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ECONOMIC

DEVELOPMENT OF
COUNTRIES BY
FORMING BLOCKS
Sanchari
Class VIII

AGENDA
What is economic development?
Various organisations of countries
BRICS
EU
ASEAN
Conclusion

ECOMONIC DEVELOPMENT
Economic development is the sustained, concerted actions

of policy makers and communities that promote the


standard of living and economic health of a specific area.
Such actions can involve multiple areas including

development of human capital, critical infrastructure,


regional competitiveness, environmental sustainability,
social inclusion, health, safety, literacy, and other initiatives

ECOMONIC DEVELOPMENT
Countries come together for sharing of resources, policies and

framework for economic development.


Equitable economic development is

characterized by narrowing development


gaps within and between Member States,
better access to opportunities for human
development, social welfare and justice,
and more inclusive participation in the process
of integration and community building
By forming groups they can form policies which can mutually

help each other and also give them a bargaining power in the
world as a block.

VARIOUS BLOCKS
BRICS

EU European Union
ASEAN - The Association of Southeast Asian Nations
CSME CARICOM Single Market and Economy
CEMAC Economic Community of Central African States
EFTA European Free Trade Association
CEFTA Central European Free Trade Agreement
NAFTA North American Free Trade Agreement
OECD Organisation For Economic Co-operation and

Development

BRICS
BRICS is the acronym for an association of five major

emerging national economies


Brazil
Russia
India
China
South Africa

It is an international political organisation of

leading emerging economies


They have large, fast-growing economies

and significant influence on regional and


global affairs

BRICS
The BRICS members are all developing

or newly industrialised countries


They have large, fast-growing

economies and significant influence


on regional and global affairs
As of 2012, the five BRICS countries represent roughly

one-third of the world's total population, with a combined


nominal GDP of US $13.6 trillion, and an estimated US $4
trillion in combined foreign reserves

STATISTICS

BRICS SUMMITS

BRICS SUMMITS
First Summit:
The four BRIC countries met in Yekaterinburg for
their first official summit on 16 June 2009, with the
respective leaders of Brazil, Russia, India and China, all
attending.
The summit's focus was on means of improving
the global economic situation and reforming financial
institutions, and discussed how the four countries could
better co-operate in the future.
There
was
furthermore
discussion
on
ways
that developing countries, such as the BRIC members,
could become more involved in global affairs.

BRICS SUMMITS
Second Summit:
This summit follows the Washington Nuclear summit hosted by U.S.
President Barack Obama which was attended by all four BRIC states
in Brazil.
The 2010 Nuclear Security Summit was a summit held in Washington,
D.C., on April 12 and 13, 2010. The Summit focused on how to better
safeguard weapons-grade plutonium and uranium to prevent nuclear
terrorism.
Issues: Iran Development, Furtherance of BRIC and nuclear
weapons.
Between 2003 and 2007, BRIC countries carried 65% of the
expansion of global GDP. In 2009, the combined PPP GDP of the
BRIC countries was US$16.3 trillion, or 23.4% of global total. From
2003 to 2008, Brazil trade with the other BRIC countries increased by
382%, or US$10.7 billion to US$51.7 billion.

BRICS SUMMITS
Third Summit:
The 2011 BRICS summit took place in Sanya on the island
of Hainan, China, on 14 April 2011.
The Chinese president chaired the Meeting and gave a speech
under the theme of "Broad Vision, Shared Prosperity." The
theme was based under the vision as 'The 21st century should
be marked by peace, harmony, cooperation and scientific
development.'
The BRICS summit conducted candid and in-depth discussions
and reached broad consensus on strengthening BRICS
cooperation as well as on promoting coordination on
international and regional issues of common interest.
Issues: Economics, International law, United Nations Security
Council reform, Trade medium, Libyan civil war.

BRICS GOING AHEAD


The rapid economic growth of the BRIC
Brazil, Russia, India and China has
helped create the global commodity boom and
strengthened its trade ties with low income countries (LIC).

BRIC demand for commodities resulted in a significant


improvement in LICs terms of trade.
There is potential to further increase LIC-BRIC trade by
lowering tariff and non-tariff barriers on both sides,
reducing tariff escalation, extending preferential access for
LIC exports, and making rules of origin more liberal in the
existing preference schemes.

BRICS GOING AHEAD


BRICs FDI inflows to LICs have grown
rapidly. Initial investment, mostly by state
owned companies, has often been destined for
natural resource industries.

Investment appears to be spreading


manufacturing, and service industries.

to

agriculture,

Many non resource-rich countries have also attracted significant


investment.
Private companies, particularly small and medium-sized ones
from BRICs, have become active investors, with the potential to
form industrial clusters in some HICs as seen in East Asia.

EUROPEAN UNION
The European Union (EU) is a family of

democratic European countries, committed


to working together for peace and prosperity.
It is not a State intended to replace existing states, but it does

represent a greater compromise of sovereignty than any other


international organization.
The EU is unique; its Member States have set up common

institutions to which they delegate some of their sovereignty so


that decisions on specific matters of joint interest can be made
democratically at European level.
This pooling of sovereignty is also called "European

integration"

HISTORY OF THE EU
The historical roots of the European Union
lie in the Second World War.
Idea of European integration conceived to prevent such

killing and destruction from ever happening again

First proposed by the French Foreign Minister Robert

Schuman in a speech on May 9, 1950. This date, the


"birthday" of what is now the EU, is celebrated annually
as Europe Day

HISTORY OF THE EU
Phases of growth
Initially, the European Economic Community (EEC) consisted of just six

countries: Belgium, Germany, France, Italy, Luxembourg and

the Netherlands

(1958)
European Communities (EC) (1967)
Denmark, Ireland and the United Kingdom joined in 1973
Greece in 1981
Spain and Portugal in 1986
European Union (EU) (after 1992) (Maastricht Treaty)
Austria, Finland and Sweden in 1995
Largest enlargement took place with 10 new countries joining May 9, 2004

CREATION OF THE EU

GROWTH OF THE EU

GROWTH OF THE EU
Admission
of Romania
and
Bulgaria
2007

Croatia and
Macedonia
are new
candidates

Major
debates
about
Turkey

HOW EU WORKS
There are five EU institutions, each playing a specific role:
European Parliament (one of two legislative bodies in the EU; elected by the

peoples of the Member States)


Council of the European Union (EUs highest Legislative Body; has

legislative initiative; is made up of representatives appointed by member

states according to a population-based allotment)


European Commission (EUs executive body; one commissioner per

country appointed by each government)


Court of Justice (ensures compliance with the EU

laws)
Court of Auditors (manages the EU budget)

HOW EU WORKS
These are flanked by five other important
bodies:
European Economic and Social Committee (expresses the opinions of

organized civil society on economic and social issues)


Committee of the Regions (expresses the opinions of regional and local

authorities)
European Central Bank (responsible for monetary policy and managing

the euro)
European Ombudsman (deals with citizens' complaints about

maladministration by any EU institution or body)


European Investment Bank (helps achieve EU objectives by financing

investment projects)

THE EURO
The Treaty of Rome (1957)
Declared a common market as a European objective
Aim: increase economic prosperity and contribute to "an ever closer union

among the peoples of Europe"

The Single European Act (1986) and the Treaty on European Union
(1992) built on this
Introduced Economic and Monetary Union (EMU)

Laid the foundations for a single currency


Name Euro was selected in 1995
In January 2002, 12 States in the EU introduced the new euro banknotes and

coins

THE EUROZONE

Coins and banknotes 1st


used Jan 1, 2002

Slovakia joined in 2009

Estonia joined in 2010

Britain and Denmark have a

derogation releasing them


from having to join

IMPACT OF EUROZONE
- a strong currency

EURO CURRENCIES

SUMMARY OF EU
The European Union is the strongest
supranational organization in the world
shared currency & financial management
legislative, judicial, and executive bodies
regulatory and planning bodies

The EU is growing geographically, and its growth suggests a coredomain model


core and domain are borne out by distribution of income

Roughly comparable to the US in some ways

population slightly larger than that of the US


somewhat more densely settled than the US
economy is at least as strong as the American economy
other social statistics (e.g. literacy, infant mortality & homicide) are as good
or better than the US

ASEAN

Association of Southeast Asian Nations

ESTABLISHMENT AND MEMBERSHIP


The Association of Southeast Asian Nations or ASEAN was established

on 8 August 1967 in Bangkok by the five original Member Countries,


namely, Indonesia, Malaysia, Philippines, Singapore, and Thailand.
Brunei Darussalam joined on 8 January 1984
Vietnam on 28 July 1995, Laos and Myanmar on 23 July 1997
Cambodia on 30 April 1999, The ASEAN region has a population of

about 500 million


A total area of 4.5 million square kilometers
A combined gross domestic product of US$737 billion
A total trade of US$ 720 billion.

The Establishment of ASEAN

Bangkok, 8 August 1967

GOALS OF ASEAN
To accelerate the economic growth, social

progress and cultural development in the


region through joint endeavours; and
To promote regional peace and stability through abiding

respect for justice and the rule of law.


Through political dialogue and confidence building, no

tension has escalated into armed confrontation among


ASEAN members since its establishment more than three
decades ago.

ECONOMIC AND FUNCTIONAL


COOPERATION
When ASEAN was established, trade among the Member

Countries was insignificant


Thus, some of the earliest economic cooperation

schemes of ASEAN were aimed at addressing this


situation
The Framework Agreement on Enhancing Economic

Cooperation was adopted at the Fourth ASEAN Summit in


Singapore in 1992, which included the launching of a
scheme toward an ASEAN
Free Trade Area or AFTA

ECONOMIC AND FUNCTIONAL


COOPERATION
In 1997, the ASEAN leaders adopted the ASEAN Vision 2020, which

aimed at forging closer economic integration within the region.


The vision statement also resolved to create a stable, prosperous and

highly competitive ASEAN Economic Region, in which there is a free


flow of goods, services, investments, capital, and equitable economic
development and reduced poverty and socio-economic disparities
In addition to trade and investment liberalization, regional economic

integration is being pursued through the development of TransASEAN transportation network consisting of major inter-state highway
and railway networks, principal ports and sea lanes for maritime
traffic, inland waterway transport, and major civil aviation links

ECONOMIC AND FUNCTIONAL


COOPERATION
Today, ASEAN economic cooperation covers the following

areas: trade, investment, industry, services, finance,


agriculture, forestry, energy, transportation and
communication, intellectual property, small and medium
enterprises, and tourism.

ASEAN HIGHWAY NETWORK

ASEAN TOURISM
To promote Southeast Asia as a single
tourism destination

ASEAN FREE TRADE AREA


Launched in January 1992
Eliminating tariff barriers among the

Southeast Asian countries


Integrating the ASEAN economies into a single production base
Creating a regional market of over 500 million people

ASEAN cooperation has resulted in greater regional integration.

Within three years from the launching of AFTA, exports among


ASEAN countries grew from US$43.26 billion in 1993 to almost
US$80 billion in 1996

ASEAN GOAL
Economic integration
External relation - ASEAN has made major strides in

building cooperative ties with states in the Asia-Pacific


region
Consistent with its resolve to enhance cooperation with
other developing regions, ASEAN maintains contact with
other inter-governmental organizations

Australia, Canada, China, India, Japan, European Union, New Zealand, Republic of Korea,
Russian Federation, United States of America

EXTERNAL RELATIONS:
Outward-looking ASEAN

ASIAN SUMMIT

CONCLUSION
Countries come together for their own economic benefit

Cooperation between the countries result in economic growth

and alleviation of poverty


A block of countries can better protect their interests because

of greater bargaining power.


Sharing of information and exchange of ideas result in better

understanding of dealing with common problems.


Protection of rights is ensured because of greater power.
The results of forming blocks can easily be seen in todays

world of EU, ASEAN and BRICS

THANK YOU

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