Session - 12
Session - 12
Session - 12
Integration
Positive-sum game
Case for Regional Integration
Political case for integration
Customs Union
Eliminates trade barriers between member countries
Adopts common external trade policy
Common Market
No barriers to trade among member countries
Common external trade policy
Allows factors of production to mover freely among
members
Level of economic integration
Economic Union
Free flow of products & factors of production
Adoption of common external trade policy
Requires common currency, harmonization
of tax rates, common monetary & fiscal
policy
Political Union
Central political apparatus coordinates
economic, social & foreign policy of
members (US)
• Regional Economic Trading Blocs
Economic Union
Free Trade Area (FTA)
Common Market
Economic Union Customs Union (CU)
Customs Union Common Markets
Economic Union
Free trade area
Political Union
Free trade
among members
Factor Mobility
Harmonization of Economic Policies
• Major Regional Trading Blocs
NAFTA (North American Free Trade Agreement) : Canada, Mexico, US
EU ( European Union) : Austria, Belgium, Denmark, Finland, France,
Germany, Greece, Ireland, Italy, Luxembourg, Portugal, Spain, Sweden
United Kingdom
EFTA ( European Free Trade) : Iceland, Liechtenstein, Norway, Sweden
LAIA (Latin American Integration Association) : Argentina, Bolivia,
Brazil, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, Uruguay,
Venezuela
Functions:
The OPEC MCs coordinate their oil
production policies in order to help
stabilise the oil market and to help oil
producers achieve a reasonable rate of
return on their investments. This policy
is also designed to ensure that oil
consumers continue to receive stable
supplies of oil.
OPEC FUND: The OPEC Fund for
International Development is a
multilateral development finance
institution. It was established in
January 1976, by the member
countries of the Organization of
the Petroleum Exporting
Countries.
OPEC Secretariat
The Secretariat carries out the executive
functions of the Organization in
accordance with the provisions of the
OPEC Statute and under the direction of
the Board of Governors
Members: Algeria, Angola, Indonesia,
Iran, Iraq, Kuwait, Libya, Nigeria, Qatar,
Saudi Arabia, UAE, Venezuela.
The Organization of the Petroleum
Exporting Countries (OPEC)
IT’S A PERMANENT ORGANIZATION ESTABLISHED IN
1960 AT THE BAGHDAD CONFERENCE BY IRAN IRAQ,
KUWAIT, SAUDI ARABIA, AND VENEZUELA.
IT WAS LATER JOINED 8 OTHER MEMBERS.
ITS HEAD QUARTER IS IN VIENNA.
ITS OBJECTIVE IS TO COORDINATE AND UNIFY
PETROLEUM POLICIES AMONGS THE MEMBER
COUNTRIES
TO SECURE FAIR AND STABLE PRICES FOR
PETROLEUM PRODUCERS.
PROPER PRICE AND REGULAR SUPPLY OF PETROLEUM
FOR CONSUMING NATIONS.
ASEAN
www.aseansec.org
ESTABLISHED IN 1967 .
5 FOUNDING MEMBERS : INDONESIA , MALAYASIA,
PHILLIPINES, SINGAPORE AND THILAND.
LATER ON JOINED BY BRUNEI, MYANMAR,VIETNAM
ETC.
ASEAN FREE TRADE AREA (AFTA) .
ASEAN BEYOND TRADE HAS POLITICAL ROLE AS
VISIBLE BY THE FORMATION OF ASEAN REGIONAL
FORUM OF WHICH CHINA, INDIA AND USA ARE
MEMBERS.
ASEAN AS A TRADING BLOC HAS BEEN A HUGE
SUCCESS LEADING TO PROSPERITY AND
ELIMINATION OF POVERTY IN THE MEMBER COUNTRY
The SAARC Secretariat
The SAARC Secretariat was established in Kathmandu
on 16 January 1987. Its role is to coordinate and
monitor the implementation of SAARC activities,
service the meetings of the Association and serve as
the channel of communication between SAARC and
other international organisations. The Secretariat has
also been increasingly utilised as the venue for SAARC
meetings.
The Secretariat comprises the Secretary General,
seven Directors and the General Services Staff. The
details of its officials and working divisions responsible
for areas of work can be viewed under respective
links.
The SAARC Secretariat
Established Centres
1.
SAARC Agricultural Information Centre (SAIC), Dhaka
2.
SAARC Meteorological Research Centre (SMRC), Dhak
a
3.SAARC Tuberculosis Centre (STC), Kathmandu
4.SAARC Documentation Centre (SDC), New Delhi
5.
SAARC Human Resources Development Centre (SHRD
C), Islamabad
MERCOSUR
1988 – Brazil & Argentina; 1990 Paraguay & Uruguay
Aim for free trade area then common market
200 million people
Critics – trade diversion effects greater than trade
creation – fastest growing sectors most inefficient
Regional Economic Integration
Americas
Central American Common Market
1960’s – Costa Rica, El Salvador, Guatemala,
Honduras & Nicaragua
Collapse 1969 – war after soccer game
CARICOM
1973 Caribbean Community
Failure to meet 3rd deadline 1991