Understanding Economic Integration, Iraq War, and Global Inequalities
Economic Integration Mechanisms
Economic integration mechanisms are based on different agreements between countries to allow a greater degree of economic cooperation by reducing tariff and non-tariff barriers. Five different levels can be distinguished:
- Preferential Tariff Area: Characterized by a reduction of tariffs between two or more countries. This covers just a few products.
- Free Trade Area: Characterized by partial or total reduction of tariffs among the members that make up the block.
- Customs Union: Characterized by reciprocal trade liberalization of all goods produced by the partners and the adoption of a common tariff policy in relation to the rest of the world.
- Common Market: Characterized by free movement of goods, services, and factors, and by the use of a common external tariff.
- Economic Union: The highest degree of integration. Characterized by forming a common market where, in addition, there is a total currency and harmonization of economic policies of member countries.
Preventive War in Iraq
On the political front, Iraq’s interim constitution was signed on 8 March 2004. On 8 June 2004, the Security Council of the UN sanctioned resolution 1546, respecting the territorial integrity of the country. This war represents a failure of international diplomacy. Governments should make every effort to avoid armed conflict or to prevent it from spreading to other areas. Peace arises among people treated with dignity and recognition of the cultural values of each.
Inequalities Between States
Core Countries: Also called developed countries, they are the most powerful due to their dominance in the world system. They have a great influence on the rest of the world and are the richest countries, which typically set the rules of the game in trade, due to their great ability to generate more technology, because they have capital and the most powerful and efficient enterprises. Examples: European Union, Canada, USA, Japan, and China.
Peripheral Countries: These are the underdeveloped countries, the poorest countries. Their exports generate revenues which are not enough to develop their economy.
Semi-Peripheral Countries: These are developing countries typically characterized by being very strong in certain sectors which are the main export and source of income of the country.
The European Union (EU)
The EU is a unique community of European countries which was established on 1 November 1993 when the EU came into force.
Portugal. Spain. France. England. Ireland. Dublin. Switzerland, Bern. Italy. Belgium, Brussels. Holland, Amsterdam. Germany. Austria, Vienna. Czech Republic, Prague. Poland, Warsaw. Denmark, Copenhagen. Norway, Oslo. Sweden, Stockholm. Finland, Helsinki. Estonia, Tallinn. Russia. Latvia, Riga. Lithuania, Vilnius. Belarus, Minsk. Ukraine, Kiev. Romania, Bucharest.
Labor Flexibility
Today, labor flexibility favors the interests of firms and seeks to weaken the role of worker representation through unions. Consequently, poorly paid jobs and low-skilled work are often carried out by ethnic minorities and women.
Economic Integration Policies
Recently, economic integration policies have formed regional blocs. This integration is not new. The integration block is not yet in the most recent products and technologies, leading to privilege the re-trading countries forming a bloc. The blocks function as homogeneous entities, but with the advance of globalization and increased world trade, the creation of the World Trade Organization (WTO) in 1995 was justified. This increase in trade integration was conceived with strong restrictive policies, for example, in South Korea, Taiwan, and Japan. The results of integration differ according to the case. In MERCOSUR, the largest customer of Brazil is Argentina, while the second client of Argentina is Brazil. In the nineties, Japan developed 70% of its trade in the Asia-Pacific region. 85% of world trade takes place among developed countries, basically around the United States, Japan, and Europe.