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16/05/2022

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LEARNING OUTCOMES
Differentiate between regionalism and
globalization;
Discuss the driving forces of regionalism;
Elaborate different approaches to regionalism;
Identify the factors that led to a greater integration
of the Asian region;
Explain the emergence and characteristics of
Asian regionalism.
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REGIONALISM VS. GLOBALIZATION
REGIONALISM GLOBALIZATION

The formal process of From previous studies, this


intergovernmental collaboration refers to the increasing global
between two or more states. relationships of culture, people
It is also the expression of a and economic activity. Most
common sense of identity and often as the global distribution of
purpose combined with the creation the production of goods and
and implementation of institutions services, through the reduction
that express a particular identity of barriers to international trade
and shape collective action within a such as tariffs, export fees and
geographical region.
import quotas.
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COUNTRIES OF ASIA

North Asia

Middle East East Asia

South Asia

South East Asia

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ASIA-PACIFIC
NORTH ASIA

EAST ASIA

SOUTH ASIA

SOUTH-EAST ASIA

AUSTRILIA

NEW ZEALAND

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Framework

Globalization

1 2 3 the region as
externalist generative an alternative to
view view globalization
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A term used to explain, justify and
Globalization anticipate the rapid expansion and
intensification of social relations across
world time and space (Steger, 2013)
• Core claims
• Deregulation of markets
• Liberalization of trade
• Privatization of state-owned enterprises
• #1: Liberalization and Global Integration of Markets (reduction of
government interference)
• #2: Globalization is inevitable and irreversible
• #3: Nobody is in charge of globalization
• #4: globalization benefits everyone (in the long run)
The Region’s
Strength
• Asia Pacific & South Asia: Northeast Asia, SEA, Pacific Islands, South Asia
• Diversity: most progressive: South K, Japan, Singapore;
• Most poor: Cambodia, Laos, Nepal;
• Most populated: China and India and
• World’s smallest: Bhutan and Maldives
• As a region:
• 1/3 of the world’s land mass
• 2/3 of the global population
• Largest share of global GDP (35%); USA 23%; Europe 28%
• Over 1/3 of world’s exports
• Prevalence of poverty, HIV/AIDS, gender inequality and other socio econ problems
• US strategy: Pacific Pivot – committing more resources and attention to the region
1 Externalist The Region as an Object
view Impacted by Globalization
1. Colonial rule and dominance
• Advantages and disadvantages of colonial rule
• Colonized Asian countries
• Non colonized Asian countries
• Case of Japan
• Case of Thailand
• 19th & 20th century: movements for nationalism and
independence emerged
1 Externalist The Region as an Object
view Impacted by Globalization
2. World War II
• Influenced by external forces
• Case of Japan and US
3. Adoption of export-oriented growth
• Japan, Korea and Taiwan (1980s and 1990s)
• Malaysia, Singapore and Vietnam (late 1980s and 1990s)
• SEA tigers: reliance on infusion of foreign capital
4. IMF and WB (Bretton Wood System)
• The cornerstone of economic liberalization and globalization in post war global economy
• Case of Indonesia: Suharto regime and its story
• Case of Thailand: export-oriented growth
• Case of Philippines: cozy relationship with F. Marcos
1 Externalist The Region as an Object
view Impacted by Globalization
5. Asian Financial Crisis
• Root cause: Poor policies, weak government, corruption, poor institutions;
inadequate liberalization
• Globalization played a role in the 1997 crisis
• Showed how deeply integrated the economy was in the global financial system
6. Membership to WTO
7. Liberalization of Economy
• Rise of China: Deng Xiaoping 1970s: economic reform – liberalization of the
economy: Experienced high level of growth and became more integrated into the
global economy
• Rise of India: Liberalized their economy in 1991; increased trades and FDI in
textile and service sector
1 Externalist Effects on Employment
view
Practices

• Globalization initiated significant changes in employment practices


• Characteristics
• Temporary and part time employment
• Informal employment: self employment, family workers, informal enterprise
workers
• Underemployment: Philippines 18% of work force; Indonesia = 25% of work
force
• No legal contracts
• Poor working conditions and safety issues at factories that manufacture goods
for Western companies
1 Externalist Effects on Politics
view

• There was a substantial fall in authoritarian regime; rise in


democratic regime
• Due to:
• Rising middle classes
• More globally connected world
• End of Cold War
• Fall of Suharto in May 1998.
1 Externalist Influence on Culture
view

• Globalization is a form of cultural


westernization called McWorld
• Globalization is leading to cultural
homogenization and destruction
of cultural diversity
• Increase in number of McDonald
stores in Asia
• Rise of domestic fast-food chains
• Rapid expansion of supermarkets
1 Externalist Influence on Diets
view

• Asia have been increasingly westernized


• Wheat replaced rice as staple food
• McDonaldization
• MTV-ization
• Hollywoodization
2 Generative Generating Globalization: Asia as
view a Springboard

1. Spice trade
2. Early modern world economy: central was Asia
3. Colonialism: influenced the colonizers as well
4. Rise of Japan on procurement of raw materials
5. Rise of China: producer and consumer
6. Rise of India
• on IT / software development
• Global service provider: outsourcing and offshoring
7. International migrant labor
8. Remittance from migrant workers (Ph = 11% of the Ph economy)
2 Generating Globalization: Asia as
Generative View a Springboard

8. Rise of regional free trade arrangements


9. Open regionalism
10.Asian Products in Global Market
Generating Globalization: Asia as
2 a Springboard
Generative View
3 The anti global impulse: Regional
The region as an alternatives to globalization
alternative to
globalization

1. Japan’s colonialization of the region in 1930s and 40s – East Asian Co-
Prosperity Sphere
2. Asian way
• to reach consensus on national goals with the democratic framework to
take the middle path to exercise tolerance and sensitivity towards others
• Contrast to Western values: every individual can do what he likes, free
from any restraint by government;
• Asians' respects hard work, thrift, authority; community over the individual
• Operates based on Harmony and consensus rather than on majority rule
3 The anti global impulse: Regional
The region as an
alternative to
alternatives to globalization
globalization
• Regional arrangements
• East Asian Economic Caucus (an APEC without western states)
• ASEAN +3 – China, South Korea and Japan
• Asian Monetary Fund (no USA); act autonomously from IMF; was a failure
• Regional terror network (JI – Jemaah Islamiyah (an alternative vision of political and
social organization in the region, one that clashes directly with globalization
paradigm)
• Local movements that emerged
• Santi Suk in Thailand: created its own currency
• Japan: Community Supported Agriculture an Seikatsu Club (encouraged to buy
locally and ethically)
Framework

Globalization

1 Externalist 2 Generative 3 The region as


an alternative to
view view
globalization

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Middle Class Formation in SE Asia

• What is their importance to regionalism?

• Who / what created them?

• What is their profile?


The Making of the Middle Class in Southeast
Asia

1st wave 2nd wave


1960s – 1980s
1950s – 1970s South Korea, Taiwan,
Japan Hongkong, Singapore

3rd wave
1980s – 1990s 4th Wave
Thailand, Malaysia, Urban Centers in
Indonesia, China
Philippines
REGIONALISM AS AN ALTERNATIVE
MIDDLE CLASS ASIA
This much is clear—the Asian middle class will
play an increasingly important role in the shift in
the balance of global demand and change over
the next few decades. Its rise may present many
challenges, but it will also open up new and
unprecedented opportunities for the region and
for the world.
(Asian Development Bank)

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HQs of Multinational Corporations
Country Cases
APPROACHES TO INTEGRATION
A)SUPRANATIONALISM
- states pool their sovereignty in a way that
limits their autonomy in deciding over issues,
whether economic, military or political in nature.
B) INTERGOVERMENTALISM
- Integration based largely on the principle of
non-interference or intervention in domestic
matters.
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DRIVING FORCES OF REGIONALISM

1. Management of independence

2. Management of interdependence

3. Management of internationalization

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DRIVING FORCES OF REGIONALISM

1. Management of independence

Former colonies need mechanisms to administer their own


domestic affairs and their relations between themselves, with
their colonizers, and with other states in general. It is important
to manage these areas well as they can be a conflictual
process. They do this by entering into regional arrangements.

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DRIVING FORCES OF REGIONALISM

2. Management of interdependence

States need to manage their economic, political, and


social interdependence with other states. They set
down norms and rules by which they can collectively
achieve such goals as security, trade, and
investments. Regional norms and rules are expected
to shape the behavior of member states.

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DRIVING FORCES OF REGIONALISM

3. Management of internationalization

States need to manage their affairs in a multilateral, interstate


system. Proponents of regionalism as building blocks argue
that:
1. Such arrangements promote internal and international
dynamics that enhance the prospects for multilateralism;

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DRIVING FORCES OF REGIONALISM

3. Management of internationalization

2. Regionalism can have important demonstration effects in


accustoming actors to the effects of liberalization;
3. Increased numbers of regional arrangements can weaken
opposition to multilateral liberalization because each
successive arrangement reduces the value of the margin of
preference;

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DRIVING FORCES OF REGIONALISM

3. Management of internationalization

4. Regional agreements are often more to do with


strategic or political alliances than trade liberalization;
and
5. Regionalism has more positive than negative
political effects.

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APEC(FTAAP)
Canada, Chile, Hong Kong, Mexico, Papua
New Guinea, Peru, Russia, Chinese Taipei,
U.S

ASEAN+6
Australia, New Zealand
India
ASEAN+3
China, Japan, Korea

ASEAN

Brunei, Indonesia, Malaysia,


the Philippines, Vietnam, Cambodia, Laos,
Singapore, Thailand Myanmar

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• Formed on August 8, 1967 in Bangkok, Thailand, with the
signing of the ASEAN Declaration (Bangkok Declaration)

• Founding Father of ASEAN


- Adam Malik (Indonesia)
- Narciso R. Ramos (Philippines)
- Tun Abdul Razak (Malaysia)
- S. Rajaratnam (Singapore)
- Thanst Khoman (Thailand)

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VISION
The ASEAN Declaration states that the aims and purposes of the
Association are:

(1) to accelerate the economic growth, social progress and cultural


development in the region through joint endeavors in the spirit of
equality and partnership in order to strengthen the foundation for a
prosperous and peaceful community of Southeast Asian nations.

(2) to promote regional peace and stability through abiding respect for
justice and the rule of law in the relationship among countries in the
region and adherence to the principles of the United Nations Charter.

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1992 – ASEAN Free Trade Agreement
1997/98 – economic crisis – acceleration of economic
integration initiatives – ASEAN Vision 2020
2003 - Bali Concord II – the launch of ASEAN
Community by 2020
2005 – the launch of ASEAN Charter process
2006/07 – the acceleration of ASEAN Community to 2015
2007 – ASEAN Charter drafting and the ASEAN
Economic Community Blueprint
2008 – ASEAN Charter ratification

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