The article examines the process of regional cooperation in Northeast Asia and the role of Mongolia in this process. For Mongolia, which is the least developed country in the region and has no access to the sea, it is vital to determine its course of interaction in the processes of economic integration, in various forms of bilateral and multilateral cooperation with the countries of the NEA sub-region, using primarily its resource capabilities.

Keywords: Mongolia, regional cooperation, Northeast Asia, globalization, integration, natural resources, infrastructure.

In the context of the globalized world economy, the trend towards regional economic cooperation is becoming more pronounced. In the new century, Asia is gradually becoming the center of global economic development. The focus of this economic development has become East Asia, and the" hot spot " of economic growth in East Asia, in turn, is Northeast Asia (NEA), with the main centers in China, Japan and the Republic of Korea. The economies of most Northeast Asian countries are characterized by high potential and inexhaustible opportunities for cooperation, so strengthening regional economic cooperation between the countries of Northeast Asia is not only an internal necessity and a subjective desire of each individual country in this region to achieve a high level of economic development, but also an inevitable trend in the development of the world economy. Northeast Asia is generally considered to include the northeastern provinces of China, the Far Eastern region of Russia, Japan, the Democratic People's Republic of Korea (DPRK), the Republic of Korea (ROK), and Mongolia.

The NEA sub-region is characterized by an extensive market and strong potential for regional economic development. China, Japan, and the Republic of Korea are the three main economic pillars of Northeast Asia [Chuan Junzao, 2006, p.141].

Japan and the Republic of Korea have sufficient capital and high technical capacity, but their natural and human resources are relatively limited. If we talk about China, the industry of its three northeastern provinces (Liaoning, Jilin, and Heilongjiang) has made significant progress over thirty years of industrial development, and the volume and quality of the labor force have increased. Until recently, the main weaknesses of China were considered to be the lack of capital, technology and management, which, in turn, make up the advantages of Japan and the Republic of Korea. In comparison, Mongolia, the Russian Far East, and the Democratic People's Republic of Korea lag behind in economic development, but these countries and territories have rich natural resources [Political Security..., 2002, p. 6].

Northeast Asia has all the necessary conditions for closer economic cooperation. However, some factors hinder its development.

The main factors limiting regional economic cooperation between the countries of Northeast Asia are the diversity and complexity of the forms of government of these countries. Northeast Asia is one of the sub-regions where completely different political and economic systems co-exist. Some countries (China, North Korea) adhere to the socialist path of development, others (Japan, the Republic of Korea) are developed capitalist countries, and others (Russia, Mongolia) are countries with economies in transition. Some countries have already reached a high level of economic development, others have recently begun to develop intensively, and others are still underdeveloped. Thus, Northeast Asia encompasses all types of political and economic arrangements that exist in the modern world. The complexity and diversity of forms of government inevitably lead to serious differences in the goals and aspirations of countries participating in regional economic cooperation, so it is almost impossible to achieve significant changes in a short period of time.

Other factors that hinder the development of regional economic cooperation between the countries of North-East Asia are problems related to history. The fact is that regional economic cooperation should be based on the principles of mutual trust and understanding, but due to some historical problems, the countries of Northeast Asia have not yet established a mechanism that would help them achieve mutual trust. These history-related issues focus on two aspects. The first is Japan's attitude to these historical issues. Three of the six North-East Asian countries-China, the Republic of Korea, and the Democratic People's Republic of Korea-once suffered from the invasion of their territories by imperialist Japan and the subsequent brutal enslavement of their peoples.

The second aspect is the dispute over territories and maritime borders. For one or another historical reason, many of the countries in the region are contesting different territories from each other. This may include Japan's claims to the Russian-owned Kuril Islands, the Dokdo Islands problem between Japan and the Republic of Korea, the Diaoyu Island problem between Japan and China, and disputes over maritime borders between China and Japan (Hirayana, 2005). Territorial issues have always been considered the most sensitive in relations between states. They concern not only the honor of States and the national dignity of peoples, but also major economic interests.

Historically, Northeast Asia has always been the focus of U.S. interests. The main task of the United States is to maintain its dominant position in the region and maintain traditional allied ties. The US military still maintains its presence in Japan and the Republic of Korea, and this causes US intervention in the affairs of Northeast Asia. US dominance, on the one hand, complicates politics and security issues in Northeast Asia, and on the other hand, it affects the stability of regional economic cooperation.

For many years, the issue of the Korean Peninsula has remained an acute problem in interstate relations in Northeast Asia. This inevitably leads to an aggravation of relations between the countries of Northeast Asia and limits the development of regional economic cooperation in this region.

In recent years, some important factors limiting regional cooperation in Northeast Asia and requiring immediate solutions have been the subject of bilateral and multilateral negotiations. At the same time, new factors began to appear that contribute to accelerating the development of regional cooperation between the countries of Northeast Asia. Global changes at the turn of the 20th and 21st centuries, caused by the complication of political and economic processes, brought with them both additional opportunities for the development of countries and peoples, as well as new challenges and threats to their well-being. The impact of globalization remains the defining trend of modern world development, which was clearly demonstrated by the Asian financial crisis of 1997 and even more extensively confirmed by the global economic crisis of 2008 [International Relations and World Politics..., 2011, p. 30]. The process of economic integration in Northeast Asia is rather slow. However, some North-East Asian countries are beginning to restructure their traditional foreign economic policies, and in the context of the rapidly growing process of globalization of the world economy and regional economic integration, North-East Asian countries have begun to make attempts to create free trade zones.

For example, in Northeastern China, since 1992, there have been free economic zones with different status in the cities of Dalian (Liaoning Province), Changchun (Jilin Province), Hunchun, and Heihe (Heilongjiang Province). Border cities have significant geographical advantages for developing cooperation with neighboring countries with which China has long borders. Currently, the necessary infrastructure is being intensively created in these cities, and cross-border trade is being developed on the basis of barter.

Special economic zones Rajin-Sobon, Rason have been created in the DPRK. The Nakhodka Special Economic Zone and the Greater Vladivostok project operate in the Russian Far East.

If we talk about multilateral forms of regional cooperation in the sub-region, one of the important projects is Tumangan, aimed at creating a transport transshipment hub. The Tumangan project has been under discussion since 1988 at the initiative of Chinese scientists from Jilin Province. Gradually, representatives of Russia, the United States, Japan, South Korea, North Korea and Mongolia were drawn into the discussion. Cooperation within the Tumangan project has a unique feature: It promotes not only mutual exchange and policy dialogue between Governments of North-East Asian countries, but also cooperation in the implementation of specific projects at the local level (at the provincial level) with the participation of the private sector.

Due to its geographical location and specific features of economic and political development, Mongolia cannot remain aloof from regional cooperation among the countries of Northeast Asia. The Concept of Mongolia's Foreign Policy, which was adopted in 1994 and updated in 2011, states that Mongolia "will support policies and activities aimed at developing bilateral friendly relations and cooperation with other Asian states, participating in multilateral cooperation in the Asia-Pacific region, and strengthening strategic stability in Eastern Asia.", North-East and Central Asia, to expand cooperation in the field of security" [The Mongolian Journal of International Affairs, 2011, No. 2, p. 32].

The objective need and necessity of" connecting " Mongolia to economic integration in the NEA are due to the following reasons::

First, it is the geographical location of Mongolia. Currently, NEA is one of the most dynamically developing regions in the world.

NEA countries and territories, population of districts, provinces and administrative divisions, GDP per capita, 2010

Sources: [Mongolulsyn..., 2011, p. 178; International Monetary Fund, 2010, p. 157; China Statistical Yearbook 2010..., p. 55].

In 2010, Northeast Asia accounted for 20% of total global GDP and more than 70% of Asian GDP.¹ This aspect is important for Mongolia because it falls under the" economic umbrella " of such technologically advanced countries as Japan, South Korea and the United States. At the same time, Mongolia, located between Russia and China, will inevitably maintain and develop relations with Russia, primarily with Siberia and the Far East, and with China, including its north-eastern provinces. Mutually beneficial cooperation with the States of the sub-region can allow Mongolia to dramatically accelerate its economic development.

Mongolia has extensive mineral resources. Mongolia is among the top ten countries in the world in terms of proven coal reserves. At the moment, the volume of confirmed coal reserves in the country is over 160 billion tons, and there is reason to believe that they will increase further after detailed geological exploration. If earlier coal was used only as an energy source, now it has become the country's largest export resource. Currently, 93% of Mongolia's electricity production comes from coal. In addition, coal accounts for the largest share in the export of mineral resources - 28%. Coal is followed by copper concentrate, which accounts for 27% of exports. Mongolia's coal mines are capable of producing up to 43 million tons of coal per year. Currently, the volume of coal exports is about 20 million tons [Mongol ulsyn..., 2011, p. 76].

Mongolia has two large and attractive deposits for foreign capital: the Oyu-Tolgoi copper-gold deposit and the Tavan-Tolgoi coal deposit. Tavan-Tolgoi is one of the world's largest coal deposits. Its reserves are estimated to exceed 6.5 billion tons of coal, including about 40% of high-calorie coking coal (according to updated data, 7.5 billion tons) [Development of the economy and Society of Mongolia 2009, 2010, p. 83].

According to experts ' calculations, the annual revenue of the country's budget from the operation of the Tavan-Tolgoi field alone will amount to $ 13 billion. Product Usage-

¹ http://www.imf.org/cxtcrnal/russian/

4 Vostok, No. 4

The development of only two strategically important fields - Oyu-Tolgoi and Tavan-Tolgoi-will increase Mongolia's GDP by 30% [News of Mongolia. No. 46, July 18, 2011; Statement of the Minister of Finance of Mongolia N. Bayartsaikhan. 18.07.2011].

According to the World Bank, by 2015, mines and quarries in southern Mongolia will be able to export approximately 20 million tons of coking coal to China, fully meeting its current demand, and the total volume of coal exports will be 45 million tons.²

Along with coal, copper and gold, Mongolia has large reserves of uranium. Neighboring China is experiencing a shortage of uranium.

Secondly, economic reasons are important for Mongolia's integration into the NEA. For Mongolia, economic, trade and investment integration into a larger framework of regional cooperation is not optimal, but perhaps the only way to accelerate economic growth. Mongolia does not have sufficient domestic financial resources. It is important for Mongolia to consider its participation in projects primarily from the point of view of accelerating its economic development. Thus, participation in the Tumangan Project is important primarily because it provides an opportunity to develop the transport system between the NEA countries through the territory of Mongolia, including through the north-eastern regions of the country. This will create conditions for attracting significant financial resources for the development of transport infrastructure in the country, which will contribute to the economic development of the Eastern Zone of the country and Mongolia as a whole.

However, Mongolia is very vulnerable economically. Its share in the total GDP of the region's countries is only about 0.02%. This indicates that Mongolia does not have sufficient economic weight to play a significant role in the integration processes in the region. At the same time, its rich natural resources are very attractive for foreign investors from NEA countries.

Mongolia is a producer of agricultural products, primarily livestock, and has already become a major exporter of certain types of products, such as goat down and cashmere products. It accounts for up to 1/3 of the world's goat down exports, half of which is exported to NEA countries, primarily to China. At the same time, there are reserves for further growth in exports of livestock products.

Mongolia has significant reserves to increase meat production and export. The main buyer of meat from Mongolia is traditionally Russia, the supply of livestock and meat to meat processing plants in the Siberian regions of Russia is gradually increasing, but has not yet reached the level of 1990. To expand meat exports, it is necessary to carry out a set of measures to improve the health of domestic animals and improve veterinary control, which has been significantly weakened over the past 10 years.

Third, Mongolia's political position contributes to its integration into the NEA. Mongolia has friendly relations with all countries in the region. It has no territorial or other disputes with any country, which is why it compares favorably with other states in the region. At the same time, the priority direction of the country's foreign policy is the development of relations with two neighboring countries - Russia and China.

The integration processes taking place in the Asia-Pacific region, including in North-East Asia, which are in line with the global trend towards globalization and the formation of a new economic system, have not yet reached European proportions in terms of their level and scope and are currently following an extensive path of development. In fact, the NEA's economic integration is at an initial stage-at the stage of finding directions and forms, at the stage of institutionalization.

² http://www.inosmi.ru/world/20090827/251992.htnil

Integration processes in the Asia-Pacific region can be subdivided according to their direction, nature, and geographical scope, based on the following principles.

The first principle is geographical, in which interaction in Asian countries is carried out at three levels: at the level of the Asia-Pacific Region (APEC), at the level of North-East and South-East Asia, at the bilateral and multilateral levels. The second principle is institutional: at the level of already working sub-regional integration groupings (ASEAN, ASEAN+3) or just discussed and planned for creation (East Asia Forum with the participation of China, Japan and South Korea). The third principle is based on the degree and nature of regional Governments ' participation in integration. These principles in approaches to integration in the NEA and the Asia-Pacific region as a whole are not only inseparable from each other, but also complement each other.

It was already mentioned above that Mongolia considers its participation in the integration processes in the NEA through the prism of more or less active participation in various regional integration programs and projects. Here, Mongolia should proceed from national priorities and focus its efforts where the fastest and most significant returns are possible for economic development and solving its internal problems.

Mongolia seeks to use various ways and forms of its participation in NEA integration. First of all, this means joining regional forums and associations: APEC, ESCAP, ASEAN, and ASEAN+3. We are also talking about the participation of government departments together with private research and business structures in the process of developing approaches to integration and creating new regional integration groupings. One of the important tasks facing the Government of Mongolia is to make the country a member of APEC. In 2002, the Mongolian government adopted a special resolution on ensuring preparation for APEC membership [Blue Book on Mongolia's Foreign Policy-2006, 2007, p. 65]. Mongolia supports APEC's efforts to create an integration mechanism in the Asia-Pacific region, and is interested in participating in those programs and projects that are declared in the organization's documents.

The main goal of the APEC Intergovernmental Forum since its establishment in 1989 has been the development of multilateral economic cooperation and integration in the Asia-Pacific region. The APEC Forum covers four main areas of cooperation: trade and investment liberalization; trade facilitation; and economic and technical cooperation. Accelerating trade and investment liberalization, facilitating the successful conclusion of the Doha Round of WTO negotiations, and developing regional economic integration were identified as APEC priorities in 2009 at the Forum chaired by Singapore. Following Singapore, Russia (2012) and Indonesia (2013) will chair the Forum and host its key events. Mongolia will participate in the summit as a guest of the Forum, which will be held in Vladivostok in 2012 under the Russian chairmanship.

Another important mechanism for multilateral political cooperation in the Asia-Pacific region is the ASEAN Regional Security Forum (ARF). Mongolia has been a member of the ASEAN Regional Security Forum since 1998. In July 2005, Mongolia joined the ASEAN Treaty of Friendship and Cooperation, the main policy document of the Association. At the same time, a seminar on "Changes in the concept of security in the ARF countries"was organized in Ulaanbaatar. During Mongolia's negotiations with the ASEAN countries, the search for mutually beneficial forms of trade and economic cooperation continues.

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Over the past ten years, a large number of international non-governmental organizations have been established, whose areas of interest include regional development, economic integration, and political negotiations in the NEA. Their activities are being significantly intensified.

At the same time, the process of institutionalization of integration groups in the NEA, the development of integration processes is not so intense. Russian scientist M. L. Titarenko notes that "the process of institutionalization of integration cooperation in the NEA is only at the initial stage and has not yet reached the interstate level" [Problems of the Far East, 2002, p. 102]. The main institutions of cooperation in the NEA today are non-governmental: the NEA Economic Forum, the Gas Forum and the NEA Economic Conference.

As a member of the United Nations and an Asian country, Mongolia actively participates in events, programs and projects under the auspices of the United Nations, primarily ESCAP. ESCAP, one of the five UN regional commissions, promotes the socio-economic development of countries in Asia and the Pacific, including Mongolia, and coordinates cooperation with other UN agencies at the sub-regional, regional and interregional levels. For the development of integration in North-East Asia, the Commission's infrastructure focus is of particular importance. In May 2007, the ESCAP ministerial meetings and summits of the 63rd session of the Commission, dedicated to the 60th anniversary of its establishment, endorsed two relevant Mongolian initiatives that were important among the protocols and agreements adopted at the session. These include "Creating a financial framework aimed at improving public health services and assistance to countries in the Asia-Pacific region" and "Ensuring cooperation on strengthening energy security and expanding energy use opportunities for landlocked and small island countries".

In fact, the only existing integration program in the NEA is the Tumangan Project. Mongolia has been actively involved in the Tumangan Project since 1991. If initially it was a question of creating a free economic zone in this region, now the question is raised more broadly. In the first place, the problem of combining the efforts of interested countries, primarily in the development of energy, transport, cooperation in the fields of industry, trade and ecology, is put forward. As part of the Tumangan Project, Mongolia is committed to developing the country's eastern regions. At the same time, special attention is paid to the creation of a network of roads and railways connecting the Eastern region of the country with the Tumangan zone through Northeast China, and the implementation of comprehensive programs for the development of tourism and environmental protection.

A big step forward in the Mongolian policy of attracting foreign direct investment, accelerating trade turnover and mobilizing financial sources is the creation and development of free economic zones (FEZs) in Mongolia [Mongolia Today, 18.12.2007]. In 1995, the Government of Mongolia approved the Regulation on the Creation of Free Economic Zones in Mongolia [Concept of creating a free economic zone]. This document notes, firstly, that the creation of free economic zones is a universal global example of a new organizational form of open economy development; secondly, that the right combination of foreign investors ' interest in investing capital in a particular region with the interests of the country is a significant contribution to the economic development of this region and the country as a whole.

To date, several free economic zones have been created on the territory of Mongolia. Following the adoption of the Law on Free Zones of 28 June 2002, the Government of Mongolia adopted Resolution No. 38 on the establishment of a free trade zone

(STZ) "Altanbulak" with an area of 500 hectares on the territory of the Altanbulak somon of the Selengi aimag. Due to the fact that Altanbulak is located in the border area with the Russian Federation, and is also connected to it by transport, energy and communication networks, its advantages are relatively low investment costs for the construction of industrial and social infrastructure. The advantages of the Altanbulak STZ also include the fact that there are ample opportunities for Mongolian goods to enter the markets of Siberia and the Far East. For STZ there is also a prospect of becoming an international trade and transport crossroads.

Another important free economic zone is Zamyn-Ud. Since the end of 2007, the Government of Mongolia has been paying great attention to the creation of FEZs on the territory of the East Gobi Aimag (Somon Zamyn-Ud). It is located on the southern border of the country, where highways of various types of transport converge. Zamyn-Ud is located on the border of Mongolia with China, 70% of Mongolia's foreign trade turnover is carried out through it and it plays the role of a" land port " [Russia and Mongolia..., 2011, p.230]. The law "On the legal status of the Zamyn-Ud Free Economic Zone" of June 20, 2003 approved the following main activities of the FEZ: production, trade, tourism and service. As part of the commercial activities of the FEZ, it is planned to develop services for the provision of storage facilities, the organization of exhibition centers, and the creation of packaging production. It is planned to create stock and exchange centers, banks and information centers.

In 2003, the Mongolian Parliament adopted the law "On the Legal status of the Tsagannur Free Trade Zone". Tsagannur village, where preparatory work is currently underway for the creation of the STZ, is located in the most remote western part of Mongolia, 1,720 km from Ulaanbaatar, 60 km from the aimag center of Ulgiya, 190 km from the border with Kazakhstan (via Russia) and 250 km from the border with China. A special feature of the Tsagannur STZ is its unique geographical location, which is relatively close to the countries of Central Asia, as well as to Russia and China. STZ "Tsagannur" can become one of the centers of regional integration, providing high rates of trade turnover and capital movement [Russia and Mongolia..., 2011, p. 233]. The creation of free trade zones can contribute to the intensification of Mongolia's economic development, increase exports, create import-substituting production, accelerate regional development, and solve social problems.

Summarizing the above, it should be noted that Mongolia is currently objectively interested in bilateral and multilateral cooperation with the countries of Northeast Asia.

Mongolia is located in a dynamically developing sub-region of the Asia-Pacific region. Already 75% of direct investment flows from NEA to the country, and therefore Mongolia is interested in increasing its participation in economic cooperation with NEA countries. First, it has to do with transport infrastructure: the country has only land borders and needs access to seaports. Second, Mongolia is interested in making better use of its mineral and fuel resources, agricultural land, and pastures, after receiving economic and technological assistance from the NEA. The development of natural resources and infrastructure requires large investments. Mongolia's modern infrastructure does not fit into the busy traffic flows of NEA. The transport sector has many problems: poor quality of roads (only 3% of them are paved), poor development of the railway network, etc. The cheapest water transport is missing. Most of the mineral deposits are located in uninhabited areas, located far from railways and water resources. Mongolia's active participation in regional economic cooperation and integration of NEA countries will contribute to solving these problems and accelerating the country's economic and social development.

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