WORLD ECONOMIC SYSTEMS

INTRODUCTION – WORLD ECONOMIC SYSTEMS

No nation operates in isolation of sister nations. Countries over the world must operate with one another. This is why countries establish embassies in other countries. They first establish cordial relationship or corporation with one another and the embassies operating under an ambassador ensures this cordial relation, maintain the desired level of cooperation in every nation of the world. Where cordial relationship or cooperation is broken, we often hear countries withdraw their ambassadors and their nationals from the country concerned.

Thus, the entire world population works a common socio-economic goal. Though the pattern of economic endowment is identical, they are well developed in some countries than in others. For example, agriculture is a natural economic development by all world populations; it is better developed in some countries than others. This could be due to several factors such as environmental – terrain, the soil, climate characteristics; or technological advancement, or the level at which the citizens  are engaged in agricultural production etc. Realizing the disparity in economic development, the level of production, and the will to work together in order to enhance economic prosperity and tackle problems affecting sister countries; regional countries now form themselves into economic blocks. These are referred to as World Economic Systems. These systems have been formed all over the world.

Examples of World Economic Systems

       i.      The economic Communities of West African States (ECOWAS): This embraces all countries within the West African sub-region and these countries formulate policies that will help each member country in the region to strengthen her economic base.  

     ii.      The African Union (AU): This is a continental economic block that brings together all countries in Africa. The goal is to help sister countries to improve their economic status and to help in solving other social problems.  

  iii.      The Latin America Economic System or SELA (Spanish Sarem Economic Latin Americano): An organization which has 28 member countries. This organization promotes cooperation between the 28 member countries in order to accelerate economic and social development, and to provide a forum for reaching agreement on international strategies. It represents member state in General Agreement on Tariffs and Trade (GATT) negotiations.

  iv.      The European Union (EU) which embraces all the European Countries. Under its canopy, they meet to take collective decisions that promote economic and social matters that affect member states i.e all the European countries.

         

The ongoing cooperation among Nigeria, Chad, Niger and Cameroon to wipe out activities of insurgencies explains the importance of such cooperation among countries.

Formation of Economic systems has brought tremendous progress in economic, social and political advancement among member states. Thus, all blocks continue to undertake researches, formulate new policies in order to come up with new strategies that help member states.

OBJECTIVES OF THE ECONOMIC SYSTEMS

Each of the Economic Systems outlined above, has its own set goals i.e. what it intends to achieve. The member states always draw out the objectives. These objectives are in most cases common among the economic systems. Some of the objectives are as follow:

       i.      To promote regional production and supplies of desired commodities especially in agriculture and energy.

     ii.      Creation of multinational enterprises that cover both exports and imports.

  iii.      To stimulate and encourage the processing of raw materials among member states and pooling negotiating capacity for capital goods and technology.

  iv.      To help in channeling financial resources towards priority projects among member states.

     v.      Facilitation of cooperation in the areas of transport, communication, tourism and environment.

  vi.      To encourage research and exchange of scientific and technical information.

vii.      To improve the development and use of man-power, education, scientific and cultural resources.

HOW TO ACHIEVE THESE SET OBJECTIVES

       i.      For each economic system, its member states should draw an agenda that ensure yearly conference in which representatives of all the states or countries meet to discuss issues of the interest to the group.

     ii.      The group sets up Action Committees that pursue each objective, and each committee members are carefully selected by taking note of people with special knowledge of tasks before them.

  iii.      Each Economic System tries to identify key areas that promote the economic status of each member state e.g. tariffs and trade. These two affect the movement of goods which are the backbone of the economic of each country. Member states try to look at these so that the goods can move freely within the region to areas they are needed. .

  iv.      Movement of people to be according to the way it is planned by the emigration department of each state. The suggestion that common identity cards be introduced is important. This is what the ECOWAS tries to do and such effort is recommended. It will help to easily identify nationals of the region in sister countries.

     v.      The area of education is also good. Member states look into this as it helps states solve the education needs of sister member states.  This will help qualified candidates to move to institutions of learning in sister states with less difficulties.

WHY WORLD COUNTRIES BRING UP IDEA OF ECONOMIC SYSTEMS

Countries of the world have been struggling to improve economic systems such as agriculture, mining, tourism, manufacturing, commerce, power and energy etc. some countries have advanced in some of these areas while others are still struggling to develop their own economic systems. Formation of the Economic systems is a sure way to help the weak countries to accelerate efforts in order to meet up with sister states.

Since the formation of the economic systems adopts regional inclination, and this is world wide, this helps to strengthen the economic system of every region so that resources are properly exploited for the benefit of the entire citizenry and governments of each country.