GLOBAL INTERSTATE SYSTEM

- It is the fundamental basis of the competitive commodity economy at global system level.
- A system of international relations. (International Relations (IR) is defined as the study of
interconnectedness of politics, economics and law on a global level.)

❖ Economic Interdependence
- A relationship between countries in which each country is dependent on another for necessary
goods or services (Surugui and Surugui, 2015).

❖ Economic Integration
- A process whereby countries cooperate with one another to reduce or eliminate barriers to the
international flow of products, people and capital.

❖ Political Integration
- It refers to the integration of components within political system.
- The integration of political system with economic, social, and other human system; the political
process by which social, economic and political become integrated.
- It includes the creation of regional of regional political institutions. It is a process that developed
much more slowly outside of Europe.
REGIONAL AND ECONOMIC PARTNERSHIPS / INSTITUTIONS

ASEAN | EUROPEAN UNION | APEC |NAFTA | OECD

Association of Southeast Asian Nation (ASEAN)
(One Vision, One Identity, One Community)

- It was established on 8 August 1967 in Bangkok, Thailand with the signing of the ASEAN
Declaration (Bangkok Declaration) by the founding fathers of ASEAN namely, Indonesia,
Malaysia, Philippines, Singapore, and Thailand. Brunei Darussalam (1984), Vietnam (1995), Lao
PDR and Myanmar in 1997 and Cambodia (1999) makes up what is today the 10 member-state
of ASEAN. 9 (asean.org).
- The ASEAN Vision 2020, adopted by the ASEAN leaders on the 30th Anniversary of ASEAN,
as a concert of Southeast Asian Nations outward looking, living in peace, stability and
prosperity, bonded together in partnership in dynamic development and in a community of caring
societies.

- The ASEAN Community is comprised of three pillars, namely the ASEAN Political Security
Community, ASEAN Economic Community and ASEAN Socio-Cultural Community.
 EUROPEAN UNION (EU)
(United in Diversity)

- The EU began in 1957 when six countries signed Treat of Rome. The six countries were called
the European Economic Community.
- The first six countries were Belgium, France, Italy, Luxembourg, Netherlands and Germany. The
Union reached its current size of 28 EU countries.

The goals of the European Union are:

1. Promote peace, its values and the well-being of its citizens;
2. Offer freedom, security and justice without internal borders;
3. Sustainable development based on balanced economic growth and price stability;
4. Highly competitive market economy with full employment and social progress;
5. Combat social exclusion and discrimination;
6. Promote scientific and technological progress;
7. Environment protection;
8. Enhance economic, social and territorial cohesion and solidarity among EU countries;
9. Respect its rich cultural and linguistic diversity; and
10. Establish an economic and monetary union whose currency is the Europe.

The EU in the world:

1. TRADE.
The European Union is the largest trade block in the world. It is the world’s biggest exporter of
manufactured goods and services, the biggest import market for over 100 countries.
2. HUMANITARIAN.
The EU is committed to helping victims of man-made and natural disasters worldwide and
supports over 120 million people each year.
3. DIPLOMACY AND SECURITY.
The EU plays an important role in diplomacy and works to foster stability, security and
prosperity, democracy, fundamental freedoms and the rule of law at international level.

ASIA-PACIFICIC ECONOMIC COOPRATION (APEC)

(Advancing Free Trade for Asia-Pacific Prosperity)

- The idea of APEC was first broached by former Prime Minister of Australia Bob Hawke during a
speech in Seoul, Korea on January 31, 1989. Ten months later, 12 Asia-Pacific economies met in
 Canberra, Australia to establish APEC. The founding members were Australia, Brunei
Darussalam, Canada, Indonesia, Japan, Korea, Malaysia, New Zealand, the Philippines,
Singapore, Thailand and the United States. China, Hong Kong, China and Chinese Taipei joined
in 1991. Mexico and Papua New Guinea followed in 1993, Chile acceded in 1994. In 1998, Peru,
Russia, and Vietnam joined, taking the full membership to 21.

APEC: Multilateral Economic Forum

- Operates as a cooperative, multilateral economic and trade forum. It is the only international
intergovernmental grouping in the world committed to reducing barriers to trade and investments
without requiring its members to enter into legally binding obligations.

APEC Members Economies report progress toward achieving free and open trade and investment
goals through Individual Action Plans (IAPs) and Collective Action Plans (CAPs).

NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA)

- In 1994, North American Free Trade Agreement (NAFTA) came into effect creating one of the
world’s largest free trade zones and laying foundations for strong economic growth and rising
prosperity for Canada, the United States of America, and Mexico.

ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT (OECD)

- European Economic Cooperation (OEEC) was established in 1948 to run the US-Financed
Marshall Plan for reconstruction of a continent ravaged by war.
- By making individual governments recognize the interdependence of their economies, it paved
the way for a new era of cooperation that was to change the face of Europe.
- Canada and USA joined OEEC

Today, OECD focused on helping governments around the world to;

1. Restore confidence in markets and the institutions that make them function.
2. Re-establish healthy public finances as a basis for future sustainable economic growth.
3. Foster and support new sources of growth through innovation, environmentally friendly’ green
growth strategies and the development of emerging economies.
4. Ensure that people of all ages can develop the skills to work productively and satisfyingly in the
jobs tomorrow.
 ORGANIZATION OF THE PETROLEUM EXPORTING COUNTRIES (OPEC)

- It is a permanent intergovernmental organization of 15 oil-exporting developing nations that

coordinates and unifies the petroleum policies of its member countries. It I s created at the
Baghdad Conference on September 10-14 by Iran, Iraq, Kuwait, Saudi Arabia and Valenzuela.
-
OPEC objective is to coordinate and unify petroleum policies in order to secure fair and stable
prices for petroleum producers; an efficient, economic and regular supply of petroleum to
consuming nations; and a fair return on capital to those investing in the industry.