Supranational alliances play a significant role in globalisation and improving the global economy. The European Union (EU) is a supranational alliance that comprises of 27 European nations and governing economic, social, and security policies. It provides citizenship to all citizens of the EU in addition to their nationality, a common currency known as the Euro which 19 countries share, common foreign and security policies, and a reduction in trade barriers through the reduction of tariffs.
The European Union has been highly successful in increasing globalisation, especially for European nations. Currently, it is the biggest single market in the world, representing 22.8% of the world’s total GDP. Because of the EU today, over 500 million people enjoy the right to live, study, or work in any of the member states. This allows for easy mobility of people and goods, which benefits the economics of all the nations, contributing to a rise in the global economy. The EU is also the world’s largest exporter of manufactured goods. This has liberalized world trade, which is a crucial factor in globalization. Bilateral and multilateral trade is encouraged across Europe, and around the world through the EU. The increasing interdependence of world economies, is hence brought about by trade that is not restricted by any borders. Free trade amongst its members was one of the EU’s founding members, and it has been successful in doing so.
The European Union essentially aimed to increase cooperation and make war between its members impossible. Although Europe has not been free from war ever since, there has not been an armed conflict between member states since its foundation, which is a remarkable achievement. This benefits the global economy, as conflicts generally cause huge burdens on a nation’s economy, which is now avoided. International relations have also been improved, contributing to globalization. The Common Agricultural Policy was introduced by the European Union to support European farmers, and promote agricultural jobs. Since the primary sector is a very important factor in developing economies, by aiding it, nations have the opportunity to boost their economy, increase trade, and participate in globalization and sustainability of the world as a whole. Finally, the free movement of goods, services, capital, and labour improves the efficiency of trade, raises quality, and helps cut prices, leading to European integration, and thus, globalization across the world.
In summary, the European Union plays an important role in diplomacy and fosters economic stability and prosperity not only between its members, but also across the global economy at an international level. Even apart from the EU, supranational alliances are significant for a better and more developed future, as they increase globalisation and interdependence of nations, which is vital for the betterment of society.