LECTURE 6: MNG 3202 -

INTERNATIONAL BUSINESS

REGIONAL ORGANISATIONS
OUTLINE
• Learning Objectives

• What are Regional Organisations?

• Types of Regional Organisations & their functions

• Discussion of effectiveness/ineffectiveness/challenges faced by Regional Organisations

• Summary

• Conclude

• Questions
LEARNING OBJECTIVES

The specific objectives of this lecture are to:

1. Define what are Regional Organisations and discuss their roles in the modern era.

2. Examine how Regional Organisations have impacted the global, regional and other
environments.

3. Examine more common business related Regional Organisations and their functions.

4. Explain how changes in the actions of some Regional Organisations, over the years,
have impacted innovation, international trade and business; governmental functions,
developments and generally international economics.
WHAT ARE CROSS BORDER INSTITUTIONS ?
1.Definition:

Cross-border institutions refer to organizations or systems that operate across national boundaries. These
institutions facilitate cooperation, address global challenges, and transcend geographical limitations.

They are essential for addressing issues that are not confined by borders, such as the environment, public
health, and the flow of information.

Cross Borders institutions, also known as international intergovernmental organizations (IGOs), are groups or
associations that are made up of multiple countries and are formed to achieve specific goals or to address
common issues.

These organizations can be formal or informal, and they can be established through treaties or agreements
between countries.

Cross Borders institutions have a defined structure, membership and purpose.

They are usually established by formal agreements among governments, known as international treaties or
conventions.

They have a specific mandate and a defined structure, which usually includes a governing body, such as a
General Assembly, a Council or a Commission, and a Secretariat or Executive office responsible for carrying
out the organization’s functions.

They also have a defined membership, which can be composed of states, but also other entities like regional
organizations and international NGOs.
WHAT ARE REGIONAL ORGANISATIONS?

Regional organizations are groups or associations of countries that are formed to achieve specific goals or to
address common issues within a specific geographic region.

These organizations can be formal or informal, and they can be established through treaties or agreements
between countries.

Regional organizations are a type of international organizations whose operations are confined to a specific
geographical region.

Regional organizations have a defined structure, membership, and purpose.

They are usually established by formal agreements among governments, known as regional treaties or
conventions. They have a specific mandate and a defined structure, which usually includes a governing body,
such as a General Assembly, a Council or a Commission, and a Secretariat or Executive office responsible for
carrying out the organization’s functions.

They also have a defined membership, which is composed of countries within the specific region.
FUNCTIONS OF REGIONAL ORGANIZATIONS

Regional organizations can play a variety of roles in promoting regional cooperation and addressing common issues.
Some of the main functions of regional organizations include:

1. Facilitating cooperation and coordination on issues of common concern: Regional organizations can provide a
platform for member states to work together and coordinate their efforts on issues such as trade, security, and
environmental protection.

2. Providing a platform for dialogue and negotiation: Regional organizations can provide a forum for member states
to engage in dialogue and negotiations on issues of common concern. This can help to build trust and improve
relations among member states.

3. Developing and promoting regional norms, standards, and policies: Regional organizations can develop and
promote regional norms, standards, and policies on issues such as human rights, democracy, and the rule of law.

4. Providing technical assistance and capacity-building: Regional organizations can provide technical assistance
and capacity-building to member states to help them improve their governance and address issues such as
poverty and inequality.

5. Conducting research and collecting information: Regional organizations can conduct research and collect
information on regional issues to help inform policy decisions and support the work of member states.

6. Facilitating trade and economic integration: Regional organizations can facilitate trade and economic
integration among member states, and promote cooperation on issues such as trade, investment, and
infrastructure development.

7. Enforcing peace and security: Regional organizations can enforce peace and security among its member states
by providing peacekeeping forces, settling disputes and promoting political stability.

8. Promoting human rights and democracy: Regional organizations can promote human rights and democracy
among its member states by providing support to civil society groups and monitoring human rights abuses.
TYPES OF REGIONAL ORGANIZATIONS
THERE are several types of regional organizations, each with its own specific mandate and goals. Some of the main types of regional
organizations include:

1. Economic Regional Organizations: These organizations focus on promoting economic integration and cooperation among member
states. Examples include:

• The European Union (EU) which aims to create a single market and a single currency among member states and to promote
economic cooperation and integration. The EU also aims to create a level playing field for businesses and to promote
sustainable development.

• The Association of Southeast Asian Nations (ASEAN) which aims to promote economic cooperation and integration among
member states in Southeast Asia. ASEAN also aims to promote regional stability and security and to address issues such as
transnational crime and terrorism.

• The Union of South American Nations (UNASUR) which aims to promote economic integration and cooperation among
member states in South America. UNASUR also aims to promote regional stability and security and to address issues such
as transnational crime and terrorism.

2. Political and Security Regional Organizations: These organizations focus on promoting political and security cooperation among
member states. Examples include:

• The African Union (AU) which aims to promote peace, security, and stability in Africa. The AU also aims to promote political
cooperation and integration among member states and to address issues such as conflict resolution and human rights.

• The Organization of American States (OAS) which aims to promote political cooperation and integration among member
states in the Americas. The OAS also aims to promote democracy, human rights and economic development.

• The Gulf Cooperation Council (GCC) which aims to promote political and security cooperation among member states in the
Gulf region. The GCC also aims to promote economic cooperation and to address issues such as transnational crime and
terrorism.
3. Environmental Regional Organizations: These organizations focus on environmental protection and conservation
within a specific region. Examples include:

• The Arctic Council which aims to promote environmental protection and sustainable development in the Arctic
region. The Arctic Council also aims to address issues such as climate change and the impact of human
activities on the Arctic environment.

• The Antarctic Treaty System which aims to preserve the Antarctic environment and protect its unique
ecosystem. The Antarctic Treaty also aims to promote scientific research and to address issues such as the
conservation of Antarctic marine living resources.
4. Humanitarian and Development Regional Organizations: These organizations focus on addressing humanitarian and
development issues within a specific region. Examples include:

• The International Committee of the Red Cross (ICRC) which aims to protect and assist victims of armed
conflicts and other situations of violence. The ICRC also aims to promote humanitarian law and to address
issues such as the protection of prisoners of war and the treatment of civilians in armed conflicts.

• The United Nations Development Programme (UNDP) which aims to promote sustainable human development
by working with countries to eradicate poverty, reduce inequality, and protect the environment. The UNDP also
aims to promote gender equality and to address issues such as disaster risk reduction and climate change.

5. Cultural Regional Organizations: These organizations focus on promoting cultural cooperation and understanding
among member states. Examples include:

• The Organization of Islamic Cooperation (OIC) which aims to promote cooperation and understanding among
the Muslim countries. The OIC also aims to address issues such as the protection of human rights and the
promotion of economic and cultural cooperation among member states.

• The Union Latine which aims to promote cultural cooperation and understanding among the Latin American
countries. The Union Latine also aims to promote the use of the Spanish and Portuguese languages, and to
address issues such as education and cultural heritage.
LIMITATIONS OF REGIONAL ORGANIZATIONS

Regional organizations can have a number of limitations that can affect their ability to achieve their goals and fulfill
their mandates. Some of the main limitations of regional organizations include:

1. Limited membership: Regional organizations typically have a defined membership, and only countries within a
specific region are eligible to join. This can limit the organization’s ability to address issues that affect countries
outside of the region.

2. Limited resources: Regional organizations often have limited resources, including funding, personnel, and
expertise. This can limit their ability to carry out their functions and achieve their goals.

3. Lack of enforcement power: Regional organizations often lack the power to enforce their decisions and policies,
and rely on member states to comply voluntarily. This can limit their ability to achieve their goals and enforce their
mandates.

4. Limited mandate: Regional organizations may have a limited mandate and may only be able to address specific
issues within a specific region. This can limit their ability to address broader issues that affect multiple regions.

5. Lack of political will: Regional organizations rely on the cooperation and support of member states to achieve
their goals. If member states lack political will to support the organization’s goals, the organization may be unable
to achieve its objectives.

6. Limited participation: Some member countries may not participate fully in the activities of the organization,
which can limit its effectiveness.

7. Conflicting interests: Regional organizations may have to deal with conflicting interests among member states,
which can make it difficult to reach consensus and achieve their goals.

8. Dependence on external support: Some regional organizations may be dependent on external support from
countries outside of the region, which can affect their ability to operate independently.
6. Regional Security Organizations: Security organizations are regional organizations that focus on
promoting peace and security within a specific region. Their main function is to prevent and resolve
conflicts, maintain peace and stability, and promote cooperation among member countries. Examples
include:

• The Economic Community of West African States (ECOWAS) which is a regional organization that
promotes economic integration and political stability in West Africa.

• The Organization for Security and Co-operation in Europe (OSCE) which is a regional organization
that promotes political stability, human rights, and economic cooperation in Europe and Central
Asia.

• NATO (North Atlantic Treaty Organization) is a security organization that focuses on promoting
peace and security within the Euro-Atlantic region. It is a military alliance of 30 member
countries, primarily from Europe and North America. The main function of NATO is to prevent and
resolve conflicts, maintain peace and stability, and promote cooperation among member
countries.
Some examples of regional organizations include:

1. the European Union (EU),

2. the African Union (AU),
3. the Organization of American States (OAS),
4. the Association of Southeast Asian Nations (ASEAN),
5. the Gulf Cooperation Council (GCC), and
6. the Union for the Mediterranean (UfM), among others.

Each of these organizations serves a specific purpose, such as:

1. promoting economic integration,

2. improving regional security,
3. promoting human rights and democracy, and
4. addressing environmental and humanitarian issues.
Video on the NORTH ATLANTIC TREATY ORGANISATION – Not included
The Central American Parliament (PARLACEN) consists of representatives from five member countries within
the Central American Integration System (SICA). These countries are:
1.Guatemala
2.El Salvador
3.Honduras
4.Nicaragua
5.Costa Rica

The Central American Parliament, also known as PARLACEN, is the political institution and parliamentary body
of the Central American Integration System (SICA). These nations collaborate to address regional issues and
promote cooperation.

Its headquarters are situated in Guatemala City1. This organization plays a crucial role in promoting regional
cooperation and integration among the Central American countries. If you ever find yourself in Guatemala City,
you might want to pay a visit to this significant institution!

PARLACEN, the Central American Parliament, convenes twice a year to discuss regional matters, foster
cooperation, and promote integration among its member countries.

During these sessions, representatives from Guatemala, El Salvador, Honduras, Nicaragua, and Costa
Rica come together to address shared challenges and collaborate on initiatives.
Video on the Pacific Alliance Economic Trading Bloc – Not included
Video on MERCOSUR Trading Bloc - Not included
Video on the ARAB LEAGUE – Not Included
Video on the SOUTHERN AFRICAN DEVELOPMENT COMMUNITY - Not included
Video on the SHANGHAI COOPERATION ORGANISATION - Not Included
Video on ASEAN – Not Included
GROUPINGS OF ALMOST ALL NATIONS ON THE CONTINENTS
Association of Asia/ Pacific Region
Video on the APEC 2023 Conference – San Francisco - Not Included
Video on the ORGANISATION OF AMERICAN STATES - Not Included
Video on the EUROPEAN COUNCIL - Not Included
Video on the EUROPEAN UNION – Not Included
PACIFIC ISLANDS FORUM
Video on CARICOM - Not Included
Video on the RED CROSS - Not Included
Video on the RED CROSS (Origin) - Not Included
Video on the Organisation of Petroleum Exporting Countries -- Not Included
THE ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

The Organisation for Economic Co-operation and Development (OECD; is an intergovernmental

organisation with 38 member countries. It was founded in 1961 to stimulate economic progress and world
trade.

It is a forum whose member countries describe themselves as committed to democracy and the market
economy, providing a platform to compare policy experiences, seek answers to common problems, identify
good practices, and coordinate domestic and international policies of its members.

The majority of OECD Members are high-income economies ranked as "very high" in the Human Development
Index, and are regarded as developed countries.

Their collective population is 1.38 billion.

As of 2017, OECD Member countries collectively comprised 62.2% of global nominal GDP (USD 49.6 trillion) and
42.8% of global GDP (Int$54.2 trillion) at purchasing power parity.

The OECD is an official United Nations observer.

DISCUSSION ON CROSS BORDER INSTITUTIONS

HOW EFFECTIVE HAVE THEY BEEN?

FUTURE IMPACTS?

- NATO - CENTRAL AMERICAN PARLIAMENT

- PACIFIC ALLIANCE - MERCOSUR

- ARAB LEAGUE - SOUTHERN AFRICAN DEVELOPMENTAL COMMUNITY

- ASEAN - SHANGHAI COOPERATION ORGANIZATION

- APEC - OAS

- PACIFIC FORUM - EUROPEAN COUNCIL & UNION

- CARICOM - OPEC

- OECD - RED CROSS/ RED CRESCENT

SUMMARY
CONCLUSION
QUESTIONS