TOPIC 4: Regionalization and Intended Learning Outcomes:

Globalization
-Differentiate between regionalization and globalization;
-Discuss the advantages and disadvantages of regionalism; and
-Identify the factors leading to a greater integration of the Asian
region.

WEEK 5  Recommended Readings and References

1. Steger MB. Chapter 1-2: “Is Globalization a New Phenomenon?”

In Globalization: A Very Short Introduction. Oxford: Oxford
University Press; 2003. PP. 1-17. Available at:
http://search.ebscohost.com/login.aspx?direct=true&db=e000xw
w&AN=264792&site=ehost-live. Accessed April 5, 2020.

Steger_Manfred._2003_._Globalization_A_v (1).pdf

1. Steger, M. “Ideologies of Globalization”. Journal of Political

Ideologies (February 2005), 10(1), 11–30. Last accessed 05
July 2020.
http://socialsciences.people.hawaii.edu/publications_lib/JPI
%20Ideologies%20of%20globalization%20%20final.pdf
2. Rodriguez, R. Module 1: Introduction to Globalization- A
power point presentation. June, 2020.

Module 1 Introduction to Globalization.pdf

 Supplementary Readings and Other Internet Sources

3. Stefanovic, Z. Globalization: Theoretical Perspectives, Impacts
and Institutional Response to the Economy. FACTA
UNIVERSITATIS Series: Economics and Organization Vol. 5, No
3, 2008, pp. 263 – 272. Available at:
http://facta.junis.ni.ac.rs/eao/eao200803/eao200803-09.pdf

 Video link(s):
4. “What is Globalization?”Explainity Explainer Video. Available
at: https://www.youtube.com/watch?v=JJ0nFD19eT8

Guide Questions:
(The guide questions are intended to help you in reading and digesting the
assigned readings and topics per module. Reading hours are part of the
asynchronous learning to be employed in each module. This is to give you a deeper
exposure and understanding of each lesson as designed in this module.
Clarification and analysis of the content shall be addressed during the synchronous
online discussion or whenever it is deemed to be necessary.)
 1. What is regionalization in globalization?
2. What are examples of regional blocs or divisions?
3. Why regionalization is closely linked to globalization?

DISCUSSION  What brings regions together as they interlock with

globalization?

Source: File:Regional Organizations Map.png. Available at:

https://commons.wikimedia.org/wiki/File:Regional_Organizations_Map.png

Regionalization vs. Regionalism

(Adapted from: Hoshiro, H. “Regionalization and Regionalism in East Asia”.

[Excerpt] ISS Discussion Paper Series F-162. Institute of Social Science, University
of Tokyo. Last accessed 03 July 2020 https://www.iss.u-
tokyo.ac.jp/publishments/dpf/pdf/f-162.pdf )

Regionalization is defined as an increase in the cross-border flow of

capital, goods, and people within a specific geographical area. It develops
from the bottom up through societally driven processes coming from
markets, private trade, and investment flows, none of which is strictly
controlled by governments. The core players are non-governmental
actors—firms or individuals. Regionalization can be called a spontaneous,
bottom-up process.

In contrast, regionalism is defined as a political will (hence ism is attached

as a suffix) to create a formal arrangement among states on a
geographically restricted basis. Since its main participants are
governments, it can be expressed as an artificial, top-down process. The
“development of regionalization” means an increase in the number of
regional economic transactions such as money, trade, and foreign direct
investment (FDI).

“Regionalism in progress” refers to the agreement of regionally close

governments to establish kinds of formal institutions such as the Asia
Pacific Economic Cooperation (APEC), the East Asia Summit, or bilateral
preferential trade agreements (PTAs) in order to cooperate with each
other on various issues. Few scholars oppose the idea that both
regionalization and regionalism in East Asia have been developing since
the Asian financial crisis of 1997 . Concerning this topic, there is mutual
agreement among international relations scholars that “regionalization”
and “regionalism” are different phenomena, but there are unresolved
arguments as to whether there is a causal relationship between the two.

Does Regionalism Challenge Globalization or Build Upon It?

(Adapted from: Collins, B. “Does Regionalism Challenge Globalization or Build
Upon It?”[Excerpts]. July 29, 2010. Available at: https://www.e-
ir.info/2010/07/29/does-regionalism-challenge-globalization-or-build-upon-it/ )

Regionalism, like globalization, can also be seen as somewhat vague in its

meaning. First off, a region is defined not just as a geographical unit but
also a social system, organized cooperation in a certain field (security,
economy, cultural), and/or an acting subject with a distinct identity. It
should be explained that there is a sharp contrast between “old
regionalism” which existed during the Cold War period and “new
regionalism” which is seen arising in modern day.[6]

Old regionalism revolved around countries siding with hegemonic

powers, implementing protectionist policies, acting inward oriented and
specific intentions, and holding the structural realist approach of
concerning itself with the actions of states.[7] NATO and the Warsaw
Pact are both excellent examples of old regionalism as they were forced
regional agreements as a result of the bipolar system their creators
resided in.

New regionalism on the other hand, has taken shape out of the multi-
polar world order and is a more spontaneous process from within the
regions, where constituent states now experience the need for
cooperation in order to tackle new global challenges.[8] New regionalism
is a more comprehensive and multidimensional process which not only
includes trade and economic development but also environmental,
social, and security issues. Not to mention, it forms part of a structural
transformation in which non-state actors are also active and operating at
several levels of the global system. Modern regionalism goes far beyond
free trade and addresses multiple concerns as the world struggles to
adapt the transforming and globalizing world.[9]

In the economic sphere, regionalism has proven to be extremely effective

in helping to secure markets and providing economic strength through
the creation of Regional Trade Agreements (RTAs). In globalizing
institutions such as the International Monetary Fund and the World
Trade Organization, agreements binding governments to liberalization of
markets restrict their ability to pursue macroeconomic
policies.[10] However, under RTAs, economic policies remain more stable
and consistent since they cannot be violated by a participant country
with provoking some kind of sanctions from other members.[11] An
excellent example of this is the North American Free Trade Agreement’s
(NAFTA) stabilization and increase of Mexico’s political and economic
policies.[12]

In the globalizing market system, huge amounts of capital can be

disinvested and reinvested in a relatively short amount of time. Thus,
states lose control over exchanges and economic development and as a
result holds a reduced its role in its own economy. Regional Trade
Agreements help nations gradually work towards global free trade
through allowing countries to increase the level of competition slowly
and give domestic industries time to adjust.[13]

The increasing membership of less economically developed countries

within the European Union, Southern Common Market (MERCOSUR), and
Asia-Pacific Economic Cooperation (APEC) is testament to the economic
stability offered by regional economic organizations.[14] ASEAN countries
have already begun vying for RTAs with China in hopes of rebuilding
economic stability and renewing growth that was shaken by the
economic crisis of 1997.[15]

In the end, entering regional pacts with hegemonic powers can be easily
seen to be more beneficial for smaller countries than subjecting
themselves to the hegemonic-controlled free market.

A major weakness globalization embodies, is its inability to effectively

address transnational security and political issues.[16] As previously
stated, globalization is selective and while some gain profit from the
implementation of neo-liberalist principles, others are found to suffer at
their hands. Hence regional organizations have been created to address
more local problems and to prevent foreign intervention.[17]

For example, Organization of African Unity was formed to prevent

external manipulation which globalization so freely allows and reacted to
eleven conflicts on the continent. Not to mention the fact that the
African Union was formed out of the necessity to address what
multilateral, globalizing efforts could not after the Rwandan Genocide
and the crisis in Somalia. The African Union’s regional success is testified
by the reduced number of interstate wars and its quick response to
peace negotiations concerning the genocide in Darfur, Sudan.[18]

Besides security, globalization has failed in ensuring that multilateral

political legislation be implemented throughout the world. For example,
the Kyoto Protocol as well as the Climate Change Conference in
Copenhagen implemented very few binding regulations in a world where
globalization has made pollution transnational.

The failure for a state to have control over its citizens’ health holds a
dangerous effect for its legitimacy as government and thus must
effectively collaborate with other actors in the world to ensure that
safety.

This is seen in the European Union’s carbon trade market where, despite
failures seen at the Copenhagen Conference and the Kyoto Protocol,
pollution regulations have been put in place. The fact that these regional
management programs exist and persist, in spite of rivalries, shows the
seen imperative need by states for cooperation.[19]

With the increasing sense of regionalism growing in the world to

essentially make up for the weaknesses modern globalization has failed
to address, the question remains if the world is moving away from global
unity. Tanaka states that new regionalism should be defined as a world
order concept. ‘Since one regionalization of the world holds
repercussions over other regions of the world, it is thus shaping the way
in which new world order is being organized.’[22]

Not to mention, that regionalism centers on the creation of regional

identity as opposed to a more global identity. After all, one of the main
focuses of the European Union at the moment is its focus in creating a
European identity. Thus it could be argued that ‘Huntington’s clash of
civilizations’ hypothesis could be plausible under these conditions of
region versus region. In the end, regionalism can be seen as simply
building up states and conflict up on a larger scale.[23]

However, the build up of regionalism is made only possible by the sheer

width of the world that globalization encompasses and thus could not
replace the system in which it exists. With multiple multilateral
institutions holding regulations over regional bodies, it is very hard for
globalization and international multilateral systems to be overturned. In
addition, with the rise of interregionalism, or the pursuit of formalized
intergovernmental relations with respect to relationships across distinct
regions, the world is able to act cohesively on a larger scale.

For example, the European Union has initiate formal interregional talks
with East Asia countries, developed interregional accord with
MERCOSUR, and has held Asia-Europe Meetings (ASEM). Henceforth,
with the political and economic stability offered to countries by
regionalism, future interregional relations can be presumed to be
peaceful.[24].