In the age of globalization, it is impossible or extremely difficult for a country to stay economically close and meet people’s needs properly. As a result, many countries all over the world become members of international organizations or trades unions. As a part of the Federal Republic, the resource-rich one, we need to understand that in order to prosper both in economic and social spheres we also have to make this step. You, my dear citizens, have to understand it, and that is the purpose of my article.
The European Union (EU) is what we need now, as they eagerly want our resources and we feel the necessity in need of their investments. In order to join the EU our country has to improve its economic situation. The list of benefits of this is long, such as: free migration of people, free capital and goods transfer, environmental standards, stable democratic system, safety, and this list can de endless. As for disadvantages, it has to be said, that they can be crucial, but we, the government, will to everything to protect our domestic manufactures.
The first thing we have to do is to create an attractive investment climate, specifically for European investors. To do this the Federal Republic government will accept laws about reduction of tax proceeds remove some administrative barriers to make it easier for foreign companies enter our markets and reduce the number of days of the red tape to a few, as complicated procedures can scare potential investors. Next step will be to accept duty-free tariff quota only for European investors to allow them export goods in our country in their quantities. Another one is investment allowances, meaning percentage deduction of certain investment costs from the tax liability.
Our country has already become a member of The International Bank for Reconstruction and Development (IBRD). Consequently, we are also a member of the International Monetary Fund (IMF), meaning that the biggest and the most powerful international financial institutions can invest in our economy.
Next week we will ratify the Washington convention, which allows our country to defend the interests of our country if different investment disputes appear between two investors in the International Centre for Settlement of Investment Disputes (ICSID). This Convention means that such investment disputes will be arbitrated by international court, not domestic one, as they will not anymore belong to the national jurisdiction, but international. This may ease our judicial system. We would be able to save our diplomatic immunity in the court.
Be a member of the EU means that our political, judicial, economic, and social systems would be on the new level. The Federal Republic would follow not only our national and international laws, but also the EU law. As a result many disputes regarding different areas would be converted into international ones and that would be the EU Court who would settle them.
However, the Union labor law Enforcement mechanisms, for instance, cannot make autonomous product. Our national traditions about labor law enforcement in the Federal Republic would not let easily the Union legal techniques work purely. It is more effective to mix legal technique of the EU with the national administrative enforcement traditions, which can be implemented both through the courts and social partners.
That is why our judicial system would be changed considerably, as it would be primacy of international law over internal legislation, and at the moment we have the reverse situation. This change means that during any dispute settlement a court will use not domestic, but international law. The whole legislative framework would be improved up to EU standards, which are one of the highest of the world. So, the citizens should not worry about destruction of our system and sovereignty, because it would not happen in any case.
Our membership in Multilateral Investment Guarantee Agency also make our investment conditions better, as future investors in private sectors and lenders can receive insurance guarantees of political risks, which make them certain about their money in case crisis or other circumstances of insuperable force. This organization can help with funding sources improved terms.
Work Cited
Ramkishen, S. Rajan “Measures to Attract FDI”. The Lee Kuan Yew School of Public Policy. National University of Singapore, 2004. Web. 19 Dec. 2013.
“Enforcement of EU law”. The European Foundation for the Improvement of Living and Working Conditions (Eurofound). Web. 19 Dec. 2013.
The World Bank. The World Bank Group. Web. 19 Dec. 2013.
