Transnational governance
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Transnational governance, within a
European Union The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been de ...
framework, is both a subset of
governance Governance is the process of interactions through the laws, norms, power or language of an organized society over a social system ( family, tribe, formal or informal organization, a territory or across territories). It is done by the gove ...
in general and an application of it to situations outside its usual limits of corporate or governmental hierarchies, whether regional or national. When such disparate hierarchies within the EU find common goals, typically within a conterminous geographic area, they seek to achieve them by integrating their various policies and activities. The goals of transnational governance, especially for areas previously divided by the Iron Curtain or pre-EU barriers to
free trade Free trade is a trade policy that does not restrict imports or exports. It can also be understood as the free market idea applied to international trade. In government, free trade is predominantly advocated by political parties that hold econ ...
and movement of peoples, is to foster economic and social development.


Background

The
economic development In the economics study of the public sector, economic and social development is the process by which the economic well-being and quality of life of a nation, region, local community, or an individual are improved according to targeted goals and ...
could be defined as the increased of
wealth Wealth is the abundance of valuable financial assets or physical possessions which can be converted into a form that can be used for transactions. This includes the core meaning as held in the originating Old English word , which is from an I ...
of a country or a region and the social development could be loosely defined as the improvements of quality of living for the population. Economic and social are, or at least should be, inseparable concepts. Why reach a high economic development if the inhabitants living in the area don't see any benefits of that improvement? In the current global political and economic landscape, particularly within the backdrop of
globalization Globalization, or globalisation (English in the Commonwealth of Nations, Commonwealth English; American and British English spelling differences#-ise, -ize (-isation, -ization), see spelling differences), is the process of foreign relation ...
, there is an increase in
privatization Privatization (also privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation when ...
. This means that business has started to play an important role in the international order. A related phenomenon called public-private partnerships (PPPs) is seen as an offshoot of this development. Critics, however, cite that a dominance of the private sector and the global capital in the world today is dangerous since it tends to undermine international cooperation and equity among states. There is global consensus, therefore, regarding the need for transnational governance that can regulate and address the gaps on global issues and crises like poverty, climate change, disease, terrorism, and financial crises, among others. The state-centric Westphalian international order is unable to cope with these transnational threats, calling for multilateral collaboration that does not only involve states but also other international actors such as non-governmental organizations and multinational companies.


Social and economic impact

Reach social and economic developments are already a challenging but it's even more challenging in a transnational area such as the greater region. Some projects were created in order to foster these developments. The operational program Interreg IV A, “grande region” has for main objectives to make the greater region more attractive, encourage innovation, improve the numbers of high quality jobs, etc. The improvement of the economic and social situation could be analysed through the example of the Vienna-Bratislava-Györ triangle which is a cross border area including three countries (
Slovakia Slovakia (; sk, Slovensko ), officially the Slovak Republic ( sk, Slovenská republika, links=no ), is a landlocked country in Central Europe. It is bordered by Poland to the north, Ukraine to the east, Hungary to the south, Austria to the s ...
,
Austria Austria, , bar, Östareich officially the Republic of Austria, is a country in the southern part of Central Europe, lying in the Eastern Alps. It is a federation of nine states, one of which is the capital, Vienna, the most populous ...
and
Hungary Hungary ( hu, Magyarország ) is a landlocked country in Central Europe. Spanning of the Pannonian Basin, Carpathian Basin, it is bordered by Slovakia to the north, Ukraine to the northeast, Romania to the east and southeast, Serbia to the ...
) that were once part of the same empire.
Good governance Good governance is the process of measuring how public institutions conduct public affairs and manage public resources and guarantee the realization of human rights in a manner essentially free of abuse and corruption and with due regard for th ...
could lead to the adoption of a common identity which could lead to mutual support between people, companies or authorities sharing this common identity. Concretely, we observe a high amount of Foreign direct investments (FDI) coming from Austria in order to develop the general situation of Slokia and Hungary. This is very well descriptor in this citation of Tatzberger (2007) : “Foreign direct investments (FDI) play an important role in restructuring and improving the
competitiveness In economics, competition is a scenario where different economic firmsThis article follows the general economic convention of referring to all actors as firms; examples in include individuals and brands or divisions within the same (legal) firm ...
of industry and
manufacturing Manufacturing is the creation or production of goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation. It is the essence of secondary sector of the economy. The term may refer to ...
by helping to raise
productivity Productivity is the efficiency of production of goods or services expressed by some measure. Measurements of productivity are often expressed as a ratio of an aggregate output to a single input or an aggregate input used in a production proces ...
and to expand
export An export in international trade is a good produced in one country that is sold into another country or a service provided in one country for a national or resident of another country. The seller of such goods or the service provider is an ...
s. It has been one of the driving forces behind industrial restructuring in Hungary and Slovakia”.Gabriele Tatzberger, Territorial Cohesion and the European Model of Society (Book), The Vienna-Bratislava-Györ Triangle The European Model of Society in Action, edited by Andreas Faludi However, it has to be said to huge economic and social disparities could be seen a real threat to the process leading to the creation of a common identity. For instance, the migration of workers stays underdeveloped because of Austrian fears and restrictions. On one side workers mobility is seen as an important force in enhancing
economic integration Economic integration is the unification of economic policies between different states, through the partial or full abolition of tariff and non-tariff restrictions on trade. The trade-stimulation effects intended by means of economic integrati ...
of the region but on the other side it could lead to real changes in the social structure especially in Austria due to the migration of very low qualified workers. An important brain drain could also appear which will make highly decrease the number of educated people who could have been able to develop and teach regional strategic development plan.


See also

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Governance Governance is the process of interactions through the laws, norms, power or language of an organized society over a social system ( family, tribe, formal or informal organization, a territory or across territories). It is done by the gove ...


Notes


References

Gabriele Tatzberger, Territorial Cohesion and the European Model of Society (Book), The Vienna-Bratislava-Györ Triangle The European Model of Society in Action, edited by Andreas Faludi {{World government Globalization International relations Political philosophy Transnationalism