ASIAN REGIONALISM

This lesson presents the main ideas of Ehito Kimura on Asian regionalism in his article
entitled, “Globalization and the Asia Pacific and South Asia”. Other authors and sources were
also included to supplement the discussion on regionalism.

Regionalization and Globalization

Regionalization is defined as the way that an area of the world containing several countries
becomes more economically or politically important than the particular countries within that area.
Regionalization also entails “an increase in the cross-border flow of capital, goods, and people
within a specific geographical area or region” (Hoshiro, n.d.). It is the process of regional formation
(Söderbaum, 2011).

A region is composed of a limited number of states that are linked together by geographical
relationship and by a degree of mutual interdependence. The European Union (EU), African
Union, Association of Southeast Asian Nations (ASEAN), and the Union of South American
Nations (UNASUR) are examples of results of regionalization.

On the other hand, globalization is defined as the process of international integration

arising from the interchange of world views, products, ideas, and other aspects.

Thus, to compare, globalization promotes the integration of economies of countries all

around the world while regionalization is considered by some as the opposite of globalization
since it aims to divide a large area into smaller parts. Aside from this basic difference, Lis and
Rzepka (n.d.) pointed out that “the processes of globalization of the world economy are guided
by the requirements of competition and the searching by the entities of the most favorable forms
of business and business locations. These activities aimed at regionalism, on the other hand,
these are dictated to a large extent by the needs of co-operation not only economic but also
political, social, etc. Regional cooperation between countries aims at moderating the differences
and contradictions between economies and equalizing their opportunities for their development."

The relationship between regionalization and globalization is explained by many experts

but sometimes with contradicting ideas. Some claim that these two concepts support each other
since some view regionalization as an early stage of globalization. Some view regionalization as
a response to globalization. It is believed that regionalization was created to provide better
adaptation to the processes of globalization and to reduce the negative impact of globalization on
states. Regionalization can help stimulate local markets that are necessary for responding to the
needs of globalization.

Regionalization in Asia

Asia is now at the forefront of globalization. Yendamuri (2009) claims that Asia’s GDP will
overtake the GDP of the rest of the world combined. In fact, according to the International
Monetary Fund (2019), Asia remains as the fastest-growing region in the world, accounting for
more than two-thirds of the global growth in 2019. This can be attributed to different factors such
as: presence of China in Asia; presence of young and more educated workforce; abundance of
natural resources; and there are several Asian states which are leaders in innovation which is
essential for globalization to work.
 In the recent years, steps had been taken in order to strengthen regionalization in Asia.
This includes the creation of trade agreements that promote free-trade among member-states
such as the ASEAN-China Free Trade Area (ACFTA) and the ASEAN Economic Community
(AEC).

Challenges of Globalization and Regionalization in Asia

a. Economic growth has mostly benefited the elite and the middle class. There is a wide gap
between the income of the rich and the poor.

b. Brain drain caused by labor export policies of countries specially for those that are
classified as Third World countries. This phenomenon reduces the capacity of developing
and underdeveloped countries to make use of their human and natural resources for their
own development.

c. Some developing countries became reliant on remittances instead of strengthening local

employment.

d. Negative balance of payments for importing countries and neglect of domestic production.

e. Massive environmental destruction and massive extraction of resources in the name of

export-oriented extractive industries.

f. Free trade usually favors industrialized countries at the expense of developing and
underdeveloped states.