Asian Regionalism

UNIT II LESSON 2
Lesson Objectives:

At the end of the topic, the students will be able to:

► Differentiate between regionalization and globalization;
► Identify the factors leading to a greater integration of the Asian region;
and
► Effects of Asian Regionalism
What is
• A political ideology that favors a specific
regionalism? region over a greater area.

• It usually results due to political

separations, religion, geography, cultural
boundaries, linguistic regions and
managerial divisions (economic
cooperation and economic arrangements of
group of countries aimed at facilitating or
enhancing regional integration)
What is
regionalism?
REGIONALISM
IS THE THEORY OR PRACTICE OF
REGIONAL RATHER THAN CENTRAL
SYSTEM OF ADMINISTRATION OF
ECONOMIC, CULTURAL OR POLITICAL
AFFILIATION
Regionalization
The division of a
nation into states
and provinces.
Why do countries
form regional
organization? They form regional
organization as a way of
coping with the challenges of
globalization.
 Regionalization
► A process of dividing an area into
smaller segments called regions.
► Regionalization only involves
processes and needs of specific
places or areas of the country
Globalization
► A process by which the people of the
world are unified into a society and
function together.
► Globalization is the process of
international integration arising from the
exchange of world ideas, products and
other aspects. Involves political and
economic aspect.
REGIONALIZATION
As to nature, globalization promotes the
VS. •
integration of economics across state borders all
around the world but regionalization is precisely
GLOBALIZATION the opposite because it is dividing an area into
smaller segments
• As to market, globalization allows many
companies to trade on international level so it
allows free market but in regionalized system,
monopolies are likely to develop.
REGIONALIZATION • As to cultural and societal relations
globalization accelerate to multiculturalism by
VS. free and inexpensive movement of people but
regionalization does not support this.
GLOBALIZATION • As to aid, international community is also more
than willing to come to the aid of a country
stricken by a natural disaster but , a regionalized
system does not get involved in the affairs of
other areas.
• As to technological advances, globalization has
driven great advances in technology but advanced
technology is rarely available in one country or
region.
Asian Regionalism
A product of economic
interaction between Asian
countries. It is not about
political planning but more
on economic planning.
Effect/Impact Asian
Regionalism • Asian countries have grown not only
richer but also closer together
• New technological trends have further
strengthened ties among them, as have the
rise of the China and India and the
region`s growing weight in the global
economy
• The 1997/1998 financial crisis dealt a
severe setback too much of the region,
highlighting asia`s shared interests and
common vulnerabilities and providing
impetus for regional cooperation.
Effect/Impact Asian
Regionalism
• In the early stages of Asia`s economic
takeoff, regional integration proceeded
slowly. East Asian economies focused on
exporting to developed country markets.
• The Japanese economist Akamatsu(1962)
famously compared this pattern of
development to flying geese. In this model
in formation not because they were directly
linked to each other but because they
followed similar paths. They were not
closely linked in other words.
• .
Effect/Impact Asian
Regionalism • Now, Asian countries are becoming
intertwined.
• Interdependence is deepening because
Asia`s economy 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.
 Factors Leading to the Greater Integration of the
Asian Region

1. Trade 2. Similar Culture 3. Common Goals 4. Security

The world economy is The Asian region
Asia has a diverse This association needs
interdependent with recognizes the mutual
culture but Asians do benefit of a slow to contend with foreign
each other. Countries
share in common. And integration. The territories supported terrorist
want or need something
this makes it easier fit involved are not far from groups which are
from another part of the
during times of each other and the hard handled well.
world, and global trade
negotiations. working attitude of its
facilitates that. population can work as a
powerful tool against those
from other parts of the
world.
Benefits of Asian
Integration
• It harnesses the strength of
diverse economies
• It makes the economy more
resilient to global risks
• It creates regional mechanism
for safety and security
Challenges
• There is a need to establish
compatible product standards
• The need to establish guidelines that
buffer financial contagion and
ensure compatible financial
regulations
• The need to coordinate
macroeconomic policies
• The need to manage cross border
environmental and social polices
“
THANK YOU!
”