ASIAN REGIONALISM

• Regionalization


  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


  An increase in the cross-border flow of capital, goods, and people within a specific geographical area or region
• Regionalization


  The process of regional formation
• Region


  • Composed of a limited number of states that are linked together by geographical relationship and by a degree of mutual interdependence
• Examples of results of regionalization

  • European Union (EU)
  • African Union
  • Association of Southeast Asian Nations (ASEAN)
  • Union of South American Nations (UNASUR)
• Globalization


  The process of international integration arising from the interchange of world views, products, ideas, and other aspects
• Globalization


  Promotes the integration of economies of countries all around the world
• Regionalization


  Considered by some as the opposite of globalization since it aims to divide a large area into smaller parts
• Globalization


  Guided by the requirements of competition and the searching by the entities of the most favorable forms of business and business locations (Lis and Rzepka)
• Regionalism


  Dictated to a large extent by the needs of cooperation 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
• Regionalization


  Can be viewed as an early stage of globalization
• Regionalization


  Can be viewed as a response to globalization to provide better adaptation and reduce negative impacts
• Regionalization


  Can help stimulate local markets necessary for responding to the needs of globalization
• 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
• According to the International Monetary Fund (2019) - Asia remains the fastest-growing region in the world, accounting for more than two-thirds of the global growth in 2019
• Factors contributing to Asia's growth

  • Presence of China
  • Presence of young and more educated workforce
  • Abundance of natural resources
  • Several Asian states are leaders in innovation
• Steps taken to strengthen regionalization in Asia

  • Creation of ASEAN-China Free Trade Area (ACFTA)
  • Creation of ASEAN Economic Community (AEC)
• Challenges of globalization and regionalization in Asia

  • Economic growth has mostly benefited the elite and the middle class, wide gap between rich and poor
  • Brain drain caused by labor export policies
  • Reliance on remittances instead of strengthening local employment
  • Negative balance of payments for importing countries and neglect of domestic production
  • Massive environmental destruction and extraction of resources for export-oriented industries
  • Free trade usually favors industrialized countries at the expense of developing and underdeveloped states