The root of the Georgian conflict is found in the West: the expansion of the European Union and NATO into Eastern and Central Europe was undermining Moscow's influence, and the Kremlin decided it had to do something about it. The West's recognition of Kosovo's independence from Serbia - a traditional ally of Russia - in early 2008 set the process of war in motion. Between 2000 and 2007 Putin's priority was to "clean house." The Kremlin recentralized the country politically under a pro-Putin political party, and socially by rallying nationalism. Economically, the Kremlin recentralized the majority of business and financial drivers in the country by creating state champions for energy, banking, and other sectors. As the Kremlin's control over Russia intensified, Moscow turned its attention to its periphery and to the growing pro-Western movement on the edge of the Russian sphere of influence. The pro-Western revolutions in Georgia in 2003 and in Ukraine in 2004 served as a wake-up call for Moscow. In the early 2000s, Russia used energy as the primary tool to influence Europe and penetrated European business circles. It also sought to understand and use to its advantage the European Union's socio-political problems, and the incomplete integration of the Union. The Europeans have since followed through with some of their plans for energy diversification, and Russia is facing increased economic problems, also as a result of the sanctions imposed by the West; Moscow's tools for influencing the EU have thus also weakened.
Interdependencies mean, under these circumstances, that countries can use economic policies as foreign policy and security tools. Political economy has been used at the global level to rebalance power among the resurging world's regional leaders. Aversion to the risks involved in establishing global interdependencies leads to regional capital constraints, both on trade and investment. At the same time, increased regional integration through the establishment of smaller clubs for trade and investment leads to the existence of competing trade and investment regimes. Still, such clubs facilitate more effective coordination among member states; they create trade rules that serve the states' interests and increase their outward relative power.
The meaning of partnerships
The Trans-Pacific Partnership, as well as its so-called companion, the Transatlantic Trade and Investment Partnership, are adding a new dimension to regional integration. They aim to create a common market among the participants, not just a free trade zone. The proposed partnership would establish a unified set of regulations that not only address the tariff and non-tariff trade barriers but also formulate the investment rules, creating solid, long-term links among countries. This way, the established partnerships are looking to balance political relations among countries in order to alleviate any future geopolitical and security dilemmas.
