Isolationism versus Geopolitics: The dual role of the Eurasian Union in the system of global Governance

Abstract

This paper conceptualises the recent and ongoing efforts to create and develop the Eurasian Union, initiated by Russia, Belarus and Kazakhstan in 2011. Engaging with two major theoretical perspectives on this regional project, we aim to establish to what extent it is economic regionalism (interpreted also as an isolationist strategy), vis-à-vis Russia-led geopolitical motives, that drives the construction and potential expansion of the Eurasian Union. The political-economy debate of Eurasia goes beyond a common tariff area and a common market within the territory of the former USSR. Increasingly, it involves the establishment of a common monetary area. It appears that a new Silk Road is being laid with foundations for a new Eurasia - one of the global economic and political players of this century. In our analysis, the economic reasons pursued by Russia in the Eurasian initiative are in fact inseparable from the economic problems of geopolitical significance. We argue that overarching objective of Russian policy is to establish a regional economic fusion, with significant economic sovereignty and strong political influence; that is, the new centre of power in the global economy of the 21st century. Correspondingly, our analysis also suggests that while Russian integration policy in Eurasia has not been formulated in an anti-American way, if successful, the likely consequence will be that a significant segment of the global market will be withdrawn from under the economic dominance and political influence of Western-led economic blocks.