International & Regional Organizations

SARFRAZ HUSSAIN ANSARI (CSP)

34th Common- PA&AS
Director Finance
MBA (Int. Fin) - UIBE Business School, Beijing
[Link] Pub. Adm. (Pub. Fin) - QAU Islamabad
Fellow Pakistan Institute of Public Finance &
Accountancy
SAP-FI Certified, Certified Performance Auditor
Current Affairs & Pakistan Affairs
REGIONAL &
GLOBAL ORGANIZATIONS

NOA-Sarfraz Hussain Ansari 2

 Multilateralism for Regional & Global Cooperation
Globalism---IGOs
Regionalism: Regional Organizations
• SAARC
International Political Order
• ECO Lecture-1 • LoN
• SCO • UN Lecture-4

• ICJ
• EU
• NAFTA Lecture-2
International Economic
• ASEAN Order
• World Bank
• OIC • IMF Lecture-5
• Gulf Cooperation Lecture-3 • WTO
Council
• Arab League NOA-Sarfraz Hussain Ansari 3
 Sources of Study
• My Lectures
• Official Websites of
these Organizations
• CSS Five Year Papers
• Watch BBC ‘Outside
Source’ Aljazera and
DW

NOA-Sarfraz Hussain Ansari 4

 Regional Integration and Regionalism
• Regionalism
– the theory and practice of regional rather than
national systems of administration or economic, or
socio-cultural, or political affiliation.
• Regional Cooperation Organizations
– EU
– ASEAN
– NAFTA

NOA-Sarfraz Hussain Ansari 5

 Outline
• Introduction
– Background
– Brief History (Genesis)
– Members (and membership criteria)
• Charter, Objectives, Principles
• Structure
• Functions
• Issues and Challenges
– Geo-Strategic, Geo-Economic, ideological, trade, cultural etc
– Latest/current developments
• Future Prospects
• Recommendations
• Conclusion NOA-Sarfraz Hussain Ansari 6
 [Link]
[Link]/NEWS/Brexit

Regional Organizations
THE EUROPEAN UNION
[Link] RISE OF EU AND ITS IMPACT ON THE REGION, THE
WORLD, AND PAKISTAN
[Link] BREXIT? ITS CAUSES & CONSEQUENCES
[Link]: THE FUTURE…….THE ROAD OF EUROPEAN
INTEGRATION WILL NOT BE SMOOTH
 Russia

e
Ukrain

ck Sea
Bla

e
Turkiy
History (Factors which led to the creation of EU)
• Post War Europe need for Reconstruction and
Development demanded cooperation
• US Aid for Europe’s Recovery-the US$ 17 Bil. Marshal
Plan
• Leadership and European Idealism
– Churchill while addressing in Zurich University in 1945 called
for a ‘United States of Europe’
– The Schuman Declaration of 9 May, 1950
– French Foreign Minister Robert Schuman proposed the creation of a European
Coal and Steel Community

• The USSR at the gates of Western Europe

– NATO
• Cold War divided the world into two blocks
 Genesis
• The EU traces its origins to
1. the European Coal and Steel Community (ECSC)- by
the 1951 Treaty of Paris, which converted to,

2. the European Economic Community (EEC)-

1957 Treaty of Rome.
– the Inner Six signed a customs union (EEC).
– The original members of the European Community were;
– the Inner Six:
• Belgium, France, Italy, Luxembourg, the Netherlands,
and West Germany.
 Treaty of Rome (1957–92)
– The Treaty came into force in
1958 • It created
– In 1979, the first direct – A Council of Ministers
elections to the European – A Commission
Parliament held – A Parliament
– In 1986, the Single
– A Court
European Act was signed for;
• Elimination of customs
• "a first step in the federation
• A single banking market of Europe“
• A uniform VAT Britain’s skepticism about EEC
• A Common Agri. Policy led her to form EFTA in 1959.
• A common environment policy -a parallel Block but ended with UK
and other EFTA countries joined EEC in
1973
Inner Six: EEC the “Outer Seven": EFTA
• Belgium, • Austria,
• France, • Denmark,
• Italy, • Norway,
• Luxembourg, • Portugal,
• the Netherlands, and • Sweden
• West Germany. • Switzerland and
• the United Kingdom
3. Maastricht Treaty (1992–2007)- the EU
• the Maastricht Treaty came into force on 1 November 1993
– The European Union was formally established as a single market
– In 2002- EU Monetary Union and Central Bank
• euro banknotes and coins replaced national currencies in 12 of the
member states.
• Since then, the euro-zone has increased to 19 countries.
4. Lisbon Treaty (2007–present)-it established
– a Constitution of Europe and EU System
– ratified all previous Treaties
– Introduced more centralized EU system and EU Foreign Policy
– EU Defense and Security
 In 1986, Lisbon Treaty
1951 Treaty the Single (2007)
of Paris European Act
Economic Customs Monetary Political
Trade Union
Union Union Union Union
In 2002- EU
1957 Treaty
Monetary
of Rome
Union

Economic Monetary
• Free trade of goods and Cooperation • Common Customs laws Union • Single Constitution
commodities • Imports export regime • Sovereign Parliament
• Trade laws and rules • Trade of all economic • Single Currency
• TAX system • common Election
uniform goods and services • Central Bank
• Common Market • Credit system
• Common financial
system
Trade Customs
Political Union
Cooperation Union
 EU: Membership Criteria
The Union shall be open to all European States which respect its values .

Becoming a member of the EU is a complex procedure.

Copenhagen Criteria • Geographic Factors

– a free-market • Political Factors
economy – Democracy
– a stable democracy – Rule of law
– the rule of law – Human rights
– the acceptance of all – Protection of minorities
EU legislation • Economic Factors
– capitalism
 The European Union (EU) System
• Political and economic union of 27 member
states of Europe

• The EU has developed an internal single

market

• EU policies aim to ensure

– Free movement of people, goods, services and
capital
– Enact legislation in justice and home affairs; and
– Maintain common policies
 Structure

EU
Political & Economic Union

European Council Of The European European Court Of Justice Of

European European
Parliament European Union Council Commission The European Central Court Of
Union
Bank Auditors
Limited
Scrutinize Executive Full The
Controls The EU
Interpretation
and Amend Scrutinize
Authority Executive And The monetary Budget Is
Legislation Authority Application Of policy of Scrutinized
Legislation EU Law And the
The Treaties Eurozone

Legislative Executive
Judicial

Legislate in matters of Make EU policies, programs

exclusive and shared and projects. Propose bills
sovereignty and amendments. Prepare
budgets
 Elected Heads
of States/Govt.
set overall Executives.-
direction and Guardian of
Policies of EU the Treaties

National
Ministers of
each country

Direct Elections
every 5 years

Organogram of the political system with the seven institutions of the Union in blue, national /
intergovernmental elements in orange
CRITICAL ANALYSIS
 Fault Lines Of EU Integration:

1. Political • The Europe’s East-West

2. Economic Divide
3. Monetary – is more political and
4. Cultural cultural
5. Demographic • The Europe’s North-
6. Regional and Global South Divide
– Is more economic than
Dynamics
political and cultural
 The Politics of Control
• The British were skeptical of a fully integrated
economic and monetary union from the start
– Britain questioned the control of her currency by Euro.
Bank and retained the option to ‘opt out’ of EU

• The Maastricht Criteria is difficult to meet for the

member countries for controlling/reducing their;
– Inflation
– budget deficits
– public debt, and
– Subsidies
• Germany asserts EU to follow low inflation policies
Economic Fault Lines: Euro Bank
• The autonomy of European Central Bank
• Maintaining a stable Euro was another
challenge
• Britain fears loosing sovereignty to a
continental institution
• The admission of new members from
Eastern Europe raises additional concerns
both economic and political
Share of Total Contribution to the EU Budget
 Demographic and Cultural
• Major EU countries have witnessed
changes in their population mix
– Elderly population on the rise
– Immigrants from former colonies
– Former Socialist outlook of eastern
Europe
– Refugees from troubled regions
– The rise of ultra Rightists in Europe
 Regional & Global Factors
• NATO’s expansion • Terrorism & Islamophobia
• Russia-Ukraine War • Rise of other Regional
• EU energy supplies Organizations as a
• EU Food Security challenge to the
domination of the West in
• Climate Crisis
world politics
• Terrorism and
• China’s BRI and
Extremism is rising in
Involvement in the Middle
EU
East and Eastern Europe
• Climate Crisis
BREXIT
 Referendum: What was the breakdown across
the UK?
JUNE 23, 2016:Overall To Leave
Result • England voted for Brexit, by
53.4% to 46.6%.
• Wales also voted for Brexit, by
52.5% to 47.5%.

To Remain
• Scotland and Northern
Ireland.
– Scotland backed Remain by 62%
to 38%,
– Northern Ireland by 55.8% to
44.2%
 Why BREXIT?
• Social and demographic changes in UK.
• Political traditions and UK’s historical role as
dominant player in the European affairs.
• Englishmen are proud of their traditions,
sovereignty and political independence.
• Changes in voting patterns in UK
– Rise of the educated middle class
• Increasing control of EU Parliament, EU Court
of Justice, EU Central Bank
• Rising financial obligations
• For the UK to leave the EU it invoked Article 50
of the Lisbon Treaty
• Theresa May triggered this process on 29
March, 2017
• the UK has left the EU on 31/01/2020
– Transitional period till 31/12/2020 for a deal
– The Deal has bee done on Christmas

A SOFT BREXIT will be HARD enough to implement:

Determines UK’s future relations with EU under certain
terms and agreements
• From 1 January, 2021, the free movement of
people and goods and services between the
UK and the EU have ended.
• This means significant differences to how
people live, work and travel.
£550bn of trade between the UK and
its nearest trading partner.
Brexit Impact
• The UK exported
£291bn of goods and
services to other EU
countries in 2018,
which was 45% of all UK
exports.
• It imported £357bn of
goods and services from
the EU, which was 53%
of all UK imports.
 UK’s Options outside EU
• Looking Beyond Europe
– Trade and strategic ties with USA and Japan
– New emerging markets and trade blocks
– Commonwealth counties
– WTO Trade
– AUKUS Deal
 Pakistan and EU
• The EU-Pakistan: 21.2 percent
of Pakistan’s total exports. Pakistan’s Exports

• Pakistan was awarded the

Generalized System of
Preferences Plus (GSP) in
2013.
– EU is Pakistan’s 2nd Largest
trade partner
– Pakistan trade with EU is at
$5.5 Billion in 2020
• EU Parliament has passed a
bill to end GSP-Plus status of
Pakistan on 30.04.21

94% of Pakistan’s exports concentrate only 7 sectors of products.

• Challenges for Pakistan:
– Less diversified economy
– High cost of production.
– Less competitiveness in international markets.
– Volatile prices of raw materials.
– Difficulty in achieving the required market
standards
– To implement and maintain the 27 conventions set
by EU.
 The Future…….
• The raising of EU Defense Force
– The EU has no standing army, so relies on ad hoc forces contributed by
EU countries.
– USA may withdraw from Europe’s collective defense
– NATO may disintegrate
• Rise of Russia and Trans-European Gas Pipeline
– USA has shown reservations and may apply sanctions on Russia
• EU opposes US move
– Can Russia join EU? Or Sino-Russian ties will put EU on toes against
Russia
• EU eastward expansion…….
• Turkey: will it subdue to EU demands for membership or adopt a
divergent path?
• Keeping the EU members intact---a big challenge
• EU foreign policy and world affairs
– Israel-Palestine
– Refugees influx in EU
– Counter Terrorism
– EU & OIC
 Likely Questions
• 1. Why Brexit? It’s causes & Consequences

• [Link]: the Future…….the road of European

future integration will not be smooth

• 3. the rise of EU and its impact on the region,

the world, and Pakistan
• Association of Southeast Asian Nations
• v

Ma
la
Stra cca
it
 History: The Founding of ASEAN
• 31 July 1961-the Association of Southeast Asia (ASA)
– a group consisting of
• the Philippines
• the Federation of Malaya, and
• Thailand.
• 8 August 1967– the Foreign Ministers of Indonesia,
Malaysia, the Philippines, Singapore and Thailand –
signed the ASEAN Declaration.

• ASEAN has evolved as the most successful inter-

governmental organization in the developing world
today.
 ASEAN
• Ten countries in Southeast Asia (Asia Pacific)
• promotes intergovernmental cooperation
• Headquarters: Jakarta, Indonesia
• Founded: August 8, 1967
• the ASEAN Plus Three, consisting of ASEAN,
China, Japan and South Korea, was created in
1997.
• The group became ASEAN Plus Six
with Australia, New Zealand and India in 2013
 Asia-Pacific

Indo-Pacific
 ASEAN-Aims
• The aims and purposes;
– Cooperation in the economic, social, cultural,
technical, educational and other fields
– Promotion of regional peace and stability
– Respect for justice and the rule of law
– Adherence to the principles of the UN Charter.
• It stipulated that the Association would be
open for participation by all States in the
Southeast Asian region subscribing to its aims,
principles and purposes
Membership Criteria
 Structure
1. The ASEAN SUMMIT-heads of States or Govt
– supreme policy making body
– Meetings held twice annually
2. ASEAN Coordinating Council of Foreign Ministers- implements
decisions and agreements of the Summit
3. ASEAN Committee of Permanent Representatives
4. ASEAN Secretariat
5. ASEAN Sectoral Ministerial Bodies
6. ASEAN Community Councils
I. ASEAN Political-Security Community Council
II. ASEAN Economic Community Council
III. ASEAN Socio-Cultural Community Council

(The Secretary-General: H.E. Dato Lim Jock Hoi from Brunei Darussalam.)
 WEF
• 630 million people and economic
growth averaging 5% per annum
• The Future
 The ASEAN New Charter
• 15 December 2008-member states met
in Jakarta
– launch a charter (signed in November 2007)
• with the aim of moving closer to
– "an EU-style community".
• Create a single free-trade area for the region
of 630 million people.
 ASEAN Economic Community
• On 20 November 2007, during the 13th ASEAN Summit in
Singapore, its blueprint was adopted

• aims to "implement economic integration initiatives"

– the declaration of the ASEAN Economic Community during the 27th

ASEAN Summit in Kuala Lumpur, 2015
– to create a single market across ASEAN member states.
– An EU-style system is emerging in ASEAN region
ASEAN Community Councils
I. ASEAN Political-Security Community Council
II. ASEAN Economic Community Council
III. ASEAN Socio-Cultural Community Council

• ASEAN will rise globally as one market

 Geo-Strategic Dynamics of ASEAN Region
• The influence and presence of the US in the ASEAN region
and the rise of China
– Sino-Russia ties
– Sino-US rivalry

• BRI and the US investments in ASEAN countries

• SCO and ASEAN may collaborate for regional security

• Rising influence of India both in ASEAN and SCO-options for

Pakistan
– The emerging ‘Asian Order’
• Can Pakistan become a member?
Options for ASEAN and New Regional Alignments
• Alignment Under China
– Russia, North Korea, Pakistan, Iran

• Alignment Under USA

– Japan, South Korea, Taiwan, Australia,
India

• QUAD-4 & AUKUS alliances in the

Indian Ocean
These alignments and factor have their impact on ASEAN
Regional Connectivity: Belt and Road Initiative Map

NOA-Sarfraz Hussain Ansari 76

NOA-Sarfraz Hussain Ansari 78
 Looking Beyond ASEAN
• It also engages other countries in the Asia-
Pacific region and beyond.
– As a major partner of Shanghai Cooperation
Organization,
– ASEAN maintains a global network of alliances
and dialogue partners
– APEC-Asia Pacific Economic Cooperation:
converted into CEPA
– QUAD-4-----Quadrilateral Strategic Cooperation in
the Indo-Pacific among USA-India-Japan-Australia
– AUKUS
 Conclusion
• The complete political, cultural and economic
integration is a long road to traverse for the ASEAN
members due to;
– Diverse political systems
– Types of governments
– Various religions
– Borders and islands’ control issues
– Poverty, crime and weak rule of law
– Evolving regional institutions of ASEAN
– Economic Restructuring & Capacity issues
– Changing regional dynamics
 ASEAN Future Challenges
• Geo-political and Strategic
• The Taiwan Question and ‘One China’ Policy
• The Korean Question and Nuclear Flash Point in the Asia-Pacific
• The South China Sea Islands’ Sovereignty Question
• Presence of US as protectorate of Japan, South Korea, Philippines……
• Economic
• Needs capital and modern technology
• Needs to improve quality of their population
• Population control
• Converting manufacturing economy to services and high-tech economy
• Monetary and Banking System- A Remote Possibility
• Regional Organizations-To Cooperate or Not To Cooperate
• SCO
• CEPA
• SAARC
NAFTA
NORTH AMERICA FREE TRADE
AGREEMENT
 “It was on Oct. 7, 1992, under an old oak tree in
downtown San Antonio that Mexican President Carlos
Salinas, U.S. President George Herbert Walker Bush and
Canadian Prime Minister Brian Mulroney signed the
historic treaty that dropped trade barriers on the
 What is
•

•
NAFTA?
NAFTA-“North American Free Trade Agreement”.

an agreement between the countries of North America:

Canada, United States, & Mexico.

• NAFTA was signed in 1993 and went into effect on

January 1st, 1994.

• NAFTA to create a Free Trade Area in North America

• It eliminates only internal trade barriers
between the three member countries

• It does not set barriers with other states, nor

does it create supranational economic or
political institutions
 NAFTA: Raison d’etre
• The purpose of the agreement is to:
• Allow free movement of goods and services
• Promote competition in the free trade areas.
• Protect the IPRs
• Dispute Resolution that arise among the member
countries.
• Encourage cooperation among member countries.
• The agreement opened the door for
– free trade,
– ending tariffs on various goods and services, and
– equality between Canada, USA, and Mexico.
 NAFTA’s
ISSUES & CHALLENGES
 Supporters of NAFTA
• free trade would create jobs and lower consumer
prices
• Also tax, environment and labor protection laws
would benefit Mexico more in the longer run
• makes Mexican products more competitive in
NAFTA region
• Opportunity to explore future trade potential

• Looking beyond NAFTA

 Issues
• Free trade has caused more U.S. job
losses especially for higher-wage jobs.
• American factories shifted to
Mexico due to;
• Fewer labor regulations in
Mexico,
• Mexico weak environmental
regulations
• Some argue that borders
should be open like the EU.
 NAFTA Today
• NAFTA now links over 450 million people producing $17 trillion
worth of goods and services.
• It has met many of its goals:
• It created jobs in Mexico and helped build up Mexico's middle
class.
• Trade between US, Mexico, & Canada has more than tripled
since 1994.

NAFTA still has its problems.

• Small farmers in Mexico were put out of business by cheap U.S.
agricultural exports.
• They were forced to move to bigger cities, adding to poverty,
pollution, overcrowding, and illegal immigration to the U.S.
• The population of illegal immigrants in the U.S. in 1990 was 2
million, now it's around 11 million.
• There is major pollution in the emerging cities in Mexico
• The Mexican Wall
Employees work at an American-owned factory located
 Controversy over NAFTA
• NAFTA is an agreement integrating First and
Third World economies.

• The debate against NAFTA and Mexico is still

going on

• US objects antidemocratic practices of Mexico

• The overall impact of NAFTA has been modest

 Trump’s campaign
• Trump calls NAFTA "the worst trade deal" ever
signed by the US.
– wiping out US manufacturing jobs
– Unemployment in bordering US states particularly
• Blue-collar workers and college dropouts are the most
affected
– Human and drug trafficking-so the Mexican Wall

• NAFTA –renegotiating terms and conditions

 Renegotiations-6 Points
1. Auto companies should manufacture 75 % parts in US, Canada or Maxico
(it’s 62.5%)

2. Canada should open up dairy market

3. More strict IPRs

4. U.S. drug companies can sell products in Canada for 10 years before facing
generic competition. It was eight years under NAFTA

5. Mexican trucks must meet U.S. road safety standards before crossing the
border

6. US demands guarantee for her oil companies regarding dispute resolution

 The Future of NAFTA
• Making NAFTA a Free Trade Area of the Americas
(FTAA)
– US opposed Chile's membership
– However, the trade volume between members has
continued to grow (Aprox. US $ 1.02 Tril)
• It has also promoted work specialization and trade
in components/parts manufacturing
• The Mexican Wall- exchange of hot words between
leaders
• Crisis in Venezuela
• Drug and human trafficking
• THANKS