Sebastian Chinchilla Chacon National University of Costa Rica Supervisor: Hartley, R. M.SC

in Economics and Environmental Economics, Professor.

е-mail: chinchilla0712@hotmail.com

International Cooperation between Russia and the Pacific countries: Central American case

Multilateral diplomacy as an effective tool of socio-economic development of Russia in Asia and the Pacific

Diplomacy is that kind of magic that helps countries to establish good relations, no matter the frontiers, no matter the obstacles and no matter the different ideology that countries can share or not, the thing about diplomacy is that holds a great property within its essence, the peace, through the diplomacy, different countries all around the world, can perform social rolls inside of this big community that we call earth planet in a complete state of respect and mutual cooperation that helps to construct the peace that this controversial world is in need of.

The following case that is about to be analyzed is that how diplomacy helps in the area of development, but first is really important to clear that development is not the same as growing, development carries a really important concept that is sustainability, the fact that makes the growing effective and helps it to transform into development. Through this powerful tool, countries can set commerce relations that are really important for countries in ways of development, like those analyzed here (Central-American) and also for developed countries like Russia, given that this is a way to obtain a wide variety of resources or stock at really reasonable prices.

It’s impossible to forget our most recent economic crisis (2008-2009) and the effects it has caused, but luckily, countries like Russia have experienced an economic recovering in their macroeconomic field, like the production that grew in a 3,4% 2 years ago [1]. The incoming of Russia to the World Trading Organization, sets a new perspective of trading in the analyzed case, an important thing to consider is that the Russian

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Federation was integrated to the WTO in 2012, and the Central American countries did it between the years of 1995-1997. The participation of Russia in the WTO is very significant, given that one of the changes is try to ”reduce product traded is tort in gsubsidies effects of agricultural activities, establishing the decrease of total aid to the sector gradually in the coming years” [1].

Some agreements we can see are, for example “On September 28, 2012 , was held in New York, the first meeting of the Minister of Foreign Affairs of the Russian Federation , Sergei Lavrov and Foreign Ministers of CELAC. On it, the Ministers agreed to hold regular political cooperation and dialogue in order to preserve the norms and principles of international law with the central coordinating role of the UN; strengthen the global financial and monetary system, uphold the principles of democracy and human rights, ensuring peace and security; advance the field of disarmament and non-proliferation of weapons of mass destruction and strengthening the Treaty on the Nonproliferation of Nuclear weapons; jointly combat illegal drug trafficking, transnational organized crime and other new threats and challenges, protect the environment, ensure energy and food security and maintain sustainable economic development with guarantees of justice social [3].”

The bilateral commerce relations between Russia and Central America have been increasing during the last five years, by 2012 the main exportation products were fruits and edible fruits, and in the case of Costa Rica, the main product exported to Russia was the bananas, and specifically this could be appreciated in the following chart.

It is important to highlight that these exporting relationships from Central America to Russia are possible thanks to the great natural richness that the Central American countries has, their fertile lands that allow the products to grow naturally. Even when the extension of the countries is not as big as Russian, this lands give to commerce premium quality products that are very popular in other countries, like Costa Rican coffee, valued in several countries to prepare gourmet coffees and premium beverages and desserts, the potential of the area is already supplying many countries around the world, but its potential isn’t completely working at its maximum.

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Sometimes, farmers produce more than the market within the country needs, and they experiment wide losses, and considering that the social class that they represent, the international commerce could be a tool to solve this problem, with the support of the respective entities, they could set their products in other countries at reasonable prices, and the opportunity cost tell us that this is a better alternative.

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