COWORLD

MODULE 1: Topic 5 - Globalization and Regionalization

Globalization and Regionalization
Regionalization still exist despite of globalization because of different political and economic forces that
shapes globalization. Globalization is said to originate from the onset of civilization until new waves of
technology and innovations were introduced to the society, thus, making communication process and
exchange of trade much more easy.

The process of globalization and regionalization reemerged during the 1980s and heightened after the
end of Cold War in the 1990s. At first, it seems that these two processes are contradicting, but the
regionalization of the world system and economic activity undermines the potential benefits coming from
a liberalized global economy. This is because regional organizations prefer regional partners over the rest.
Regional organizations respond to the states’ attempt to reduce the perceived negative effects of
globalization. Therefore, regionalism is a sort of counter-globalization.

According to Hurrell (2007) “one world/ many worlds relationship. Regional developments in one part of
the world have affected and fueled regionalization everywhere else in a sort of contagion or domino
effect. This fact, along with increasing developments in interregional cooperation, shows the
regionalization process is global in nature. Therefore, regionalization is intimately linked to globalization
since it is a part of it and it builds on it.”

Regionalization (Hurrell (2007) – societal integration and the often undirected process of social and
economic interaction. Different from regionalism (Ravenhill, 2008) which is the formal process of
intergovernmental collaboration between two or more states.

• Huntington (2006), believed that culture and identity guide regionalization. For him “in the post-
Cold War world, states increasingly define their interests in civilization terms”. Non-state actors,
such as Trans National Corporations (TNCs), act as a driving force toward regionalism. These TNCs,
whose host countries are not part of a given regional trade agreement, find themselves in a
disadvantaged commercial situation with respect to competing companies belonging to the
regional organization in question.
• Ravenhil (2008) said that disadvantaged TNCs will lobby their national governments to sign similar
trade agreements in order to end their disadvantaged commercial situation.
• Many policy makers and scholars think that globalization mus tbe regulated and managed. The
threats of an “ungoverned globalization” can be countered what Jacoby and Meunier (2010)
called managed globalization – refers to all attempts to make globalization more palatable to
citizens.
Regionalism vs. Regionalization
Regionalism became dominant force to promote blocs that negotiates trade tariffs and policies that are
favorable to the group. Regionalization aacording to Hurrell (2007) is the societal integration and the
often undirected process of social and economic interaction that is different from regionalism which is
the formal process of intergovernmental collaboration between two or more states( Ravenhill, 2008) .
This PDF further explain the concept of regionalism.