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Mahesh

17/09/22 11:40 AM IST

The Eastern Economic Forum

In News 
  • Russia hosted the seventh Eastern Economic Forum (EEF) Vladivostok from September 5 to 8.
  • The four-day forum is a platform for entrepreneurs to expand their businesses into Russia’s Far East (RFE).
About EEF 
  • The EEF was established in 2015 to encourage foreign investments in the RFE.
  • The EEF displays the economic potential, suitable business conditions and investment opportunities in the region.
  • Agreements signed at the EEF increased from 217 in 2017 to 380 agreements in 2021, worth 3.6 trillion roubles.
  • As of 2022, almost 2,729 investment projects are being planned in the region. The agreements focus on infrastructure, transportation projects, mineral excavations, construction, industry and agriculture.
Major Investors in Forum 
  • China is the biggest investor in the region as it sees potential in promoting the Belt and Road Initiative and the Polar Sea Route in the RFE.
  • China’s investments in the region account for 90% of the total investments.
  • China is also looking to develop its Heilongjiang province which connects with the RFE.
Japan 
  • Japan is another key trading partner in the Far East. In 2017, Japanese investments through 21 projects amounted to $16 billion.
  • Under Shinzo Abe’s leadership, Japan identified eight areas of economic cooperation and pushed private businesses to invest in the development of the RFE. 
Objective 
  • The primary objective of the EEF is to increase the Foreign Direct Investments in the RFE.
  • The region encompasses one-third of Russia’s territory and is rich with natural resources such as fish, oil, natural gas, wood, diamonds and other minerals.
  • The sparse population living in the region is another factor for encouraging people to move and work in the Far East.
  • The region’s riches and resources contribute to five per cent of Russia’s GDP.
  • But despite the abundance and availability of materials, procuring and supplying them is an issue due to the unavailability of personnel.
  • The RFE is geographically placed at a strategic location; acting as a gateway into Asia. 
EEF and IPEF 
  • The U.S.-led Indo-Pacific Economic Framework for Prosperity (IPEF) and the EEF are incomparable based on its geographic coverage and the partnership with the host-countries.
  • India has vested interests in both the forums and has worked towards balancing its involvement.
  • India has not shied away from investing in the Russia-initiated EEF despite the current international conditions.
  • The IPEF also presents an ideal opportunity for India to act in the region, without being part of the China-led Regional Comprehensive Economic Partnership or other regional grouping like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership .
  • The IPEF will also play a key role in building resilient supply chains. India’s participation in the forum will help in disengaging from supply chains that are dependent on China and will also make it a part of the global supply chain network. 
Indo-Pacific Economic Framework (IPEF)
  • It was announced in 2021 to set regional standards for cooperation and to encourage regional economies to “decouple” from the Chinese market by leading them to alternative supply chains.
Source- The Hindu 

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