Север и рынок. 2013, N 3.

welfare states within the European model is analyzed. Much attention is paid to the overview of international regional organizations functioning in the European North. Keywords: Political and economic integration, the Northern Europe, the European model, regional unions and associations, welfare states and social democracies, European North conception, The Arctic Council , Barents Euro- Arctic Council (BEAC), The Nordic Council , the Nordic Council of ministers, The Northern Dimension of European Union, neighborhood policy The different purposes of unions, alliances and associations formation could be considered as a peculiarity trait of the regionalization processes character for international relations development at the second half o f the XX century. Regional integration in Europe is considered as a constantly developing process of political, legal, economic, cultural, social, industrial and business integration o f different states. The idea to consider such global processes as economic and political integration within the framework o f an article has its own reasons and explanations connecting to mutual influence o f these two processes. Economic integration, when not accompanied by political integration, can lead to less innovation and slower growth as companies respond to increased competition in the economic market by focusing more on rent seeking activity. And in the case when economic integration is accompanied by political integration, innovation and growth could be stronger and welfare higher. It is necessary to underline that political and economic integration can be complementary. It is highly important to consider the influence of political and economic integration on innovation growth, welfare and market structure. Generally there is a need to admit that political boundaries o f some market o f some country could influence the size o f its market and its level o f productivity. But from the other side under the free trade conditions the size o f countries becomes irrelevant for the size o f markets and in its turn it is not related to level o f productivity. It follows that the equilibrium number o f countries and the extent o f economic integration are independent. The European North could not become an exception in the integration processes. There appear to be sufficient reasons for considering the European North as a region combining close geographical location, common cultural roots, economic connections and political cooperation on the one hand and as a platform for developing joint activities in the different spheres directed on the life living conditions increasing o f the people living in the North from the other hand. But first o f all it is necessary to understand what countries make the European North. European North typically includes the Nordic countries: Denmark, Finland, Iceland, Norway, and Sweden. But today in different articles devoted to the development o f North o f Europe it is possible to meet also inclusion o f Lithuania, Latvia, Estonia, the north­ west o f Russia and adjoining regions o f Poland and Germany which forms so called New European North conception. The changing regional power balances in the Northern Europe appeared in the form o f new institutional models and policy practices. Preceding from the purposes o f the present article it looks considerable to operate the traditional notion o f the European North. One o f the characteristic features o f the European North countries could be named certain stability o f the region; it is interesting that the borders were mostly changed within the region but not relative to outside world. The reasons for that are different and they range from the geographic position o f the region, cultural and ethnical identity to developed economic and political connections between states o f the region supported by unions’ formations and strong family tights. All these things allow us to consider the European North countries as unique in some way models o f social and political as well as economical divisions, characterized by own development paths in more or less similar historical conditions joining in different unions with various purposes as for example the Kalmar Union (1397-1521) which included Sweden, Norway and Denmark under the rule o f the Danish queen Margrete with the aim o f strengthening royal power at the expense o f the council o f State while Sweden and Denmark were to be subjugated to the chief realm o f Denmark. As well as dissolutions o f the unions with the purpose to get political and economic independence necessary for the following development o f the countries as for instance the unilaterally dissolving o f the Swedish-Norwegian Union (1814-1905) by the initiative o f Norway in order to get the adoption o f legislation to establish a separate Norwegian consular service. Ever since 1814 Norway had been so called the junior partner in the union and by the end o f 19th century the union conflict arose again. There was an opinion that the union was o f less and less economic importance to Norway. But economic independence was not the only reason for dissolution, the concept of nation state (one person one state) had gained acceptance in Europe embarked on a process o f nation building that emphasized the special elements of the Norwegian history and culture. Besides that there appeared the evaluation o f the union as a break on democratization process. Norway became the first country in Europe to institute parliamentary government in 1884 and universal suffrage for men in 1889. It is interesting to admit the fact that in 1814 Norway was an underdeveloped country with weak infrastructure and institutions, but in 1905 Norway was a well-developed state with 91 years' experience o f independent 70