Introduction to International Relations

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Question 2

The second Great War left the economies of Europe in shambles as they looked to recover from the monstrous damage done during the war. In 1944 we see three small countries looking to the unification of their economies to bring about an economic change and through the creation of BeNeLux we see the combination of Belgium’s, the Netherlands’ and Luxembourg’s economies. This intertwining of economies is the first step to modern day European Union that encompasses twenty eight member states and stretches across the European continent. In 1951 this agreement expands to include West Germany, France and Italy with the Treaty of Paris which then leads to the Treaty of Rome in 1957; expanding the economic power of these countries by opening free trade, lowering tariffs and creating a single market for goods to flow freely among member states, known as the European Economic Community. In 1960 Switzerland, Liechtenstein, Norway and Iceland come together to form a similar union called the EFTA, or European Free Trade Association. The goal of this association was to mimic the effects of the Treaty of Rome in a different group of European countries; however, the countries in the EFTA did not join the European Union and continue to use the EFTA for their trade sectors. While these organizations helped with the creation of sustainable economies in post-war Europe, they did not address the development of the poorer under-developed regions. In 1978 the European commission created the European Regional Development Fund which transferred money from the successful regions of Europe to invest in the infrastructure and services of the undeveloped poor regions of Europe. This project focused on regional development rather than state development which eliminated the problem of states refusing to give money solely for political reasons. In the 1980’s we see the growth in the quantity of countries involved in the EEC with the addition of Greece in 1981 and Spain and Portugal in 1986. The addition of these countries leads to major steps toward a unified European community and in 1987 the Single European Act sets requirements for political and institutional changes to amend the EEC and create a union of European states by the beginning of 1993. These changes take place in 1991 with the Treaty of Maastricht which officially establishes the European Union with its twelve founding states: Belgium, Denmark, France, United Kingdom, Italy, Greece, Spain, Portugal, Germany, Ireland, Luxembourg and the Netherlands. This treaty was shortly followed up by another meeting in Copenhagen in 1993, this meet is known as the Copenhagen Criteria because it creates the economic and political rules for a country to join the European Union and to be allowed to use the Euro as their official form of currency. With the wild growth of the European Union in the twenty-first century two more treaties are signed and ratified to amend certain policies in the Treaty of Rome and the Treaty of Maastricht to allow for a more stable growth of the union as it moves toward the eastern part of Europe and to create more equality in the EU institutions based on state populations; these are the Treaty of Nice in 2001 and the Treaty of Lisbon in 2007.

Unification of the European Union has not been easy, it has seen many challenges as unanimous decisions are hard to achieve in an institution divided by the 28 different cultures of Europe. The differences of the European states has been notable throughout history as they competed for imperial and industrial power until the end of the Second World War. This war created a great need of economic unity throughout Europe; nevertheless, the nationalism that has been bred into the states through independent languages, cultures and foods has made any attempt to forge an United States of Europe unsuccessful. The development of independent national identities creates a divide in the EU as the states fear that Anglo-Saxon economics and culture will be forced down their throats as Germany leads the European Union n population and votes. According to Nationalism Ignites E.U. Rebellion by Daniel Williams and Craig Whitlock, objections to the EU vary from country to country but they add up to the same message, a desire by EU citizens to slow down the 50 year integration and bring back lost pieces of their culture. These objections vary from the way that mozzarella cheese is sold to its clients in Italy to the way that economics is addressed in France to the EU mandate to ban bullfighting in Spain. These desires to cling to their history and culture has come to head in 2016 when the United Kingdom voted yes on the Brexit vote which will remove it from the European Union. This vote stems from the British’s desire to maintain the British Pound; as well as limit inter-European immigration. The value of independent national identities and nationalism removes the possibility of a true United States of Europe leaving these states united but divided in a loose union of states that share economic and institutional progress.

The Brexit vote will begin to take effect in the spring of 2019, but it does not seem that all effects of this divorce have been considered by economists prior to the vote. Peter S. Goodman discusses the impact of Brexit on London’s finance industry in his article ‘Brexit’ Imperils London’s Claim as Banker to the Planet. Goodman examines London’s finance industry’s place in the European market and how the separation from the European Union will create a void in the European finance market that can be filled by other financial capitals that will remain in the union. This loss of business for London will account for anywhere between 15.000 and 80.000 jobs moving in the two years following Brexit’s completion and roughly three-fourths of the world’s derivatives currently being cleared in London being moved to other European countries that have the economic passports that will allow for them to participate in the European finance market. The Brexit vote demonstrates the difficulty of sustaining a United Europe due to national differences, but it also shows the negative economic consequences of leaving the European Union.

Question 3

Latin America played a large part in the United States’ foreign policy due to the Monroe Doctrine which states that this side of the hemisphere belongs to the United States and any foreign intervention will be seen as a sign of war. Through this doctrine the United States was able to play big brother to the Latin America committee; this involvement is even more prevalent in Central America as it is closer to home. Central America is dubbed the nickname the Banana Republic due to the perfect conditions for growing a wide variety fruits; this resource is soon