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Globalization and Regionalization

The document discusses the relationship between globalization and regionalization. While regionalization seems to contradict the global nature of globalization, the document argues that regionalization is actually part of and encourages globalization. States form regional trade blocs and organizations in response to globalization in order to better manage its effects and gain bargaining power vis-a-vis global actors. The growth of regionalization in one part of the world also spurs regionalization elsewhere, showing that the process is global in nature.

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RoseMarie Masongsong
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3K views15 pages

Globalization and Regionalization

The document discusses the relationship between globalization and regionalization. While regionalization seems to contradict the global nature of globalization, the document argues that regionalization is actually part of and encourages globalization. States form regional trade blocs and organizations in response to globalization in order to better manage its effects and gain bargaining power vis-a-vis global actors. The growth of regionalization in one part of the world also spurs regionalization elsewhere, showing that the process is global in nature.

Uploaded by

RoseMarie Masongsong
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Globalization

and
Regionalization
The processes of globalization and
regionalization reemerged during the
1980s and heightened after the end of
the Cold war in 1990s. At first, it seems
that these two processes are
contradicting the very nature of
globalization is, by definition, global while
regionalization is naturally regional.
The regionalization of the world system and
economic activity undermines the potential
benefits coming out from a liberized global
econmy. 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 conter-globalization.
In a 2007 survey, the Financial Times revealed that
majority of Europeans consider that globalizatipn
brings negative effects to their societies (as cited
in jacoby qnd Meunier, 2010). Many policy makers
and scholars think that globalization must be
regulated and managed. The threats of an
"ungoverned globalization" can be countered
what Jacoby and Meunier called managed
globalization; it refers to "all attempts to make
globalization more palatable to citizens"
It is important, however, to consider the gradual development of
interregional relations such as the Association of south East Asean
Nations (ASEAN), the European Union (EU), or the South American
trade bloc, Mercosur. In fact, a sort of "contagion effect" (Held et
al.,2005,p.77) has spread during the past years. Regionalization in
one part of the world encourages regionalization elsewhere---
whether by imitation, like the success of the European Single
Market, or by "defensive" reaction, such as Mercosur's
establishment as response to the creation of NAFIA. According to
this, regionalization and the development of Interregionalism would
indeed be global in nature. As held et al. (2005) claimed, "the new
regionalism is not a barrier to political globalization but, on the
contrary, entirely compatible with it---if not an indirect
encouragement"
Hurrell (2007) captured this debate in his " one
(global) world/many (regional) worlds relationship"
(p. 1). 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
that the regionalization process is global in nature.
Therefore, regionalization is intimately linked to
globalization since it is part of it and it builds on it.
The argument concerning the relationship between regionalization and
globalization is perfectly summarized in this claim:
The age economic globalization has also been the age of
regionalization, and much of the analysis of the new
regionalism has been devoted to the links between the two
tendencies. Thus, regionalism is seen as critical part of the
political economy of globalization and the strategies that
states (and other actors) have adopted in the face of
globalization of the emergence of regionalism needs to be
understood within the global restructing of power and
production. The many worlds are very closely interwined with
the character and fate of the one. The core driving force is
global even if the manifestation is regional.(Hurell, 2007,p.4)
Globalization "goes back to when humans first put a
boat into the sea" (sweeney, 2005, p. 203). We can
understand globalization as " the increased flows of
goods, services, capita, people, and information across
borders" (Jacoby And Meunier, 2010, p. 1). But as we
have learned from the previous discussion, there are
many controversies about and varying definition of the
term. Defining region and regionalization is
complicated. Nevertheless, region, according to
Mansfield and Milner (1999) is “a group of countries in
the same geographically specified area” (p. 2.).
Hurrell (2007) defined regionalization as the
“societal integration and the often
undirected process od social and economic
interaction” (p. 4). In addiction,
regionalization is different from regionalism,
which is “the formal process of
intergovernmental collaboration between
two or more states” (Revenhill, 2008,
p.174).
The motivations for the recent regionalization in
Asia, as well as other regions in the world, cannot
be isolated from one and another. It is a complex
mixture of factors. One of the reasons behind
regionalism is the concern for security, which is to
ensure peace and stability. Condidence building can
be enhanced through economic cooperation within
region. The ASEAN and the Shanghai Cooperation
Organization (SCO) are regional organizations that
seek strong security in Asia through cooperation.
Huntington(1996), on the contrary, believed
that culture and identify guide regionalization.
As he put it, “In the post-Cold War world,
states increasingly defined their interests in
civilization terms” (p. 30). For him, culture and
identify are civilization. He identified nine
major civilization: Western, Latin American,
African, Islamic, Sinic, Hindu, Orthodox,
Buddhist, and Japanese.
He argued that international organizations like
the EU or Mercosur share a common culture
and identify and are far more successful than
NAFTA, whose member state belong to different
civilization. If we follow Huntingston’s idea of
the “clash of civilization” one could argue that
the potential for such clash can be strong in Asia
because many of those civilization are, at the
least, can be found in the region.
Nevertheless, economic motivations are
arguably the main motivation behind
contemporary regionalization. By entering in
regional organizations, Asian states may region
some control over flows of capital and enhance
their bargaining power against transnational
economic actors such as investment groups or
transnational cooperations (TNCs)(De Martino
and Grabel, 2003).
Aside from this, domestic companies may
benefit from belonging to a regional market
big enough to allow them scale economies
while still being protected from global
competiton. In other words, regional
organizations allow national companies the
opportunity to succeed in a protected but big
enoug market in a way that they would
otherwise fail exposed to global competition.
Finally, non-state actors, such as the TNCs, act as
driving force toward regionalism. These TNCs, whose
host countries are not part of a given regional trade
agreement, find themeselves in a disadvantaged
commercial situation with respect to competing
companies belonging to the regional organization in
question. Given this situation, Revenhill (2008) said
that disadvantaged TNCs will lobby their national
governments to sign similar trade agreements in
order to end their disadvantaged commercial
situation.

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