Progress of the Movement for Economic Development
October 4, 2014 • 7:20AM

The movement for economic development is continuing to progress around the world; here are a few of the latest developments:

Eurasian Economic Union Advances, Commences on Jan. 1, 2015

According to Itar-Tass, Russian President Vladimir Putin announced today that the Eurasian Economic Union treaty, which was created on May 29 by the leaders of Russia, Kazakhstan and Belarus, has been officially ratified by Russia. Putin stated: “I have signed a federal law on ratification of the Eurasian Economic Union treaty. This is a major milestone in our joint work on integration with our closest partners and allies.”

The move follows ratification in the State Duma (lower house) on Sept. 26 and the Federation Council on Oct. 1.

The Eurasian Economic Union, which is based on the Customs Union of Russia, Belarus and Kazakhstan, will become operational from January 1, 2015.

According top Itar-Tass:

“The agreement is the basic document defining the accords between Russia, Belarus and Kazakhstan for creating the EEU for free movement of goods, services, capital and workforce and conducting coordinated, agreed or common policies in key sectors of the economy, such as energy, industry, agriculture and transport.

“It stipulates the transition of Russia, Belarus and Kazakhstan to the next stage of integration after the Customs Union and the common economic space.

“The Treaty on the Eurasian Economic Union stipulates customs and technical regulation, foreign trade policies and measures to protect the internal market. The agreement envisages transition to common customs tariffs.

“The agreement also stipulates principles of coordinated macro-economic and foreign exchange policies, financial market regulation, interaction in the energy and transport sectors, development of a common gas, oil, petroleum product, medicines and medical equipment market.

“The document defines the Russian language as the unions working language. The treaty also stipulates that the Eurasian Commission will be headquartered in Moscow, the Eurasian Economic Union Court in Minsk and the financial regulator in Almaty.

“The document says that the union is open for accession by any state sharing the unions goals and principles on the terms agreed by the member countries. The document stipulates a 10-year period for the union’s member states to fully harmonize their national legislatures.”

Belarus is set to ratify the treaty on October 7.

Kazakhstan’s lower chamber also ratified the EEU treaty on October 1.

Friday, Armenian Prime Minister Hovik Abrahamyan announced that Armenia will sign a deal to join the Eurasian Economic Union on Oct. 10 in Minsk, Belarus.

Kyrgyz President Almazbek Atambaev has said that Kyrgyzstan will join the Customs Union by the end of 2014.

Big Chinese Development Deals with Mexico Upcoming

Agreements for joint work in building the long-planned Veracruz-Oaxaca Trans-Isthmus Railway and industrial corridor, a high-speed rail line from Mexico City to Queretero in the center of the country, and modern, high-tech agroparks are expected to be signed in November, when Mexican President Enrique Peña Nieto and Chinese President Xi Jinping meet in Beijing on Nov. 13, Excélsior reported on Oct. 1.

Details of the joint Chinese-Mexican infrastructure fund have already been worked out and signed, according to Excélsior. Initially funded at $1.5 billion, and then increased to $3 billion, the fund targets mass transit, ports, energy and agroindustry projects, starting with those mentioned above.

The Trans-Isthmus rail line is the most ambitious and significant in physical-economic terms. The line is to function as a “dry canal,” connecting the the Gulf of Mexico port of Coatzacoalcos, Veracruz, with the Pacific port of Salina Cruz, Oaxaca, with President Peña Nieto’s intension being to build up a productive, industrial corridor, in clusters of new settlements, along the route, Excélsior reported.

This is precisely the development corridor along that route championed by the LaRouche movement since the 1970s, when it was designated one of four development poles to be built around “industrial port complexes” under President José López Portillo’s (1976-1982) national industrialization program. LaRouche’s EIR magazine described the route--now finally to be developed with Chinese help--in a Feb. 13-19, 1979 Special Report on Mexico:

“These ‘industrial port complexes,’ as Industries Minister Oteyza has called them, are each designed to include petrochemical or fertilizer production and be fed with natural gas from the nation’s ambitious gas distribution grid. The southern two ports, Salina Cruz and Coatzacoalcos, are conceived as the anchors for an industrial corridor stretching in an arc from the Isthmus of Tehuantepec over to Villahermosa, capital of oil-rich Tabasco state.

“This corridor is already the home for the bulk of the country’s refining and petrochemical capacity. Ten new petrochemical installations are soon to be inaugurated. Projected to unite the two anchoring superports is a high-speed electric rail line, first proposed in 1975 and to cost half a billion dollars. It is designed to replace the Panama Canal for certain kinds of cargoes. An oil pipeline from the Reforma fields to Salina Cruz is well along to completion.... It will deliver oil for embarkation to Pacific markets, particularly Japan. Japan has contracted to import 20 percent of Mexican exports as of 1980, 220,000 bpd, in exchange for capital goods and other development aid. It is putting $1 billion plus into the financing of the port facilities and related infrastructural projects.

“By the end of the century, the corridor’s currently sparse population -- less than a million -- is expected to increase tenfold.”

Only parts of those ambitious projects were ever built, as London and Wall Street dictated that that no new “Japan” be allowed to develop south of the U.S. border. Despite the joint fight of López Portillo and his friend Lyndon LaRouche to create the New World Economic Order in which sovereign nations could develop, imperial financial warfare crushed Mexico after López Portillo left office, pavying the way for the drug takeover which followed. But now the global development surge arising around the BRICS alliance is opening the door for Mexico to be free again.

Foreign Minister Wang Yi headed the Chinese delegation participating in the Sixth Meeting of the Permanent Binational China-Mexico Commission, held in Mexico City Sept. 28-30, after which Mexican media began discussing the new projects. The number two in the China Railway Construction Co., which is to be involved in both the Trans-Isthumus and the central Mexican rail line, was in Mexico just prior to the meeting.

For his part, Mexico’s Secretary of Agriculture Enrique Martinez is discussing Chinese investment in “agroparks,” which would use high-tech greenhouses using sophisticated irrigation systems, genetically improved seeds, and fertilizers, to produce for both Mexico’s domestic market, and export to China.

Bolivian President Announces Nuclear Reactor Is Planned For La Paz

Speaking before an overflow crowd in La Paz, on the occasion of the signing of a hydroelectric plant contract for the department, Bolivan President Evo Morales announced that the nation’s first nuclear reactor will be built in the department of La Paz, with an estimated investment of more than $2 billion by 2025. The first reactor will be used for research, medical diagnostic and cancer treatment purposes, and food preservation, seed improvement and insect control through a gamma irradition plant, he said, although the official announcement on when the “Nuclear Energy in Bolivia” project will begin is not yet ready.

Morales outlined the nuclear plan are part of the concept of turning Bolivia into an energy-hub for South America, not only providing electricity for its homes and new industries, but exporting it to its neighbors.

Some countries who have nuclear energy, including for purposes of war, protest, and want to intervene, when other countries propose to use nuclear energy for peaceful purposes, Morales noted, but said:

“I am convinced that the country which controls its energy, is a liberated country, an independent country.... The best way to free ourselves is also having nuclear energy for peaceful purposes.”

There were all those nay-sayers who said Bolivia could never have its own telecommunications satellite, he added. They said that “telecommunications satellites are for the United States, for Europe. How could we be thinking of a communications satellite? ... I could not understand that pessimism.” Their mouths are shut now that we have our telecommunications satellite.

The President emphasized:

“When we spoke of nuclear energy, they also said, ‘No, no, that is for the U.S., that is for China, for Europe; it is not for Bolivians. Why not?.... We must never feel like we are a small country. Now that we have freed ourselves economically, we are going to guarantee this type of investment, since it going to get underway this year.”

China To Finance a New Russian Port at Zarubino in the Russian Far East

China is helping Russia build a large port at Zarubino, Russia an ice free location just 18 km from the Chinese border. The port is connected by road and rail to the Chinese city of Hunchun in the northwestern province of Jilin. Jilin province signed a deal with Russian transport firm Summa Group during President Putin’s visit in the Far East to develop the new port at Zarubino on the Sea of Japan which can handle 60 million tons of cargo a year.

A private Jilin company has been spending several years in trying to develop the North Korean port of Rajin, but has run into difficulties, experts say. Chinese media started earlier this month to focus attention on the Zarubino port. Expansion of the port is to begin in 2015 and will begin operations in 2018, according to Alexander Ananenko, the project manager of the port in the Summa Group. The project includes building a port terminal to handle Chinese grain -- one of Jilin’s main exports -- and upgrading railway lines connecting the port to Hunchun.

One reason for the change may be the increasingly uncertain relations between China and North Korea. Locating a port at Zarubino, of course, gives Russia another ice-free port in the Far East. To be effective, Russia would also have to build rail links to Zarubino from the Trans-Siberian Railroad. Liu Bin, a professor at Dalian Maritime University, indicated that Russia began to warm to the idea of the Zarubino port, after the unfolding Ukrainian crisis and the economic sanctions.