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Lecture 18

POL208Y1 Lecture Notes - Lecture 18: Economic And Monetary Union Of The European Union, Treaty Establishing A Constitution For Europe, Most Favoured Nation


Department
Political Science
Course Code
POL208Y1
Professor
Lilach Gilady
Lecture
18

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FUNCTIONALISM AND REGIONAL INTEGRATION
02.12.14
The Cinnamon Roll Controversy
The Danish take pride into their bakery
EU regulation that states how much cinnamon an adult should be allowed to
consume daily
- Can be toxic to liver
- EU clamped down on the Danish cinnamon rolls because amount of
cinnamon is too high
Can it still be called a cinnamon roll?
The Danish government did not define the cinnamon roll as traditional Danish
pastry and are therefore subject to the new EU regulations
Peace of Westphalia, 1648
No international entity above the state
- this is why we refer to structure of international system as anarchic
- Is this still the case today?
- Peace of Westphalia is a reminder of the redefinition of the European map
- Can we still refer to Europe as part of the Westphalian system?
- Why was the nation state the institution that was chosen as the victory
institution at the end of the 17th century.
Why the State?
- There were other alternatives: city-states, commercial alliances, empires,
feudalism…
- The state was successful:
oWar (tilly: states make wars, and war makes states)
oReducing transaction costs (Spruyt)
Most efficient institutions
Other actors saw how efficient it was
oEnhancing economic prosperity (Olson)
Best institution to enhance economic prosperity
Functionalism
- Explaining institutions thought the functions that they serve
oIf we can understand the role of the state, we can understand how to
reach political success
- The red rising hood rule
oWolf explains big eyes  so he can see better
Governing and Global Economy
- Border crossing (and domestic) economic interactions require a complex set
of institutions
- For example:
oMarkets
oRoads (states)
oCurrency
oBanks
oCourts
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FUNCTIONALISM AND REGIONAL INTEGRATION
02.12.14
oWTO, IMF, World Bank etc. …
- In fact: almost any cross-border cooperation requires some level of
governance and hence requires institutions
- Governance (and institutions) are important even under anarchy
oNot strong enough to be government but important to regulate
economy
oAllows us to have cross border activity
- Governance is possible under anarchy (in the absence of government)
oThere might be some value in moving beyond government
oInstitutionalization of governance systems
oCreation of a government that is beyond the state
oRegional arrangements moving from governance to government = a
new system different than the Westphalian system we know today
oGovernance is possible without government but must question if we
are moving far enough away we are creating a new form of
government
International Institutions
- Benefits: increased cooperation, stability, prosperity, the emergence of
governance
- Cost: decreased sovereignty, new dimensions of conflict, restricted ability of
governments to react to local needs and values as well as to rapid changes
and shocks, vulnerability to exploitation
- Moving anything internationally takes a long time
- Can we think of institutions/ organizations/ regimes as individual actors?
oDifference between a “Frankenstein” or “marionette” system
oMarionette  realist view
They only function when states want them to work  when
states no longer take care of the institutions  it collapses
State is the creator of the institution
oFrankenstein  neo-liberalist view, constructivist view to some extent
Once it is created it has a life of its own
It can have its own impact
Independent impact on International Relations
Explanations for European Integration
- Explaining the origin/ process/ outcome; external validity
- Security:
oA common enemy  cooperation
oPreventing another war in Europe
oUS interests
- Power:
oA decline in Europe’s power and influence (balancing)
oAgainst the rise of new super powers (US, SU)
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