Regional Integration


Economic Crisis and Regional Integration


regional economic integrationa process in which two or more countries agree to eliminate economic barriers, with the end goal of enhancing productivity and achieving greater economic interdependence
free trade agreementa pact between two or more nations to reduce barriers to imports and exports among them
free trade areaa region in which a group of countries has signed a free trade agreement and maintain little or no barriers to trade in the form of tariffs or quotas between each other
customs uniongroups of countries that apply one common system of procedures, rules and tariffs for all or almost all their imports, exports and transiting goods
common market a formal agreement where a group is formed amongst several countries that adopt a common external tariff
restrictiona limiting condition or measure, especially a legal one
influxan arrival of a large number of people or things at the same time
economic unionan agreement between two or more nations to allow goods, services, money and workers to move over borders freely
withdrawto separate formally from membership in a state, union, or other political entity
fiscal policiesthe use of government spending and tax policies to influence economic conditions, especially macroeconomic conditions
resort toобращаться за помощью к, прибегать к
extensionрасширение, продолжение, удлинение, распространение
vulnerableуязвимый, ранимый
substantial существенный, значительный, важный
benevolentблаготворительный, доброжелательный
stymieзагнать в угол, ставить в тупик, безвыходное положение
combatвести бой, сражаться, бороться
capacityвместимость, мощность, способность, объем
promoteспособствовать, поощрять, продвигать, стимулировать
amplifyувеличивать, расширять; усиливать
  1. resort to
  2. in response to
  3. demands for 
  4. answer to 
  5. suffer from 
  6. relative to 
  7. owing to 
  8. benefit from 
  9. deal with 
  10. restrict to

In the 1930’s, Germany and Japan resorted to forcible regional integration, not economic nationalism, in response to economic crisis.

By contrast, in today’s crisis, the largest members of the European Union, the best model and greatest hope for benign regionalism, have turned their backs on integration.

Suddenly, in the face of the economic crisis, these problems have become major sources of political instability.

But today, the European Union is stymied by having squandered the chance to build stronger institutions when times were better and tempers less strained.

The EU is suffering from a number of problems that have been widely discussed for many years, but never seemed to be that urgent.

Instead, the large states are now promoting informal groupings to look for worldwide solutions.

The clash of two visions of Europe is eroding the political stability of an area that once represented the best model and greatest hope for benign regionalism.

Moreover, the whole idea of Keynesian demand stimulus was developed, again in the 1930’s, in the context of self-contained national economies.

The fiscal problem could be dealt with by issuing generally guaranteed European bonds, which might be a temporary measure, restricted to the financial emergency. From the perspective of Berlin or Paris, there should be no systematic Europeanization.

But the more the crisis affects them, the more they think largely in national terms.