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Файл:International integration. Past and present. Учебное пособие
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TOMSK POLYTECHNIC UNIVERSITY
D.V. Ragozin
INTERNATIONAL INTEGRATION:
PAST AND PRESENT
Recommended for publishing as a study aid
by the Editorial Board of Tomsk Polytechnic University
Tomsk Polytechnic University Publishing House
2016
1
UDC 621.1(075.8)
BBC 31.3я73
R80
Ragozin D.V.
R80 International integration: past and present : study aid /
D.V. Ragozin ; Tomsk Polytechnic University. – Tomsk : TPU
Publishing House, 2016. – 133 p.
ISBN 978-5-4387-0702-8
This study aid provides basic information on international integration, its
patterns, and main approaches to its research analyzing the most important
global and regional international organizations.
The study aid has been based on the original Russian- and English-language
materials and is fully consistent with the course of «International integration and
international organizations».
UDC 621.1(075.8)
BBC 31.3я73
Reviewers
Doctor of History, Professor
Head of the Department of Modern, Contemporary History and
International Relations
Faculty of History of Tomsk State University
V.P. Rumyantsev
Doctor of History, Professor
Head of the Department of Oriental Studies
Faculty of History of Tomsk State University
E.Yu. Litsareva
ISBN 978-5-4387-0702-8 © FSAEI HE NR TPU, 2016
© Ragozin D.V., 2016
© Design. Tomsk Polytechnic University
Publishing House, 2016
2
CONTENTS
INTRODUCTION ...................................................................................................... 4
Chapter I. BACKGROUNDS AND PATTERNS OF INTERNATIONAL
INTEGRATION ........................................................................................ 5
Chapter II. THEORIZING INTERNATIONAL INTEGRATION .......................... 14
Chapter III. PRINCIPLES OF IOs FUNCTIONING .............................................. 29
Chapter IV. SOME ASPECTS OF IOs EMERGENCE HISTORY ........................ 40
Chapter V. UNITED NATIONS .............................................................................. 46
Chapter VI. EUROPEAN UNION (EU) .................................................................. 62
Chapter VII. ASSOCIATION OF SOUTHEAST ASIAN
NATIONS (ASEAN) .......................................................................... 81
Chapter VIII. ASIA-PACIFIC ECONOMIC COOPERATION (APEC) .............. 107
CONCLUSION ...................................................................................................... 125
QUESTIONS FOR CREDIT TEST ....................................................................... 125
GLOSSARY ........................................................................................................... 128
LIST OF ABBREVIATIONS ................................................................................ 129
REFERENCES ....................................................................................................... 130
3
INTRODUCTION
The emergence of the phenomenon of globalization in the
modern world has led in its turn to the emergence of many problems
which are often beyond the capacity of individual states, thus putting
on the agenda the issue of unification of their efforts to find the
answers to the new challenges facing humanity. It has resulted in the
rapid increase of international integration which became especially
noticeable after World War II and found its expression in the
emergence of international organizations (IOs).
The purpose of this study aid is to review the phenomenon of
international integration, its basic patterns, theoretical approaches to
its research, as well as to analyze integration and its consequences
on the examples of the most important global and regional IOs, such
as United Nations, European Union, ASEAN, and APEC. The study
aid consists of eight chapters, each subdivided into units devoted to
the particular aspect of international integration. At the end of every
unit there are questions for self-check and consolidating the
knowledge gained as a result of reading a unit. This study aid was
originally designed for the Tomsk Polytechnic University students
majoring in international regional studies and customs management,
as well as for graduate students, teachers, and all those taking
interest in the problems of international integration.
4
Chapter I
Backgrounds and Patterns of International Integration
Unit 1.1. International Integration: Its Definition and Manifestations.
Integration is a formation of an integrity of independent elements which
involves combining previously independent parts. The term international
integration refers to the process of elimination of barriers between
countries and continents and increasing international interdependence in
many areas – economics, politics, communication, culture, environment,
and so on. Nowadays, international integration covers almost all areas of
the globe becoming truly global in its nature and constituting an integral
part of the world politics.
Among the most important manifestations of international
integration is the internationalization of economic, political, social,
spiritual, and other areas of modern society, sometimes assuming the
form of supranational institutions. Factors contributing to the increase
of integration are following:
1) Variety of cultural, civilizational, spiritual, and philosophical
types in the modern world;
2) Coincidence of national interests of certain nations;
3) Economic globalization and global competition;
4) Increasing openness of national economies, liberalization, and
internationalization of economic life;
5) International division of labor (IDL) and increasing
interdependence of nation states;
6) Scientific and technological progress.
To a certain extent, international integration may challenge the
whole system of international relations undermining some of its basic
principles, such as:
1) Independence and state sovereignty;
2) Territorial integrity of a nation state;
3) Preeminence of the political dimension in international
relations.
Test Your Knowledge
1. Define the concept of international integration.
2. What are basic manifestations of international integration?
3. Outline the most outstanding characteristics and
contradictions of international integration.
5
Unit 1.2. Backgrounds of International Integration. One of the most
powerful stimuli for integration is globalization which involves the
growing importance of the external (political, economic, cultural, and
other) factors, formation of common global area without national
barriers, creation of a unified legal framework for all countries. As a
special stage in the development of international relations,
globalization emerged after World War II but its progress has not
ended hitherto and was in the focus of public attention since 1990s.
Globalization consists of three interrelated components:
1) IDL;
2) Internationalization of production processes;
3) Strengthening of political ties.
IDL first appeared in ancient times but even in the early 19
th
century
international exchange did not exceed 1 % of gross domestic product
(GDP) of all the countries in the world combined. The expansion of
industrial revolution, modernization of communications and transport
contributed to this phenomenon. As a result, IDL had reached 25 %
of global GDP by the year 2000. Nowadays, most of the world is
involved in IDL.
The very nature of IDL has changed. The inter-sectorial division
of labor (e.g., the exchange of the finished products for agricultural
goods), which prevailed for centuries, is now supplemented and
replaced by intra-industry division (exchange of different types of
goods) making economic ties more stable.
The exchange of goods and services is growing too. By 2000 the
exchange of services and products of different industries had
exceeded half the world’s trade and became known as the new
international division of labor. The 1970–80s saw the emergence of
international manufacturing stimulated by the energy crisis of mid1970s leading to decrease in profit in old industries in the developed
countries and stimulating significant diversification of manufacturing
conditions in cost of raw materials and energy, interest rates,
education and skills of the workforce, wages, etc. The result is a
transfer of labor- and material-consuming and polluting industries into
developing countries.
Scientific and technological progress has created the possibility of
territorial separation of the manufacturing processes (e.g. capital- or
energy-consuming) and placing them according to the cost of
production factors of their individual phases and the development of
transport and communications providing savings in their interaction.
6
International manufacturing may be carried out at foreign
enterprises, as well as on the basis of contracts transferred to local
ones. As a result, foreign companies obtain:
1) Reduction in production costs;
2) Savings on investment;
3) Administrative costs reduction, as contractors are responsible
for the production phase transferred to them.
Manufacturing becomes international also in terms of markets.
Thus, in 1950–60s companies served mostly the national markets,
while the gradual removal of restrictions on the movement of goods
and services across national borders in 1970–80s significantly
expanded market for international manufacturers. In its turn, markets
expansion promotes the growth of international manufacturing.
Among the most powerful stimuli for integration is the information
technology revolution in advanced countries, which resulted in
emergence of a new economy based on the paradigm of economic
growth and is aimed at the acquisition of knowledge and access to
information technology. At the same time, funding for the development
of high-tech industries and modern education is not always sufficient
in individual countries. International integration enhances the
development of scientific, technical, and industrial cooperation and
specialization, the development of common models of innovative
development.
Stimuli for developing countries to participate in international
integration differ from those for advanced nations. For the latter the
need for integration derives from the objective needs of the achieved
level of development, while developing countries participate in
international integration in order to remove barriers to economic
growth, which is reflected in the following:
1) Acceleration of economic growth;
2) Modernization and restructuring of the economy;
3) Attracting investment from abroad;
4) Elimination of the peripheral position in IDL.
These trends increase the political influence of large corporations,
especially that of transnational corporations (TNC). The power of a
nation state against citizens decreases due to liberalization of
immigration laws and freedom of transfer of capital across national
borders.
7
Social dimension of globalization requires greater focus on a
rather broad array of human needs for minimizing the negative impact
of globalization. Thus, the establishment of social protection
mechanisms becomes increasingly relevant, which includes
preventive measures in the fields of social security, employment,
education, health, etc. regarding the most vulnerable segments of
population. For example, the common social space is formed within
such a mature IO as the European Union (EU).
Political globalization involves centralization of power, weakening
nation state, and reduction in its sovereignty, which is due to the
following:
1. Delegation of state functions to IOs;
2. Tax cuts;
3. Reduction of the role of government in economy.
Joining an integration association states usually delegate some
part of their sovereignty to supranational bodies and, as a rule, the
one which the modern state is the hardest to cope itself with. As a
result, those aspects of control are transferred to supranational level
in which national institutions are less effective.
However, mutual adjustment of modern national economies to
each other in the course of integration is impossible without the
participation of a nation state. The latter’s significance for international
integration is considerable and often prevails. On their own behalf
nation states sign agreements on joining IOs, develop and implement
policies of integration, determine its direction, mechanisms, and legal
foundations.
Private institutions also affect international integration working
upon state and society and protecting interests of various social
groups. Their impact on the course of integration may be direct and
indirect. The direct effect is possible through various political forces,
media, and civil society institutions. The indirect effect may be carried
out through the formation of public opinion and by lobbying.
For example, the accession of the new members into the European
Union is always preceded by the national referendum. Thus, Norway
was supposed to join the EU on 1 January 1995. All the necessary
documents were ready for signing on behalf of the state, but under the
pressure of civil society and private institutions the plan of integration
with the European Union was rejected in a national referendum.
8
Among private institutions the leading role is being performed by
business, entrepreneurs and their associations, and most of all by
trans-national corporations (TNC). As a rule, TNCs are the most
important enhancers of international integration. A profound interest in
economic liberalization and markets expansion forces them to
influence a nation state in the integration matters as the real economic
integration is being performed mostly by business.
Thus, three levels of international integration may be identified:
1) State;
2) Entrepreneurship;
3) Public.
These levels cooperate closely forming an organic, although a
contradictory unity. Various combinations of public and entrepreneurial
levels of international integration determine the characteristics of its
regional types, for example, APEC and the European Union. Integration
within the EU takes place with a decisive role of a rather complicated
apparatus of political, legal, and institutional regulation. At the same time,
in the Asia-Pacific where similar structures simply do not exist the process
of institutionalization of integration is rather slow. International integration
develops there in the form of “soft” or Asiatic model most of all at the
microeconomic level where business is the most important subject.
Test Your Knowledge
1. Specify factors contributing to the development of integration.
What is the significance of globalization as a major factor of
international integration?
2. Explain the following notions of international integration
theory:
A) International division of labor;
B) Internationalization of production processes;
C) Strengthening of political international relations;
D) Changes in the value of the institute of a nation state for the
process of integration in the context of globalization;
E) Significance of private institutions for international integration.
3. Characterize the basic levels of integration:
A) State;
B) Enterprise;
C) Public.
4. What do you know about direct and indirect methods of
influence on international integration?
9
Unit 1.3. International Integration: Basic Patterns. So, in terms of
institutional arrangements Western and Asian integration models may
be distinguished. The first is based on a rigid organizational structure
and the mandatory implementation of joint decisions by all member
states in a timely manner. The second involves freedom of action for
all participants.
Integration also involves another two basic models: negative and
positive.
The negative model is based on the elimination of national barriers
to the formation of larger markets without assuming a common
economic model, for example, partial or total removal of the barriers to
trade in certain types of goods. The ideological basis of negative
integration is neoliberalism which includes reduction in state intervention
into economy and social life. In general, the negative model allows
intervention into the market only to maintain equal competitive conditions
for all its participants. An example of negative integration is the
introduction of a single European currency and the establishment of
Economic and Monetary Union, because it is not intended to develop
mechanisms to reduce economic risks for the EU members.
Positive integration implies the possibility of adapting economic
institutions of member nations to the standards of the integration
model set by supranational structures. The examples of positive
integration within the European Union are the mechanisms for
consumer rights protection, safe working conditions, environment, etc.
In general, positive integration is more socially oriented.
The main types of integration associations are the following:
1) Free trade associations and areas (FTA);
2) Customs union;
3) Common market;
4) Economic and monetary union;
5) Full economic and political integration.
FTA involves the elimination of quotas and tariffs in mutual trade
of the participants. However, each member of the FTA may conduct
its own policy towards third countries. This integration model is
implemented within ASEAN.
Customs union members conduct a common policy toward the third
countries parallel with elimination of quotas and tariffs in mutual trade.
Customs union suggests the unification of customs territories,
10
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