European Union History and Global Economic Trends

Timeline of the European Union

• 1950: The Schuman Declaration proposed the establishment of a European Coal and Steel Community.
• 1957: Six countries decided to build a European Economic Community.
• 1968: Common policies were put in place.
• 1973: Membership expanded from six to nine.
• 1975: The European Regional Development Fund (ERDF) was established.
• 1979: A decisive step forward was taken (likely referring to the first direct elections to the European Parliament).
• 1981: Greece joined the Community.
• 1985: Hope sprang again for further integration.
• 1986: Spain and Portugal joined. The Single European Act was signed.
• 1987: The Single European Act came into force.
• 1990: German unification.
• 1991: The Soviet Union ceased to exist. The Maastricht Treaty was signed.
• 1993: A White Paper set out a timetable for completing the European Single Market. The Maastricht Treaty came into force, officially establishing the European Union.
• 1995: Three more countries joined the EU.
• 1999: The Euro was introduced as a common currency.
• 2000: The EU adopted the Lisbon Strategy.
• 1997-2007: EU membership grew to 25 countries.
• 2007: Bulgaria and Romania joined.

Key Institutions of the EU

• European Council: The Member States' representatives are assisted by their Foreign Ministers.
• Council of Ministers: Forms one half of the EU's legislature, consisting of a government minister from each Member State.
• Commission: Acts as the EU's executive arm and is responsible for initiating legislation and the day-to-day running of the EU.
• Parliament: The 736 members of the European Parliament are directly elected by EU citizens every five years.

Evaluation 1: The Multipolar World and Globalization

Different countries and cultural and religious areas are connected by a heavy flow of economic, cultural, and political relationships. Since the collapse of the communist bloc in 1991, the characteristics of the international system of power have changed. It is a multipolar world with various centers of influence and decision-making, in contrast to the previous bipolar world. The leadership of the United States is indisputable. The majority of nations carry little weight as far as world decisions are concerned. Only a small number of countries have resisted total integration into the system, such as Cuba, Iran, and North Korea.

Aspects of Globalization

Globalization also affects other important aspects, such as cultural and consumption customs in different societies and territories. Possibilities for accessing, spreading, and exchanging information have multiplied. The need to resolve problems affecting humanity has created international institutions and organizations of different natures. Key challenges include the North-South conflict, the development-environmental conflict, and achieving sustainable development. New relationships of dominance among countries and economic, commercial, and technical mechanisms enable a small number of more developed countries to exert significant influence.

Evaluation 2: Global Economic Trends and Organizations

Since the end of the 18th century, economic relations have been globalizing. This phenomenon has been increasing since 1945. At present, the economic system is characterized by four main trends:

• Growth of international trade
• Globalization of production
• Boom of financial flows
• Internationalization of all parts of the world

The global economy has been facilitated by the reduction in the price of transport and by the revolution in telecommunications, which enable increasingly rapid interconnection between distant points on Earth.

International Economic Organizations

A group of international organizations serves as forums for discussion and agreement among different countries about economic topics:

• International Monetary Fund (IMF): Founded in 1944
• World Bank: Founded in 1944
• World Trade Organization (WTO): Founded in 1994
• G-8: An organization established by the eight countries with the largest economies in the world

Other economic organizations unite countries from a specific region:

• Europe: European Union (EU)
• America: North American Free Trade Agreement (NAFTA)
• Africa: Arab Maghreb Union (AMU)

Task 5: Historical Processes and Global Disparities

A gradual process of colonization of territories took place in the 19th century. Metropolises imported raw materials to Europe and the United States.

Factors Influencing Development

• Natural Conditions: Wealthy countries are usually identified with the temperate zones of our planet. However, human groups have transformed hostile environments, demonstrating that natural conditions are not the sole determinant.
• Abundance of Natural Resources: Natural wealth is not an essential condition for development.
• The Gap Between Population and Resources: The inhabitants of poor countries often lack adequate resources for a decent life and even for basic subsistence.

Core-Periphery Model

The world can be divided into a core and a periphery. The core consists of countries that export industrial goods and advanced technology. The periphery consists of countries specialized in the production and export of raw materials.