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Assignment on
international relations
Dariya Kulyk
04.12.2016
Introduction
International Relations are concerned with the study foreign affairs and
relations of countries. It has many different complexes such as economic, social,
and cultural relations and all are crucial in diplomacy. Diplomats and
representatives aim to preserve national communities and heritage in various ways,
from issuing passports to drafting peace talks. Globalization has demonstrated the
importance of interdependent governments and economies. Alliances such as the
European Union, NAFTA, WTO, etc have made international relations stronger
and powerful. Even though globalization has benefited strong countries and
cultures, it can make it difficult for other nations and countries to compete
globally. Foreign policy is becoming more aware of how globalization affects its
government and people. Diplomats still compromise and support their home
countries views and actions, and and aim to find a cultural “medium”. Overall,
diplomacy seems to have benefited from globalization, in terms of communication
and accessibility. Culturally, diplomats have always represented their governments
and their people, and this makes for a stronger, international community.
Culture, Globalization, and International relations are becoming
increasingly interdependent of each other; mastering all three enables a country or
people to be powerful and influential. While rare cultures are becoming
increasingly diminished, certain cultures and traditions are being preserved. The
popular cultures are used to benefit the majority and create solutions to various
issues. Globalization has been desired by many, bur has benefited very few.
Nations’ resources (whether it’s people or raw materials) become the key to its
future and survival of its “culture”. Inrernational relations depend on what a
country has to offer and continue the constant struggle for harmony and prosperity.
Our conference faces many challenges of the century; all of the three topics are
critical for diplomacy. With various knowledge and ideals from every corner of
this earth, we can collaborate and make informed, consented decisions to ensure
harmony and equality for all.
1. Country Profile for Spain: Economic and Social Context
Facts:
Kingdom of Spain
Capital: Madrid
Population: 46.7 million
Area: 505,988 sq km (195,363 sq miles)
Languages: Spanish (Castilian), Catalan and its variant Valencian, Gallego
(Galician), Euskera (Basque)
Major religion: Christianity
Life expectancy: 79 years (men), 85 years (women)
Currency: euro
Economic Freedom Snapshot:
2016 Economic Freedom Score: 68.5 (up 0.9 point)
Economic Freedom Status: Moderately Free
Global Ranking: 43rd
Regional Ranking: 20th in Europe
Notable Successes: Open Markets and Monetary Freedom
Concerns: Management of Public Finance and Labor Freedom
Overall Score Change Since 2012: –0.6
Spain is a parliamentary monarchy with a civil law system which is
rooted in Roman law and whose main characteristic is that its central principles are
codified into a referable system, which is the predominant source of law. Spain is a
Member State of the European Union.
Located at the crossroads of the Atlantic and the Mediterranean, Europe
and Africa, Spain's history and culture are made up of a rich mix of diverse
elements. In 1975, Spain made the transition to a democratic state and built a
successful economy, with King Juan Carlos as head of state.
The constitution of 1978 enshrines respect for linguistic and cultural
diversity within a united Spain. The country is divided into 17 regions which all
have their own directly elected authorities.
The level of autonomy afforded to each region is far from uniform. For
example, Catalonia, the Basque Country and Galicia have special status with their
own language and other rights.
Andalucia, Navarre, Valencia and the Canaries in turn have more
extensive powers than some other regions. Asturias and Aragon have taken steps to
consolidate language rights.
The Spanish economy was of the most dynamic in the EU, but the
tourism, housing and construction industry mainstays were hit hard by the global
economic crisis of 2008-9. The bursting of the housing bubble tipped Spain into a
severe recession and by the spring of 2013 unemployment had risen to a peak of
27.2%. After experiencing a prolonged recession in the wake of the global
financial crisis that began in 2008, in 2014 Spain marked the first full year of
positive economic growth in seven years, largely due to increased private
consumption. At the onset of the financial crisis, Spain's GDP contracted by 3.7%
in 2009, ending a 16-year growth trend, and continued contracting through most of
2013. In 2013, the government successfully shored up struggling banks - exposed
to the collapse of Spain's depressed real estate and construction sectors - and in
January 2014 completed an EU-funded restructuring and recapitalization program.
Until 2014, credit contraction in the private sector, fiscal austerity, and
high unemployment weighed on domestic consumption and investment. The
unemployment rate rose from a low of about 8% in 2007 to more than 26% in
2013, but labor reforms prompted a modest reduction to 22% in 2015. High
unemployment strained Spain's public finances, as spending on social benefits
increased while tax revenues fell. Spain’s budget deficit peaked at 11.4% of GDP
in 2010, but Spain gradually reduced the deficit to just under 7% of GDP in 2013-
14, and 4.7% of GDP in 2015. Public debt has increased substantially – from
60.1% of GDP in 2010 to nearly 101% in 2015.
Exports were resilient throughout the economic downturn and helped to
bring Spain's current account into surplus in 2013 for the first time since 1986,
where it remained in 2014-15. Rising labor productivity and an internal
devaluation resulting from moderating labor costs and lower inflation have helped
to improve foreign investor interest in the economy and positive FDI flows have
been restored.
The government's efforts to implement labor, pension, healthcare, tax,
and education reforms - aimed at supporting investor sentiment - have become
overshadowed by political activity in 2015 in anticipation of the national
parliamentary elections in December. The European Commission criticized Spain’s
2016 budget for its easing of austerity measures and its alleged overly optimistic
growth and deficit projections. Spain’s borrowing costs are dramatically lower
since their peak in mid-2012, and despite the recent uptick in economic activity,
inflation has dropped sharply, from 1.5% in 2013 to a negative 0.6% in 2015.
GDP (purchasing power parity)
$1.615 trillion (2015 est.)
GDP (official exchange rate)
$1.2 trillion (2015 est.)
GDP - real growth rate
3.2% (2015 est.)
1.4% (2014 est.)
-1.7% (2013 est.)
GDP - per capita (PPP)
$34,800 (2015 est.)
GDP - composition by sector
agriculture: 2.5%
industry: 17.74%
services: 74.35% (2015 est.)
Population below poverty line
21.1% (2012 est.)
Labor force
22.98 million (2015 est.)
Unemployment rate
22.5% (2015 est.)
24.5% (2014 est.)
Unemployment, youth ages 15-24
total: 53.2%
male: 53.4%
female: 52.9% (2014 est.)
Budget
revenues: $473.6 billion
expenditures: $527.9 billion (2015 est.)
Taxes and other revenues
38.8% of GDP (2015 est.)
Budget surplus (+) or deficit (-)
-4.4% of GDP (2015 est.)
Public debt
101% of GDP (2015 est.)
Inflation rate (consumer prices)
-0.5% (2015 est.)
-0.1% (2014 est.)
Agriculture - products
grain, vegetables, olives, wine grapes, sugar
beets, citrus; beef, pork, poultry, dairy
products; fish
Industries
textiles and apparel (including footwear), food
and beverages, metals and metal manufactures,
chemicals, shipbuilding, automobiles, machine
tools, tourism, clay and refractory products,
footwear, pharmaceuticals, medical equipment
Current Account Balance
$16.48 billion (2015 est.)
$13.6 billion (2014 est.)
Exports
$277.3 billion (2015 est.)
$317.1 billion (2014 est.)
Exports - commodities
machinery, motor vehicles; foodstuffs,
pharmaceuticals, medicines, other consumer
goods
Exports - partners
France 15.7%, Germany 11%, Italy 7.4%, UK
7.4%, Portugal 7.1%, US 4.5% (2015)
Imports
$298.3 billion (2015 est.)
$345.6 billion (2014 est.)
Imports - commodities
machinery and equipment, fuels, chemicals,
semi-finished goods, foodstuffs, consumer
goods, measuring and medical control
instruments
Imports - partners
Germany 14.4%, France 11.7%, China 7.1%,
Italy 6.5%, Netherlands 5%, UK 4.9% (2015)
Debt - external
$2.064 trillion (31 December 2014 est.)
$2.238 trillion (31 December 2013 est.)
Stock of direct foreign investment -
at home
$746.8 billion (31 December 2015 est.)
$721.9 billion (31 December 2014 est.)
Stock of direct foreign investment -
abroad
$707 billion (31 December 2015 est.)
$674 billion (31 December 2014 est.)
Exchange rates
Euros (EUR) per US dollar -
0.885 (2015 est.)
0.7525 (2014 est.)
Fallout from the global financial and eurozone crises has hurt the Spanish
economy, but a number of structural adjustments have enhanced prospects for
recovery. Comprehensive reforms have been made in corporate taxation, reducing
the top rate to 28 percent from 30 percent. The rate will be further reduced to 25
percent from January 2016. A new labor law intended to enhance flexibility in
areas such as compensation and working hours has been implemented.
Despite some progress, large fiscal deficits and high levels of public debt
necessitate a greater commitment to sound public financial management and a
return to a sustainable level of government spending. Corruption continues to
undercut respect for the rule of law.
2. Foreign policy issues of Spain
The current wave of instability and conflict affecting Europe’s neighbours
(to the South and East) has been a key issue on the Spanish and European agendas
during the second quarter of 2015. In particular, the tragedy in the Mediterranean
Sea that unfolded in April has returned the controversial issue of migration to the
forefront of the debate, both at European and national levels.
As a member of the United Nations Security Council (UNSC), and a few
months before it assumes the monthly presidency of the organism (in October),
Spain has actively contributed to the discussions regarding issues such as the fight
against terrorism, the review of resolution 1325 on Women, Peace and Security,
and preventive diplomacy.
Economic diplomacy also remains a central plank of Spanish foreign
policy. Spanish Foreign Minister José Manuel García-Margallo and King Philip VI
have continued to make new contacts and consolidate existing ones in terms of
investments, trade and cooperation. In this sense, Spain hosted official visits by
Iranian Foreign Affairs Minister Mohamad Javad, Egyptian President Abdel Fattah
Al-Sisi, Chinese Deputy Foreign Affairs Minister Wang Chao, Brazilian Vice-
President Michel Temer and the head of the Moroccan government, Abdelilah
Benkirane. Along the same lines, Spain’s diplomacy chief, the prime minister and
