Cworld1 Lesson 7

Learning Objectives:
1. To differentiate regionalization and globalization

2. To identify the factors that lead to a greater integration of the Asian
region
3. To analyze how different Asian states confront the challenges of
globalization and regionalization
SOURCE: https://www.google.com/search?q=images/+photos+related+to+Asian+Regionalism
https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.eurasiareview.com
https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.vox.com
LESSON 7
ASIAN REGIONALISM
This lesson presents the main ideas of Ehito Kimura on Asian regionalism in his article entitled,
“Globalization and the Asia Pacific and South Asia”. Other authors and sources were also included to
supplement the discussion on regionalism.
Regionalization and Globalization
Regionalization is defined as the way that an area of the world containing several countries
becomes more economically or politically important than the particular countries within that area.
Regionalization also entails “an increase in the cross-border flow of capital, goods, and people within a
specific geographical area or region” (Hoshiro, n.d.). It is the process of regional formation (Söderbaum,
2011).
A region is composed of a limited number of states that are linked together by geographical
relationship and by a degree of mutual interdependence. The European Union (EU), African Union,
Association of Southeast Asian Nations (ASEAN), and the Union of South American Nations
(UNASUR) are examples of results of regionalization.
On the other hand, globalization is defined as the process of international integration arising from
the interchange of world views, products, ideas, and other aspects.
Thus, to compare, globalization promotes the integration of economies of countries all around the
world while regionalization is considered by some as the opposite of globalization since it aims to divide
a large area into smaller parts. Aside from this basic difference, Lis and Rzepka (n.d.) pointed out that
“the processes of globalization of the world economy are guided by the requirements of competition and
the searching by the entities of the most favorable forms of business and business locations. These
activities aimed at regionalism, on the other hand, these are dictated to a large extent by the needs of co-
operation not only economic but also political, social, etc. Regional cooperation between countries aims
at moderating the differences and contradictions between economies and equalizing their opportunities for
their development."
The relationship between regionalization and globalization is explained by many experts but
sometimes with contradicting ideas. Some claim that these two concepts support each other since some
view regionalization as an early stage of globalization. Some view regionalization as a response to
globalization. It is believed that regionalization was created to provide better adaptation to the processes
of globalization and to reduce the negative impact of globalization on states. Regionalization can help
stimulate local markets that are necessary for responding to the needs of globalization.
Regionalization in Asia
Asia is now at the forefront of globalization. Yendamuri (2009) claims that Asia’s GDP will
overtake the GDP of the rest of the world combined. In fact, according to the International Monetary
Fund (2019), Asia remains as the fastest-growing region in the world, accounting for more than two-
thirds of the global growth in 2019. This can be attributed to different factors such as: presence of China
in Asia; presence of young and more educated workforce; abundance of natural resources; and there are
several Asian states which are leaders in innovation which is essential for globalization to work.
In the recent years, steps had been taken in order to strengthen regionalization in Asia. This
includes the creation of trade agreements that promote free-trade among member-states such as the
ASEAN-China Free Trade Area (ACFTA) and the ASEAN Economic Community (AEC).
Challenges of Globalization and Regionalization in Asia
a. Economic growth has mostly benefited the elite and the middle class. There is a wide gap
between the income of the rich and the poor.
b. Brain drain caused by labor export policies of countries specially for those that are classified as
Third World countries. This phenomenon reduces the capacity of developing and underdeveloped
countries to make use of their human and natural resources for their own development.
c. Some developing countries became reliant on remittances instead of strengthening local

employment.
d. Negative balance of payments for importing countries and neglect of domestic production.
e. Massive environmental destruction and massive extraction of resources in the name of export-
oriented extractive industries.
f. Free trade usually favors industrialized countries at the expense of developing and
underdeveloped states.

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Cworld1 Lesson 7

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Learning Objectives:

1. To differentiate regionalization and globalization

Regionalization and Globalization

Challenges of Globalization and Regionalization in Asia

c. Some developing countries became reliant on remittances instead of strengthening local

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