Asian Regionalism

“Regionalism presented some obstacles in the past,… But the boundaries are beginning
to disappear and we have this wonderful, intellectual synergism”.

William Jenkins

We are now in the post-Cold war era. One characteristic of

international society is to strengthen the moves to seek
regional conflict resolution through world forums such as
the United Nations. The UN is broadening its roles and
functions in economic and social development through its
peacekeeping operations in Cambodia, Rwanda, Haiti, and
Croatia. There are also activities conducted by UN such as
Conference on Environment and Development (1992), the
International Conference on Population and Development
(1994), and the World Fourth conference on Women
(1995). There has also been trade rules and an attempt to solve conflicts in trade set by WTO (World
Trade Organization).
Another characteristic of international society is to establish and strengthen regional cooperation.
Some of the examples are the institutionalization of APEC (Asia Pacific Economic Cooperation), and
from the US-Canada Free Trade Area to NAFTA (North American Free Trade Agreement).
What are the relationships between these regional and global moves? Does regionalism contradict
globalization? How can regional organizations cooperate with the United Nations to solve security
issues?
According to Professor Bjorn Hettne in his paper, he sees the current world as a borderless world
in which territory has lost all importance and characterized by an ongoing process of globalization with a
changing international division of labour, financial transactions and trade in goods. Prof. Hettne then
analyses the dynamics of globalization s processes going on between various dimensions inherent in the
process and between levels of world system.
In the second paper of Professor Bruce Russett, “Global or Regional: What can International
Organizations Do? He points out that international organizations are created for specific purposes
including peace among members, external security, economic development, securing human rights and
democracy. Regional organizations on the other hand varies. The European model because it is
homogenous that’s why it is the most successful. While due to diversity success is difficult in other
regions.
The current and contemporary trend of the world development economy requires the full and
thorough analysis and evaluation of the relation between regionalization and globalization. Although
some economic analysts consider regionalization as a reaction to globalization of some countries, it may
be observed that on microeconomic level this has a significant contribution to the development of
globalization process. Modern countries supports the globalization phenomenon. As globalization is
characterized by the possibility to remove and reduce the gaps between the national economies as well as
by the enhanced connections among these economies, it represents the fundamental trade of the current
world economy.

LEARNING OUTCOMES
At the end of the topic, the students will be able to:
1. differentiate between regionalization and globalization;
2. identify the factors leading to a greater integration of the Asian region and
3. analyse how different Asian states confront the challenges of globalization and regionalization.

PRESENTATION OF CONTENT

DIFFERENCE BETWEEN GLOBALIZATION AND REGIONALIZATION

REGIONALIZATION AND GLOBALIZATION, CONFLICTING OR LINKED

PROCESSES?

Globalization and regionalization are key defining characteristics of the contemporary world
politics. These are not completely new processes because there was an emergence of both since 1980s
and particularly during the 1990s after the end of the Cold War. There has been existing regional
organization such as the EU, NAFTA, the Arab League, APEC and others. By 2006.
What are therefore the motivations and forces among these states toward regional cooperation?
And what is the relation of the regionalization process with the globalization process? Are they
conflicting process or is regionalization part of or built on globalization?
The effects of globalization can be observed and seen in the economic, cultural, social and
political spheres of the contemporary world. One impact of it is its challenge to the nation-state and its
role with the inter-national system. Globalization undermines nation-states capacity, autonomy and
sovereignty. Security issues, promoting peace and stability are reasons behind regionalization. And this
can be realized through economic cooperation within a region.
The forces of globalization and regionalization have reshaped the world economic landscape
over the past century. Global trade and financial flows have registered growth during this period. Intra-
regional economic linkages have become stronger with the establishment of regional trade agreements. In
the study conducted by Hideaki Hirata et.al (20011), they found out that, since the mid-1980s, the
importance of regional forces has increased markedly in explaining business cycles particularly in regions
that experienced a sharp growth in intra-regional trade and financial linkages. By contrast, the
significance of the global factor has decreased over the same period. Which means that the recent era of
globalization has witnessed the growth of regional cycles.

The terms Regionalization and Globalization should not be used interchangeably. Regionalization
is a process that is generally similar to globalization in a way that in both cases, there is a movement
towards economic integration of more countries. It also means the tendency to form decentralized
regions. Although, the two are similar, regionalization is different to globalization.
While the term Globalization is the process of international integration arising from the
exchange of world ideas, products and other aspects. While regionalization is the process of dividing a
place into smaller regions. At the global level, globalization affects both economic and political processes
while regionalization only involves processes and needs of specific places or areas of the country. One
specific example of regionalization is the division of a nation into states or regions or provinces.
 FACTORS LEADING TO THE INTEGRATION OF THE ASIAN REGION

What are the factors leading to the integration of the Asian Region?

The entire world is moving towards integration. But a regional partnership is the first step, we
have the European Union, African Union, Union of South American Nations and others.
In Asia, the Southeast Asian countries have already formed ASEAN Association (Southeast Asian
Nations).
The idea of regional integration or regionalism can be traced back to the 19 th century, but given
serious attention in the 1950s to 1960s. However, regional integration in many parts of the world, except
in Europe, were not very successful. In the 1990s, regional integration became increasingly wide-
spreading, due to rising globalization and slow progress in World Trade Organization negotiations.
There are many factors that are leading the Asian Region into greater integration.
1. Trade- The world economy is interdependent with each other. Countries want or need something from
another part of the world, and global trade facilitates that.
2. Similar Culture- Asia has a diverse culture but Asians do share in common. And this makes it easier fit
during times of negotiations.
3. Common Goals- The Asian region recognizes the mutual benefit of a slow integration. The territories
involved are not far from each other and the hard working attitude of its population can work as a
powerful tool against those from other parts of the world.
4. Security needs- this association needs to contend with foreign supported terrorist groups which are
handled well.
The Asian region extends beyond the areas or territories of the ASEAN member nations. The
northern Asian countries like Japan, Taiwan, North Korea, South Korea do not belong to distrust each
other. Someday these nations will realize the benefit of integration with the regional autonomy.
Countries respond to globalization in different ways. There are large countries that have enough
resources that would enable them to dictate how they participate to global integration. China, for instance,
have cheap and extensive labour force which attracted foreign investors and expand trade with countries
as markets of their products. Other countries, on the other hand, though small in area made used of their
strategic location like Singapore and Switzerland. Singapore were able to develop its harbour facilities
which enable them to become the first class transit port for ships carrying products from Africa, Middle-
East, Europe and other countries. However, there are cases wherein countries form alliance for they
believe in the saying “in numbers there is strength”.
Countries form and join regional associations for several reasons. The North Atlantic Treaty Organization
(NATO) was formed for military defence during the Cold War when several Western European countries
and United States agreed to protect Europe against Soviet Union. The Soviet Union responded by
organizing the Warsaw Pact, a regional alliance which consists of the Eastern European countries under
Soviet control. Unfortunately, the Soviet Union collapsed in December 1991, but NATO remains.

Another reason why countries form regional organizations is in order to combine their resources
or for economic interdependence. In 1960, the Organization of Petroleum Exporting Countries was
established by Iraq, Iran, Kuwait, Saudi Arabia, and Venezuela in order to regulate the production and
sale of oil in the world market.

Finally, there are countries that form regional organizations to protect their freedom from the
pressures of superpower countries. The Non-Aligned Movement (NAM) in 1961 was created by the
presidents of Indonesia, Yugoslavia, Egypt, Ghana, and India in order to pursue racial equality, global
peace and international cooperation, human rights and conflict resolution. It was named non-aligned
because the organization refused to join with either the capitalist democracies in Western Europe and
North America or the communist states in Eastern Europe. The movement still exist up to the present.

HOW ASIAN STATES CONFRONT THE CHALLENGES OF

GLOBALIZATION AND REGIONALIZATION

What are the key challenges for Asian States arising from globalization? And what can Asia
do to enhance its prospects in the global economy?
Clearly, globalization has had a great impact on Asia’s role in the world economy. Decade ago,
the developing countries of Asia accounted for only one-sixth of world output. But with many countries
in the region having followed sound domestic policies, mobilized huge amounts of domestic savings, and
attracted private capital inflows, Asia, now accounts for about quarter of world GDP on purchasing
power parity-adjusted terms. On this trend, the region could account for one-third of world output by the
year 2005.
Generally speaking, the level of development of most Asian countries is lower than European and
American developed countries. A lot more needs and efforts are to be done for the development of the
Asian economy.
Most Asian countries take the export-oriented strategy so that they depend much on foreign
market. Due to economic globalization and the traditional international economic order, developing
countries in Asia face financial and economic crises. In the 1997-1998 financial crisis, the effect on
Southeast Asian countries was severe. In 2008, Wall street’s financial tsunami led to global economic and
financial crisis which has affected Asian economy very much. Japan has fallen into recession, and in the
new economies of China and India economic growth slowed for the first time in many years.
In this situation, Asia faces the challenges to improve the financial system, to change the growth
model, to restructure industry, and to execute standing development. In order to solve the global financial
crisis, it is necessary to strengthen Asia’s countries cooperation in finance, investment and trade to
promote Asia’s economic integration.

APPLICATION

Learning Activity:
Choose one of the broad regional divisions:
North America South America
China Japan
Korea South Asia
Middle East Southeast Asia