A Study On Russia 's Entry Into The WTO From The Perspective Of New Institutional Economics

Russia is independent of a specific background. Compared with other countries,Russias domestic political&economic system and international behavior is veryspecial.So, Russia has its own unique way to join the WTO. This paper will follow theresearch methods and theoretical perspective of New Institutional Economics, andtry to construct a effective analysis framework to explain Russia’s way to join theWTO.In this paper, there are two problems facing Russia when Russia applying forentry into the WTO: to formulate a “Join the WTO” Policy and a series of successfulnegotiations with WTO’s Member States.Then, In the domestic and internationallevels,we Selected institution theory and contract theory in new institutionaleconomics to analysis Russias performance and ways to solve this two problemsIn the domestic level, This article assumes that there are two factors whitchaffect a countrys policymaking: government and interest groups. Government andinterest groups interact in the institutional environment, The formulation of acountry’s “Join the WTO” policy is under the domestic institutional environment. Ifthe governments preference different from the preferences of the domestic interestgroups, this county’s institution determine the final policy-making.The governmentcan participate in the international system and international cooperation to changethe equilibrium between the government and domestic interest groups and madethe equilibrium toward enhanced the autonomy of a government’s policy makingability. In the international level, This article chose the contract theory as the guidingtheory. This article assumes that: in an international negotiation,only one side canget a credible commitment from the other side,the negotiation can eventually reachan agreement. If the Russia government can make it’s commitments become"legalization" and "internationalization",to further Limit their actions, then itscommitments will be more credible.This paper argues that Russias accession obstacles can be summed up indomestic and domestic two aspects. On the domestic front, different interest groups and the government have a long-term controversy over whether to join in the wto;the lack of legal norms in the domestic market economic system and oligarchs have ahuge influence on policy making.All this making it difficult for Russia government toconsensus of agreements to join the WTO. In the international level, Russia is hard toreach an agreement with the United States, Europe and other WTO members on theissue of energy prices, agricultural subsidies, and intellectual property rights andthe domestic trade policy and the legal construction is hard line with therequirements of the WTO for a long time. Under the influence of both domestic andinternational factors, the process of Russias accession to the WTO is full of obstacles.In this paper, Russias efforts can be simplified to two levels: on both domesticand international levels. In the domestic level, By developing trade economy, makingthe domestic voters through free trade policy get more affordable, creating more andmore supporters on “Join the WTO” policy; Through the political system reform, theconstruction of the legal system of market economy, fighting the oligarchs andactively follow the international system.All this methods srengthened the autonomyof the Russian government in formulating the related trade policy. In theinternational level, Russia hade made great deal of concessions on energy prices,agricultural subsidies, and intellectual property rights; under the guidance of theworld trade organization, continue to improve the domestic trade policies andregulations, strengthen the economic and trade cooperation with the rest of theworld in order to create mutual trust international environment. Efforts made, oninside and outside two aspects, makes Russia joined the world trade organization inthe end.