create the United States of Europe and that he did not believe that &#8220;a united Europe could be constructed in opposition to a nation-state&#8221; (9, p.7). In fact, these areas of cooperation serve the practical needs of a single internal market and reinforce international ambitions of the EU by means of foreign policy and security.</p>
<p>Despite the common historical destiny, continued co-living in joint states, their geographical, cultural, linguistic and ethnic similarities, comparability of sizes, similarity of political cultures and political orders (2, pp.615-617), the Nordic countries do not aim at getting united into one single state. The &#8220;European idea&#8221;, despite the fact that these countries belong to Europe, has not had a considerable influence on their relationship. Three of the five countries in the region are relatively young independent states. Norway gained independence in 1905, Finland &#8211; in 1917, and Iceland finally became an independent state in 1944. That’s why these countries do not allow any attacks on their recently-found sovereignty in integration processes.</p>
<p>However, the Nordic countries have consistently highlighted the importance of regional cooperation for them. In 1939, the Swedish Foreign Minister Rickard Sandler said: &#8220;The North will be a political reality to the extent to which the nations are convinced that their welfare is provided by the Nordic cooperation and solidarity&#8221; (7, p.37). In March 1948, the Danish Prime Minister said in Stockholm: &#8220;Whatever happens, our peoples should be together. It would be unfortunate if we parted ways&#8221;(10, p.35). &#8220;We live in difficult times &#8211; the Prime Minister of Norway Einar Gerhardsen said in February 1953 &#8211; when the very environment necessitates that small countries that have a lot in common and that are located side by side, hold together&#8221; (5, p.217). Although regional cooperation has always enjoyed wide support among the Nordic public, however, as it was acknowledged in February 1953 by the Danish Prime Minister Hans Hedtoft, their cooperation “had been quite irregular and random&#8221; for a long time (10, p.98).</p>
<p>To date, the Nordic countries have reached the most advanced and deepest level of regional integration of all known examples, with an integration path that is significantly different from the EU. Studying its features may be of interest to potential participants of integration processes in the post-Soviet space.</p>
<p>&nbsp;</p>
<p><strong>“The Road Map” of the Nordic integration </strong></p>
<p>Integration processes in the European North have taken as a base the indisputable fact that the joint efforts of the Nordic countries can better protect their common interests than if they were acting separately. Regarding the Nordic integration processes it is appropriate to cite the Swedish scientist G. Adler-Karlsson: &#8220;Instead of looking for guidance in doctrinal theory, we have always preferred to find the best solutions that are practically achievable under given circumstances&#8221; (1, p.22).</p>
<p>In the early post-war years, the Nordic countries faced similar economic difficulties. In April 1948, the four Scandinavian countries officially joined the &#8220;Marshall Plan&#8221;. Within its framework, Denmark, Iceland and Norway received US aid in the form of gifts, Sweden &#8211; in the form of loans (7, p.276). As a result, they were able to partially upgrade their fixed capital in industry and agriculture and to restore economic ties among the countries of the region. Sweden, for example, was paying for the US loans with ships for Norway.</p>
<p>This was also encouraged by lower customs duties in comparison to other Western European states, significant devaluation of the Scandinavian currencies in 1949 (exchange rate of the Norwegian and Swedish Krones to the American Dollar fell by 30%, the Danish krone – by 44%), as well as their accession to the European Payments Union (EPU) in 1950, which resulted in a partial reversibility of Scandinavian currencies within the EPU. As a result, the value of exports in each of the Scandinavian countries in 1948-1951 more than doubled (7, pp.276, 277).</p>
<p>Although Finland did not join the &#8220;Marshall Plan&#8221;, it was also receiving individual loans from its funds, as well as from the Export-Import Bank of the United States, the International Bank for Reconstruction and Development and from Sweden. By the end of 1956 the total amount of foreign loans in Finland was more than 68 billion FIM, with the share of loans from the US and Sweden being equal to 85% of that amount (4, p.18). By the beginning of the 1950s, the Nordic countries managed to complete the reimbursement of indirect losses caused by World War II (7, p.278).</p>
<p>In 1950 the North Economic Cooperation Committee that was established in February 1948, recommended that the Nordic countries participating in the &#8220;Marshall Plan&#8221; should begin creating a Nordic customs union. However, differences between the countries did not allow them to implement either this or any of subsequent attempts to create such a customs union. This gave impetus to the search for other ways of the &#8220;Nordic cooperation&#8221;.</p>
<p>In the late 1940s, Sweden was experiencing a rapid industrial rise and faced labor shortages. Other Nordic countries had problems with employment. As a result, steps were taken towards a more rational use of labor resources at the level of the Nordic region and towards formation of a common labor market. In 1951, Denmark, Norway, Finland and Sweden concluded a convention that allowed their citizens to be employed in any of the Nordic countries without prior permission from the authorities, and agreed to facilitate moving of citizens from one country to another. In 1954 they created a regional free market for labor, and in 1957 they completed the design of a passport union. In the second half of the 1970s the passport and visa regime and customs checking were abolished for the citizens of the Nordic countries at border crossings. Icelandjoineditin 1982, FaroeIslands &#8211; in 1992.</p>
<p>In order to increase labor mobility within the region the Nordic countries took a series of synchronous measures in social policy and social legislation. In accordance with the Convention on Social Security, approved in 1955, citizens of these countries received the same rights, privileges and responsibilities regarding the size of the basic pension, old-age pensions, unemployment, disability, occupational injuries and sick leave, as well as additional payments when moving from one Nordic country to another. They were given an opportunity to enjoy the same social benefits as nationals of the host country.</p>
<p>The first steps in the field of subregional integration in the North of Europe were aimed at ensuring establishment of a general labor market, which were accompanied by adoption of a series of laws and administrative measures aimed at improving mobility and ensuring social rights of migratory workers. The labor market became a vast sphere of common interests of the Nordic countries, which became one of the key areas of their subsequent integration efforts. In the course of its creation, harmonization of legislation became the most important issue, which later evolved into one of the skeletons of the Nordic integration.</p>
<p>Unification of legislation of the Nordic countries began in the 19th century and reached a high level even before the start of integration processes between them. At that moment they had unified legislation on the activities of banks, in the field of property, commercial and civil law, as well as in the field of insurance, property possession, etc. The authors of the book &#8220;Scandinavia between East and West&#8221;, published in 1950 in the US, noted that &#8220;there are far more similarities between the laws of the Nordic countries, than, for example, between the laws of New York and Florida states&#8221; (10, p.109). The Northern Commission on cooperation in the field of law continued those efforts.</p>
<p>Within the framework of EFTA, which Denmark, Norway and Sweden joined in 1959 (Finland joined in 1961 and Iceland in 1970), the Nordic countries managed to reduce customs duties and abolish quantitative restrictions in mutual trade in industrial goods. The share of inter-Scandinavian trade, that previously had been 5-6% of the total value of foreign trade in the Nordic countries, significantly increased in the mid-1960s. The import share reached 19.2%, while the share of exports totaled 22.5%. By the beginning of the 1970s, the Scandinavian countries occupied the first place in trade with each other. Their share reached 87.7% of EFTA imports and 63.5% of EFTA exports (11, p.268). Trade between the countries in the region became a significant factor in their development and an another sphere of their common interests.</p>
<p>Despite the differences in the national security doctrines, the Nordic countries continued foreign policy cooperation also in the postwar period. Periodic meetings of the Prime Ministers, regular meetings of foreign ministers and representatives of the countries of the region to the United Nations Organization, permanent official contacts among the foreign ministries at the ambassadorial level and direct personal contacts among Heads of their divisions and departments, weekly meetings of Heads of delegations and daily meetings of delegates and representatives of the Nordic countries in the committees at the sessions of the UN General Assembly became common practice.</p>
<p>At the plenary sessions of the General Assembly of the United Nations from 1956 to the beginning of the 1970s, they voted together on international issues in more than 80% of cases. Introduction within EFTA of a duty of 15% on imports of processed goods by Britain in October 1964 had caused solidarity actions the Nordic countries that achieved its abolition in November 1966. At the talks in the &#8220;Kennedy Round&#8221; (end of 1966 &#8211; spring 1967) the Nordic countries, acting jointly, managed to get concessions from the EEC on reductions of tariffs for their trade (11, pp.272-273). Thus, the small Nordic countries received strong indications of the effectiveness of their foreign policy cooperation in ensuring common interests.</p>
<p>After weighing the priorities of their further development, the Nordic countries, while in EFTA, made a strategic choice in favor of regional integration and signed the Cooperation Agreement between Finland, Denmark, Iceland, Norway and Sweden (&#8220;the Helsinki Agreement&#8221;) on March 23, 1962, in Helsinki. It became the legal basis document for their further cooperation and a &#8220;road map&#8221; of their integration efforts (12). This document with account of later amendments is still valid to this day.</p>
<p>Embarking on the path towards integration, the Nordic countries were certainly not striving to unite into a single state, and did not aim at creating a single internal market. <em>Their integration model is initially aimed at strengthening mutually beneficial foreign-policy cooperation of small sovereign and independent states, which, by means that are inherent in integration processes in the economic sphere, purposefully and pragmatically strengthen and extend old areas and create new areas of common or identical interests. This allows to build close and long-term cooperation on the international arena on a firm and constantly expanding basis of fundamental interests of socio-economic development, rather than on a shaky basis of temporary political arrangements and agreements and short-term, transient and situational factors.</em></p>
<p>A natural outcome of such an integration model is an influential community of states that preserve complete freedom in their economic and political decisions. The ability of such a community to effectively promote and protect common interests on the international arena is constantly growing with a simultaneous increase in the political weight of this community in the world. <em>For a group of small countries such interaction becomes an essential element of national security and independence of each of them.</em> On issues where their positions and interests diverge, they operate as separate and independent sovereign states.</p>
<p>In the Helsinki Agreement the Nordic countries defined top-priority areas of common or similar interests, for further expansion of which they decided to use their integration efforts. This document identified further measures for support and development of a common market of labor. In the sphere of legal cooperation they pledged to facilitate acquisition of citizenship of one Nordic state by nationals of another Nordic state, to seek to achieve maximum uniformity of legislation in the field of private law, as well as rules relating to criminal offenses and punishment. It recorded, in particular, an agreement to provide opportunities to investigate and prosecute crimes, committed in one of the countries in the region, in the other Nordic countries and enforce decisions of courts and other authorities of all states in the region on their territories. These provisions are intended, among other things, to ensure proper compliance with legislation by migrating citizens of Nordic countries.</p>
<p>The “road map” of regional integration includes a wide range of pragmatic measures of cultural interaction, which aims at preventing painful political, economic, social and cultural problems of integration of migrant workers from the other Nordic countries into the social and cultural environment of the recipient countries. It was decided to include in the curricula of Nordic schools studying of language, culture and social conditions of the other states in the region, and to provide an opportunity for students to study and take exams in the other Nordic countries.</p>
<p>The Nordic countries jointly fund committees of the Nordic cooperation in the field of primary, secondary and higher education, as well as adult education, regional programs of mobility for students and university teachers, pupils and school teachers. Their school and university curricula, textbooks and examination systems are standardized. Studying the languages of neighboring peoples is coordinated by the Secretariat of the northern languages and literature courses on the northern languages.</p>
<p>The Nordic countries have decided to ensure mutual recognition of diplomas at all levels of education, to coordinate employment services of the Nordic countries, harmonize qualification requirements for professions and work for the recognition of professional qualifications obtained in all countries of the region. They also agreed to work closely in the field of adult education, to unify the application of national provisions relating to workers&#8217; health, occupational safety, and to develop further exchanges between the countries in the field of literature, painting, music, theater, cinema and other cultural industries. The Nordic Culture Fund, founded in 1966, funds cultural projects within the region. There have been set up and in operation also numerous joint organizations of the Nordic countries in the field of culture and media.</p>
<p>As a result, citizens of the Nordic countries have a privileged position on their labor markets compared to citizens of other EU member states. Article 2 of the Helsinki Agreement contains a provision that &#8220;in the development of laws and regulations in any of the Nordic countries, citizens of all the other Nordic countries receive the same rights as citizens of this country&#8221;. Moreover, this provision should be applied &#8220;to all spheres of jurisdiction affected by the Agreement on cooperation&#8221;. In other words, citizens of the other Nordic countries shall not be considered as foreign labor on the labor market of each of these countries.</p>
<p>Having started integration processes with creating a common labor market and providing measures to promote their mobility, the Nordic countries have agreed to extend integration onto other areas. In the area of economic cooperation, they decided to hold consultations on economic policy issues, coordinate the measures they take regarding the impact of external factors on the economic cycle, to provide freedom of movement of capital among countries in the region, stressing that joint decisions in this area should ensure common interests of the Nordic countries in the field of payments and currency, and adhere to the division of labor among countries in matters of production and capital investment, as well as create favorable conditions for direct cooperation between the companies of two or more Nordic countries in these areas.</p>
<p>While regularizing the relations with the European Union, each of the Nordic countries was addressing possible consequences of their decisions for the Nordic cooperation. Supporters of the &#8220;People&#8217;s Movement against the EEC&#8221;, that was founded in 1971, were speaking, for example, of the need to strengthen the Nordic cooperation along with protection of the Danish national identity (6, p.517).</p>
<p>Denmark&#8217;s entry into the EEC in 1973 and the subsequent conclusion by the other Nordic countries of agreements with the EEC on the duty-free trade of manufactured goods helped to keep the trading mode, which existed among the Nordic countries in the framework of EFTA. Denmark&#8217;s membership in the EEC did not cause any specific problems for the Nordic cooperation until the conclusion of the Maastricht Treaty in 1992. Its implementation was threatening to cause irreparable damage for the &#8220;Nordic cooperation&#8221;.</p>
<p>As a consequence, the Danish referendum on the accession of Denmark to the European Union gave a negative result. Ultimately Denmark joined the EU, but on special conditions, and the rest of the EU member states were forced to accept them (6, p.550). Special conditions for joining the EU in the future were also specified by Sweden. One of such conditions was smooth continuation of the &#8220;Nordic cooperation&#8221; (8, pp.77-79).</p>
<p>As part of the integration efforts the Nordic states began to work closely together in the field of scientific research and coordination of the use of allocated resources with the greatest efficiency, including establishment of joint structures and institutions to combine their academic potentials and financial capabilities.</p>
<p>The Nordic countries conduct numerous joint research projects, coordinate national science and technological programs. The main driving force in this area are joint academic institutions ensuring high standards of research, that are difficult to achieve at the national level. Among them are the Northern Academy of Innovation Research, Northern Institute for Theoretical Physics, Nordic Council for Arctic Medicine Studies, Northern Research and Production Program on Biotechnology, Nordic Volcanological Institute, Northern Arctic Program of Humanitarian Studies and others.</p>
<p>The scope of their integration efforts includes further cancellation of trade barriers among the Nordic countries, coordination of their technical and administrative customs regulations, simplification of customs procedures, development of transport communications and trans-border trade, joint economic development in adjacent areas of two or more Nordic countries, joint efforts to ensure their interests in international trade.</p>
<p>An important area of the Nordic integration, defined by the Helsinki Agreement, was the Nordic cooperation in the field of transport and communications, as well as environment. The Nordic countries hold mandatory consultations for construction of transport and communication networks, which involve two or more Nordic countries, and coordinate efforts to improve road safety. Border passport control has been simplified.</p>
<p>Countries in the region take into account environmental interests of the other Nordic countries on an equal basis with their own interests both in the legislative process and in the practical application of the laws. They harmonize rules for the protection of the environment, agree on standards and define criteria for pollution, coordinate activities aimed at flora and fauna conservation.</p>
<p>Important areas of agreed integration measures also include official statistics, health and medicine, production of alcoholic beverages, mutual recognition of licensing procedures or certification in the field of medical, technical and other security controls, coordination on issues of child and youth policy.</p>
<p>Given the characteristics of the Nordic integration model, special attention is paid to strengthening of the cooperation at the European and international level, designed to provide &#8220;opportunities for joint extraction of benefits for citizens and companies of the Nordic countries&#8221;. The governments of these countries are held responsible for ensuring mutual interests and values as it is specified by the Helsinki Agreement. Various government authorities of the region can directly communicate regarding issues that do not fall under the exclusive competence of their external relations. They coordinate activities to provide assistance to developing countries, jointly distribute information about the Nordic countries and Nordic cooperation, and provide support for Northern European citizens by diplomatic missions.</p>
<p>The Nordic integration is characterized by pragmatism and focus on solving specific problems. Implementation of the reached agreements dictated by long-term strategic interests of the Nordic states, allows to strengthen their cooperation in international affairs by constantly expanding the range of their common essential interests. As a consequence, the nature, structure, functions and powers of international bodies of the Nordic cooperation significantly differ from those existing in the EU.</p>
<p>The &#8220;Nordic cooperation&#8221; is performed in the framework of the Nordic Council, the Nordic Council of Ministers, at the meetings of Heads of governments, by specialized authorities of the Nordic countries and by special cooperation bodies.</p>
<p>One of the fundamental principles of the &#8220;Nordic cooperation&#8221; is active participation of the public in discussions and decision-making in this area. Practical implementation of this principle is the Nordic Council established in 1952. It was determined in the Helsinki Agreement as an &#8220;elected public assembly of the Nordic countries&#8221; and a form of cooperation of their governments. Its Charter has been adopted by each Nordic country as an internal act which has the force of law. This body is not endowed with legislative functions. It is authorized to investigate the main components of the Nordic cooperation, to adopt recommendations, prepare research reports and other documents. The members of the Nordic Council may make inquiries to the governments or to the Nordic Council of Ministers on the issues of the &#8220;Nordic cooperation&#8221;.</p>
<p>The Nordic Council of Ministers (NCM) is a body of cooperation among governments. It is responsible for the interaction between them and the Nordic Council on the issues relating to their joint actions. It takes decisions aimed at implementing the provisions of the Helsinki Agreement and the other agreements among the Nordic countries. The overall coordination of the Nordic cooperation rests with Prime Ministers. They are assisted in this by the Ministers responsible for this cooperation, and the Heads of state and government secretariats, that are members of permanent national committees of the Nordic cooperation.</p>
<p>The Chairman of the NCM is responsible for the coordination of the Nordic cooperation and initiatives for related matters. His or her decisions are taken unanimously and are binding. In the case of making decisions on issues requiring parliamentary approval, they will not take effect until the approval of the relevant national parliament. The NCM reports annually to the Nordic Council on the problems and prospects of the Nordic cooperation. At the same time, the Prime Minister of the presiding country shall submit a special report on cooperation among the governments of the Nordic countries regarding European and international affairs.</p>
<p>In other words, effective management of integration processes in Northern Europe are ensured by the northern cooperation bodies not endowed with any exclusive powers, special competences or so-called &#8220;supra-national&#8221; functions. These are not necessary as unanimous decisions of the Nordic Council of Ministers are binding and enforceable for the Nordic countries.</p>
<p>As a result of the consistent implementation of the Nordic integration model there is constant strengthening of the Nordic cooperation on international issues and convergence of their positions on many international issues. All the five Nordic countries have become members of the Council of Baltic Sea States (CBSS), the Barents Euro-Arctic Council (BEAC), the Arctic Council. They all participate in the activities of the &#8220;Northern Dimension&#8221;, despite the fact that some of them are not directly related to some of the regions listed here.</p>
<p>Before Finland and Sweden joined Denmark as members of the EU in 1995, Iceland and Norway joined the European Economic Area (EEA) in 1992. Its terms provided maintenance of the conditions for further practical realization of the integration model for all of the Nordic countries, along with participation in free movement of goods, services, capital and persons across borders with EU member states and joining the Schengen area (3, pp.126-127).</p>
<p>Denmark and Sweden stipulated for themselves special conditions for participation in the EU and Norway and Iceland did the same for the EEA. These conditions provide opportunities for further development of the &#8220;Nordic cooperation.&#8221; An important step in this direction was concluding of an agreement among the Nordic countries on cooperation in the field of defense (NORDEFCO) on 4 November 2009. This marked a qualitatively new stage in the development of their interaction on international issues and was a direct consequence of the deepening of the Nordic integration. In the EU framework they included clauses regarding their participation in the common EU policy on security and defense.</p>
<p><strong>Integration scenarios for the Eurasian economic union </strong></p>
<p>Integration processes in the post-Soviet space should develop with due regard to the characteristics of the participating countries and specific tasks, which they intend to solve by means of integration. Already at an early stage there should be formulated overall strategic and intermediate goals that member states intend to achieve with the use of integration mechanisms. Depending on the nature of these goals specific mechanisms for achieving them should be identified, as well as the specific role of integration levers, adapted to the economic, political, social and other conditions of the existing economic space.</p>
<p>General wordings of very vague objectives of the EAEU purposes, such as strengthening and modernization of the economies of member states, their convergence, increase of their competitiveness in the global markets, direct integration processes at servicing some of the current needs and improving of the existing situation according to the formula &#8220;movement is all, the ultimate goal is nothing&#8221;, rather than at achieving more or less distinct strategic objectives.</p>
<p>Such an approach allows little for conscious, focused and consistent creation of long-term legislative, economic, political, social and other conditions that would provide close interaction, interpenetration and fusion of economies of the countries entering the path of integration, as it does not contain any motivation that is crucial for them.</p>
<p>Orientation of the EAEU member states in their integration efforts on the experience of the EU, including institutional experience, would mean that they intend to build on the territory of the former Soviet Union the same single internal market, aimed at serving the needs and creating the best opportunities for extraction of benefits of the most competitive economies and companies of the member states and the EU. For most post-Soviet states, economic conditions of which have not yet recovered and have not acquired the necessary level of development and competitiveness, a rigid imposition of such rules could have a devastating effect on domestic manufacturers and economic independence as it happens with the economies of the East European EU member states. There are serious doubts that exactly this objective is optimal for integration processes in the post-Soviet space because of the large differences between the CIS and the EU as well as among post-Soviet states.</p>
<p>An institutional model of integration reproducing the one in the EU may also be unattractive for them as it envisages delegating of a part of sovereign powers of the member states to some supranational international executive authorities. For many post-Soviet states, that only recently gained their independence and sovereignty, an idea of a new superstate in the future is unattractive, and practical steps in this direction are considered counter-productive. There are also serious doubts that such a development will meet the fundamental interests of Russia and its companies, because overcoming of social and economic underdevelopment in these countries will be largely their duty.</p>
<p>It is obvious that the member states of integration processes in the post-Soviet space and the Eurasian Economic Union (EAEU) should identify those areas of common or similar interests that they would like to form with integration mechanisms, and, relating to them, identify specific tools for their practical implementation. Taking into consideration differences among post-Soviet states, discussions on common or similar interests of states and possible areas of their integration efforts can be performed both among all the participants of integration processes, and between different groups of states with regard to their economic specialization. Without this, they are doomed to copy existing integration models, which is currently the case.</p>
<p>It is advisable in this context to determine which of the following is preferable for Russia and other members of the EAEU: (a) creation of a single internal market of the EU-type, or (b) promotion of division of labor between the member countries and development of specialized production industries with the help of selective integration measures in each of the countries, or (c) purposeful formation of areas of common economic, social and other interests of the members states of the EAEU in order to strengthen the foundations of their close cooperation in the sphere of foreign policy, security and defense policy, or, finally, (d) flexible combination of these measures with the account of development specifics of each of the post-Soviet states and the whole former Soviet Union. The general philosophic idea of the integration model of the Nordic countries and its individual elements can represent for Russia and other post-Soviet members of the EAEU a certain conceptual and practical interest.</p>
<p>When selecting areas of application of integration mechanisms one should pay attention primarily to those areas that, being inherited from the Soviet past, still remain essential for the economy. This could include, for example, infrastructure links among post-Soviet states. Further development and deepening of such links in the present circumstances with the use of integration mechanisms could be of mutual benefit and could contribute to the formation of common interests in this area.</p>
<p>Efforts related to regulation of labor markets in the post-Soviet space and its social and cultural reinforcements could be of paramount importance for application of integration measures, taking in to account the fact that the dynamics of the demographic situation in various countries of the CIS significantly differs. Cooperation in the field of educational and cultural policy, focused on servicing current and future needs of the labor force market and scientific and technical cooperation, could also become a program of long-term integration efforts of member states of the EAEU.</p>
<p>A specific feature of the new independent post-Soviet states is their continued breakaway from a single legal system of the Soviet Union. Therefore, cooperation in the field of law among them as a whole is unlikely to be successful. It should be selective and primarily related to the areas of interaction that will be identified as priority objects of their integration efforts.</p>
<p>Obviously, one can offer a lot of other areas to coordinate integration efforts in the post-Soviet space both with account of its specificity and experience of other integration groups. However in order to do this, it is necessary to determine what integration model and what strategic objectives potential participants would like to implement. The impression is that this is not completely clear yet.</p>
<p>&nbsp;</p>
<p><strong>References:</strong></p>
<p>Antonov A.N. Shveziya: protivorechiviye process razvitiya. Moskva, Izdatel’stvo “Znanie”, 1977</p>
<p>Voronkov L.S. Integrazionniye process na severe Evropy/”Evropeiskya integraziya” pod redakziyei Ol’gi Butorinoi. Moskva, 2011</p>
<p>Voronkov L.S. Obschee economicheskoye prostranstvo mezhdu Rossiyei i ES?/”Vestnik MGIMO-universiteta”, N. 4 (37), 2014</p>
<p>Voronkov L.S., Senyukov Yu. P. Finlandiya – nash severnyi sosed. Moskva, Izdatel’stvo “Znaniye”, 1977</p>
<p>Goloshubov Yu.I. Skandinavia i problem poslevoennoi Evropy. Moskva, Izdatel’stvo “Mysl’”, 1974</p>
<p>Istoriya Danii. Pod redakziyei Stena Buska I Henninga Poulsena. Moskva, Izdatel’stvo “Ves’ mir”, 2007</p>
<p>Kan A.S. Vneshnyaya politika skandinavskikh stran v gody Vtoroi mirovoi voiny. Moskva, Izdatel’stvo “Nauka”, 1967</p>
<p>Kuliabina L.N. Shezia v sovremennom mire. Moskva, Izdatel’stvo “Nauchnaya kniga”, 2005</p>
<p>Novaya komanda v Brussele/”Ekspert”, 3-9 Noyabriya 2014, N. 45 (922)</p>
<p>Prokofiev Vl. Severnaya Evropa i mir. Moskva, Izdatel’stvo “Mezhdunarodniye otnosheniya”, 1966</p>
<p>Pokhlebkin V.V. Skandinaviya: tendenzii sovremennogo razvitiya/ “Mezhdunarodniye otnosheniya v Zapadnoi Evrope”. Pod redakziyeyi D.E. Melnikova. Moskva, Izdatel’stvo “Mezhdunarodniye otnosheniya”, 1974</p>
<p>Helsinkskyi Dogovor o sotrudnichestve mezhdu Daniyeyei, Finlandiyeyi, Islandiyeyi, Norvegiyeyi I Shveziyeyi (http://eulaw.edu.ru/documents/legislation/eur_int_law/nordic.htm)</p>
]]></content:encoded>
			<wfw:commentRss>http://en.abfund.org/?feed=rss2&#038;p=1109</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>PRINCE OF THE BLOOD WITH SOUL FULL OF ART</title>
		<link>http://en.abfund.org/?p=141</link>
		<comments>http://en.abfund.org/?p=141#comments</comments>
		<pubDate>Thu, 18 Sep 2014 20:34:50 +0000</pubDate>
		<dc:creator><![CDATA[Admin]]></dc:creator>
				<category><![CDATA[№2 (10) 2013]]></category>
		<category><![CDATA[History]]></category>
		<category><![CDATA[Sweden]]></category>

		<guid isPermaLink="false">http://en.abfund.org/?p=141</guid>
		<description><![CDATA[In Stockholm you should go on a brief sea voyage in skerries on one of the boats that dock in the very center of the Swedish capital. Soon after sailing from the wharf you will see a beautiful straw-colored villa on your left located on a picturesque cape close to an old windmill painted light [&#8230;]]]></description>
				<content:encoded><![CDATA[<p><strong>In Stockholm you should go on a brief sea voyage in skerries on one of the boats that dock in the very center of the Swedish capital. Soon after sailing from the wharf you will see a beautiful straw-colored villa on your left located on a picturesque cape close to an old windmill painted light burgundy &#8211; Falun red – which is a symbol of Motherland for the Swedes.</strong></p>
<p>What is the villa and who owns it? There are other beautiful and pridefully-rich buildings close to it on the cape. However the villa distinguishes itself. It is the Waldermasunde Palace. It may be quite overstated to call it a palace as Russians have seen a lot of tsarist luxury that is superior to many royal buildings in the world. But in Sweden they call them palaces. Prince Eugen lived and worked in the palace. He was the fourth and the youngest son of King Oscar II and is known in Swedish history by his hobby which was untypical for royals. Do not imagine anything bad as he was simply an artist and one of the central landscape-painters of Swedish fine arts of the late XXI &#8211; early XX centuries. He was neither a genius nor an amateur but just a good artist.</p>
<p>There is nothing surprising in his artistic hobby as the education course of royal offsprings included at the time (and likely includes today) a set of esthetic disciplines, including music, dancing, handicraft and drawing. In most cases the training ended in nothing. They learned the course and would only sometimes remember it.</p>
<p>It was different with Prince Eugen who was a genuine artist. He was not the sharpest pencil in the box, by nevertheless. . . We can count only one or two professional artists of royal blood. Besides many paintings, the prince is also known as a patron of arts who did a lot to develop them. He used his money to buy paintings of other artists and had a big collection of them. He built a house on Cape Waldemarsudde and added a gallery to keep the paintings and one sculpture. But all in good time. . .</p>
<p><strong>Between easel and crown </strong></p>
<p>Prince Eugen Napoleon Nicolaus of Sweden and Norway was born on August 1, 1865 in Drottningholm Palace, the royal summer residence near Stockholm. Residents of the capital were informed about the event by a 42-gun salute. The parents were Crown Prince Oscar and Princess Sophia of Nassau.</p>
<p>Eugen was the youngest kid in the family to which only boys were born. In that sense the father and mother should have been happy as they produced more than enough resources for the family to continue and expand. In those times monarchs stuck to the old traditions when the crown was inherited exclusively by males. In 1980 the rule was abolished and current King Carl Gustaf XVI can be succeeded by any of his children &#8211; two daughters and a son. The senior one will be the heir .</p>
<p>As Prince Eugen had three elder brothers – Gustaf, Oscar, and Carl – and little chance to take the throne he was calm about it as his place among substitutes was the last. However it did not free him from the feeling of responsibility of a son of a monarch as anything may happen in life.</p>
<p>When Crown Prince Gustaf married Princess Victoria of Baden the second eldest son Oscar fell in love with her maid of honor Ebba Munk, a daughter of a military man. The law on royal succession said that if a prince of the blood marries a common woman he automatically loses the title to the throne. Oscar faced the choice and love took the upper hand. As for the duty to the crown there were two more brothers in the reserve and no major threat to the future of the royal family. As a result of Oscar&#8217;s left-handed marriage Carl and Eugen made one step up the succession ladder. Although the family reconciled with headstrong Oscar two other heirs swore not to marry a commoner in any case. And they stood up to the commitment. Carl married Princess Ingeborg of Denmark while Eugen remained single all his life.</p>
<p>As a prince of the blood Eugen had to participate in official life. He did it perfectly and attended numerous ceremonies, receptions, dinners, functions, and travelled abroad to represent the king and visited other monarchs. In 1894 he was in Petersburg as a representative of the Swedish Royal Court to attend the funeral of Alexander III. In the same quality he participated in festivities devoted to the 60th anniversary of the reign of Queen Victoria.</p>
<p><strong>He was the fourth and the youngest son of King Oscar II and is known in Swedish history by his hobby which was untypical for a royals. </strong></p>
<p>There was also military career. A prince is destined to be a military man. Eugen did everything necessary. He was a Hussar officer, wore the uniform when necessary, participated in exercises, but did not enjoy it all. He once wrote to his mother from maneuvers: &#8220;It is no pleasure to be a bad officer. To devote much time to military service means to abandon painting.&#8221; As a Royal Family member Prince Eugen could not sell his paintings like other artists. He was stripped of a major criteria of assessing works of art &#8211; public demand through market purchase- sale. The only thing he could do is to present his paintings to museums and various institutions.</p>
<p>His father Oscar II was also fond of creative activity. Hr wrote verses which were published under the pseudonym Oscar Fredrik. In 1857 at the age of 28 he was even awarded the second prize of the Swedish Academy (today it awards the Nobel Prize in literature) for the poem From Recollections about the Swedish fleet. The full collection of works by the king numbered seven volumes.</p>
<p><strong>Paris universities of Eugen </strong></p>
<p>Eugen early developed interest in drawing. Relatives played a major role in developing his artistic inclinations: uncle Prince Cark painted landscapes, Princess Eugenie wrote novels, composed music, and sculptured. She did a lot to make the prince love drawing and handiwork in the broad sense of the word. In 1886 after two years in the University of Uppsala the prince wrote to his mother that he had decided to study painting and the only place for it was Paris. It was a tumult for the conservative family to hear about Mont-martre which the prince would definitely visit despite his prudence. And how would they treat the prince? Can there be a scandal? It was no royal business for sure. . .</p>
<p>&#8220;Paris is dangerous and humiliating today for a prince in contacts with French artistic bohemia,&#8221; the king wrote to Kronoberg Governor Gunnar Wennerberg who supervised the prince during studies in Uppsala. Prudent Wennerberg tried to calm down the father-monarch saying idleness and entertainments do not know geographic boundaries. &#8220;Délice de Capoue is everywhere, and the prince is resolute to reject &#8220;everything vicious, ugly and rude&#8221;, he wrote adding there were many worthy teachers in Paris.</p>
<p>The monarch reconciled with his son&#8217;s wish in the final end. He confirmed it in a letter to Eugen when he was already in Paris: &#8220;My dear boy, much time has passed since you left from the Central railway station. Parents should not be egoists and should better think about their children rather than their own joy!&#8221; Sending his son to Paris the king asked his acquaintances, the Selsing couple to move there as well to &#8220;give shelter&#8221; to his offspring. Naturally the king was worried and wanted for somebody to look after the son. In France Prince Eugen lived under the name of Monsieur Oscarsson. It was a tradition for Royal Family members to change the name when departing from homeland. Travelling incognito also attracted attention. The new name was only logical &#8211; father Oscar, his son Eugen and all together it makes Oscarsson. It is noteworthy that the surname of a not distant relative of Eugen, the founder of the royal dynasty to which he belonged, was French. Jean-Baptiste Bernadotte was the name of Napoleonic mrshall who was adopted by childless Carl XIII in 1810 and took the throne under the name of Carl XIV John.</p>
<p>Eugen&#8217;s teachers in Paris were artists Leon Bonnat, Pierre Puvis de Chavannes, and Henri Jourdain. The prince studied art and led an active high life, visited museums, concerts, cafes and theaters. In 1888 Eugen was in Theatre Lyrique when a chandellier unexpectedly fell from the ceiling and crashed close to him. The prince was safe and sound.</p>
<p>In April 1988 revanchist General Boulanger revolted against the republic causing unrest in Paris. Eugen was not scared but curious about the developments. He wrote to his mother: &#8220;Naturally, I was in the streets and followed the unrest&#8221; although Selsing was not very happy about it. However it was a part of the basic education of the prince to experience public disorders himself.</p>
<p>In Paris Monsieur Oscarsson acquainted several Swedish artists &#8211; Gustaf Cederstrom, Anders Zorn, Carl Larsson, Rickard Berg, Per Ekstrom, and Dane Peder Severin Kroyer who comprised the zest of Scandinavian art. He naturally got acquainted with French impressionism which produced &#8220;a fresh and worthy impression&#8221; on him.</p>
<p>The prince was a decent student. During the first &#8220;Paris period&#8221; he mastered the basics of painting and achieved a certain level of skills. In 1889 two of his pastels were selected for the Swedish pavilion at the World exhibition in Paris which coincided with the centenary of the Great French Revolution. Sweden, as well as Germany, Turkey and Montenegro ignored the festivities.</p>
<p><strong>Landscape – beloved genre of His Majesty </strong></p>
<p>Eugen has been self-critical and soberly assed his abilities since young age. &#8220;Even if I do not become distinguished, and I am sufficiently critical of myself to understand that it is true, I will never regret the choice of my path and will be very pleased if I succeed to do honest work free of deception&#8221;, he wrote to the father in 1888. Professional career of Prince Eugen began at the time. In 1889 he was elected honorary member of the Swedish Art Academy and next year his pastel with a Stockholm view and The Summer Night in Norway painting were displayed in an art salon in Paris. The Academy included him with two other artists into the state commission in charge of acquiring works of art.</p>
<p>In 1893 Stockholm hosted an exhibition of artist Ernst Josephson, a talented, versatile (also a poet) and unbalanced man (he was sick with schizophrenia and died under the patronage of two noble ladies). It features his main painting Necken (nude young man as a spirit of water playing a harp at a waterfall). Despite all artistic merits the state commission refused to buy the painting. The decision of the National Museum w as also negative.</p>
<p>The prince was indignant at the decision as he could not understand how they failed to &#8220;comprehend&#8221; the outstanding masterpiece. He bought it himself and the painting was hanging in Waldemarsudde Palace. He ruled it can be removed only in one case &#8211; if the whole of the palace is evacuated.</p>
<p>Eugen&#8217;s teachers in Paris were artists Leon Bonnat, Pierre Puvis de Chavannes, and Henri Jourdain.</p>
<p>In the first half of the &#8217;90s the prince painted his most distinguished pictures: Old Castle, Last Sun Ray, Both Poplars (1893), Cloud (1895). They all reflect his deep mood and a feeling of internal dignity. They make you think and touch your soul. Before the death the prince left detailed instructions about the burial which also ordered that besides the national flag over the coffin with ducal crown placed in the big hall of the palace gallery there should be also Good Pastor painting by Juakim Skovgaard in the center and the Cloud and the Old Castle on the sides.</p>
<p>The genre of landscape was consonant to the internal world of the prince. Otherwise he would have hardly achieved such results. However I would dare suggest that despite all initial affection to the genre it contained something subconscious related to his duties imposed by origin. In contrast to portraits and genre painting the landscape and still life are devoid of &#8220;scandal virus&#8221; capable in favorable environment of instigating public opinion, scandalizing the author, and attracting attention of the public which enjoys gossip. Due to seeming neutrality and absence of conflict the genre mostly suited the artist of royal blood who in his creative activity had always to remember what he was, weigh all words and deeds to avoid unintentionally casting an imputation on crowned relatives.</p>
<p>Prince&#8217;s friend and genius of Swedish painting Anders Zorn also admired Swedish nature. Forest, water, and cliffs are its main symbols that were excitingly depicted on his canvases. On the background of the beauty the artist liked to place nude bathing peasant women &#8211; local beautiful, healthy, naturally tempting females with genuine femininity. The way he painted them produced a hymn to life which could be copied by a royal family member in the same free and reckless manner. Maybe today, but it was unlikely at the time. Noblesse oblige.</p>
<p>They often say that Prince Eugen painted in a manner close to impressionism. I am no art expert and cannot be sure about his style. However training in Paris and acquaintance with impressionists and their works could not but tell on his style and technique. The prince studied the basics of painting like all others &#8211; by classical canons. Later he began to search for his personal style and means of expression. It happened in the early &#8217;90s. It is interesting to note that the brush of the prince produced an original painting &#8211; The Temple of Happiness in pointillism technique. Designed by the first neo-impressionist Georges Seurat the technique is also called divisionism. In contrast to its native France where it was used by numerous artists including Pissarro father and son the technique was rarely used in Scandinavia. Among the Sweden Anders Zorn seems to have come close to divisionism with his characteristic brushstrokes and love to instantaneous impression.</p>
<p><strong>Color as felling of life </strong></p>
<p>Like all major artists Prince Eugen studied the theory of color, including great Goethe who worked not only in literature and is known as the author of Faust and the Sorrows of Young Werther. The ideas of the prince were based on a symbolic postulate that each color correlates with the human soul and reflects certain feelings or their tints. Feeling, perception, mood. The notions were specifically important for the prince. It can be seen at first glance in his paintings. When you thumb a catalogue the absence of people strikes your eye. There are no people at all in most works. Only the artist and nature, sometimes also buildings and sculptures. Still landscape or landscaped still life. An object for attentive observation.</p>
<p>The prince was interested not only in easel painting. He was also distinguished as artist of monuments. When the construction of a new royal opera house was underway he expressed readiness to participate in painting its interior. His lot was the foyer. Eugen painted the Haga Moods triptych depicting a park with a royal palace in Stockholm. The town hall has his City at Water fresco. Two Stockholm high schools have the Bright Night, Summer, and Sun Over City panel pictures. In Kiruna Church he painted the altar. The concert hall in Goteborg has his wall painting Country of Recollections, while the antechamber of the Caroline hospital &#8211; the Copper Serpent alcove fresco. The foyer of the Royal Drama Theater (which staged plays by Ingmar Berger for a long time) welcomes spectators with his refined Frost-dew fresco.</p>
<p>In many cases, specifically when the talk was about decorating educational establishments, the prince participated in the project as an artist and patron of arts. He paid the work of his colleagues without remunerating himself. A son of the Swedish monarch, Eugen was no traditionalist although his origin demanded him to be. He was a self-made man. He lived by his own mind, acted according to his own perceptions of honor and decency, was not afraid of different opinions, including majority opinion and possible gossip, open criticism, and rumors. He was ready to struggle against the stream if it was necessary for his convictions.</p>
<p>I already said what he ordered to do with the painting of Ernest Josephson. The same happened with the Granddad sculpture by Per Hasselberg which depicts a nude boy on the knees of his grandfather. For many people it was insulting and newspapers demanded to move out &#8220;indecent rubbish&#8221;. However despite negative public attitude the prince defended the bronze sculpture of Hasselberg which currently stands in Humlegarden P ark close to the Roy al Library.</p>
<p>When August Strindberg (whom the prince liked and who was disliked by his royal parents for liberties in relation to crowned highnesses) and his partner August Falck decided to open the Strindberg Intimate Theater they lacked money for that. Eugen provided financial assistance to them and when the writer died came to bid him farewell. However no representative of the Swedish Academy or the Royal Court came to the funeral.</p>
<p>In contrast to many representatives of the right-wing circles in Sweden who advocated the ideas of Pan-Germanism, Prince Eugen rejected Nazism although Germany was perceived as a country of culture at the time. In 1933 he wrote to his friend Garry Fett that he did not want &#8220;to look for excuses and explanations of violence and breach of law.&#8221; The strict position of a representative of the royal court embarrassed many people.</p>
<p>Distinguished Swedish traveler, ethnographer, writer and public figure Sven Hedin who was a staunch supporter of Pan-Germanism and Hitler publicly asked whether the prince was &#8220;engaged in salon Bolshevism out of spite to the king and the foreign ministry.&#8221; The prince in the meantime signed an appeal to protect &#8220;German refugees&#8221; who included numerous Jews and then participated in the creation of the committee to assist refugees. The right-wing circles called the document &#8220;a scandalous appeal&#8221;. But the prince was not confused by it. He was a genuine free artist!</p>
<p>The prince lived over a half of his life in Waldemarsudde. Initially he came to the place to paint his landscapes and admired its picturesque views and loneliness. He later leased a part of a small yellow house on the cape which was called Old House after the construction of the villa. The house is still there. In 1899 the prince bought it together with the land plot and in 1905 there was a newly-built palace several meters away from it which offered an inexhaustible source of inspiration for Eugen.</p>
<p>It was there that he painted many of his works, big and small, completed and uncompleted, sketches and drawings. It seemed to him that Waldemarsudde was constantly turning a new facet to him and offering new light nuances.</p>
<p>In 1913 the prince added a gallery to the palace which he united with the main building by an underground passage. He displayed his big collection there which included both his own paintings and works by other artists: Anders Zorn, Carl Larsson, Ernest Josephson, Niels Kruger, Eugen Jansson, Bruno Lillieforce. . .</p>
<p>The genre of landscape was consonant to the internal world of the prince. Otherwise he would have hardly achieved such results.</p>
<p>Rodin&#8217;s Thinker sits with his back to the water on a steep bank in the park in front of the house. Nike of S a m o t h r a c e spreads the wings at the entrance to the southern facade. Hercules by Antoine Burdelle braces a bow in front of the northern entrance which cannot be seen from water and completely differs from the southern one. Carl Milles is represented best of all. The prince left it all to the people.</p>
<p>Today Waldemarsudde is one of the most beautiful museums in Stockholm. Prince-artist Eugen like they call him in Sweden was buried close to the Old House. His grave is inconspicuous &#8211; a small grey regular-shaped stone with a laconic inscription: Prince Eugen. 1865-1947.</p>
<p>Mikhail Busnyuk,</p>
<p>for Amber Bridge</p>
]]></content:encoded>
			<wfw:commentRss>http://en.abfund.org/?feed=rss2&#038;p=141</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>UNDER AURORA BOREALIS LIGHT</title>
		<link>http://en.abfund.org/?p=139</link>
		<comments>http://en.abfund.org/?p=139#comments</comments>
		<pubDate>Thu, 18 Sep 2014 19:50:41 +0000</pubDate>
		<dc:creator><![CDATA[Admin]]></dc:creator>
				<category><![CDATA[№2 (10) 2013]]></category>
		<category><![CDATA[Culture]]></category>
		<category><![CDATA[Finland]]></category>
		<category><![CDATA[History]]></category>
		<category><![CDATA[Russia]]></category>
		<category><![CDATA[Sweden]]></category>

		<guid isPermaLink="false">http://en.abfund.org/?p=139</guid>
		<description><![CDATA[Baltic region poets will be soon networked with translators, publishers and historians to acquaint the readers with most interesting poetic works in Russia, Finland, and Sweden. The festival of modern poetry, translation and publishing business Aurora Borealis will promote that. It is held in Helsinki for the second year. Festival organizer Tatyana Pertseva who heads [&#8230;]]]></description>
				<content:encoded><![CDATA[<p><strong>Baltic region poets will be soon networked with translators, publishers and historians to acquaint the readers with most interesting poetic works in Russia, Finland, and Sweden. The festival of modern poetry, translation and publishing business Aurora Borealis will promote that. It is held in Helsinki for the second year. Festival organizer Tatyana Pertseva who heads the Litera creative youth organization told the Amber Bridge about the new Russian-Finnish tradition and prospects for cultural relations opened by the festival devoted to an outstanding historical personality of Finland &#8211; Aurora Stjernvall-Demidova-Karamzina.</strong></p>
<p><em>What is Aurora Borealis festival , how did it emerge and how is it related to Aurora Karamzina? </em></p>
<p>The festival began in 2012 as a continuation of Christmas Candle Meetings project which the Litera studio has been organizing for five years jointly with ITAR-TASS bureau and bringing poets from Russia, Baltic countries and Northern Europe together. All the five years it was only enthusiasm but the project succeeded. In 2012 it was decided to change the format of Christmas Meetings into a festival and unite under its banner not only poets, but also playwrights, scientists, translators, and journalists. The project is implemented with the support of the Fund of Social-Economic Programs and personal support of S. A. Filatov. The organizers of the Aurora Borealis festival comprise the Russian Cultural-Democratic Union, the Russian Center of Science and Culture in Helsinki, the Litera Society, and the Runo bar-studio.</p>
<p>The idea enjoyed support in creative circles of Russia and Finland and has been successfully implemented for two years. In January 2012 our festival was attended by famous poets and writers from Ukraine, Russia, Finland, and Sweden. In 2013, besides winter events, the festival Aurora Borealis with participation of poet and translator E. Ioffe, bilingual writer A. Perttu, poet and translator K. Korto, Editor-in-Chief of Other Shores magazine O. Pussinen, as well as scientist and poet N. Perevezentseva from St. Petersburg held poetic evenings, literary seminars and master classes. Participants included V. Mesyats (Moscow), A. Korovin (Moscow) A. Gritsman (New York), N. Reznik (Colorado), A. Ostudin (Kazan), M. Garber (Luxembourg), A. Melnik (Liege), A. Radashkevich and G. Pogozheva (Paris) and other distinguished writers, translators and scientists form the whole world.</p>
<p>We decided to devote the festival to Aurora Karamzina and called it Aurora Borealis as Polar lights are also called. The name presupposes northern realities and simultaneously associates with Aurora Karamzina, an outstanding beauty of the XIX century to who Pushkin, Baratynsky, and other poets devoted verses. For organizers the role of Aurora Karamzina as public figure is also important. She was a maid of honor at the empress and advocated Finnish interests in the Royal Court and helped Finland join the Russian Empire as a Grand Duchy. She was a woman who did a lot for the country politically and as a charity provider.</p>
<p>We emphasize historic moments related to the history of Sweden, Russia, and Finland in order to deeply study historic processes and better comprehend modern facts.</p>
<p><em>Does the festival signify the beginning of major and long work? </em></p>
<p>Yes, we have big plans. On May 24-25 Helsinki will host a seminar of translators, publishers, historians from Russia, Finland, and Sweden. We want to create a network of translators, writers, publishers and historians. We want to promote cultural aspects which will help overcome intercultural stereotypes. It is not only belles letters, but also essays, research, etc.</p>
<p>We need a network of contacts which will help people better understand each other. We plan to plug organizations into the network which are experienced in the sphere, such as the Finnish literature fund (FiLi), Russian publishing houses interested in translations of Russian literature into the Finnish language and vice versa. We would like not only to unite all people engaged in the process but also to act as intermediaries between them and carry out both cultural and educational projects. The Russian side represented by Moscow project coordinator Yevgenya Dobrovoi helps us a lot as it is already launching its own educational programs in Russia and Poland. Our task is to raise the awareness of the Finnish public about modern Russian literature and introduce interesting modern Finnish poetry to Russians. Our days are the time of flourishing poetry in Finland and its golden age.</p>
<p><strong>Still frame:</strong><strong> Aurora Charlotta Karamzina (1808-1902, full name — Eva Aurora Charlotta Stjernvall, a daughter of Swedish nobleman Lord Carl Johan Stjernvall and Baroness Eva Gustava von Willebrand, came down in history as public figure and founder and supporter of various charities. She was a granddaughter of the last governor of Finland. From 1836 she had the surname of Demidova and from 1846 &#8211; Karamzina. In 1836 Aurora Charlotta became a maid of honor of Empress Alexandra Feodorovna. Together with sister Emily and Countess Musina-Pushkina she was considered the first beauty in the Royal Court in Petersburg. As a maid of honor Aurora was very influential and was among those who convinced Alexander III not to make Finland a province of the Russian Empire but preserve autonomy rights with it. Alexander, who as the crown prince stayed in the Finnish mansion of Aurora Charlotta, in the final end adhered to her advice and other supporters of Finnish autonomy and decided to create a commission for the convocation of Finnish Sejm and grant the duchy a wide autonomy and laws to ensure its financial independence. </strong></p>
<p><strong>A warship fighting in the Crimean War was named after her. It was sunk by the</strong> <strong>English and the name went over to the legendary Aurora cruiser. She had a reputation of femme fatale as her three lovers and the only son Pavel Demidov died. Aurora was the muse of many poets and artists. Pushkin and Baratynsky devoted poems to her and portraits were painted by Brullov and Gau. She was twice married. In 1836 she married one of the richest Russian men &#8211; Pavel Demidov, the co-owner of Ural enterprises, actual state counselor, and Royal master of the hunt. Legends claim wedding gifts to Aurora included not only the famous Sancy diamond but also a scarf which belonged to Napoleon&#8217;s wife Josephina Bogarne. Demidov died a sudden death in 1840 and left Aurora with a child. She got married again in 1846. The husband was Andrei, the son of distinguished historian Nikolai Karamzin. He was an outstanding officer who was considered a prototype of Mikhail Lermontov&#8217;s hero Pechorin. After eight years of a happy life Aurora again became a widow as Colonel Karamzin was killed in the Crimean campaign in 1854. After that she fully devoted herself to charities.</strong></p>
<p><strong>She went down in Finland&#8217;s history as a public and charity figure who created nursing homes, orphanages, and hospices. She donated practically all her income from Demidov&#8217;s mining enterprises to the poor. In Gelsingforce Aurora Charlotta Karamzina created a permanent nursing service. The Evangelic society of nurses which she founded yet in 1867 still exists. Aurora also opened hospices and hospitals. Children&#8217;s Home Street has been preserved in modern Helsinki. </strong></p>
<p>By developing the ties we want to operate not on amateur but professional basis and produce high quality anthologies, as p r o o f &#8211; r e a d e r s say &#8211; very copy-read anthologies. We include into them only the names which are legends of the poetry of the XX-XXI centuries. We assess the authors by the text and everybody knows we shall reject bad texts.</p>
<p>Our festival is expanding. We now have partners in St. Petersburg and Stockholm. The Swedish friends we got thanks to Yevgenya Dobrovoi asked us to address the Swedish-language cultural center in March. St. Petersburg proposed to join the festival Petersburg Bridges in late May this year. Natalya Perevezentseva, the second Russian coordinator of the project, helps us maintain contacts with colleagues in Petersburg.</p>
<p>The main idea of the festival is to create international cultural space to develop projects related to translation and publishing. It also promotes preservation of the Russian language and literature abroad.</p>
<p>Interviewed by Yulia Andreeva,</p>
<p>for Amber Bridge</p>
]]></content:encoded>
			<wfw:commentRss>http://en.abfund.org/?feed=rss2&#038;p=139</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>OUR MENTAL MAPS SEEM TO BE HARD TO SHAKE</title>
		<link>http://en.abfund.org/?p=122</link>
		<comments>http://en.abfund.org/?p=122#comments</comments>
		<pubDate>Mon, 15 Sep 2014 21:18:08 +0000</pubDate>
		<dc:creator><![CDATA[Admin]]></dc:creator>
				<category><![CDATA[№2 (10) 2013]]></category>
		<category><![CDATA[Events]]></category>
		<category><![CDATA[History]]></category>
		<category><![CDATA[Sweden]]></category>

		<guid isPermaLink="false">http://en.abfund.org/?p=122</guid>
		<description><![CDATA[HEIKO DROSTE, Professor of History,Södertörn University The conference moderator, Professor Heiko Droste, talks about how past and present connect on the Baltic coast. Political changes since the early 1990s in Central and Eastern Europe resulted in a renewed interest in the Baltic Sea region, both as an important trade zone and as a historical region with [&#8230;]]]></description>
				<content:encoded><![CDATA[<p>HEIKO DROSTE, Professor of History,Södertörn University</p>
<p><strong>The conference moderator, Professor Heiko Droste, talks about how past and present connect on the Baltic coast. </strong></p>
<p>Political changes since the early 1990s in Central and Eastern Europe resulted in a renewed interest in the Baltic Sea region, both as an important trade zone and as a historical region with a certain Baltic Sea culture. This culture, however, is not easy to define. Historians like to perceive the Baltic Sea in itself as a node and infrastructure, which for centuries enabled migration and encounters. The history of these encounters, however, is in many parts still to be written. We have pieces of a puzzle, but the cross-national and cross-cultural perspective does not come easily. On the contrary, after centuries of migration movements and encounters, the mental map of historians and societes alike is still shaped by the nation state. These nations are usually perceived as rather stable entities with homogeneous cultures and clear borders. Migration and cultural encounters have therefore mostly been discussed as disturbing and problematic. Two Swedish examples might illustrate this mental map.</p>
<p>Three years ago, the Swedish historians&#8217; conference met in Gothenburg to discuss the guild&#8217;s understanding of its relation to the Swedish nation: ”Bound by the nation?” The question was rather rhetorical as the evident answer was: yes. Only few Swedish historians deal with non-Swedish subjects. Fewer still work on those foreign provinces and colonies that Sweden had during the so called great power era. There was also a debate on today&#8217;s historians&#8217; language skills as a prerequisite to international and cross-border studies. There is a clear trend to a bilingual research culture, where English is not only the foremost foreign language in almost all countries. It tends to be the only one, due to a growing focus on other, more ”labour market” oriented subjects at school. This is by no way an exclusively Swedish trend.</p>
<p>In early April, Sweden was shook by a political scandal. The Social democratic party congress voted for a well known muslim, Omar Mustafa, to become a member in the party leadership. Omar Mustafa had just everything that made his entry meaningful from the party&#8217;s perspective. He was a young and successful immigrant; he had a long lasting engagement in public life and a background in the muslim community. Just a few days later, this election exploded right into the face of the very same party. It turned out that Mustafa not only was a muslim, he was religious. He was also less than clear in certain discussions concerning the equal rights for men and women, equal rights for homosexuals and the question of his alleged antisemitism. Mustafa explained himself poorly. However, the major problem seems to have been his engagement in a muslim community that did not concur with all those values and positions that the ethnic Swedish party organization deemed crucial. There was simply too much otherness, it would have meant too much trouble for the party to stand up for the right of immigrants in Sweden to disagree with the majority society&#8217;s values. The party was obviously washed with antimuslim sentiments both from within and outside of the party. A media hype had its share in a campaign that resulted in Mustafa&#8217;s forced retreat.</p>
<p>This case demonstrates that diversity even in modern democracies is not self-evident. On the contrary, the framework for what lies within the approved public discourse seems to be getting ever more tight. Several of the antisemites that Mustafa had invited for discussions and that were turned against him had previously been invited by other Swedish politicians, without causing a public uproar .</p>
<p>Whereas we often perceive cultural encounters as beneficial, part of migration movements diversity is often considered as a threat to prevailing ideas of national and cultural homogeneity in nation states.</p>
<p>The Baltic Sea region has since its historical beginnings been shaped by migration movements and cultural encounters. Some of its aspects have been understood as beneficial, not the least the trade in and out of the Baltic Sea region. Other aspects concerning cultural and political hegemonies, be it the Teutonic order and its heathen mission, which resulted in a predominant Baltic German culture for centuries, be it Danish, Swedish and Russian hegemonial positions due to warfare and oppression, are mostly deemed negative (with some interesting exceptions).</p>
<p>Our conference focuses on migration and cultural encounters in a long-term perspective with a starting-point in the middle ages. Historians from a range of different countries gather at Södertörn University in order to discuss different topics. Although most lectures clearly focus on specific subjects, they all open up for comparison. And comparison is needed, not the least as our mental maps seem to be hard to shake.</p>
<p>This conference is also part of a long series of Russian-Swedish historical conferences. The previous conference in Moscow in June 2011 opened this bilateral conferences for participants from other Baltic countries. The conference in Stockholm in 2013 took an even further step in this direction. The participants originate from Finland, Estonia, Latvia, Poland, Germany, the United States of America, Canada, and the not the least Russia and Sweden.</p>
<p>The Baltic Sea history is clearly in need of many studies on the perception of migration and cultural encounters. The political and economic aspects of this history are well analysed for the most part. What seems to be needed now is to examine, how societies reacted to change, how migrants and their culture were incorporated, transformed or rejected. The reactions to change often came from within society, with a limited influence from the part of the government. We also need more studies concerning the obvious fact that the national cultures we are used to think of are a conglomerate of different cultures. They, too, can be an expression for a majority culture that denigrated or neglected other, socially inferior cultures. The Finnish, Estonian and Livonian peasant societies of the early modern period are clear examples for that. There are many more.</p>
<p>The conference also showed that different perspectives are useful, combining economic, political, social and cultural aspects. The different lectures were often based on conflicts or forms of a cultural hegemony that in itself could be seen as an expression for political claims. In this respect, similarities and cross references between different lectures were obvious. Maybe, historians focus too much on conflicts – due to the simple fact that conflicts produce our source material. However, this focus possibly mirrors the prevalent negative perception of change in societies that tend to see themselves as stable.</p>
<p>A common Baltic Sea culture or ”identity” is not easy to grasp and shows itself most of all in the region&#8217;s important role for trade and commerce. Here, the Baltic Sea truely is a node, an infrastructure that connects. In cultural aspects, the Baltic Sea is probably more of a barrier. Communication s are often land &#8211; bound . In these matters, however, we need many more studies. We also need more conferences to gather and discuss these matters. I hope that this conference will be just one in a long line of discussions and meetings. We need to meet each other outside of our national communities, in order to experience those cultural encounters that shaped the Baltic Sea region in its long history. That these conferences most likely will have to be held in English – the modern lingua franca – might be perceived as ironic, with regard to the rather subordinate role of this language for the Baltic Sea countries until recently. It might also give all the participants a feeling for the problems of cultural encounters in previous societies. There was never just one language that all members of the society understood as its own.</p>
]]></content:encoded>
			<wfw:commentRss>http://en.abfund.org/?feed=rss2&#038;p=122</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
	</channel>
</rss>
