Asian Regionalism

Lesson 7
Reporters:
Michael Dean Jacob
Stephannie Lagera
Arabelle Laurado
Objectives:

Differentiate regionalization and

globalization.

Identify factors leading to a greater

integration of the Asian region.

Analyze how different Asian states

confront the challenges of
globalization and regionalization.
Regionalism ,

• Is the political movement with the aim to preserve or to gain

cultural or economic self-reliance (or both).
• It is described as “actions by governments to liberalize or
facilitate trade on a regional basis, sometimes through free-
trade areas or custom unions.”
• It is multidimensional – it encompasses deepening
interdependence in various spheres of economic activity,
widening cooperative efforts and a growing commitment to
international collaboration.
Why nations are participation in
Regionalism?
Asian Regionalism
• Is the product of economic interaction. As a result of successful,
outward-oriented growth strategies, Asian economies have grown
not only richer, but also closer together.
• A dynamic and outward-looking Asian Regionalism could bring
huge benefits not just in Asia, but to the world.
• The region’s economy is already similar in size to those of
Europe and North America and its influence in the world
continues to increase.
Asian Regionalism
• The question is no longer whether Asia
will be central to the 21st economy but on
how it will exercise its prominent role and
how its dependence on the rest of the
world has decreased.
 Regionalism
and its
Importance to Asia
Importance to Asia

It can help Asia address regional challenges as well as

provide stronger foundations for its global role.

These benefits from cooperation and could extend also to

developing Asian economies that are not yet part of the
region’s integrating core.
 Regionalism
and its
Importance to the World
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.

While Asian regionalism is primarily motivated by the desire to advance

welfare in the region, it would not do so by detracting from development
elsewhere. On the contrary, Asian regionalism can help to sustain global
economic progress at a time when other major regions are reaching
economic maturity.
Asian Regionalism
and its
Challenges
 Challenges

 Asian institutions need to address four challenges:

1. The challenge to overcome the 19th century mindset of

sovereignty and non-intervention.

2. Asia needs to reconcile competing proposals for regional

architecture that have cropped up since Prime Minister Yukio Hatoyama of
Japan proposed his vision of an East Asian Community in 2009,
effectively countering his Australian counterpart Kevin Rudd’s 2008
vision of an
Asia-Pacific Community.
Challenges

3. Asian institutions need to move beyond the ASEAN way of

informal, strictly consensus-driven cooperation, to adopt
greater institutionalization and legalization.

4. Asian regional institutions should widen their focus to embrace

transnational issues and move beyond being forums for
consultations and dialogue to become instruments for problem
solving.
 Challenges

 This diversity has not stopped Asian countries from working together for
prosperity and peace. And over time, market-led regionalism has proven its
value and is now progressively becoming more institutionalized.

 The evidence to date suggests that Asia’s experience in regionalism has been
very successful. Almost seven decades ago, in the midst of the Cold War, no
one could have imagined Asian countries working together as they are doing
today.
Asian Regionalism
and its
Risks
 Risks
 Asia’s bright economic prospects provide a supportive environment for regional
cooperation. But building an Asian economic community is a long-term undertaking and
the economic climate cannot be expected to remain consistently favorable.

 Some risks are known:

• Global demand and financial stability are important to Asia and could be
compromised by a deepening credit crisis;
• A falling dollar;
• A sudden unwinding of current account imbalances;
• Rapidly rising energy, food and other commodity prices; and
• Other stocks, including adverse effects of global warming.
 Risks
 In Asia as well, after a long period of economic expansion (in some countries stretching back nearly
two decades), there are bound to be financial reversals and economic slowdowns due to business
cycles whether they originate in the region or elsewhere, and to longer term challenges such as
excess savings and population ageing.

 New health or security threats could make the flow of people and goods more difficult and
expensive.

 Environmental damage could result in radical changes in economic policies.

 Social instability could generate tensions and uncertainty that overwhelm economic process.
 Asian Regionalism
and the
Challenge of Cooperation
Challenge of Cooperation

 Asia’s approach to regionalism is likely to have other distinct characteristics as

well.

 The region’s policy-making style is typically pragmatic and cautious.

 Cooperation is primarily aimed at marking markets work better and tends to be

limited to specific initiatives and objectives.

 Although intergovernmental dialogue at all levels has greatly increased, formal

regional institutions remain relatively underdeveloped.
Challenge of Cooperation

These are likely to gain traction only insofar as they promised

and, eventually, deliver tangible benefits – not just to elite
groups, but to the population as a whole.

The public appears to have positive expectations of

regionalism.
THE END