GE5 MODULE 6 INTEGRATION OF THE ASIAN REGION

Regionalism

* A political ideology that favors a specific region over a greater area.
* It usually results due to political separations, religion, geography, cultural boundaries, linguistic regions and managerial divisions.

REGIONALIZATION

* A process of dividing an area into smaller segments called regions.
* The division of nation into states or provinces.

GLOBALIZATION

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

REGIONALISM

The theory of practice of regional rather than central systems of administration of economic cultural or political affiliation.

Why countries form regional organization?

As a way of coping with the challenges of globalization

Asian Regionalism

A product of economic integration between Asian countries.

ASIAN REGIONALISM

* Asian economies have grown not only richer, but also close 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 an impetus for regional cooperation.
* In 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, economies moved in formation not because they were directly linked to each other, but because they followed similar paths.
* 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 increasing depend on networks that span several Asian economies and involve wide ranging exchanges of parts and components among them.

1997/ 1998

Year/s of financial crisis dealt a severe setback too much of the region, highlighting Asia’s shared interests and common vulnerabilities and providing an impetus for regional cooperation.

Akamatsu

Japanese economist who compared the pattern of development to flying geese

Flying geese

Akamatsu (1962) compared the pattern of development to what?

They followed similar paths

Based on Akamtsu’s model, economies moved in formation not because they were directly linked to each other, but because ___________

Globalization (Nature)

Promotes the integration of economics across state boarders all around the world

Regionalization (Nature)

Is precisely the opposite because it is dividing an area into smaller segments

Regionalization (Market)

Monopolies are likely to develop

Globalization (Market)

Allows many companies to trade on international level, it allows free market

Regionalization (Cultural and Societal Relations)

Does not support multiculturalism

Globalization (Cultural and Societal Relations)

Accelerate to multiculturalism by free and inexpensive movement of people.

Regionalization (AID)

Does not get involved in the affairs of other areas.

Globalization (AID)

Is more willing to come to the aid pf a country stricken by natural disaster.

Regionalization (TECHNOLOGICAL

ADVANCES)

rarely available in one country or region.

Globalization (TECHNOLOGICAL

ADVANCES)

Has driven great advances in technology

FACTORS LEADING TO THE GREATER INTEGRATION OF THE ASIAN REGIONS

* Regional integration is a process in which neighboring states enter into an agreement in order to upgrade cooperation through common institutions and rules.
* The objectives of the agreement could range from economic to political, to environmental, although it has typically taken the rom of a political economy initiative.
* It has been or organized either via supranational institutional structures or through intergovernmental decision- making, or combination of both.
* Often focused on removing barriers to free trade in the region, increasing the free movement of people, labor, goods, and capital across national borders, reducing the possibility of regional armed conflict and adopting cohesive regional stance son policy issues, such as environmental, climate change and migration.
* Intra- regional trade refers to trade which focuses on economic exchange primarily between countries of the same region or economic zone.
* In recent years, countries within economic- trade regimes such as ASEAN in Southeast Asia for example have increased the level of trade and commodity exchange between themselves which reduces the inflation and tariff barriers associated with foreign markets resulting in growing prosperity.

Supranational Institutional Structures

is an administrative structure that goes beyond the boundaries of state. It is a multi- national union or association in which member countries seek authority and sovereignty on at least some internal matters to the group whose decision are binding on its members

Intergovernmental decision- making

refers arrangements whereby the nation or the countries in any situations and conditions they can control, they can make decision s, and cooperate with one another on matters with common interest.

Intra- regional trade

refers to trade which focuses on economic exchange primarily between countries of the same region or economic zone.

Regional integration

Is a process in which neighboring states enter into an agreement in order to upgrade cooperation through common institutions and rules.

ASEAN MEMBERS

1\.       Brunei

2\.       Cambodia

3\.       Indonesia

4\.       Laos

5\.       Malaysia

6\.       Myanmar

7\.       Philippines

8\.       Singapore

9\.       Thailand

10\.    Vietnam