POLI 354 Lecture Notes - Lecture 21: Economic And Monetary Union Of The European Union, Neofunctionalism, Currency Union
13 May 2018
School
Department
Course
Professor
3rd$March$2018$Lecture$21-$Explaining$cooperation$in$the$EU$
!
Table$of$contents$
- Theories!of!integration$
o Several'theories-'differences'between'them'and'then'test'them-'which'theory'is'
better'suited'to'explain'the'decision'making'process$
- The!European!monetary!union$
- The!future!of!the!currency!union!–!macro'instability'that'the'ingle'currency'makes'in'the'
long'term'$
$
Topics$and$readings$(Third$Part)$
- IMF!conditionality:!Stone!(2004,2008)!and!Pop-Eloches!(2009)$
- Aid:!BdM!(207)!&!Smith!and!Dietrich!(2016)$
- WB:!Dreher!(2009)!et!al!&!!Aboubarb!and!Cingranelli!(2006)$
- EU:!Plumper!(2006)!and!Scimmelfennig!(2001)$
- Environmental!treaties:!Bechtel!and!Tousun!(2009)$
$
Tips$
- 3!from!the!second!part!and!3!from!the!first!part-!3!out!of!6!questions$
- need!to!know!the!readings!and!not!rely!on!the!slide$
- make!links!to!the!argument!addressed!in!the!first!part!of!the!course$
- use!examples!to!link!theories/argument!to!real-world!cases.!$
- strong!remuneration!if!you!say!what’s!wrong!with!an!argument!or!theory$
- look!at!the!questions!you!see!in!the!conferences$
$
Recap$
- Aid!allocation$
o Who!gets!foreign!aid!$
§ Use'the'selectorate'theory'to'see'why'democracies'attract'more'aid'than'
autocracies-'autocratic'regimes'are'a'safer'investment-'easier'to'buy'them'
to'get'policies'out'of'them.'donors'allocate'aid'to'buy'policies'and'leaders'in'
w'rely'on'private'goods-'cheaper'to'buy'them.'if'democracies'do'get'aid,'
then'thy'need'to'get'much'more'aid'to'be'able'to'provide'the'public'goods'
for'W$
o Which!donors!bypass?$
§ Donor'countries'that'give'how'corrupt'the'recipient'government'its-'more'
corrupted,'aid'is'more'like'rent-so'allocate'aid'though'other'actors$
§ Also'depends'on'degree'of'capitalism'in'countries-'provide'public'goods'
using'private'actors'because'it'is'more'efficient.'Domestic'actions'signal'how'
I'allocate'aid'to'other'countries.$
o WB!and!UNSC$
§ Having'seat'in'SC-'larger'aid'from'WB-'large'coutnires'are'able'to'convinve'
the'temporary'countries'to'apss'resolutions'that'are'in'line'with'their'
interests'and'in'exchange'they'use'their'power'in'the'WB'to'allocate'loans'to'
countries'that'comply'in'UNSC.$
o WB!and!human!rights'$
§ See'last'part'of'lecture'20$
$
Four$theories$of$integration$
- functionalism!$
- neo-functionalism!$
- intergovernmentalism!–!most'accepted'theory'for'integration'in'the'EU$
- supranational!institutionalism-!stresses'the'importance'of'institutions$
$
Functionalism$$(Mitrany$1933)$
- more'from'an'economic'point'of'view'rather'than'political.$
- Dominant!goals!of!actors:!peace!and!prosperity$
- Divisions!among!nations!may!be!solved!by!establishing!a!working!web!of!international!
functional!institutions!being!managed!by!technical!elites.$
o Technical'elites-main'actors'are'the'elites-'integration'process'is'driven'by'elites'and'
insulated'from'the'preferences'of'the'voters.$
- Process!of!integration!is!gradual.$
- Functional!cooperation!arises!in!the!low!politics!area!of!economics!and!social!life.!$
o Works'well'for'the'EU-'when'it'staretd'to'become'integrated-'the'first'area'that'was'
integrated'was'energy$
$
Neo-$Functionalism$(Haas$1958)$
- Builds'on'functionalism-'more'coherent'theory'$
- Premise:!it!assumes!the!decline!in!importance!of!nationalism!and!the!nation!state.$
o After'WW2-'realized'how'detrimental'nationalism'could'be'$
- Actors:!Interest!groups!and!political!parties!(below!the!nation-state).!Subnational,'elite'
actors-'no'emphasis'on'individual'preferences$
- Utilitarian!interest:!integration!is!profitable!from'an'economic'point'of'view-'no'integration'
to'spread'democracy'or'stop'war,'but'that'integration'would'improve'economic'
performances.'$
- Interest'groups-'forefront'of'integration-'way'EU'was'sold'was'that'it'was'economically'
profitable.'$
- Neo-functionalism!has!been!widely!used!to!explain!EU!integration.$
$
Neo-functionalism-$Process$
- Positive!spillover!effect!–!in'relation'to'EU-'not'from'country'to'country-'but'issue'area'to'
another-'see'the'benefits'in'one'industry'and'feel'that'it'would'benefit'other'sectors'too.'
Integrating'leads'to'better'profits'and'economic'benefits-'so'more'and'more'industries'
want'to'integrate$
- Energy'
à
'reduction'of'tariffs'
à
'free'movement'of'people''
à
'creation'of'one'currency-'sold'
to'maximize'welfare'of'countries$
- Transfer!in!domestic!allegiances-!from'nation'states'to'the'EU$
o Interest'groups'find'it'better'to'rely'on'supranational'agencies'rather'than'national'
governments-'firms'and'companies'lobby'more'and'more'in'bruseels-'because'
polsicies'at'the'supranational'level'have'more'benefits'$
- Technocratic!automaticity!–!because'things'go'well'in'economic'point'of'view-'regional'
integration'will'come'naturally'because'economically,'everything'is'good.$
o 'Democratic'deficit-'most'EU'was'built'with'an'elite'strategy'and'now'any'policy'
implemented'by'elites'is'a'bad'word$
o integration'was'without'asking'for'the'support'of'the'large'part'of'the'population'
who'wasn’t'involved'in'the'decision'making'process.$
Document Summary
3rd march 2018 lecture 21- explaining cooperation in the eu. Theories of integration: several theories- differences between them and then test them- which theory is better suited to explain the decision making process. The future of the currency union macro instability that the ingle currency makes in the long term. Aid: bdm (207) & smith and dietrich (2016) Wb: dreher (2009) et al & aboubarb and cingranelli (2006) 3 from the second part and 3 from the first part- 3 out of 6 questions. Need to know the readings and not rely on the slide. Make links to the argument addressed in the first part of the course. Use examples to link theories/argument to real-world cases. strong remuneration if you say what"s wrong with an argument or theory look at the questions you see in the conferences. Aid allocation: who gets foreign aid.
