The Economic Blocs and the Trade Blocs

  • Print Article |
  • Send to a Friend |
  • |
  • Add to Google |

(1) The Introduction:

Are the economic blocs different from the trade blocs?

(2) The Exposition:

1.  The Economic Blocs:

The Economic blocs are the blocks or the groups of countries based on the type of their economies. This classification is for the academic purposes. The countries grouped in a particular economic block need not necessarily have a commonly agreed upon agenda/treaties of the international trade. This classification indeed is more of an intellectual exercise rather than a clearly visible phenomenon. Of course, at times, it may become an operational one such as the Organization of the Petroleum Exporting Countries (OPEC).

For example, the communist countries like China and the North Korea are categorized under the caption "the Centrally Planned Economic Bloc, since these countries have the similar type of the communist economy where the means of the production are as a rule controlled by the State or the central government. This economic bloc is characterized by a general lack of the full free movement of the international trade.

Similarly, the capitalist countries like the USA and the UK are categorized under the caption "the Developed Economic Bloc", since these countries have the similar type of the capitalist economy where the means of the production are as a rule controlled by the individuals or the groups of individuals and not by the State or the central government. This economic bloc is characterized by the presence of the near-full and the free movement of international trade. It is called the developed one because the countries of this block have nearly achieved the desired level of the economic development.

Likewise, the countries like India and Pakistan are categorized under the caption "the Developing Economic Bloc", since these countries have the similar type of the developing economy where the desired level of the economic development has still not been reached. The economic development is going on in these countries.

Also, the countries rich in the oil like Iraq and Kuwait are categorized under the caption "the OPEC Economic Bloc", since these countries have an altogether different type of the economy where the desired level of the economic development has still not been reached despite an extremely high level of the national income. The economic development is going on in these countries. Sometimes, this bloc is not treated separately and is taken to be a part of the "Developing Economic bloc."                       

                                                       % Share of the World-Trade

Economic   Blocs

1938

1972

1980

2000

Developed

69.6

-

75.1

  75.7

Developing

23.0

-

16.0

 

  20.00

OPEC

-

6.6

 

Centrally planned

7.4

-

 8.9

    4.3

World

100.00

 

100.00

 100.00

2.  The Trade Blocs:

These are the blocs or the groups of the countries based upon the mutually agreed upon agenda/treaties of the international trade for the common benefit of the member countries. A trade bloc is characterized by the presence of a common administrative structure for supervision of its functioning, obligations of the membership like the adherence to the certain stated aims of the trade bloc such as the political, the economic and the monetary union.

For example, the European Union (EU) is a trade block. The EU had 15 countries as its members in the year 2002 A.D.

Rate this Article:
  • Article Word Count: 495
  • |
  • Total Views: 1802
  • |
  • permalink
  • Print Article |
  • Send to a Friend |
  • |
  • Add to Google |
>