Development - Groupings of nations

The reasons for the growth of Social and Economic groupings of nations is aiming to advance development of domestic economies, social status and level of development of member states with examples like the G8, EU, NAFTA and the WTO. Despite the world is increasingly globalised, Groups of nations is still viewed as one of the best approaches to development - the process of social and economic advancements that allows improvements in people quality of life and general well being.

Types of alliances

• Free trade area - A free-trade area is the region encompassing a trade bloc whose member countries have signed a free trade agreement e.g. NAFTA
• Customs unions - A customs union is a type of trade bloc which is composed of a free trade area with a common external tariff e.g. CARICOM
• Common markets - Group formed by countries within a geographical area to promote duty free trade and free movement of labour and capital among its members e.g. EU
  
• Economic union - a type of trade bloc which is composed of a common market with a customs union. The participant countries have both common policies on product regulation, freedom of movement of goods, services and the factors of production(capital and labour) and a common external trade policy e.g. ASEAN

Advantages

• Greater chance of world peace
• Trade barriers removed - easier to trade
• Greater democratic function
• Sectors supported e.g. EU common agricultural policy
• Remote regions receive support
• May develop common currency to prevent fluctuations
• Geographical mobility
• Reduced crime e.g. European arrest warrants
• Spread of knowledge and culture
• Migration can can dependency ration
• Greater awareness of violations of human rights
• Could form a more collective effort to mitigate climate change
• Sustainability improvements

Disadvantages

• Loss of sovereignty
• Loss of financial control
• Pressure to adopt central legalisation
• Economic sectors have to share resources
• Elites hold disproportionate amount of power
• Drive towards federalism
• Separatist movements
• Loss of identity and culture
• Potential social tension 
• Debt defaulting
• Market fluctuations affect whole group
• Potential for conflict to escalate