ASIAN REGIONALISM

Regionalism is defined as a political ideology that favors a specific region over a greater area.

The following are considered as significant ingredients of regionalism:

1. Common sense of identity.

2. Combines creation and implementation of institution.

3. Shape a collective action within a geographical region.

There are three major world economic regions as defined by the World Trade Organization for which
intraregional trade comprises a majority of total trade: Asia, Western Europe, and North America.

Asian regionalism is the product of economic interaction, not political planning. Asian regionalism is an
answer by East and South East Asian economies and their political leaders to deal effectively and bravely
with these developments and challenges in order to restore growth, improve trade and investment
opportunities and create welfare prospects in the Asian region.

Asian regionalism focuses and examines rapid growth of Asia’s economy, financial stability and regional
economic integration. Asia’s development has had a massive, positive impact on people’s lives. Most
Asian economies have made remarkable progress in reducing poverty. As a result of successful, outward
oriented growth strategies, Asian economies have grown not only richer, but also closer together.

Regional integration fosters inclusive development. Governments need to connect the poor to the
thriving regional economy by eliminating labor market barriers, investing in workers’ capabilities, and
building infrastructure to connect disadvantaged regions with economic centers.

Three (3) Factors Leading to greater integration

1. Trade. In ancient times, regions of Asia had commercial relations among themselves as well as with
parts of Europe and Africa. Nomadic peoples traded over considerable distances using “barter” as the
medium of exchange. Ancient people were so honest and truthful, as no businessman was aggrieved
and defrauded.

2. Similar Culture. The culture of Asia is diverse but they do share many things. This makes it an easier fit
during times of negotiations.

3. Common Goals. The Asian region recognize the mutual benefits of a slow integration. Significance of
Regionalism

In recent years, new technological trends have further strengthened ties among them, as have the rise
of the PRC (Peoples Republic of China) and India and the region’s growing weight in the global economy.
Asian economies are becoming closely intertwined. Interdependence is deepening because Asia’s
economies have grown large and prosperous enough to become important to each other, and because
their patterns of production increasingly depend on networks that span several Asian economies and
involve wide ranging exchanges of parts and components among them.

Asia is at the center of the development of such production networks because it has efficient transport
and communication links, as well as policies geared to supporting trade. As these new production
patterns tie Asian economies closer together, they also boost the international competitiveness of the
region’s firms

The emerging regional agenda

Asia’s growing interdependence presents a compelling case for regional cooperation—to deliver
regional public goods, manage regional externalities, and help coordinate policies within the region, as
well as acting together to ensure an open global economic environment.

Cooperation

Marshaling collective efforts across Asia’s vast, diverse economies is a huge challenge. The logic for
Asian economic cooperation is powerful. The region is already highly integrated, and its governments
are aware of their common interests and obligations. Increasingly, they are working together. Asia has
returned to stability and growth, and goals that seemed daunting a few years ago—the elimination of
systematic poverty and the absorption of large masses of people into a prosperous middle class—are
within reach. To be sure, important problems remain, and regional cooperation will require complex and
delicate decisions. But Asia has begun the search for common solutions to its shared challenges

Production

Access to markets, in the region and beyond, is critical to Asia and thus a high priority on the regional
agenda. In low-income economies, trade facilitates the movement of workers into high-productivity
jobs; in middle- and higher income countries, it provides incentives for innovation and productivity.
Regional cooperation can strengthen Asia’s trade by creating vast regional markets, building a seamless
production base that makes the region even more competitive in the world economy, and enhancing
Asia’s role and bargaining position in global economic policy

The Association of South East Asian Nations (ASEAN) is a regional grouping founded to promote
accelerated economic growth, facilitate social progress and cultural development, pursue regional peace
in the Southeast Asian region through multilateral cooperation. ASEAN was founded on August 8, 1968.
Its original members are Indonesia, Philippines, Malaysia, Thailand, and Singapore. Curently it has ten
(10) members which included: Vietnam, Myanmar, Brunei Darrusalam, Laos, and Timor Leste. Regional
Comprehensive Economic Partnership (RCEP) has been formed which included mutual agreement with
the United States, China, Japan, and South Korea.

APEC- Asia Pacific Economic Cooperation

Asia Pacific Economic Cooperation (APEC) was institutionalized with the goal of monitoring and
analyzing regional markers and institutes as well as governing rules and norms for facilitating
transparent and effective business transactions. It operates on the basis of non-binding commitments,
open dialogue and equal respect for views of all participating economies. APEC was founded in 1989
consisting of 21 member-states. It is established to eliminate trade and investment barriers in Asia
Pacific region. Its secretariat was based in Singapore and operates as the core support mechanism for
the APEC. Thirty (30%) percent of the world population is covered by APEC economies. It remains as a
regional economic forum to leverage the growing interdependence of Asia Pacific.