Module 5-Regionalization

• Regionalization is the process of dividing an area into smaller segments called regions. In business, it is used as a management tool.
• The Regionalization of the world system and economic activity undermines the potential benefits coming out from a liberalized global economy. This is because regional organization preferred regional partners over the rest.
• Regional organizations respond to the states attempt to reduce the perceived negative effects of globalization.
• Regionalization


  The process of dividing an area into smaller segments called regions
• Regionalization


  • In economics, it is a strategy which focuses on a particular region or area
  • It employs differentiation based on regions
• Regionalization


  • Division of nation into states or provinces
  • Business using regionalization as a management tool
• Globalization


  The process of international integration emerging from the interchange of world perspectives, products, ideas, and other aspects such as technology, economy, politics, education, health care, and others
• There are many controversies surrounding globalization which make it complicated to coin a definition
• Regionalism


  Refers to regional concentration of economic flows while regionalization refers to a political process by economic policy if cooperation and coordination are present among countries
• Regionalism


  Pertains to the process of intergovernmental collaborations between two or more states
• Differences between Globalization and Regionalization

  • Globalization promotes integration of economies across state borders all around the world
  • Regionalization divides an area into smaller segments
  • Globalization allows many corporations to trade on international level; it allows free market
  • Regionalization is more likely to develop monopolies
  • Globalization accelerates multiculturalism through free and inexpensive movement of people
  • Regionalization does not support multiculturalism
  • Globalized international communities are more willing to aid countries stricken by disasters
  • A regionalized area does not get involved in the affairs of other areas
  • Globalization has driven great advances in technology
  • Advanced technology is rarely available in one country or region
• The Great War altered both the political landscape and international relations
• As world powers began to establish coalitions, third world countries found themselves casted out
• Marginalized economies were excluded from the global market
• This exclusion paved way for them to recognize renewed opportunities in collaboration with neighboring countries
• The ASEAN (Association of Southeast Asian Nations) is a perfect example of a successful regional cooperation that responds to external pressures and common challenges
• Regional Integration


  The process by which two or more nation-states agree to co-operate and work closely together to achieve peace, stability and wealth
• The entire world is moving towards integration, it is inevitable
• In Asia, the Southeast Asian countries have already formed ASEAN
• Factors that brought Asian Regions into intensified integration

  • Trade - The world economy is intertwined with each other whether we like it or not. We all want or need something from another part of the world, including global trade facilitates. These nations can readily supply each other's needs
  • Similar Culture - The cultures of Asia is diverse but they do share many things. This makes it an easier fit during times of negotiations
  • Common Goals - The Asian region recognizes the mutual benefit of a slow integration, and that is to accelerate the economic growth, social progress and cultural development and to promote peace
  • Similar Security Needs - aside from small localized rebels, this association needs only to contend with foreign-supported terrorist groups which are usually handled well
• Challenges of Regionalism


  • Resurgence of militant nationalism and populism. This involves the conflict between the NATO, the United States, and Vladimir Putin's Anti-NATO movement
  • Continuing financial crisis. The continuing crisis in the European Region continues to lead the United Kingdom into exiting the European Union
  • Conflict between sovereignty and regional stability. The Philippines had a difficulty in letting some countries support its condemnation of China's occupation of the West Philippine Sea because China had given great investments and economic aid to these countries
  • Differing visions of regionalism. Developed countries like the US may only see regionalism as a tool for political democratization, but developing countries see regionalism as an obstacle to economic globalization because public inquiry slows down its implementations
• What makes Asian nations stronger than ever is the Establishment of collaborations and cooperation based on respect
• The ASEAN, as a regional bloc, pays full respect for sovereignty and independence of its members through consensus and consultation
• Five leaders of Southeast Asian Countries met together in the Department of Foreign Affairs building

  August 08, 1967
• The Philippines had a difficulty in letting some countries support its condemnation of China's occupation of the West Philippine Sea because China had given great investments and economic aid to these countries
• Regionalism


  Developed countries like the US may only see it as a tool for political democratization, but developing countries see it as an obstacle to economic globalization because public inquiry slows down its implementations
• ASEAN


  • As a regional bloc, it pays full respect for sovereignty and independence of its members through consensus and consultation
• Five leaders of Southeast Asian Countries met together in the Department of Foreign Affairs building in Bangkok Thailand and signed the document where the "Association of Southeast Asian Nations" was born


  August 08, 1967
• ASEAN


  Promoted economic growth, social progress and cultural development in the Southeast Asian region through multilateral cooperation
• Tun Abdul Razak: '"We the nations and peoples of Southeast Asia must get together and form by ourselves a new perspective and a new framework for our region. It is important that individually and jointly we should create a deep awareness that we cannot survive for long as independent but isolated peoples unless we also think and act together and unless we prove by deeds that we belong to a family of Southeast Asian nations bound together by ties of friendship and goodwill and imbued with our own ideals and aspirations and determined to shape our own destiny"'
• ASEAN Community


  • Political Security Community
  • Economic Community
  • Socio-Cultural Community
• Political Security Community


  • Gives importance to human rights, drugs, foreign relations, defense, law and transnational crimes
• Economic Community


  • Adheres to significant roles of monitoring –economic ministers, finance ministers, central bank governors, free trade area, investment area, agriculture and forestry, transport ministers, telecommunications and information technology ministers, science and technology, energy, minerals, tourism, free trade agreements with dialogue partners and sectoral bodies
• Socio-Cultural Community


  • Avenue for cooperation among the ministers responsible for culture and arts, sports, disaster management, education, environment, health, information, labour, rural development and poverty eradication, women, youth and civil service matters
• Five ministers who signed the ASEAN document

  • Adam Malik of Indonesia
  • Tun Abdul Razak of Malaysia
  • Narciso Ramos of Philippines
  • Sinnathamby Rajaratman of Singapore
  • Thanat Khoman of Thailand
• ASEAN Member Countries


  • Indonesia
  • Thailand
  • Malaysia
  • Singapore
  • Philippines
  • Vietnam
  • Cambodia
  • Brunei
  • Myanmar
  • Laos
• ASEAN Fundamental Principles


  • Mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity of all nations
  • The right of every State to lead its national existence free from external interference, subversion or coercion
  • Non-interference in the internal affairs of one another
  • Settlement of differences or disputes by peaceful manner
  • Renunciation of the threat or use of force
  • Effective cooperation among themselves
• APEC


  Asia-Pacific Economic Corporation, a regional forum established in 1989 to leverage the growing interdependence of the Asia-Pacific, with the aim to create greater prosperity for the people of the region by promoting balanced, inclusive, sustainable, innovative and secure growth and by accelerating regional economic integration
• APEC


  • Ensures that goods, services, investment and people move easily across borders by facilitating trade through faster customs procedures at borders, more favourable business climates behind the border
• EAS


  East Asia Summit, a unique leaders-led forum of 18 countries of the Asia-Pacific region formed to further the objectives of regional peace, security and prosperity, evolved as a forum for strategic dialogue and cooperation on political, security and economic issues of common regional concerns