1. International Integration CHAPTER TEN International Relations 9/e Goldstein and Pevehouse Pearson Education, Inc. publishing as Longman © 2010

2. Globalization and Integration Why do states cooperate in order to create international organizations that are supranational? Supranational: subsuming a number of states and their functions within a larger whole United Nations - limited supranational aspects European Union Conflict with nationalism Transnational actors – MNCs and NGOs Transnational issues Issues that force states to work together because they cannot be solved by a single state on its own Pearson Education, Inc. publishing as Longman © 2010

3. Integration Theory Refers to the process by which supranational institutions replace national ones The gradual shifting upward of sovereignty from state to regional or global structures Ultimate expression of integration: merger of several (or many) states into a single state, or ultimately into a single world government In practice: integration has never gone beyond a partial and uneasy sharing of power between state and supranational levels. Sovereignty issues Most successful example: European Union Pearson Education, Inc. publishing as Longman © 2010

4. Integration Theory Functionalism Theory that discusses growth of specialized technical organizations that cross national borders. Supranational structures’ response to the need to find practical means to fulfill necessary functions, such as delivering mail from one country to another. Pearson Education, Inc. publishing as Longman © 2010

5. Integration Theory Neofunctionalism Modification of functional theory by IR scholars that argues that economic integration generates a political dynamic that drives integration further. Process of spillover Sense of community Security community in Western Europe Cost of integration Open borders Centralization Disintegration Pearson Education, Inc. publishing as Longman © 2010

6. Group Quiz (EU) 11-10-10 1. What was the first step towards the creation of the European Union. What was the primary reason this was done? 2. What did the Treaty of Rome do in 1957? The Common Agricultural Policy? 3. The European Commission consists of what? Whose interests do they represent? 4. The Maastricht Treaty sought change in three areas of a United Europe. What were the three areas? 5. How many members are there currently in the European Union?

7. The European Union (EU) Created after WWII EU has gone through several waves of expansion in its scope, membership, and mission over the past 50 years. EU has nearly 500 million citizens. EU nearly equals the U.S. economy in GDP. Pearson Education, Inc. publishing as Longman © 2010

8. The Vision of a United Europe Europe in 1945 – decimated by war Functionalism in Europe 1950 merger of French and German steel and coal industries European Coal and Steel Community (ECSC) Six ECSC states signed treaty in 1952 to create a European Defense Community French parliament failed to ratify the treaty. Britain refused to join. Economic cooperation, but not in political and military affairs Pearson Education, Inc. publishing as Longman © 2010

9. The Treaty of Rome Six states of the ECSC created two new organizations with the Treaty of Rome (1957) Euratom: the European Atomic Energy community – to coordinate nuclear power development by pooling research, investment, and management. European Economic Community (EEC), renamed the European Community (EC) Pearson Education, Inc. publishing as Longman © 2010

10. The Treaty of Rome Free-trade areas Lifting tariffs and restrictions on the movement of goods across (EEC) borders Today the European Free Trade Association (EFTA) is an extended free-trade area associated with the EU Customs Union Participating states adopt a unified set of tariffs with regard to goods coming in from outside the free-trade area. Pearson Education, Inc. publishing as Longman © 2010

11. The Treaty of Rome Common Market Means that in addition to the customs union, member states allow labor and capital (as well as goods) to flow freely across borders. Common Agricultural Policy (CAP) Economic and monetary union (EMU) Overall economic policies of the member states would be coordinated for greatest efficiency and stability. Single currency would replace the separate national currencies now in use. Pearson Education, Inc. publishing as Longman © 2010

12. The Treaty of Rome Inclusion of poorer countries (Greece, Portugal and Spain) created difficulties in effectively integrating Europe’s economies. With Ireland these considered the “poor four”, but have grown more prosperous. New “poor” members have joined from Eastern Europe Pearson Education, Inc. publishing as Longman © 2010

13. Structure of the European Union Roots in technical and economic cooperation Eurocrats (technical problem solving) balanced by provisions that uphold the power of states and state leaders. Leaders have qualms about losing power to Eurocrats; citizens worry about accountability. Pearson Education, Inc. publishing as Longman © 2010

14. Structure of the European Union European Commission Staff of 24,000 HQ in Brussels, Belgium Commission has 27 individual members – one from each member state Chosen for 4-year renewable terms Lacks formal autonomous power except for day-to-day EU operations Reports to, and implements policies of, the Council of Ministers Pearson Education, Inc. publishing as Longman © 2010

15. Figure 10.1 Pearson Education, Inc. publishing as Longman © 2010

16. Structure of the European Union Council of the European Union (formerly Council of Ministers) Meeting of the relevant ministers of each member state – politicians who control the bureaucrats Reflects states’ resistance to yielding sovereignty Voting system is based on each state’s population, but in practice it operates by consensus on major policy issues. Has a rotating presidency (with limited power) European Council (1970s) Pearson Education, Inc. publishing as Longman © 2010

17. Structure of the European Union European Parliament Falls somewhat short of a true legislature passing laws for all of Europe At present, it operates partly as a watchdog over the Commission, but with some power to legislate. Must approve the Commission’s budget but no item by item control. Shares power with the Council under a “co-decision procedure.” Economic and Social Committee European Court of Justice (Luxembourg) Pearson Education, Inc. publishing as Longman © 2010

18. The Single European Act First major revision of the Treaty of Rome 1985 act began a new phase of accelerated integration Europe 1992 due to target date set Centered on 300 directives from the European Commission Push for European Central Bank Moved economic integration into more political and controversial areas Hollowing out/eroding the state from below and above Pearson Education, Inc. publishing as Longman © 2010

19. The Maastricht Treaty Renamed the EC as the EU and committed it to further progress in three main areas: Monetary union Justice and home affairs Political and military integration Controversial Pearson Education, Inc. publishing as Longman © 2010

20. The Maastricht Treaty Ratification - complicated and slow Has begun to reshape political economy at a global level Political and military integration more problematic Struggle between nationalism and supranationalism Pearson Education, Inc. publishing as Longman © 2010

21. Monetary Union A European currency, the euro, has replaced national currencies in 16 EU members, as mandated in the Maastricht process. Came into full circulation in 2002; national currencies ceased to exist Difficulties: equalization among state economies Main solution adopted was to restrict membership in the monetary union, at least in the first round, to only those countries with enough economic stability not to jeopardize the union. Hard choices by states; Britain, Denmark, and Sweden opted to retain their national currencies Pearson Education, Inc. publishing as Longman © 2010

22. Monetary Union Breaking the rules Germany and France’s budget deficits over those allowed by the rules Greece falsified economic data needed to be admitted Latvia’s government lost power within six months of joining the EU due to unpopular budget cuts Difficult birth, given it was the largest financial overhaul ever attempted in history, and in its first five years was deemed very successful. Pearson Education, Inc. publishing as Longman © 2010

23. Expanding the European Union Success has attracted neighboring states who wish to join. EU has expanded from 15 members to 27 since 2004 Spain and Portugal, 1986 (11th and 12th members) Austria, Sweden, and Finland (1995) Norway applied to join and was accepted, but its citizens voted down the idea in 1994. Switzerland’s plans to join were halted by a popular referendum in the early 1990s. Pearson Education, Inc. publishing as Longman © 2010

24. Expanding the European Union Current expansion guided by the 2000 Treaty of Nice 10 new members joined in 2004 Poland, Czech Republic, Slovakia, Hungary, Slovenia, Estonia, Latvia, Lithuania, Malta, and Cyprus Expanded to 25 members Without the five largest having two seats New voting rules that move away from a requirement for consensus 2007, Romania and Bulgaria entered the EU, bringing the total to 27 Unlike previous members, Britain and Ireland imposed work restrictions on citizens of new 2007 members Turkey continues to seek membership Would be the only Muslim country in the EU Would bring workers, growth, bridge to the Middle East Some fear immigration Would be the poorest member; worry about costs of social programs, etc. Cyprus- removal of Turkism military forces Inner and outer layers Pearson Education, Inc. publishing as Longman © 2010

25. Figure 10.2 Pearson Education, Inc. publishing as Longman © 2010

26. Expanding the European Union EU Constitution (late 2004 signed by 25 leaders) To establish a stronger president of the EU and a foreign minister, to represent Europe as a global superpower in world affairs, majority vote rather than consensus in more cases France and Netherlands rejected Lisbon Treaty – new proposed constitution Rejected by Ireland in 2008, but will hold another vote Organization for Security and Cooperation in Europe (OSCE0) Operates by consensus Pearson Education, Inc. publishing as Longman © 2010