I recently came across a press release from the European Union online database dealing with the decision of the European Commission to fully open the European Union's market to wine imported from the Republic of Moldova. I believe the current situation involving Moldova serves as a good case study highlighting how Economic Interdependence can foster both peace and conflict.
The European Council's decision is a godsend for Moldova, which lost its largest foreign wine market when Russia banned the sale of Moldovan wine earlier last month. This was not the first attempt by Russian to strong hand Moldova with economic sanctions. In 2006, a diplomatic conflict with the Russian government over Moldova’s desires to join the European Union resulted in Russia banning all Moldovan wines, significantly damaging the domestic wine industry. The EC’s recent decision just might prevent the same level of damage as well as bring a degree of stability and certainty to Moldova’s, at times, rocky economy. Russia is currently trying to set up an economic zone called the Eurasian Union in competition to the European Union in hopes of remaining a relevant power in the area without losing their sphere of influence with former soviet states such as Moldova and the Ukraine.
Moldova, by tying its wine market to the European Union, will have far less of a likeliness to engage in conflict with any EU member nations due to the increasing costs of war that is associated with interdependent markets. On the other hand, the decision of Moldova to go with the EU market versus the Eurasian zone increases tensions with Russia.
The Moldavian wine case serves as an example of neofunctionalism. In this example we see two states or entities, Moldova and the European Union, integrating various sectors, most importantly economic, leading to benefits for both involved parties. This case shadows the decisions of France and Germany to integrate their economies in hopes for future peace via the European Coal and Steel Community in 1952. Under the ECSC control of the production of steel and coal, materials vital in a nation's war-making capabilities, were placed under the control of a common high authority. This integration played a key role in deterring Franco-German aggression by drastically increasing the cost of war for each nation.
Economic integration has a track record of being able to bring peace in thousands of instances across the globe, however it can not be ignored that with increasingly high levels of integration and reliance comes more chances for conflict when one party is dominated, ignored, or even simply just plain jealous of various nation's decisions to cooperate and leave them out.
Very interesting post. Moldova's desires to join the EU definitely aggravate Russia. In my opinion Moldova is making a smart move by leaning more toward the EU market, specifically because the EU forces more liberal, and open market policies, while Russia is known for its monopolies and abuse of political and economic power.
ReplyDeleteThis is a great example of the impact that economics can really have between two countries. I think it is very interesting how a country can impact another so much by banning a product from being sold within their borders. On the other hand you provided a great example of how the opposite works, how the breaking down of trade barriers can actually foster ties and aid in a state's prosperity. I haven’t been able to see an example where a state has experienced both sides of the economic effect until this one. Very interesting.
ReplyDeleteI also found this post very interesting. It's a nice example of how economic integration makes it more likely that certain countries will not engage in war with one another. I think it is also interesting that with Russia banning the wine, Moldova had a new opportunity to create ties with other countries throughout Europe and put them in a position that is more secure.
ReplyDeleteHere is a great example of the importance trade and economic relations can directly impact foreign policy. Trade may be the most important type of relationship that countries share between each other. They are most of the time mutually beneficial for both nations. These economic ties can prevent conflict and should be used more often that military confrontation.
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