The EU-Asia Connectivity Strategy
About the author: Justin Tomczyk ’20 is an FSI Global Policy Intern with the Economic Policy Research Center. He is currently an a Master’s student in Russian, East European, Eurasian Studies, at Stanford University.
The EU-Asia Connectivity Strategy is a collection of policies designed to improve Europe’s economic connectivity to the emerging economies of Central, Southeast, and East Asia. While the creation of this specific policy portfolio was largely done in response to the Belt and Road Initiative (BRI), the connectivity strategy is based on preexisting strategies which have been implemented to varying degrees in recent years. Additionally, the EU-Asia Connectivity Strategy is not designed to directly compete with BRI nor is participation in either project mutual exclusive.
Like the BRI, the EU’s connectivity strategy includes the construction of physical infrastructure. This is often aimed at the recent members of the EU and the broader periphery of Europe — particularly the Western Balkans. However, the infrastructure development sections of the EU-Asia Connectivity Strategy also include the creation and reconstruction of critical infrastructure in the surrounding regions. An example of this would be the reconstruction and reconnection of Central Asia’s power grid which has been fractured since the collapse of the Soviet Union and has largely fallen into disrepair.
Beyond physical infrastructure, the EU-Asia Connectivity Strategy also incorporates strategies designed to promote research and innovation among the EU’s trading partners. Programs like Erasmus+ have been expanded to provide more collaboration opportunities to academics and researchers in India. Additionally, part of the connectivity strategy is the promotion of single market aspects of ASEAN’s integration process. In doing so, the EU would have significantly streamlined trade with southeast Asia by funneling trade through two regional blocs
With regards to Georgia, a specific component of the strategy that is of great relevance is the recently signed free trade agreement between the EU and Japan. In addition to covering multiple areas of conventional trade, the agreement features provisions designed to accommodate digital trade and the digital economy. As per the agreement, both Japan and the European Union have agreed to a series of mutual standards on privacy and personal data storage and in doing so, have removed some of the largest barriers to trade between European and Japanese tech firms. Considering the large digital economies of both Japan and the European Union, these clauses are crucial to the normalization of digital trade as a part of the modern economy.
Like much of Eastern Europe, Georgia IT sector is one of the fastest growing elements of the economy. Participation in the EU-Asia Connectivity Strategy provides an interesting potential for further development of the digital economy. The construction of physical infrastructure, such as 5G towers or expanded fiber optic networks, would improve Georgia’s internet connectivity. Additionally, the approximation of Georgian regulations on the storage, processing, and sale of personal data would improve the country’s accessibility to European partners. Additionally, the development of the IT sector provides new job opportunities aimed at young professionals and skilled labor which may partially stem the emigration of young people from the country. With these factors in mind, the EU-Asia Connectivity Strategy provides a valuable opportunity to further expand Georgia’s growing digital economy and integrate the country into the EU’s emerging Single Digital Market.
