Economic Integration.....

I feel that this class is going well. Group 3 was very good in trying to understand the difference between economic globalisation and economic integration, or at least the view I presented to them - but always remember to refute what you don´t agree with, and try to justify your point of view - healthy debate is good!

The point I most want to reinforce is that I was presenting economic integration as one of the many DRIVERS of globalisation - hence, I don´t see them as the same, but instead I see globalisation and this interconnectedness as being driven by the free-trade ideal in which we live, where countries are attempting to bring down trade barriers between themselves.

I presented the various stages to you, from the first step of a "Free Trade Area" - that is your NAFTA - up to "Economic Union," which many believe the best example is the European Union with its single currency. Remember we discussed how interesting it was to have "Political Union" at the end of the scale, reminding us that there are "consequences" to these economic decisions that countries make - in line with "Spillover theory."

I appreciate that these ideas could be making your head spin, hence this post to clarify some things for you, and invite you to write your own posts reflecting your understanding of this class.
I leave you with this interesting image that I found on the internet, and quotation from Jack Welch, in relation to our topic......what do you think the picture is telling us about the characteristics of globalisation?

"Globalization has changed us into a company that searches the world, not just to sell or to source, but to find intellectual capital - the world's best talents and greatest ideas" - Jack Welch

Have a good weekend!

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Global Economic Cooperation....G20 Meeting on the way!

I am not going to keep my pleasure a secret! How fitting that we are discussing globalisation and economic integration, whilst under our very noses and in front of our eyes we are witnessing economic events whose impacts are expected to be long-lasting, and perhaps fundamentally change the very nature of the economic system in which we live.

We talk about globalisation, and if you like, you may now say that even regulation is becoming globalised - countries, in the wake of the economic crisis, want to work together more and more, to prevent future problems. Such acts can only serve to economically integrate countries further, albeit without a formal document or agreement.

So my pleasure stems from the fact that all what I speak about in class can be directly connected to the world around us - we are not looking at history, nor are we looking at the future, but today Ladies and Gentlemen. Always take the chance to read and passively learn more - even if you don´t understand everything, constant exposure helps you build knowledge.

A new era of global economic co-operation.


This article written by the British Prime Minister Gordon Brown discusses his (and we can assume the British people) views on what must be done at the upcoming G20 meeting. I want to draw your attention to two parts:

"Now is not the time to lose our focus, however – the recovery is not automatic – rather it is the moment to redouble our efforts. We must not switch off the life support we are giving to our economies. People are still losing their jobs, their homes and – in some cases – their hope and we must not fail them. Complacency is the enemy of recovery.

So at next week's G20 Summit in Pittsburgh concerted international co-operation is again required. To this end, I am proposing a new global compact to entrench economic recovery and secure stability, growth and jobs."


Here, he proposes his idea for a "global compact." Later, he goes on to say......

"Our international financial institutions have a vital role in supporting this drive to recovery and growth, so I have been consulting widely within the G20 and beyond to develop proposals on modernising them.

They must be better placed to meet the challenges of globalisation, promote sustainable global growth and prevent and respond to future crises."

And there you have the connection with globalisation. You see how international institutions, economic globalisation, and the world economy in general, are all connected?

Comments on this article, and an exploration of your own thoughts, are as always most welcome.

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