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¶ … Regional Integration in European Union
Regional integration can be defined as association between states in common geographical area emerging from the need for better economic growth, higher security and other shared interests. While much can be said for the downside of regional integration, it must be understood that regional integration does have its benefits and European Union is seen as the biggest and most successful regional bloc. European Union is the name of on-going regional integration that began in 1952 with six original states choosing to form forces to grow in strength both in economic terms as well as military strength and security (Mattli, 1992). Regional integration is believed to emerge only when two conditions are present i.e. demand and supply. It is felt that countries that have something to gain and something to give would want to join a bloc and so far there is hardly any state that is not part of some kind of regional integration effort.
EU however is the biggest and most well-known initiative in regional integration. There have been various arguments in favor of EU and the most important one is grounded in economic benefits that each member state can derive from being part of the bloc. It is generally believed that with smaller countries becoming part of the EU, foreign direct investment would flow in and make these states economically stronger.
The other main benefit arises from the fact that with trade barriers removed the flow of labor and capital within the bloc has become easier which allows for cheaper production and higher quality products. With trade becoming easier and flow...
Security is another major benefit of regional integration. The original purpose of EU included containment of Germany and since then security has been an important part of the objectives of EU. This has worked really well for Europe as it can now feel more secure and hence focus on economic growth and development. With security issue resolved, the states can focus on economic strength which adds to the power of each member state. "A regional agreement may also enhance a country's security in its relationship with other members, an important argument in the early days of European integration. These security arguments are driven by a variety of mechanisms. Interlocking economies can make conflict more expensive; regular political contact can build trust and facilitate other forms of cross-border cooperation." (De Melo, 1995, p. 6)
With trade barriers gone, it is highly possible for lower income countries in EU to move labor to countries engaged in more labor intensive production. This move of labor can help in raising wage levels in those countries thus helping an average work earn better with regional integration in place. Similarly capital can move to countries which are more capital intensive, thus bringing greater returns for investors.
Regional integration in Europe shows that it is no longer possible to exist without some kind of integration since states…
References
Walter Mattli, The Logic of Regional Integration: Europe and beyond, (Cambridge: Cambridge University Press, 1999)
Jaime de Melo and Arvind Panagariya [MP], eds. 1993, New Dimensions in Regional Integration, Cambridge University Press;
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