REGIONALISM AND GLOBALIZATION

0 Globalization limits the growth of regionalism

As interdependence increases, financial crises, trade wars, and

environmentaldegradation require management at the global level.

Multilateral institutions such as the WTO, IMF, and World Bank are better
equipped than regional organizations to deal with these problems.

1 Globalization promotes linkages among regions as well as states, and in this

sense it can undermine both national and regional cohesiveness.

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2 Globalization may also stimulate the growth of regionalism.

States often rely on institutions above the national level to deal with global
interdependence issues

IOs with large, diverse memberships may be unable to identify common interests

Regional institutions composed of like-minded states may be more effective than

larger multilateral institutions in dealing with cross-national problems.

3 Globalization contributes to increased competition, and states and MNCs can

often improve their global competitiveness by organizing regionally.

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Globalization is closely associated with neoliberalism, which favors a shift in authority from the
state to the market.

The market pressures weaken state barriers and contribute to the growth of private and public
linkages at both the regional and global levels.

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Thus, regionalism and globalization can be both conflictual and
complementary.