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CROSS-BODER COOPERATION IN THE CONTEXT OF NATIONAL FINANCIAL SECURITY

Автор Доклада: 
N. Tkalenko, V. Marhasova, P. Bakumenko
Награда: 
CROSS-BODER COOPERATION IN THE CONTEXT OF NATIONAL FINANCIAL SECURITY

UDC 338

CROSS-BODER COOPERATION IN THE CONTEXT OF NATIONAL FINANCIAL SECURITY

Nataliya Tkalenko, Ph.D (technical sciences), assoc. prof.
Viktoriya Marhasova, Ph.D (economic sciences), assoc. prof.
Peter Bakumenko, applicant
Chernihiv State Institute of Economics & Management


The essence of the main directions of cross-border cooperation was analyzed in the article. The role of financial security in cross-border cooperation programs was defined.
Keywords: cross-border cooperation, euro integration, financial security, economic security, efficiency.

Modern international relations are characterized by intensive integration processes, including the important role of cross-border, regional and interregional cooperation. Today cross-border cooperation is quite an important element both of state policy and priority in the socio-economic development in the direction of Ukraine’s integration to Europe. Ukraine has great potential for development because of its advantageous geopolitical position. 19 out of 25 Ukrainian regions are border regions. Ukrainian external border is the longest in Europe. Ukraine has significant potential to develop cross-border cooperation with a 1390 km land border with EU countries. Ukraine has cross-border cooperation not only with EU countries but also with Russia, Belarus and Moldova [2].
Cross-Border Cooperation is a joint action aimed at the deepening of economic, social, scientific, technical, environmental, cultural and other relations between local communities and their representative bodies, local executive authorities of Ukraine and other states within the competence defined by their national legislation.
The aim of cross-border cooperation the promotion of socio-economic, scientific, technical, environmental, cultural and other relations between participants of cross-border cooperation. It’s based on the following principles: respect for state sovereignty, territorial integrity and safety of state borders; consideration of powers and rights of all participants of cross-border cooperation; coordinated elimination of political, economic, legal, administrative obstacles to mutual cooperation.
The participants of cross-border cooperation can be territorial communities, their representative bodies, local executive authorities of Ukraine, which interact with local communities and relevant authorities of other states within their competence. The specific feature of functioning cross-border region is the ensuring its territorial integrity, as a system. It requires coordination of some border areas, which is provided through cross-border cooperation. Cross-border cooperation has become the factor of promotion of social equality and public dialogue. It is the instrument for developing of local border and regional authorities in Europe [3].
Financial security is the main factor for Ukrainian economic system in pursuing independent fiscal policies in accordance with its national interests. The essence of financial security can be defined as a state of the economy, at which state financial flows necessary to fulfill state objectives and functions are formed. In the context of ensuring financial security, regional cross-border cooperation acquires a particular importance because the level of security affects the intensity of business relations between the border regions. Thus, numerous threats to potential partners and investors are obstacles to cooperation with businessmen of regions in depressing because of high business risk. But high level of financial security facilitates the establishment of foreign business contacts. On the other hand, the intensity of cross-border cooperation can have a negative impact on the financial security of the region. The nature of this effect depends on the functional relationships between indicators of financial security and the level of cross-border cooperation and of economic policies within each working region. The development of cross-border cooperation was envisaged in 2000 by the Program of Ukraine's integration into EU. In 2002 during the meeting of Council on cooperation between Ukraine and EU cross-border cooperation was classified as the priority activities of Ukraine [3].
The legal basis of cross-border cooperation consists of Ukrainian Constitution, international treaties, which regulate relations in this sphere, the Law "On cross-border cooperation” and other regulations. Cross-border cooperation is regulated by European Outline Convention on Cross-Border Cooperation between Territorial Communities and Authorities (1980, ETS № 106), Additional Protocol to the European Outline Convention on Cross-Border Cooperation between Territorial Communities and Authorities (1995, ETS № 159) and the Protocol №2 European Outline Convention on Cross-Border Cooperation between Territorial Communities or Authorities concerning international cooperation (1998, ETS № 169). Ukraine has acceded to these international treaties.
Cross-border cooperation was defined as the priority for regional policy of European Union up to 2013. In Ukraine, cross-border cooperation is a instrument for developing for border regions and the factor of European orientation. It is reflected in the State Regional Development Strategy of Ukraine up to 2015 and State Program of Cross-Border Cooperation Development for the period from 2007 till 2010. Cross-border and interregional cooperation is implemented across a variety of programs. It provides a number of activities undertaken by the partners. It dependents on the goals they try to achieve. Cross-border cooperation between Ukraine and the European Union (member states) has the following forms: activities of the Euro-regions; activities of neighborhood programs; activities of international organizations and regional associations; interregional cooperation (agreements on cross-border cooperation); Cross Border Cooperation Program within European Neighborhood and Partnership Instrument (since 2007).
Ukraine participates in the activities of regional organizations and associations. In particular Ukrainian regions are involved in the work of such organizations as: Assembly of European Regions, Congress of Regional and Local Authorities of Europe, Association of European Border Regions, Conference of Maritime Regions of Europe and others. In addition, Kyiv and Kyiv region became the European region after signing the formal agreement in 2005 the Ukrainian capital was announced the European Region of the year. Kyiv also claimed to the title of European Cultural Capital in 2010. Today cooperation contacts are developed with Committee of EU Regions, structures of the Council of Europe and the EU, Association of European Border Regions (AEBR), Council of European Municipalities and Regions (CEMR), Conference of Peripheral Maritime Regions of Europe (CPMR), association of major European cities (EUROCITIES) at the level of state and local governments.
Financial assistance under the European Neighborhood and Partnership will focus on the cross-border cooperation needs. It’s the component of border cooperation within the European Neighborhood and Partnership Instrument (ENPI-CBC). This neighborhood program should be changed under ENPI. In particular, they are transformed into cross-border cooperation programs. Thus, the Neighborhood Program "Hungary-Slovakia-Ukraine" will be transformed into CBC Ukraine-Hungary-Slovakia-Romania. The bilateral cooperation between Ukraine and Romania will be transformed into tripartite (Ukraine, Romania and Moldova). And the neighborhood program "Ukraine-Poland-Belarus "will continue in the same composition. In addition, the new program "Black Sea" will start. All Black Sea countries will participate under it.
Compliance with the principles of EU regional policy aims to implement the six main priorities directs of EU regional policy. They were served as the selection concentration funded cross-border cooperation resources and their effective use. First direction is to promote the structural transformation and development of regions in depressing. This trend of cooperation is only for those regions where GDP per capita was below 75% of the average EU over three years, it accounts for 67,6% financing. The second is related to the provision of financial resources to regions where there is stagnation in industry (11,1% financing). The third and fourth directions are close in scope, so their combined funding and it is 10,9%[4]. The third direction is to combat long-term unemployment and employment support initiatives: the fourth - an adaptation of entrepreneurs, workers in industry and manufacturing sector to the systemic changes that threaten unemployment. With total funding of 9.9% is the development of agricultural areas and accelerated structural adjustment of agriculture, 0.5% assigned to help areas with low population density. These directions of cross-border cooperation should develop in our country, particularly in Ukrainian western regions.

References:
1. Про транскордонне співробітництво: Закон України від 24.06.2004 № 1861-ІV. //zakon.rada.gov.ua.
2. Європейська Рамкова Конвенція про транскордонне співробітництво між територіальними общинами або властями (ETS No106) – Мадрид, 21 травня 1980 р. European Outline Convention on trans-frontier co-operation between territorial communities or authorities from Madrid, 21.05.1980.
3. Оцінка процесів інтеграції України в ЄС і НАТО: наук.-інформ. зб. [серія: дослідження і розробки у сфері євроатлантичної інтеграції України]; в.18 – К.: Євроатлантикінформ, 2006. – 220с.
4. Потенціал національної промисловості: цілі та механізми ефективного розвитку / [Кіндзерський Ю.В., Якубовський М.М., Галиця І.О. та ін.]; за ред.. канд. екон. наук Ю.В. Кіндзерського; НАН України; Ін-т екон. та прогнозув. – К.,2009. – 928 с.: табл. рис.

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