The European Union and Globalization

Posted on Nov 7, 2024 in Geography

Establishment of the European Union

Treaty of Maastricht and the White Paper

In 1993, the European Union (EU) was established by the Treaty of Maastricht. A white paper was published, setting out a timetable for the treaty’s implementation.

Historical Background

  • 1951: Treaty of Paris
  • 1957: Treaty of Rome establishes the European Economic Community
  • 1973: Expansion from six to nine members
  • 1986: Spain and Portugal join; Single European Act
  • 1989: Fall of the Berlin Wall
  • 1990: Unification of Germany
  • 1999: Introduction of the euro for financial transactions

EU’s Hybrid System

As an international organization, the EU operates through a hybrid system of supranationalism and intergovernmentalism. In certain areas, decisions are made through negotiations between member states, while in others, independent supranational institutions are responsible without requiring unanimity between member states.

Spain’s Political System

Executive Power

Executive power in Spain lies with the Council of Ministers, headed by the President of the Government (Prime Minister). The King nominates the Prime Minister, who must then win a majority vote in the lower house of Parliament. The President of the Government can also designate various Vice Presidents.

Legislative Power

Spain directly elects its legislature, the General Courts, which consists of two chambers. This results in a slight over-representation for smaller provinces.

Judicial Power

Spanish judicial power is exercised by professional judges and magistrates. Different courts handle various types of cases.

Form of Government

Spain is a democracy organized as a parliamentary government under a constitutional monarchy.

Global Economic Inequalities

North-South Division

A significant gap exists between industrialized countries (the North) and developing countries (the South).

Inequalities

  • Unequal Product Capacity: Three states (US, Japan, Germany) are responsible for approximately 50% of world production.
  • Unequal Consumption Capacity: In the most developed societies, disproportionate importance is given to consumer goods.
  • Energy Consumption: More energy is consumed per capita in developed countries.
  • Food Consumption: Daily calorie consumption is higher in more developed countries.

Globalization Since the 18th Century

Four Main Trends

Since the end of the 18th century, economic relations have been globalizing, with the phenomenon increasing since 1945. The current economic system is characterized by four main trends:

  1. Growth of international trade
  2. Globalization of production
  3. Boom of financial flows
  4. International integration of all parts of the world

Drivers of Globalization

The global economy has grown due to reduced transport costs and the telecommunications revolution, enabling rapid interconnection between distant locations.

International Economic Organizations

Several international organizations serve as forums for discussion and agreement among countries on economic topics:

  • International Monetary Fund (founded in 1944)
  • World Bank (founded in 1944)
  • World Trade Organization (founded in 1994)
  • G-8 (an organization of the eight largest economies)

Regional Economic Organizations

  • European Union (Europe)
  • NAFTA (North America)
  • Union of Arab Maghreb (Africa)

Historical Processes and Development

Colonization and Raw Materials

A gradual process of colonization took place in the 19th century. Metropolises imported raw materials from colonies to Europe and the United States.

Natural Conditions and Resources

  • Wealthy countries are often located in temperate zones.
  • Human groups have transformed some hostile environments.
  • Abundant natural resources are not essential for development.
  • A gap exists between population and resources in many poor countries.

Core-Periphery Model

The core consists of countries that export industrial goods and advanced technology. The periphery consists of countries specialized in producing and exporting raw materials.

The Triangle Trade

The Triangle Trade was a historical example of this model. Africa provided raw materials to the Americas, which produced goods and sold them to Europe (e.g., Spain). Europe then manufactured items and sold them at higher prices for profit.

Example: Africa supplied wood to America, which processed it into lumber and sold it to Spain. Spain then made tables from the lumber and sold them at a higher price.