“A benefit of being part of a GON is that is can reduce barriers to trade. This means that there can be increased economy development as trade movement if free between the nations meaning there are no taxes placed upon them. For example NAFTA an agreement signed by Canada, Mexico, and the USA, they agreed to abolish many tariffs which has increased trade and benefitted all three economies. NAFTA isn’t the only GON that has done this, the EU also saw the benefits of increasing trade. For example in 1970 just over 12% of the UKs GDP came from trade with European countries. After the UK joined the EU in 1973, this percentage increased rapidly in 2002, around 23% of the UK’s GDP came from trade in the EU. It can therefore be seen that this is a benefit to being part of a GON.
Another benefit of being part of a GON is increased economic development, which can lead to increased quality of life for members of the group. For example OPEC, who’s goal is to co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers. Which creates an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry. OPEC’s influence on the economy of the member countries is great, since most member countries such as Kuwait derive more than 80% of their foreign-exchange earning as well as a huge share of GDP, from oil and gas exports. Grouped nations can also provide support for declining regions or industries, for example the EU’s rural development policy gives funding to member states to be spent in rural areas to improve the rural economy and the quality of life for people living there. This is therefore an example of why it is in the greater interest of a country to part of a grouping of nations.
Within some grouping of nations people can move freely between member countries to find a job. For example the EU allows citizens of member countries to move freely between countries, which can be seen through Polish migration. Due to low quality of life Polish people, often men move to other more developed countries such as the UK to find jobs, there are currently 679,000 Poles living in the UK. There is also greater benefits for Poland as a country, when Polish workers send money back from the UK, the country’s economy is able to grow and quality of life is improved. This example shows how one better member can help another less developed member.
Another benefit of a GON would be better global representation particularly for smaller nations who join a larger group for example some of the tiny islands in the Caribbean have a greater global presence after joining the Caribbean community (CARICOM). Also GON’s reduce the risk of conflict for example the EU formed in 1993 with 28 member countries uses the incentives of trade and political cooperation to reduce the chances of violent conflict; like world war II. This is important as it reduces the chances of a third world war.
Grouped nations also provide global security for example NATO formed of Belgium, Canada, Denmark, France, Iceland, Italy, Luxembourg, the Netherlands, Norway, Portugal, the United Kingdom, and the United States primary purpose was to unify and strengthen the Western Allies. It focuses mainly on military response to a possible invasion of Western Europe by the Soviet Union and its Warsaw Pact allies. On the 16 of October Lord Robertson at a conference on NATO’s role in crisis management in Brussels said ‘Effective crisis management requires transatlantic unity, political vision and sufficient military power.’
However there are also negatives to grouping of nations for example in some groups, decisions are made centrally so member states may lose control over some aspects of how they run their country. For example the UK has seen a loss of financial control to the European Central Bank and the importance of adopting central legislation and regulations, which could potentially damage the UK economy. It reduces the amount of choice a citizen has, therefore it’s harder for them to migrate somewhere with a different society better suited to them. It can also lead to cultural homogenisation, which can mean places lose their identity.
Also individual countries may lose out when they have to share resources with other member countries e.g. fishing grounds. The UKs economy has suffered by sharing its resources, such as its traditional fishing grounds which it has had to allow Spain access to. Scotland only receives 41% of the UK’s European Fisheries Fund allocation and only 1.1% of total European fisheries funding. With Westminster unwilling to represent Scotland’s fisheries, this is below a fair allocation. Sometimes being a member of a global group can damage a country’s economy richer member states may have to support poorer member states financially if they are in economic crisis e.g. the UK contributed around £4 billion to the EU bailout of Portugal in 2011. Therefore economically a member might actually be doing better without being part of a GON.
Trade agreements made within a group increase trade between member countries, but can reduce trade with countries outside the group. This damages LIC’s whose development can be affected by lost trade. Also the TTIP is a proposed trade agreement and the subject of an ongoing series of negotiations between the EU and US aimed at creating the world’s biggest free trade zone spanning the north Atlantic. Concerns are mounting that TTIP could lead to more privatisation, with the prospect of US corporations providing vital UK public services such as transport, education, water and health.
In
conclusion GSEG do have significant benefits for its members, however it can
only go so far, as most positive aspects seem to have catches for example, the
IMF bank offers many positives for countries in need but this can also cause
them many issues after the IMF leaves. Overall when looking at the evidence
presented, one could argue that there are many advantages and disadvantages to
being part of a GON, however it would seem that there are many more positives
for members than the negatives for example the EU presents many more positives
than negatives such as the relaxed borders for members enabling all members to
prosper.