ASIAN REGIONALISM GE 5

Globalization
 A process by which the people of the world are unified into a single society and function
together.

Regionalization
 A process of dividing an area into smaller segments called regions.

Asian Country
 It means any country geographically located on the continent of Asia.

REGIONALISM
 A political ideology that favors one specific region over a greater area.
 Usually caused by political separations, geography, religion, cultural boundaries,
linguistic regions.

Regionalization
 The division of a nation into states or provinces.

Regionalization VS. Globalization

 Globalization
a process by which the people of the world are unified into a single society and function
together.

 Regionalization
a process of dividing an area into smaller segments called regions.

Why countries Form Regional Organization?

 A way of coping with the challenges of Globalization.

ASIAN REGIONALISM

 A product of economic interaction between Asian countries.

 Asian economies grow richer and 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 1971-1998 financial crisis dealt a severe setback too much of the region, highlighting
Asia's share interests and common Vulnerabilities and providing an impacts for regional
cooperation.
 In the early stages of Asia's economic take off, 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.

Now, 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.

Regionalism and Its Importance to Asia

With regionalism, an integrated Asia can…

 Link the competitive strengths of its diverse economies in order to boost their
productivity and sustain the region’s exceptional growth;

 Connect the region’s capital market to enhance financial stability, reduce the cost of
capital, and improve opportunities for sharing risks;

 Cooperate in setting exchange rate and macroeconomic policies in order to minimize the
effects of global and regional shocks and to facilitate the resolution of global imbalances;

 Pool the region’s foreign exchange reserves to make more resources available for
investment and development;

 Exercise leadership in global decision making to sustain the open global trade and
financial systems that have supported a half century of unparalleled economic
development;

 Build connected infrastructure and collaborate on inclusive development to reduce

inequalities within and across economies and thus to strengthen support for pro-growth
policies; and

 Create regional mechanisms to manage cross-border health, safety, and environmental

issues better.

Regionalism and Its Importance to the World

An integrated Asia will continue to have a powerful stake in the global economy, it would
have both an incentive and the leverage to play a bigger role in keeping global markets open
and vibrant. An integrated Asia can…
 Generate productivity gains, new ideas, and competition that boost economic growth and
raise incomes across the world;

 Contribute to the efficiency and stability of global financial markets by making Asian
capital markets stronger and safer, and by maximizing the productive use of Asian
savings;

 Diversify sources of global demand, helping to stabilize the world economy and diminish
the risks posed by global imbalances and downturns in other major economies;

 Provide leadership to help sustain open global trade and financial systems; and

 Create regional mechanisms to manage health, safety, and environmental issues better,
and thus contribute to more effective global solutions of these problems.

Asian Regionalism and Its Challenges

 Here are the 4 major challenges in Asian Regionalism:

 Overcoming the 19th- century mindset of sovereignty and non-intervention.
 Asia needs to reconcile competing proposals for regional architecture.
 Asian institutions need to move beyond the ASEAN Way of informal, strictly consensus-
driven cooperation.
 Asian regional institutions should widen their focus to embrace transitional issues.

Asian Regionalism and Its Risks

 The risks faced in Asian regionalism:

 Global demand and financial stability
 Health or security threats
Social instability

Asian Regionalism and the Challenge of Cooperation

In terms of cooperation in Asian Regionalism, the challenge lies to:

 Regional institutions
 The population