Theory of Regional Economic Integration

Assalaamu'alaikum wa rahmatullah

Economic Theories of Regional Integration

We have four pages of readings here and it is written by Alexis Iche. The agreement in Treaties of Rome 1957 on the premise of economic integration could be channeled for a political aim as to keep people in the Union more closer. In theory, economic benefits from regional economic integration would convince the citizens of Europe that deeper political links between member states would receive similar benefits. In order to analyze the economic rationale behind EU programmes such as the Single Market Programme (SMP) or Economic and Monetary Union (EMU), one needs to understand fundamental concepts and theories used to justify regional economic integration and problems associated with theories.      

Types of Integration

This was outlined by Dutch economist, Jan Tinbergen (1954). He outlines two distinct types of economic integration:

1. Negative Integration

Elimination of obstacles to the free movement of goods and factors of production (FOP). Example is the removal of tariff barriers such as quotas or non-tariff barriers such as differing standards between member states.

2. Positive Integration

The replacement of various national rules with one set of EU rules. Adoption of common policies. Example such as Common Commercial Policy (CCP).

Stages of Economic Integration

Regional economic integration is a gradual process. It exists in several forms. Economist such as Bela Balassa (1950) defined it as the progresses through various stages as it moves towards more integration. Example is EU itself as it developed from from a Free Trade Area (FTA) toward a full economic and monetary union. Integration is an ongoing process. It has its own in-built momentum. Each further step creates problems that can be solved only by deeper regional integration. This phenomenon is also known as spillover.    

Stage One - Free Trade Area

It is exclusively focused on trade in goods while services, labor and capital remained restricted. Tariffs i.e import taxes imposed on foreign goods are abolished within the group. Each members of this area keeps its own external tariffs policy toward the rest of the world. Such example is North American Free Trade Area (NAFTA).  

Problem is that in an FTA, member country keeps its own external tariff on goods from outside the area. Once these goods are inside the area, they can move freely around without any tariff. Example, in an FTA between Sweden and Finland, if Sweden has lower tariff than Finland on product or good such as coffee, companies in Finland will import coffee through Sweden in order to pay lower tariffs.

Solution as to avoid this condition, the FTA needs to move into a customs union with a common external tariff (CET).    

Stage Two- Customs Union

It is exclusively focused on trade in goods while services, labor and capital still remained restricted. Tariffs are abolished within the group. A CET is established for the group. Example for this is European Economic Community (EEC) 1957-1958.

Problem is that CU eliminates tariffs and quota restrictions (tariff barriers) but still allows non-tariff barriers such as differences in technical standards, health and safety requirements which hinder free trade.

Solution for this would be, non-tariff barriers should be eliminated through mutual harmonization of product recognition. 

Stage Three - Common Market

It has all properties of the previous customs union. Free movement of FOP such as goods, capital, labor and services between all members of the group. Example is European Community or currently European Union (1987-1999). 

Problem with this is that, to achieve complete free movement, the last non-tariff barriers must be eliminated which is the differences in currencies of member states. This is due to that, exchange rate (ER) does not reflect the 'true' price of goods and it acts as non-tariff barriers. 

Solution, they have only one option which is to adopt a common economic policy. It includes some form of common or coordinated fiscal policy. This would permit fiscal transfers from regions experiencing positive growth to regions suffering from negative growth in order to maintain stability of the system.   

Stage Four - Monetary Union

It has all properties of the previous common market. It is just a prolongation of the previous stage. At this stage, the member states adopt common currency. Example is EU member states who adopt euro since 1999 until present. I guess Denmark and United Kingdom have opt out from monetary union and they still use their own currencies. 

Problem about this, in the past, strains between different economies caused by different growth rates. These floating exchange rates allowed national central banks to set individual interest rates. They are suited to the needs of their economies. In a monetary union, exchange rates irreversibly fixed, and the other adjustment mechanisms such as movement of capital and labor may be insufficient to counterbalance tensions in the system caused by different growth between countries.    

Stage Five - Economic Union

It is a continuation of previous stage. Common economic policies, coordination and harmonization on fiscal issues (single policy for the entire zone) are established. 

There is no good example available between equally sovereign nation-states. The relationship between individual US states may be the nearest example. 

Problem for this, the loss of control over economic and monetary policy is a serious loss of sovereignty for member states. 

Solution, there is a need to find new balance between nation-states' sovereignty and their economic powers or to integrate further into a small political union modeled on already existing federal states such as Germany.

The further regional integration progresses, the more its economic developments clash with individual political prerogatives of member states. This is true with regard to issues such as monetary policy, taxation and all forms of redistributive policy. They are issues connected with a state's raison d'etre. The result is, while further economic integration leads to a need for more political change, member states are reluctant to yield the sovereignty necessary to move to the next level of integration.  

Sealed with prayers for mercy, peace and love amin! 

Finish Repeating Exam

Assalaamu'alaikum wa rahmatullah

Quite relieved for a moment, I have just finished the final exam for this repeating paper. Though I just shoot those answers like a nut but at least I answered them all and I did all of the homework given by the lecturer. Our lecturer and course coordinator had warned us about the delaying of thesis submitting might cause us being stamped as fail. I borrowed my sister's money and also parents so I must not let their money go in vain or else I won't forgive myself for wasting them. I must send the complete thesis to coordinator by 23rd April 2012 if I wanted to grad this December so I would try to finish it according to time. I need to put my reliance to Allah and trust Him as the Guide and I must try to keep my life in compliance with Quranic and Sunnah teachings.

Sadly, two of our seniors which are auntie Roslin and Tirawud had already been eliminated because their due date for thesis had came to the end but they produced nothing. Auntie Roslin just answered the repeat paper with us for her third times. I feel sorry for her at her age now probably around early 60's just the same age as my mum and she has no one to tell about her problem. I sometimes facing this kind of problem and few friends also being my victims. I will always apologize to friends. I don't try to burden you people I love you people just like I love prophet Muhammad s.a.w, his family, his companions, and the disciples. 

I just want to talk about my problem and not asking them to help me only listen and take lessons if what I did was wrong because I don't want people to experience same bad thing. I don't feel comfortable to talk to Pusat Islam brothers or Tabligh brothers though I love them. I also go to masjid and crying to the God lamenting my weak time and feeling useless. This new year, I am already 26 by Gregorian calender. By Lunar calender, I am older than that but still I look like a young kid perhaps because of my physical, haha.

I meet new kids again this semester because this is the first semester for new intake. As always if we go to musalla we are also friends to those in there. I don't want to talk with people after an incident with Tabligh kids there that made me try to keep a distance from them. Actually those kids had disturbed my meditation and concentration because I made vows to recite holy verses even mentally and when people keep coming close it makes my concentration distracted. I love to see devotion in young kids but I don't disturb people meditating, praying, or making supplications and that makes me not talking much in the mosque or musalla as a sign of respect to the Owner of the House. Perhaps they think I am arrogant but as to say we can't stop people from thinking. That is their right. I only talk with people one by one and not in a group. In Malay there is a slang word sounds like menchapub which is a short form of mencari publisiti (publicity seeker). I am not that kind of person, I am not a good politician. I only work behind the scene I don't need people to notice me and that's why I only have few friends. I had already experienced my freshman years and also my schooling time. Most of them are painful experience as far as I could remember. I know little kids way of thinking though they might be bigger than me in physical term. Another thing I don't like when talking with kids is that they would associate things like dzikrs or religious disciplines with magic like flying with the wind and kashaf stuffs. We are practical people, there is no such thing only Allah is All-Powerful. Those kashaf whatever things are not important. We strive to be sincere to Allah 'Azza wa Jalla and trying to be a servant and a slave to please Him. 

Some more comments to all Muslim brothers and sisters. We avoid slandering people so we don't talk about things we do not know. In this sense, I don't try to defend ahli kitab or people of scriptures. We have heard rumors about people drink holy water in church and their tongue became hardened and could not recite testimony of faith. Or tongue becoming black in color after drinking holy water after being forced. I had already entered churches and also temples. I went to pray in Buddhist temples when I was an ignorant kid and listened to Buddhism lectures. Now I am a Muslim and I try hard to be a loyal Muslim and sincere to Allah 'Azza wa Jalla. I still visit temples and also churches but I feel nothing anymore. I pray for people and other fellow creatures there to receive the mercy to the world. Nobody there force me to knelt down or drinking holy water or taking sacraments in churches. If we are honest Muslims, we must strive hard and do not even bother about what people wanted to say about our devotion to Allah 'Azza wa Jalla and obeying the teachings transmitted through His messenger and slave, Muhammad s.a.w. We only talk about what we know because prophet Muhammad s.a.w only talk about anything being revealed and not from his own desire. When people of the scripture asked him regarding issue, he only answer once the revelation descends to him. I am sure many beloved Muslim brothers and sisters know about this incident.

Then I also had my dinner at Chinese rice shop at our canteen. I know the son of the shop owner and he cooked also at another stall near our language center here. I asked him and he tell me that his rice is halal with a Muslim cooker. A brother from China had also asked and he told me the same thing but he never eat there. I also don't want him to have his meals there afraid that Malay students might misunderstood him. It is not good for him. I only take vegetarian stuffs there. Even if I am at Malay restaurants, I would also ask for vegetarian meal and sometimes they put stuffs like squid, prawn, and other elements which could be considered as not favorable according to my manhaj. But because they are Muslim/Malay, I still tolerate them and not complaining. Few days before I finally give up and had my meals at Chinese stall, I had also talked with new a new freshman kid which happens to be a Malay. He asked about the Halal status of the Chinese shop. For me, if you feel doubtful, don't ever touch them. I am certain about the status so I have it there plus I don't really feel accustomed to Penang Malay style of cooking or Mamak style of cooking. My mum sometimes used to cook peranakan Chinese cuisine at home and we seldom have curry like most normal Northern people. We eat raw vegetables and Chinese style pickles like poor people. Only dad love to eat meat, few sisters of mine also have fish. I don't take fish at all to avoid from ritual impurity.  

This few months I had not been talking in Malay but only in English or Chinese. Feel quite slow to speak in formal Malay but I still can speak in bahasa Kedah fluently, hahaha. I found that we are fond with this language and we preserve old words just like olden days as compared to fellow Malays. I try to access hadith translation in Chinese but I can't found any. Anyone could suggest to me if you happen to step by in this side? If there is no translation then I might have to initiate important parts in Chinese as compared to English. Malay speaking people are blessed with kitabs and translation made by local students in the Middle East. But Chinese is an isolated language. It is not easy to translate and transliterate Arabic words into Chinese characters. I encourage Muslim Chinese students in our university to learn more Malay though its not in syllabus while they are here because of religious purpose. Certain things are preserved in Malay language other than Arabic, Persian, Urdu, and Turkish. Apart of Yemeni-Hadrami community also contributed into the translation of kitabs in term of sufism and tasawwuf for practices of heart purification in South East Asia. I just read about Wang Daiyu last few months and he inspired me too. I have the same belief like him. We need local stuffs in Chinese instead of those in Arabic for people to understand better and bring them into practice. However my Chinese language is not high Chinese but only communicative Chinese at primary school level, hahaha. Ya Allah, help me to find way how should I improve my Chinese. I had almost forgotten Chinese when I befriend Malay kids from Kedah during degree times. Thanks to Muslim Chinese brothers here I revived it again in myself. People at home most of all had abandoned Chinese (in form of dialect: Fujian and Canton). Last time, even my paternal uncle (of Arab-Gujarat descent) could speak in local Fujianese dialect due to business ties. I took the pain to learn Chinese Orthodox writing and later learning Simplified one but I don't know how to write it just reading.  

Hope to finish studies as quick as possible. I don't want to chase any paper qualification. I want to receive Allah's blessings and pleasure. That's all I want. The period is almost to end just we don't know when. Nothing to chase except His Kingdom, Hail be to You dear Lord of the Universe!

Sealed with prayers for mercy, peace, and love, amin!

Mid Term Test Done

Assalaamu'alaikum wa rahmatullah

Beautiful creation of the God. We always feeling envious at Northern hemisphere in term of beautiful plants even at their grass flowers. Guess where is this snapped? It's just at the side of Bukit Gambir road in Penang, hahahaha. I don't want any scholarship to France or Germany. My heart is not attracted to those things. I just want to see Him : )   

Thanks dear Lord, we had done with the annoying test. I had forgotten that I should be fasting today because of this test but never mind. I am just so glad that the test had gone though there are several other annoying matters to come after this. In this matter I would like to thank our brother in faith, brother Idris. May he and his family receive happiness and fortune in this life and hereafter for mercy and compassion to other creatures. I believe in brothers and sisters prayers could help everyone going through difficult times. I look at brothers and sisters prayers as the sign that they put importance of brotherhood and sisterhood as their priority. Prayers are our fort, prayers of those who had passed for their generations had also be the fort for the coming generations : )

I actually begin to believe this after maternal grandpa passed away. I had done many wrong things to him... (urmm, let me shed my tears first). After that, I would ask everyone to pray for me. I also talk with hidden creatures in my room or around me to pray for me to be forgiven if they believe in the God and the prophethood of Muhammad s.a.w. I am also afraid that I would hurt hidden "saints." Usually "hidden" saints do not show any difference to others. They appear to be the same like others. Sometimes they appear to be those whom we look down upon in case of my late grandpa. I listened to few tasawwuf angle lessons being introduced to me by Tabligh-e-Jama'at but actually those things are not new to me. I had already noticed that before I return to Islam after I faced the conflicts of aqeedah (creed) in myself where I questioned many things including my goal of life. This actually made me very sensitive with people and fellow creatures around. Sometimes I felt very guilty if I think I did something wrong to people with my face expression, with my speech, or if I made people feel humiliated if I had sometimes didn't notice them talking to me. I would like to first admit my weaknesses. I am a human-being and a creature of the God with flaws because only the God is flawless the Most Perfect. I apologize my sins and wrong-doing to everyone.

I had answered whatever I could remember from the text that I had read. Frankly, I just noticed that the lecturer had uploaded the articles and journals for tests' references only yesterday. I just downloaded them yesterday night and right away walked down to print them out. I thought of finding some acquaintances asking whether they've got printers with them and I would pay for the service. But I think back, no need such an act. I would be a burden to others. That's not our custom to burden others. We would try to survive until the last breath without harming others. I had always practice this since I was a young kid. In school during my childhood time, teachers and people around told me to try solving problems alone first. So now we are familiar with it. If we have any problem not only in studies, but also in daily life like illness and others, we would try to solve them ourselves first. 

Just before I answered the papers, I have to do some translation jobs translating points from articles and journals because words and sentences that they used are complicated. I made them easy and using Malay as the medium because I was a translation and interpretation student trained in both English and Malay. I managed to memorize few points and arguments through this way. Then I talked with auntie Roslin which is my elderly classmate because she doesn't know how to access to the portal where those stuffs are uploaded. To make things easier, I just walked down few minutes before the test began to print the articles for her at least she could pass her paper because this is her third time repeating the same paper. I understand the torment so I don't mind to sacrifice for others. I guess auntie Roslin is around 60's now but still in high spirit to acquire a master degree. She did encouraged me to apply for Erasmus Mundus and other scholarships offered but I turned down everything which came to me because I think it is just enough. I believe in the God as the central part of my life and if I die, I must also die because of Him. I don't need those papers for recognition on me anymore. I just need His forgiveness, His love and acceptance to free me from torments here and in hereafter. I need the knowledge to know Him and being aware about myself. It needs no paper recognition but practices and sacrifice to spread His Mercy and Love : )

There were three articles uploaded by the lecturer for us which are:

1. Ben Aston (2004) How useful are theories of integration to understanding the development of the EU? Politics of Governance: The European Union.

2. Laura Cram (1995) Policy-Making and the Integration Process - Implications for Integration Theory. Department of Government, University of Stratchclyde. UK.

3. Suha Atature (2008) The Historical Roots of European Union: Integration, Characteristics, and Responsibilities for the 21st Century. Vol. 7. No. 2. Political Science and International Relations Department, Yeditepe University, Turkey. 

There were three questions with sub-questions in them. We have to answer the first question as it is compulsory while the other two questions are elective questions which mean that we could choose either one of them. 

The first question is regarding sovereignty. I think the question more or less asking us about the impact of integration process on sovereignty in the European Union (EU) where it refers to the member states. 

Second question directly come from the paper written by Mr. Aston. It touches the theories of integration such as intergovernmentalism, neo-functionalism, and characteristics of those theories. What are the assumptions of those theories.

Third question directly come from Laura Cram paper where it talks about the impact of integration process on the policy making and integration process in the EU.

Basically, I just answered nonsense and trying to manipulate whatever that I have in my empty head. My head is not really empty but it has many other things including that I think classes are not suitable for old teenage like me anymore. After this I would be a 26 years old guy and His calling is also near and near. I don't want to see Him with humiliation but I want to see Him with His acceptance : (

Ya Allah.... 

Sealed with prayers for mercy, peace, and love, amin!

Master's level exam experience and bad thoughts

Peace,

Ya Allah! I have a very hard time yesterday answering the exam question. I think it is my own fault cause I have lack of focus during my revision times. Last few weeks I have a problem when the office had put a new roomate into my room. But I could sense that the roomate has a bad intention when he saw me. I am very afraid that I could be slandering people with my thought but it turns out that the old guy might have something wrong with his mind. 

He just came by into my room and becoming extra-friendly. It is still ok with me if he just talks. But later he came to my bed and pretending like talking to me as a father to a son. Later massaging me when he said I had red rashes at my neck. I did not ask anyone to massage me and mind, my father never did that to me. Later he talked something in his language which is Indonesian language where I could not really understand. He talked something like the "things" under my pants is something and something. Why do a newly meet friends need to talk about those private things? It is not only that, he moved my stuffs on the table and asking me to onn my computer. As a matter to be polite to elders I just onn it, but I did not realized that he was stalking my password. For the next morning I had forgotten to keep my computer into the closet as I have a morning class. He used my stuffs without consent and starting checking my details in the computer. What kind of person is this? 

As to avoid myself from being a victim of sin. I have to run to musalla (surau) at the level beneath first level of our floors. I slept there and trying to gain back my focus by reading some notes before the revision week. I've been several nights there. Now do I understand how the Tabligh guys feel when they sleep in the musalla. It is peaceful there. I don't think that I need to sleep in a room anymore after that. Room is just a place to keep stuffs and to change clothes before prayers. 

I went to the hostel's office and trying to complaint about the new roommate. But they asked me to tell them in detail. How could I tell them about that old guy touching me? I could only tell them he used my laptop without consent. I'm still bound to the rule not to tell people about the things that could bring our dignity down by telling others' evil deeds.

I went back home just few days before revision week begin and there I tried to cherish my mother by following her to religious classes at mosques. Besides I learned many new things which are not really new. I just found them new after my repentance. I did not bring my stuffs for exam back because I do not want to see that insolent old guy in my room when I take my stuffs which was locked in the closet after I made complaint. 

And when I came back, it is a disaster for me when I answered my Policy Making and Politics in the EU paper yesterday. I feel so guilty toward my parents not to forget my lecturer. Parents gave me money to further my study after a period where I am jobless and just staying in my room. After the exam, bad thoughts do came to me like trying to commit suicide because I feel so ashamed to everyone including to Allah but I quickly realized that it is a grave sin by trying to take our own life without Allah's permission. If I killed myself I still have to answer Allah and how could I turn up myself in front of Him? O Allah, please forgive me my sin from my bad thoughts! I am a useless slave of You.   

Anyway what had happened had just happened. Maybe this is a kaffarah (payments) to all of my sins or simply another test for me because Allah might want to see my faith. I still believe Allah will save me no matter what happens. So I will try to hold on here. It is already a past. Now will determine the future. I still have other three papers. I will try to get my focus back with the help and guidance from Allah.

May Allah bless everyone and forgiving our sins, Allahumma salli 'ala Muhammad, wa 'ala aali Muhammad!