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Regional Economic Integration

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Title: Regional Economic Integration


1
Regional Economic Integration
2
Regional Economic Integration
  • Overview
  • Europe The EU and more
  • Western Hemisphere Not just NAFTA
  • Asia Fragmented
  • Africa Problems

3
Regional Economic Integration
  • Agreements among countries in a geographic region
    to reduce, and ultimately remove, tariff and
    nontariff barriers to the free flow of goods,
    services and factors of production among each
    other

4
Economic Case for Regional Integration
  • Stimulates economic growth in countries
  • Countries specialize in those goods and services
    efficiently produced
  • Additional gains from free trade beyond
    international agreements (WTO)

5
Political Case for Economic Integration
  • Economic interdependence creates incentives for
    political cooperation and reduces potential for
    violent confrontation
  • Together, the countries have the economic clout
    to enhance trade with other countries or trading
    blocs

6
Military and Civilian DeathsWW II (1939-1945)
2 of the current U.S. population is 5,761,191
The events of September 11, 20013,257 deaths
7
Impediments to Regional Integration
  • Groups within countries may be hurt
  • Potential loss of sovereignty and control over
    domestic issues
  • Debate
  • Integration is trade creation?
  • Integration is trade diversion?

In the EU, lots of attention paid to preserving
traditional culture
8
Levels of Economic Integration
MERCOSUR
Political Union
Economic Union
Common Market
NAFTA
Customs Union
Free Trade Area
EU
9
Definitions
10
Growth of Regional Arrangements
11
Has It Happened? Has It Worked?
  • Europe
  • Almost total integration
  • Problems (esp. with 10), but overall successful
  • Western Hemisphere
  • Less successful
  • Less political necessity for cooperation
  • Haves vs. Have Nots
  • Asia
  • Agreements, but symbolic only
  • Historical rivalries / enmities
  • Some hesitant moves in the direction of
    substantive agreements, especially with US
  • Africa
  • Unfortunately, 0 0 0

12
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13
Milestones for the European Union (1)
14
Milestones for the European Union (2)
15
Current and Future Plans and Issues (I)
  • Working to coordinate tax policies
  • Working on a common foreign and security policy
  • Constitution (stalled)
  • Aging Western European population
  • Social costs
  • Reason to look at bringing less prosperous
    countries (that is, with higher birth rates)
  • Costs
  • Social and environmental rules especially for
    new members
  • Agricultural subsidies

16
Current and Future Plans and Issues (II)
  • Growth, as well as competitiveness with US
    Japan, is an issue (see next slide)
  • Illegal immigration (from Africa)
  • Primarily a problem for Spain
  • Spain has legalized some of the illegals and has
    asked EU for help
  • Austria Germany have said, basically, Its
    your problem, Jack
  • 2008 and beyond united EU military

17
Current and Future Plans and Issues (3)
  • How to respond to global economic crisis (2009)
  • Eastern European countries (Hungary, for example)
    would like an EU bailout
  • A lot of money has already gone into banks
    Hungarians
  • The Germans, however, are saying no (EU Summit,
    March 2009)
  • Also, EU requirements for using euro (limits on
    deficit spending government debt) are making it
    difficult for some EU countries to take stimulus
    measures

18
Economic Development
  • Lisbon Agenda (2000) to make the EU the most
    competitive and dynamic knowledge-driven economy
    by 2010
  • Target for each country to spend 3 of GDP on R
    D activities
  • Increased spending on education
  • Reduction in bureaucratic barriers to
    development
  • Increase employment, internet access
  • Open market in services
  • Other issues (2007 report) sustainable
    development

19
The Eastern Partnership
  • Announced December 2008
  • Partners include
  • Azerbaijan
  • Belarus (possibly)
  • Georgia
  • Moldova
  • Ukraine
  • Plans to become more politically and economically
    involved
  • Free trade agreement with each other and EU (goal
    of forming an Eastern Europe trade group)
  • Security issues
  • Energy issues
  • Financial assistance

20
European Union Membership
Greenland granted home rule in 1979 and dropped
out of EU in 1985 Faroe Islands did not join
21
Now.23 official languages
22
Which Are.
23
The EU and National Cultures
Language, literature, performing arts, visual
arts, architecture, crafts, the cinema and
broadcasting are all part of Europe's cultural
diversity. Although belonging to a specific
country or region, they represent part of
Europe's common cultural heritage. The aim of the
European Union is double to preserve and support
this diversity and to help make it accessible to
others.
24
Languages Spoken In EU (15)
More
25
Criteria for Membership (Copenhagen Criteria)
  • Stability of institutions guaranteeing
    democracy, the rule of law, human rights and
    respect for and protection of minorities
  • The existence of a functioning market economy as
    well as the capacity to cope with competitive
    pressure and market forces within the Union
  • The ability to take on the obligations of
    membership, including adherence to the aims of
    political, economic and monetary union

26
Prospective Members
  • Treaty of Nice (amendment to Maastricht Treaty)
    would have to be amended (Treaty of Lisbon) to go
    above the current 27 members and, all current
    members would have to agree
  • Any time they want
  • Iceland
  • Norway
  • Switzerland (though in many ways a de facto
    member)
  • The Microstates are unlikely (financial laws)
  • In progress

However, banking crisis in Iceland now makes
membership or adoption of euro without
membership far more attractive
San Marino Andorra Monaco Lichtenstein Vatican
City
All of the microstates except Lichtenstein use
euro already
27
More Additions to EU The Balkans (1)
  • Croatia
  • Candidate status, membership expected in 2010
  • Macedonia
  • Candidate status
  • Macedonians predict 2012 or 2013
  • However, the Greeks will block membership until
    the Macedonians agree to a new name for their
    country
  • Bosnia-Herzegovina
  • Talks, but no formal application possible
    application in 2009

28
More Additions to EU The Balkans (1)
  • Serbia
  • Candidacy likely in late 2008 or 2009
  • Serbians looking for 2015 membership
  • War criminal issues
  • Montenegro
  • Talks underway, but no application
  • Has already adopted euro as de facto currency
  • Albania
  • Also Muslim, which is an issue
  • Has not applied, but may apply as early as 2009
  • A priority of EU, to stabilize the Balkan area
  • Kosovo
  • Someday????

29
Way Out There..
Also Eastern Partnership
  • Gossip and wild rumors
  • Belarus, Moldova, Ukraine
  • Azerbaijan, Armenia, Georgia
  • Morocco and Tunisia
  • Lebanon
  • Really wild rumors
  • Russia
  • Israel
  • Best bet is Ukraine, but were looking at 20
    years here Ukrainians have historic ties with
    Poland and really dont like the Russians. Even
    the Russians think that Belarus is too
    authoritarian....
  • Cultural political links to Europe but
    geographically closer to Russia Georgia is best
    candidate, but 2015 at earliest. Azerbaijan and
    Armenia have not expressed interest and one
    obstacle is that Azerbaijan is Muslim
  • Morocco has been turned down Tunisia has an
    Association Agreement
  • Possibly might go with common currency and
    common market w/o being an EU member

30
What About Turkey?
  • Geographically and, to some extent culturally,
    part of Asia
  • However, Turkey sees itself as part of Europe
    (secular state)
  • Turkey is now (2006) EUs 7th largest trading
    partner

31
Turkey and EU Membership
  • Began application process in 1959
  • Why?
  • Economic benefits
  • Also, Turkey and Greece historically enemies
    and Greece is in EU the two have become much
    friendlier lately, and Greece now supports
    Turkish membership
  • However, 1995 customs union with EU
  • Became candidate in 1999

32
Current Developments Turkey (I)
  • December 2004 decision made to continue
    discussions
  • Talks began October 3, 2005
  • Some proposed that Turkey be a privileged
    partner, not a full member Germany Austria
  • Austria also held up talks over issue of Croatia
    (they want Croatia in EU)
  • Turkey was asked to acknowledge 1915 Armenian
    genocide they are unlikely to do that

33
Current Developments Turkey (II)
  • Membership will be at least a ten year process
    membership realistically unlikely before 2020
  • But, if any of the 25 object, it wont happen
    (and both Austria and France plan to hold
    national referendums)
  • Austrias history with the Ottoman Empire
  • France has enough religious issues already
  • 2006
  • Continuing controversy over Cyprus has caused
    public opinion in Europe to become more hostile
    to Turkish membership
  • Also, French would like to suspend negotiations

34
Current Developments Turkey (III)
  • December 2006
  • Partial suspension of negotiations
  • December 2007
  • Germans still opposed (Angela Merkel speech)
  • November 2008
  • EU report not at all optimistic
  • December 2008
  • Now Cyprus (the Greek half) is bent out of shape
    over alleged Turkish interference with Cypriot
    ships (Turks claim that Cypriot research ships
    are infringing on Turkish territorial waters)

35
So, What About Turkey?
  • Admission not likely any time soon (in my
    opinion)
  • Poverty
  • Economic stability and growth
  • Cultural / religious issues
  • Size
  • Politics and human rights issues
  • Cyprus

36
Issues With EU Expansion
  • Worker migration (7 year rule)
  • UK, Ireland and Sweden did not adopt 7 year rule
  • Spain, Finland, Portugal and Greece, France, and
    Belgium may drop or ease
  • Germany and Austria will keep to 2009
  • Very likely at least some will require work
    permits for Bulgarian and Rumanian workers
    (2007)
  • Subsidies (agriculture) development funds
  • The moneys running low, so will we see a
    two-tier EU?
  • Common European identity?
  • East vs. West
  • Rich vs. Poor

37
Europe Day
On May 9, 1950 the first move was made towards
the creation of what is now known as the European
Union. In Paris that day, against the background
of the threat of a Third World War engulfing the
whole of Europe, the French Foreign Minister Rob
ert Schuman read to the international press a dec
laration calling France, Germany and other Europe
an countries to pool together their coal and stee
l production as "the first concrete foundation of
a European federation". What he proposed was the
creation of a supranational European Institution,
charged with the management of the coal and steel
industry, the very sector which was, at that
time, the basis of all military power. The
countries which he called upon had almost
destroyed each other in a dreadful conflict which
had left after it a sense of material and moral
desolation.
38
EU Institutions
  • European Parliament
  • Members elected within each country (624 total,
    will expand to732)
  • Propose and pass EU legislation
  • Approve nominations for EU Commission
  • Council of the European Union
  • One minister from each country
  • With European Parliament, approves EU budget
  • Coordinate economic polices
  • Council Presidency rotated among members recently
    changed to 2½ year term , formerly 6 months)
  • European Commission
  • 20 appointed individuals who run the EU day-to-day

39
EU Constitution (1)
  • Unified constitution adopted June 18, 2004 but
    member nations must ratify
  • Eliminates single nation veto (except for foreign
    policy, defense and taxation)
  • Progress
  • Spain voted to accept (referendum, 77 yes)
  • Also accepted (by referendum or parliament)
    Austria, Belgium, Cyprus, Germany, Greece,
    Hungary, Italy, Latvia, Lithuania, Luxembourg,
    Malta, Slovakia, Slovenia
  • France and Netherlands voted not to accept

40
EU Constitution (1)
  • Latest developments
  • This constitution is now officially dead
  • The Treaty of Lisbon is a second attempt to form
    a constitution
  • But treaty must, again, be approved by all and
    Irish referendum (November 2008) rejected treaty

41
EU and Finances
42
The Euro
  • March 2, 2009
  • 1 1.258
  • 1 .795
  • Euro in use by 20 of the worlds population the
    de facto currency for 40 countries
  • Has made it much easier for companies in smaller
    countries to access global capital markets
  • European Central Bank controls euro supply,
    interest rates
  • UK, Denmark, Sweden not in euro
  • Sweden again rejected Euro (September 2003)
  • UK flirting with euro referendum
  • Slovenia Slovakia are only of the 12 new
    entrants (post 2004) to have switched to euro
  • ERM II (Exchange Rate Mechanism II) currencies
    linked to euro
  • Denmark (krone)
  • Estonia (kroon)
  • Latvia (lats)
  • Lithuania (litas)

43
In Order to Use the Euro...
  • Annual deficit
  • Overall government debt
  • Inflation within 1.5 of three lowest-inflation
    EU members, deficit
  • Long-term interest rates within 2 of three
    lowest-inflation EU members

44
Euro vs. US Dollar
1999-2006
How many does 1 buy ?
2005-2006
45
1 to
46
Euro Coins
47
Euro Notes
  • Euro notes are consistent across countries
  • Denominated in 5 , 10 , 20 , 50 , 100 , 200
    , and 500
  • Design
  • Designs are imaginary do not represent actual
    structures
  • Designs from different architectural periods,
    from classical to 20th century
  • Front -- Windows and gateways to symbolize
    openness and co-operation, and the 12 stars of
    the European Union
  • Reverse -- Bridges, symbolizing the close
    co-operation and communication between Europe and
    the rest of the world.

48
European Central Bank
49
The 2008 Financial Crisis and the Euro
  • Denmark has reconsidered joining the euro
  • Iceland has considered adoption of the euro,
    possibly without EU membership

50
EU Population
Turkey 68m
51
European Union and the US (2006)
52
Trends in EU GDP Growth
However, as of November 2008, the economic
horizon has now significantly darkened as the
European Union economy is hit by the financial
crisis that deepened during the autumn and is
taking a toll on business and consumer
confidence. A mild recession is expected.
53
European Free Trade Association
  • Iceland
  • Liechtenstein
  • Norway
  • Switzerland
  • Faroe Islands may join

54
The Common Economic Space (I)
  • Potential agreement between former USSR
    republics
  • Russia, Ukraine, Kazakhstan and Belarus
  • What will happen (hopefully fall 2004)
  • Eliminate trade barriers
  • Unified tax and customs
  • Unified tariff and energy-transport policies
  • Fall 2005
  • Russian Prime Minister Mikhail Fradkov said
    Friday that the Common Economic Space (CES) that
    unites Russia, Ukraine, Belarus and Kazakhstan
    would have great potential if it were properly
    organized

55
The Common Economic Space (II)
  • Spring 2006 still no action
  • But quarrelling between Russia Ukraine over
    natural gas
  • February 2007
  • Ukrainians arent quite sure (EU looks better)
  • So.

56
The Common Economic Space (III)
  • October 2007
  • Putin announces a 2011 date for implementing
    Russia, Belarus Kazakhstan customs union
  • December 2008
  • The EUs Eastern Partnership may put an end to
    the idea of the CES

Another problem here is that the Ukrainians
really dont like the Russians (see next two
slides)
57
Russia Ukraine Historical Enmities
58
Still Not on Good Terms
Ukrainian President Viktor Yushenko, before and
after the 2004 Presidential election (dioxin
poisoning ???)
59
Eurasian Economic Community
  • The Ukrainians arent in this one
  • Russia
  • Belarus
  • Kazakhstan
  • Kyrgyzstan
  • Tajikistan
  • Uzbekistan
  • Observers
  • Ukraine
  • Moldova
  • Armenia

Uzbekistan has decided to suspend
participation, as of December 2008
60
Russia
Ukraine
Kazakhstan
Belarus
61
North American Free Trade Agreement
  • Preceded by Canada US Free Trade Agreement
    (1989)
  • NAFTA
  • Treaty negotiated by Bush I, but Bill Clinton got
    it through Congress
  • Went into effect January 1,1994
  • Over 15 year period
  • Tariffs reduced (99 of goods traded)
  • NTBs reduced
  • Investment opportunities increased
  • Protects intellectual property
  • Applies national environmental standards
  • Special treatment for many industries

62
U.S. / Mexico Trade
63
U. S. / Canada Trade
64
US Imports and Exports, 2007
65
NAFTA and Mexico
The original idea was that, with NAFTA, there
would be true manufacturing, not assembly. Not
so. And, now China and Central America
Maquiladoras Foreign owned plant in Mexico, manu
facturing products for export
Screwdriver Plant
66
NAFTA Pro and Con
  • Pro
  • Job gain in US
  • Increased productivity in US
  • Trade gains to all
  • Growth of Mexican economy economic political
    stability
  • Con
  • Job loss in US
  • Chapter 11
  • Worker abuse in maquiladoras
  • Threat to Mexican subsistence agriculture (unable
    to compete with US/ Canada)
  • Environmental issues

67
Opinions, Anyone ?
  • 2004 Mexican survey 52 approve of NAFTA, 44
    disapprove 83 believe US has benefited most
    from NAFTA
  • 2007 Canadian survey 77 of Americans and 73 of
    Canadians believe Canada US free trade is a
    good idea

68
ANCOM
  • Bolivia, Colombia, Ecuador, Peru, Venezuela
  • Chile originally a member but withdrew in 1976
  • Cartagana Agreement, 1969 one of oldest still in
    existence
  • GNP
  • 246.3 billion
  • 1.5 of hemisphere
  • 10.1 of Latin America
  • Changed from FTA to customs union in 1992
  • Common market in 2001 (free movement of labor)

69
ANACOM Overview
70
The Mercosur Accord
  • Mercado Común del Sur or Southern Common Market
  • Members
  • 1988 Argentina, Brazil
  • 1990 Paraguay, Uruguay
  • 2006 Venezuela
  • Associate members Bolivia, Chile, Peru,
    Columbia, Ecuador
  • Mexico has applied to be an associate member
    (2004)
  • 1995 Agreed to move toward a full customs union

71
More on Mercosur
  • GNP
  • 1,001.9 billion
  • 6.3 of hemisphere
  • 41.2 of Latin America
  • Trade doubled in first 3 years
  • Long-term goal is common currency, passport, etc.
    (as with the EU)
  • Mercosur looking to be the Western Hemisphere
    trade agreement (as opposed to FTAA, seen to be
    dominated by US)

72
Central American Common Market
  • Costa Rica, El Salvador, Guatemala, Honduras,
    Nicaragua
  • Got a lot accomplished at first, but later on,
    not particularly successful (1969 riot at
    Honduras / El Salvador soccer game !)
  • Economically less important
  • GNP of 81.0 bb
  • .5 of hemisphere
  • 3.3 of Latin America

73
CARICOM
  • The Caribbean Community
  • Its mission
  • "To provide dynamic leadership and service, in
    partnership with Community institutions and
    groups, toward the attainment of a viable,
    internationally competitive and sustainable
    community, with improved quality of life for
    all.

74
Caricom Members
  • Antigua and Barbuda
  • The Bahamas
  • Barbados
  • Belize
  • Dominica
  • Grenada
  • Guyana
  • Haiti
  • Jamaica
  • Montserrat
  • St. Kitts and Nevis
  • Saint Lucia
  • St. Vincent and the Grenadines
  • Suriname
  • Trinidad and Tobago

75
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76
In Progress
US focus now is on individual treaties (i.e.,
Peru, Columbia)
However, as of 2/05, talks have stalled Brazil
US in serious conflict
St. Kitts and Nevis St. Lucia St. Vincent and th
e Grenadines Suriname Trinidad and Tobago Unite
d States
Uruguay Venezuela
  • Antigua and Barbuda
  • Argentina
  • Bahamas
  • Barbados
  • Belize
  • Bolivia
  • Brazil
  • Canada
  • Chile
  • Colombia
  • Costa Rica
  • Dominica
  • Dominican Republic
  • Ecuador
  • El Salvador
  • Grenada
  • Guatemala
  • Guyana
  • Haiti
  • Honduras
  • Jamaica
  • Mexico
  • Nicaragua
  • Panama
  • Paraguay
  • Peru

77
Central American Free Trade Agreement CAFTA
  • Members
  • US and
  • Costa Rica, El Salvador, Honduras, Guatemala,
    Nicaragua and the Dominican Republic
  • Approval
  • Approved by US in July 2005
  • Also approved by El Salvador, Guatemala and
    Honduras
  • Approval pending in Costa Rica, the Dominican
    Republic and Nicaragua
  • Implementation date not yet determined
  • Eliminates 80 of tariffs, with rest to be phased
    out over 10 years
  • Not particularly popular (usual suspects)

78
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79
The Picture in Asia
  • Little free trade until ASEAN in 1967
  • Why?
  • Income disparities
  • Historical enmities
  • Trade as a weapon (protectionist policies)
  • Now, beginning to see a lot of bilateral
    agreements within Asia and with US

80
Examples of Bilateral Agreements in Asia
  • US / Australia Free Trade Agreement
  • Approved by US Senate early August 2004
  • Then, also approved by Australian Parliament
    August 13, 2004
  • Japan Philippines
  • Australia Thailand
  • Japan Thailand
  • In Progress
  • Australia China
  • Australia Japan

81
Association of Southeast Asian Nations
  • Created in 1967
  • 400 million citizens
  • Economic, political and social cooperation
  • Brunei, Cambodia, Indonesia, Laos, Malaysia,
    Myanmar (Burma), Philippines, Singapore, Thailand
    and Vietnam

82
Recent ASEAN News
  • Most recent summit
  • Goal to integrate economies by 2015
  • But, according to observers, ASEAN members
    unwilling to place common good ahead of their own
    (which is what made the EU successful)
  • February 2009 ASEAN signs free trade agreement
    with Australia

83
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84
ASEAN SONG OF UNITY MUSIC BY RYAN CAYABYAB LYRIC
S BY NICANOR G. TIONGSON ASEAN,
OH ASEAN OUR VOICES RISE AS ONE FROM LAND TO LAN
D FROM SEA TO SEA REACH OUT TO EVERYONE

ASEAN, OH ASEAN LET'S LINK OUR ARMS AND STAND BE
HOLD THE SUN HAS RISEN TO THE LEVEL OF OUR EYES

BEHOLD THE SUN HAS RISEN TO THE LEVEL OF OUR EY
ES PERFORMED BY PHILIPPINE MADRIGAL SINGERS, PH
ILIPPINE NORMAL UNIVERSITY CHORALE, PHILIPPINE
WOMEN'S UNIVERSITY CHORALE, A CAPELLA MANILA AND
THE PHILIPPINE PHILHARMONIC ORCHESTRA
85
9th ASEAN Summit, 2003, Bali
12
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87
APEC
  • Founded in 1989 to promote open trade and
    practical economic cooperation and promote a
    sense of community
  • 21 members
  • GDP
  • 13 trillion (1995)
  • 19.6 trillion (2002)
  • 54.6 of total world income (2007)

88
Gulf Cooperation Council
  • Founded 1981
  • Bahrain, Kuwait, Qatar, Oman, Saudi Arabia, and
    the United Arab Emirates
  • Mission (official)
  • The GCC Charter states that the basic objectives
    are to effect coordination, integration and
    inter-connection between Member States in all
    fields, strengthening ties between their peoples,
    formulating similar regulations in various fields
    such as economy, finance, trade, customs,
    tourism, legislation, administration, as well as
    fostering scientific and technical progress in
    industry, mining, agriculture, water and animal
    resources, establishing scientific research
    centres, setting up joint ventures, and
    encouraging cooperation of the private sector.

89
Current Status
  • January 2003 customs union level (still not
    fully implemented)
  • As of July 2005, discussing a common currency
  • Currently, their currencies are pegged to dollar
  • Considering pegging the proposed dinar to euro or
    to a basket of currencies
  • Currencies are currently pegged to US (remember
    that oil sales are denominated in )
  • As of December 2007, sticking with US peg
    (except for Kuwait)
  • No earlier than 2010, though
  • In December 2007 meetings, Turkey attended as an
    observer
  • January 2008 common market status

90
Agadir Agreement
  • 2004 agreement between Arabic Mediterranean
    countries
  • Egypt
  • Jordan
  • Morocco
  • Tunisia

91
OPEC
  • Organization of the Petroleum Exporting
    Countries
  • Founded 1960
  • Note that not all oil-producing countries are
    members
  • Norway, Russia, UK
  • Mexico, US, Canada
  • Oman, Yemen
  • Angola, Equatorial Guinea
  • Malaysia, Brunei, East Timor
  • New member (2006) Angola
  • Algeria
  • Indonesia
  • Iran
  • Iraq
  • Kuwait
  • Libya
  • Nigeria
  • Saudi Arabia
  • Qatar
  • United Arab Emirates
  • Venezuela
  • Ecuador and Gabon have dropped out

92
OPEC Functions
  • Functions as an economic alliance, to regulate
    supply and pricing of petroleum
  • Since oil revenues are so vital for the economic
    development of these nations, they aim to bring
    stability and harmony to the oil market by
    adjusting their oil output to help ensure a
    balance between supply and demand.
  • OPEC countries produce about 40 of world supply

93
Australia New Zealand Closer Economic Trade
Relations Agreement
  • Since 1983
  • Working towards economic union, though not to
    the level of a common currency
  • Long-term concerns (NZ) with Australian bilateral
    agreements with US and China

94
In Africa
  • Economic Community of Central Africa
  • Economic Community of West African States
  • Southern African Development Community
  • Proposed an African Union

95
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96
CFA Franc
  • Common unit of currency for former French
    colonies in Africa
  • Originally (since 1945) linked to and guaranteed
    by French franc
  • Now, French govt ensures convertibility of CFA
    Franc to euros

Economic Community of Central Africa
Cameroon (F/E) Central African Republic (F) Chad
(F) Congo (F) Gabon (F) Equatorial Guinea (S/
F)
Economic Community of West African States
Benin (F) Burkina Faso (F) Côte d'Ivoire (F) Gu
inea Bissau (P) Mali (F) Niger (F) Senegal (F)
Togo (F)
97
Economic Community of West African States
  • Also a proposed currency union among
    English-speaking countries
  • Nigeria
  • Ghana
  • Sierra Leone
  • Guinea
  • Gambia
  • Liberia
  • Members
  • Benin
  • Burkina Faso
  • Cape Verde
  • Côte d'Ivoire
  • Gambia
  • Ghana
  • Guinea

Guinea-Bissau Liberia Mali Niger Nigeria Se
negal Sierra Leone Togo Mauritania has droppe
d out
98
Southern African Development Community
  • Members
  • South Africa
  • Angola
  • Botswana
  • Democratic Republic of Congo (DRC)
  • Lesotho
  • Malawi
  • Mauritius
  • Mozambique
  • Namibia
  • Swaziland
  • Tanzania
  • Zambia
  • Zimbabwe
  • Official languages are English, French
    Portuguese
  • Talks began in 1979, formal organization in 1992
  • Original goal was to reduce dependence on
    minority-ruled South Africa
  • Planning for currency and economic union by 2016
  • Based on SA rand (a reasonably strong currency)
  • All need to bring inflation deficits under
    control
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