Lecture 5: International Organizations I. Intro to Conflict/Cooperation • Suprantionalist organizations: “across nations”, sovereign states working together - Why work together? - Money, security, common culturality - has some sort of common mission, goal (“country clubs”) - Conflict still occurs, nature of conflict is changing II. Changing Nature of Cooperation • Q: Why Now? - Product of modern era - Think supranationalist orgs. will superceed sovereign state concept - All states are in organizations now - 1919 : League of Nations: US didn’t want to lose sovereign power, so they didn’t want to join - 1945 : Start of Supranationalist Organizations: United Nations - neutralize future conflicts • Q: Why is it important to recognize that the rise of supranationalist orgs started at this time? A1: western powers (Europeans and Americas) were at a global economic/political power peak - Started UN & NATO
A2: western powers therefore dominated leadership of major SN orgs. BUT…. - New non-western orgs. are being formed - SCO: Shanghai Cooperation Org. - IMF: International Monetary Fund • Q: What does a state have to do to join? - Pay Dues, must give up some bit of sovereign power - Switzerland doesn’t want to do this, that’s why it won’t join EU • Reasons for SN Orgs. 1) Money/Economics: - Majority are based on this 2) Safety/Defense 3) Common Culturality - G-7, G-8, G-20, Nuke Club, and BRIC (Brazil, Russia, India, China) - don’t have to give up sovereignty III.Why Work Together: Economics: • #1 Reason to join SN org:
- Trade -> FREE TRADE: eliminate as many barriers as possible - When products are cheapest, consumers buy most - More trade blocks than ever before, more states have joined ever in history • Q: What gets in the way of free trade? - Mostly governments. - tend to do protectionism : when Gov. wants to protect business and industries of their state at expense of businesses and industries of other states. - 2 ways governments can protect its’ own industries: 1) put tariffs (taxes) on imports 2) subsidies - helps business in a monetary way to thrive and succeed in their country - Mostly happens in agricultural section (corn) • Trade Blocks still exist - Doesn’t mean everyone will make same amount of $$. - Negative trade balance: spending more than you make - US has – TB w/ Japan - Positive trade balance : making more than you spend - China has + with pretty much everyone - Japan has + w/ US
- Dumping : occurs if a country finds itself with a surplus and can dump it into another country for half the price • World Trade Org : WTO - Not really a trade block - 153 members - Regulatory agency, oversees disputes and how to punish Ex: US has most outstanding complaints against other countries IV. NAFTA: North America Free Trade Agreement : - Most simple Trade block - 3 countries in it: US, Mexico, Canada (Obama, Felipe Calderon, Stephen Harper) - It is trade, nothing else - Signed into law in 1994 (newer trade block)
- slashed tariffs between US and Mexico • Q: What else needs to negotiated b/t countries w/free trade?
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