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Theories of New Regionalism: Fredrik Söderbaum and Timothy M. Shaw
Theories of New Regionalism: Fredrik Söderbaum and Timothy M. Shaw
Regionalism
A Palgrave Reader
Edited by
Fredrik Söderbaum and Timothy M. Shaw
International Political Economy Series
Titles include:
Hans Abrahamsson
UNDERSTANDING WORLD ORDER AND STRUCTURAL CHANGE
Poverty, Conflict and the Global Arena
Elizabeth De Boer-Ashworth
THE GLOBAL POLITICAL ECONOMY AND POST-1989 CHANGE
The Place of the Central European Transition
Helen A. Garten
US FINANCIAL REGULATION AND THE LEVEL PLAYING FIELD
Takashi Inoguchi
GLOBAL CHANGE
A Japanese Perspective
Edited by
Fredrik Söderbaum
Research Fellow
Department of Peace and Development Research
Göteborg University, Sweden, and
United Nations University/Comparative Regional Integration Studies (UNU/CRIS)
Bruges, Belgium
and
Timothy M. Shaw
Professor of Commonwealth Governance and Development
Institute of Commonwealth Studies
School of Advanced Study
University of London
London, England
Selection, editorial matter and Chapter 12
© Fredrik Söderbaum and Timothy M. Shaw 2003
Chapters 1–11 © Palgrave Macmillan Ltd 2003
Softcover reprint of the hardcover 1st edition 2003 978-1-4039-0197-2
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Theories of new regionalism : a Palgrave reader / edited by Fredrik Söderbaum
and Timothy M. Shaw.
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Includes bibliographical references and index.
Preface vii
Notes on the Contributors ix
List of Abbreviations xiii
v
vi Contents
This original collection was proposed for three interrelated reasons. First,
international relations/world politics/global political economy are in flux at
the start of the new century, even if not all analysts would admit or
acknowledge this. We believe that contemporary changes pose positive
challenges for creative analyses and policies for ‘global governance’ although
several disciplines display considerable reluctance to so respond. Second,
new forms of regionalism are emerging in response to world order flux and
the challenges of globalization (and anti-globalization) along with the
elusiveness of sustainable development. Third, in spite of a proliferation of
new definitions and debates about regionalism in the post-Cold War era,
there is surprisingly little theoretical debate and genuine communication in
the research field. In fact, until this project, there was no singular, authoritative
‘theory-book’ for the field.
We hope that this volume, containing as it does, original contributions
from some of the leading authorities in the burgeoning field, will be well
received as a graduate-level assigned or supplementary text as well as a theo-
retical state of being for the research community at large. We see this series
of original essays contributing not only to the development of established
‘disciplines’ like international relations, political science and public policy,
economics and sociology but also to embryonic yet exciting fields like civil
society, development studies, and new or critical security studies and so forth.
New regionalism is necessarily interdisciplinary in content and orientation,
even if original post-Second World War formulations of regionalism (i.e. the
‘old regionalism’) were more state-centric in approach and dominated by
political science in orientation and affiliation.
This catholic inclination is apparent in the affiliations of our contributors
as well as reflected in their (and our) research and writing. Unlike ‘old
regionalism’, the new is not a by-product of orthodox US social science,
which continues to be rather hegemonic globally. In particular, we hope to
advance communication, even integration, between different ‘schools’
(often reflective of broader theoretical divergencies) or tendencies already
apparent within the youthful field. We hope that this volume will advance
such an ‘heterogenous’ genre. We envisage it as a selection of ‘the best’ of
extant studies of new regionalism.
Many of the essays have their origins in two interrelated forums. First, original
(and in most cases, considerably different) versions of some essays (Barry
Buzan, Richard Falk, Björn Hettne and Percy Mistry) were presented in a
UNU/WIDER project on ‘The New Regionalism’, coordinated by Björn Hettne
vii
viii Preface
FREDRIK SÖDERBAUM
TIMOTHY M. SHAW
Notes on the Contributors
The editors
The contributors
ix
x Notes on the Contributors
are The Future of the Capitalist State (2002) and State/Space (co-edited with
Neil Brenner, Martin Jones and Gordon MacLeod, 2002). He is currently
working on two research projects. One concerns the contradictions of the
knowledge-based economy; the other addresses recent and continuing
changes in forms of state and governance. More details about past, present,
and future research can be found at his homepage: <http://www.comp.
lancs.ac.uk/sociology/rjessop.html>.
xiii
xiv List of Abbreviations
1
2 Introduction: Theories of New Regionalism
and embrace a variety of theories. This is what makes the theoretical world
of new regionalism so rich. The expectation is that this book will help to
clarify differences as well as similarities between theories and approaches.
Another related purpose for this unique theoretical exercise is to over-
come, or at least minimize, the fragmentation and division in the field of
new regionalism. Too often theorists speak past each other, without really
engaging with alternative theories and competing research results. In
response, this volume aims also to contribute to a more productive debate
between different theoretical standpoints, not least between mainstream
and critical/non-orthodox theories. By facilitating theoretical interaction
and comparison, the ambition is to move towards a common ground,
which in turn can help in bringing the debate forward.
The volume contains a wide spectrum of partly overlapping and partly
competing perspectives and theories of new regionalism. The purpose of
this introductory chapter is to situate the theories in the broader theoretical
landscape and also clarify some important similarities and differences
between them. In so doing the next two sections concentrate on what is
‘new’ and what is ‘regional’ in the new regionalism, respectively. The third
section considers the richness of theories of new regionalism, first and fore-
most in terms of the variety of types of theory and the research focuses that
exist. Finally, the structure of the rest of the book is outlined.
The term ‘new regionalism’ is now widely used in the debate. In order to
understand more about what is ‘new’ in this new regionalism, one can
differentiate between a variety of partly overlapping and partly competing
distinctions and meanings. To begin, many scholars and policy-makers refer
to the new regionalism as the current wave or era of regionalism (i.e. new in a
temporal sense). However, cross-national/community interaction and inter-
dependencies have existed far back in history (Mattli, 1999). Bøås, Marchand
and Shaw (Chapter 11) argue that a ‘regionalized world is therefore not a
novelty, but an integrated part of human history’.
It is thus evident that often old regionalism and new regionalism are
distinguished by referring to waves or generations of regionalism. Some theorists
refer to the protectionist trend of the 1930s as the first main wave of region-
alism. More frequently, however, it is argued that (voluntary and compre-
hensive) regionalism is predominantly a post-Second World War phenomenon.
We may therefore speak of several generations and varieties of post-Second
World War regionalism (Mistry, Chapter 7; cf. Hveem, 2000a). According to
Hettne (and many others) there have been two main waves of regionalism,
which are often referred to as the old and the new regionalism (Hettne,
Chapter 2). The first wave had its roots in the devastating experience of
inter-war nationalism and the Second World War. It emerged in Western
4 Introduction: Theories of New Regionalism
Europe in the late 1940s and, although exported to several other regions in
the South, it died out in the late 1960s and early 1970s. The second wave
began to emerge in the mid-1980s, again starting in Western Europe (with
the White Paper and the Single European Act) and gradually turning into a
more widespread phenomenon.
There are both continuities and similarities between old and new region-
alism, so that when studying contemporary regionalism one can easily get a
feeling of déjà vu. For instance, many regional projects and regional organ-
izations were initiated during the era of old regionalism and then simply
renewed or re-inaugurated (sometimes with a new name and sometimes
with a few different members) in the 1980s and 1990s. Under such circum-
stances it is often difficult to separate the historical from the contemporary.
In response to this, Hettne (1999: 8) argues that, rather than identifying a
new era or new wave of regionalism, ‘I find the identification of new
patterns of regionalization (co-existing with older forms) more relevant’, i.e.
new regionalism in the empirical rather than the temporal sense.
This is closely related to the fact that we may also speak of new regionalism
in a spatial sense, referring to a region, a real emerging region, that did not
previously experience genuine regionalization or in which it was imposed
from outside, more or less as a simple copy of the European integration
model. As pointed out by Mittelman (2000: 113), ‘[t]he most important
features of the new regionalism are its worldwide reach, extending to more
regions, with greater external linkages’. Furthermore, compared to the old
regionalism in the 1960s today’s regionalism is not only emerging more or
less all over the world, but it is often taking different shapes in different
parts of the world. Whereas the old regionalism was generally specific with
regard to objectives and content, and (often) had a narrow focus on prefer-
ential trade arrangements and security alliances, the number, scope, and
diversity of the new regionalism has grown significantly during the last
decade (Hettne, Chapter 2; Schulz et al., 2001). In short, the new regionalism
is both global and pluralistic, compared to the old regionalism, which was
Eurocentric and narrow.
Furthermore, many new regionalism theories may perhaps be considered
to be new also in that they highlight the close relationship between region-
alism and the extra-regional environment, particularly globalization. In many
ways this constitutes a break with the old regionalism theories, especially
with the leading variant of neofunctionalism, which often tended to ignore
the global environment, almost as if regions were insulated from the external
world. In this regard, most observers in the field emphasize the fundamental
difference between the old bipolar Cold War context of the old regionalism
and the current context after the Cold War, in which the new regionalism is
being played out. Having said so, however, there are many different inter-
pretations regarding what constitutes the new context and particularly the
implications for regionalism.
Fredrik Söderbaum 5
why the term ‘new regionalism’ is used most consistently by scholars associated
with a rather loose body of thinking, broadly referred to as new or critical
international political economy (IPE). Robert Cox (1996) is often referred to
as one of the ‘founding fathers’ of this loose school of thought, although it
was Craig Murphy and Roger Tooze (1991) who first advanced the call for a
new IPE, which has also been referred to as heterodox or counterhegemonic IPE
(see Hettne, 1995a and b; Gamble et al., 1996; Hoogvelt, 1997; Neufeld,
1997; Mittelman, 2000).
The term ‘theory’ has many different meanings. It must be clear from the out-
set that the theorists in this volume do not always adhere to the same under-
standing of what constitutes ‘good theory’. There is no need, at least not in this
book, for a misplaced universalistic definition of what formulation and defin-
ition of theory is to be preferred. On the contrary, this collection highlights the
richness of new regionalism theory. Different theorists are engaged in different
kinds of knowledge production and they also focus on different research ques-
tions – what below is discussed under the sections types of theories and types of
research focus respectively. Before moving on, it needs mentioning that some-
times theorists are concerned with similar research questions but differ in
terms of knowledge production, while at other times it may be vice versa.
Types of theories
It must be underlined that the dividing line between an ‘approach’ and a
‘theory’ is by no means crystal-clear. Many orthodox ‘scientists’ would
Fredrik Söderbaum 9
Theory is always for someone and for some purpose. All theories have a
perspective. Perspectives derive from a position in time and space. The
world is seen from a standpoint definable in terms of nation or social
class, of dominance or subordination, of rising or declining power, of a
sense of immobility or of present crisis, of past experience, and of hopes
and expectations for the future. (Cox, 1986: 207)
Bøås, Marchand and Shaw (Chapter 11) argue that we are dealing with
different layers and overlapping processes and nexuses of globalization and
regionalization simultaneously – what they refer to as the weave-world.
A series of other interesting comparisons can be made between different
theorists. The normative understanding of the relationships between globalization/
multilateralism and regionalization is particularly interesting. Gamble and
Payne (Chapter 3) are very clear that much of today’s regionalism is
open regionalism, and as such it tends to reinforce the detrimental effects of
economic globalization and global capitalism. Gamble and Payne believe
that there is a long way to go before new regionalism contributes to social
regulation and social control. Similarly, Hettne (Chapter 2) sees (economic)
globalization as a strong and in some of its dimensions irreversible force,
with deep implications for regionalism. Both these approaches consider
economic globalization as a highly uneven process and both seek to reveal
power relations behind this grand process. However, Gamble and Payne
(Chapter 3) consider today’s regionalism primarily as a manifestation of eco-
nomic globalization and prevailing forms of hegemony (i.e. as neoliberal/
open regionalism), whereas Hettne is more enthusiastic about the regional
phenomenon. Hettne applies the thinking of Karl Polanyi (1944) in order to
understand the emergence of the new regionalism in the current world
order context dominated by economic globalization. Following Polanyi,
Hettne argues that the dialectics of market expansion and attempts at political
intervention in defence of civil society constitute the basic forces of societal
change. Seen from this perspective the new regionalism represents the
‘return of the political’: that is, interventions in favour of crucial values,
among which development, security and peace, and ecological sustainability
are the most fundamental.
There are several theorists in this volume who draw attention to the (real
and potential) positive impact of regionalism. Just like the previous pair of
approaches, Richard Falk (Chapter 4) anticipates that regionalism can be
negative and that it is often synchronized with open regionalism (meaning
that ‘negative regionalism’ can reinforce ‘negative globalism’). Similarly to
Hettne but in contrast to much of what Gamble and Payne argue, however,
Falk believes that ‘positive regionalism’ can be an instrument against ‘negative
globalism’. Likewise, in general, liberal theorists tend to be rather optimistic
concerning the ‘positive’ potential of new regionalism. Mistry (Chapter 7)
argues that, in contrast to conventional economic integration theory, the
new regionalism is not a second-best but actually a first-best solution in
response to dysfunctional multilateralism and globalism. Tussie (Chapter 6)
also emphasizes that regional projects can give market access, which at least
the South wished for but was never able to get through multilateralism.
Finally, one of Hveem’s (Chapter 5) main points is that regional governance
has comparative political advantages compared to multilateral and global
governance.
14 Introduction: Theories of New Regionalism
There are many alternative ways to structure a collection of this kind. One
possibility is to arrange authors according to their theoretical and paradigmatic
association or identity. However, as should be evident from the sections
above, our theorists are not always easily ‘labelled’ or categorized into neat
paradigmatic ‘boxes’. As in most other discourses, theories about new
regionalism tend to be complex and multifaceted. For instance, should
Hettne (Chapter 2) be seen as a critical or structural IPE theorist, a historical
sociologist, a constructivist, or perhaps a Polanyian disciple? And how
would he define himself? Should Buzan (Chapter 8) be considered a neorealist,
16 Introduction: Theories of New Regionalism
a follower of the ‘English school’ (and, if so, how to ‘label’ this school?), or
is he best understood as a representative of a particular kind of constructivism?
By the same token, should Bøås, Marchand and Shaw (Chapter 11) be seen
as proponents of a particular critical political economy, a realism in the
tradition of Carr, or a post-modern or at least a post-structuralist stance?
Instead of trying to ‘label’ the theorists, the preferred solution for this
volume is to arrange them in rather loose sets of ‘clusters’. In the next
section I focus on groups or clusters of cognate contributions, and then
conclude by describing each of the dozen chapters rather than the four clusters.
Clusters
The first cluster groups Hettne, Gamble and Payne, and Falk, as they all
share some broad reflectivist and critical theory postulates in combination
with their common focus on the construction of world orders. The next
cluster consists of Hveem, Tussie, and Mistry. Somewhat similar to the first
group, this trio of theorists share a concern with global governance and the
way the world is organized. However, in contrast to the former they tend to
be less focused on critical and normative aspects and are more concerned
with ‘problem-solving’ matters such as the efficacy, legitimacy and func-
tionality of multilateral versus regional organizations.
The third cluster groups Buzan and Neumann. At first sight, this pair may
look like an uneasy couple, but they actually share some interesting similarities
as well as differences. Buzan emphasizes a combination of outside-in and
inside-out analysis, which Neumann also elaborates on in detail. In fact,
Neumann argues that Buzan’s regional security complex theory is one of the
most useful approaches in the field, but that it contains a blind spot in that
it fails to problematize whose region is being constructed. Furthermore, in the
updated version of the regional security complex theory, Buzan has moved
towards the constructivist method. Neumann also builds on constructivism,
but certainly of a different kind compared to that of Buzan.
The fourth and final cluster groups Jessop, on the one hand, and Bøås,
Marchand and Shaw, on the other. (To some extent, Neumann could fit
into this cluster as well.) These scholars particularly emphasize post-
structuralist theorizing, and they draw attention to a whole series of region-
alizing strategies and regionalizing actors, who meet, interact and sometimes
compete. In their view, regions are constructed and tightly interwoven with
global and national level processes and practices, so there should be no singular
or one-dimensional understanding of new regionalism.
Chapters
What follows below is a brief presentation of all the individual chapters. In
Chapter 2, ‘The New Regionalism Revisited’, Björn Hettne takes the new
regionalism approach (NRA) as his point of departure, according to which
the new regionalism is defined as a comprehensive, multidimensional,
Fredrik Söderbaum 17
Notes
1. In a general sense, regional integration is seen as ‘forming parts into a
whole’, but in a more concrete sense at least political scientists tend to high-
light the establishment of supranational (regional) institutions and their
independent activities, for instance the European Commission or the Court.
Regional cooperation is more open-ended and less demanding, generally
referring to the fact that actors may cooperate in order to achieve common
objectives in one area in spite of conflicting interests and objectives in
another.
2. For other theoretical overviews of regional theories, see Hettne et al. (1999), Hout
(1999), Hurrell (1995) and Söderbaum (2002). See also this volume’s A Guide
to Further Reading for some of the most important books in the field of new
regionalism.
3. In this context it should be mentioned that the rationalist and problem-solv-
ing theories are comprehensive ‘schools of thought’ with a massive research
Fredrik Söderbaum 21
output, while the reflectivist and critical approaches are more flexible, explora-
tory and even provisory theoretical constructs. Furthermore, the latter group
consists of a much more limited number of scholars and theorists, who often
interact in overlapping and interactive research networks.
2
The New Regionalism Revisited
Björn Hettne
Introduction
This chapter deals with the recent wave of regionalism and regionalization
in the context of global transformation and competing world order projects
which have the purpose of regulating a turbulent global condition. It builds
and elaborates on results from a United Nations University/World Institute
for Development Economics Research (UNU/WIDER) sponsored international
research project on the New Regionalism, for which the author was the project
director. The thrust of this project, which was carried out in the latter half of
the 1990s, was to explore the role of the regional factor in the emerging world
order. Under the assumption that this regional wave was qualitatively new
and that there was a need for a more empirical exploration, the project used
a broad comparative approach that came to be called the New Regionalism
Approach (NRA). The overall purpose here is to move away from ‘region-
centrism’, which may be as limiting as state-centrism, the original sin for
which the UNU/WIDER project was to be a cure. This strong concentration
on the empirical regions must be understood against the background of the
surprising explosion of regional initiatives starting in the mid-1980s in
many parts of the world; and constituting a new wave of regionalization
processes, or what was called ‘the new regionalism’.
In a globalized world, regionalism as such is not the appropriate object for
theorizing. Rather, the focus, as far as regionalism is concerned, should be
on the regional factor or dimension in global transformation. Since this process
is rooted in earlier transformations and world orders, the approach has to be
historical. It has, furthermore, to combine endogenous and exogenous factors,
for instance in the dialectical relation between external challenges and
internal responses. There is also a dialectics with regard to the global political
economy. The liberal order can thus be seen as a response to historical
varieties of dysfunctional regulationism (mercantilism, protectionism,
economic nationalism, state-socialism, etc.), but some sort of regulation
and control is also a response to turbulent liberalization. Regionalism in
22
Björn Hettne 23
• Whereas the old was formed in a bipolar Cold War context, the new was
taking shape in a multipolar world order, and in a context of globalization.
The new regionalism and multipolarity were, from a world order perspective,
two sides of the same coin, while unipolarity (I may now add) would
contradict both multipolarity and regionalism.
• Whereas the old was created ‘from above’, the new was a more voluntary
process from within the emerging regions, where the constituent states
and other actors experienced the imperative of cooperation, an ‘urge
to merge’, or the pooling of sovereignty in order to tackle new global
challenges.
• Whereas, in economic terms, the old was inward-oriented and protec-
tionist, the new was often described as ‘open’, and thus compatible with
an interdependent world economy. In fact there is today no alternative,
closure no longer being an option.
24 The New Regionalism Revisited
• Whereas the old was specific with regard to its objectives (some organizations
being primarily security-motivated, others more economically oriented),
the new was resulting from a more comprehensive and multidimensional
societal process.
• Whereas the old was concerned with relations between a group of neigh-
bouring nation-states, the new formed part of a global structural transform-
ation, or globalization, in which also a variety of non-state actors were
operating at several levels of the global system.
Some conclusions drawn from this contrasting of old and new regional-
ism were theoretically significant for the subsequent development of the
NRA. First, the focus on the multitude of actor’s which pointed beyond a
state-centric approach. Second, the focus on the ‘real’ region in the making,
rather than the ‘formal’ region defined by the member states of a regional
organization. This also implied a substantivist, multidimensional view of
the region. Third, the focus on the global context – the process of globaliza-
tion – as an exogenous factor. This factor was not really considered by old
regionalism theory, concerned as it was with regional integration as a
planned merger of national economies through cooperation among a group
of nation-states.
The NRA tried to consider these aspects, particularly those focused on
conditions related to what was called globalization, a phenomenon which
was to give rise to another academic growth industry. Globalism and region-
alism thus became competing ways of understanding the world (Hettne,
Inotai and Sunkel, 1999). Since the impact of globalization differs in various
parts of the world, the actual process of regionalization also differs between
the emerging world regions, thus giving shape to many regionalisms. Glob-
alization and regionalization processes interact under different conditions
of ‘regionness’, creating a variety of pathways of regionalization (see below).
• Whereas for the IFIs, regionalism was a phenomenon that could be analyzed
through standard economic theory, the NRA contained an interdisciplinary
framework.
• Whereas the IFIs conceived the new regionalism as a trade promotion
policy, building on regional arrangements rather than a multilateral
Björn Hettne 25
The time has thus come for bolder steps towards a theory of the new
regionalism built on comparative studies and post-structuralist theorizing. It
is also important to see the new regionalism in relation to the logic of net-
working, particularly with reference to Europe where the territorial principle
and the contrary logic of networking coexist to create what must be seen as
a new polity (Europolity).2 If micro-regionalism and inter-regionalism are
internal and external extensions of the regionalization process, the logic of
networking, associated with technological globalization, challenges the ter-
ritorial principle of organization inherent in regionalism and further com-
plicates the relation between globalization and regionalization.3
The study of regionalism should also be related to other more recent the-
oretical breakthroughs in International Political Economy (IPE), for instance
social constructivism (Söderbaum, 2002). In the constructivist approach
regions come to life as we talk and think about them. One may even con-
ceive of regionalism as a world order moving from trans-regionalism, over
inter-regionalism, to multiregionalism. The strong emphasis on the new
regionalism meant that other world order options and the way they could
relate to regionalization were neglected, which narrowed the scope as far as
future options are involved. This limitation is quite natural since the original
research programme was about regionalism as a new empirical phenomenon,
but in order to grasp the current process of global transformation a broader
approach to world order is needed (Hettne and Odén, 2002). Regionalism,
seen as a ‘return of the political’, thus has to be related to governance and,
particularly, global forms of governance (cf. Hveem, Chapter 5).
against the search for the overall view’. In contrast, the second wave created
a need for holistic understanding.
The NRA, less concerned with parsimonious theorizing, went beyond
spill-over dynamics to include also security, social and cultural issues. The
increase of regionness is not necessarily intended by the regional actor,
but the political ambition of establishing regional coherence and regional
identity – a translocal ‘sameness’ – was seen to be of primary importance in
the ideology of the new regionalism. As a political project I call this ‘the
pursuit of regionness’ (Hettne, 1993). The level of ‘regionness’ defines the
position of a particular region or regional system in terms of regional coher-
ence and identity, which can be seen as a long-term endogenous historical
process changing over time from coercion, the building of empires and
nations, to more voluntary cooperation (Hettne and Söderbaum, 2000).
Regions are always evolving and changing. A region must be understood
as a process and as a social construction. Like a nation it is an ‘imagined
community’ (Anderson, 1983; Neumann, Chapter 9), and like a nation it
has a territorial base. This space is the first step on the staircase of ‘regionness’.
In very general terms one can speak of five levels of regionness making up,
as it were, ‘a natural history of regionalization’:
manifested in the theory of free trade, associated with David Ricardo, and
subsequently echoed in Friedrich von Hayek’s work: ‘The guiding principle,
that a policy of freedom for the indvidual is the only progressive policy,
remains as true today as it was in the nineteenth century’ (Hayek, 1944: 246).
The original historical background for this type of reasoning was antiquated
mercantilist regulation, but subsequently the ‘negative others’ took the form
of protectionism, planning, welfarism or other non-market forms of economic
and social organization. These forms, similarly, appeared equally antiquated
in the globalized condition.
The purpose of political order, according to the liberal tradition, is thus to
facilitate the free movement of economic factors. This is seen not only as a
natural but also as the most beneficial condition. The breakdown of the
socialist system seemed to confirm the liberal principle of evolution: the
‘unnatural’ sooner or later is replaced by the ‘natural’. Interestingly, Polanyi
turned this argument on its head, insisting on the ‘natural’ (moral man) to
regain power over the ‘unnatural’ (economic man).
Any attempt to isolate oneself from market forces is, according to the liberal
view, a sentence to stagnation for a country or even a region. The optimum
size of an economy (and therefore its ultimate form) is the world market. All
other arrangements, for instance regional trade agreements, are only second
best, but acceptable to the extent that they are stepping-stones rather than
stumbling-blocks to the world market. This ‘protectionist threat’ was as we
saw above described as ‘new regionalism’, and its prevention has been a pre-
dominant preoccupation of the IFIs during the last two decades.
One of the basic assumptions in the UNU/WIDER project about the new
regionalism was that it constituted an integral, albeit contradictory part of
globalization. This raised the issue of how to conceive globalization in theor-
etical terms. Since globalization by definition is a worldwide, multidimen-
sional process about which there can be no meaningful explanatory theory,
we have to choose a more specific and delimited entry point for the study of
globalization and the role of regionalism. In the theory of economic history
associated with Karl Polanyi, an expansion and deepening of the market is
supposedly followed by a political intervention ‘in defence of society’; the
expansion of market exchange constituting the first, and the societal response
the second movement, together making ‘the double movement’. This is a
non-linear understanding of globalization, emphasizing contradiction and
change.
It is important to note that both movements, albeit through different
dynamics, are engineered by political forces and actors. The first sequence of
the double movement implies a deliberate institutionalization of market
exchange and the destruction of institutions built for social protection, a
destruction euphemistically called ‘deregulation’ or even ‘liberalization’ in
line with the ideology of globalism. According to Polanyi, the resulting tur-
bulence and social unrest leads to attempts at re-regulation, new institutions
32 The New Regionalism Revisited
of social welfare adapted to the new political economy created through the
transformation. In the historical transformation analyzed by Polanyi these
institutions were an integral part of the modern nation-state.
The re-embedding of the economy is never final. The dysfunctions typically
associated with the second movement and its various forms of political
intervention and regulation lead to a renewed defence and increased popu-
larity of market solutions. Regulation becomes the problem. Friedrich von
Hayek, disgusted with the interventionist ideological menu of the 1930s,
expressed early warnings against political regulation, described as The Road
to Serfdom, the title of his famous book, published in the same year as Karl
Polanyi’s equally classic The Great Transformation (1944). However, he had
to wait long, until the 1970s, for market solutions to become the predominant
approach.
Let us now apply the Polanyian dialectical approach to the current situ-
ation of growing dissent about the benefits of neoliberalism and the view of
the market as a bad master rather than as a good servant. In accordance with
the double movement thesis – that market exchange and political regulation
(mediated by social movements) constitute the basic dialectics of a changing
political economy – contemporary economic globalization, or the globalist
project, can be seen as an effort to institutionalize the market system on a
global scale. This means that the trends towards the creation of regional
formations throughout the world can be seen as one political attempt (among
others) to manage the social turbulence implied in such a radical deregula-
tion, unprecedented in terms of its global scope (Hettne, 1997a). This does
not mean that globalization is uniformly ‘economic’ and regionalization
‘political’. In both processes political decisions shaped by contesting social
and political forces are crucial, and the consequences in terms of distribution
of resources are deeply political. As stressed above, the distinction between
economic and political must not be exaggerated. Here ‘political’ will normally
refer to efforts at creating political communities on various levels of the world
system; but depoliticization or deregulation is nevertheless also political in
its redistributive consequences.
Karl Polanyi’s account of the rise and fall of market society was very
simple, perhaps even simplistic, but he nevertheless pointed at one very
strong and useful generalization. An institutionalized balance between society,
state and market – as a dialectic outcome of the two processes forming part
of the Great Transformation – can be called a ‘Great Compromise’ (Hettne,
2001a). The Bretton Woods system that emerged after the Second World
War was in fact such a compromise. Using a Polanyian term, Ruggie (1998: 62)
labelled this system ‘embedded liberalism’, more precisely defined as trans-
national economic multilateralism combined with domestic intervention-
ism. If the last two decades have been characterized by the predominance of
economics, the time seems to have come for a ‘return of the political’ in
order for another balance, or Great Compromise, to be established. From a
Björn Hettne 33
Polanyian perspective the point is not only a return of ‘the political’ but
equally a ‘return of the social’, and even a ‘return of the moral’. Thus the
second movement is something much wider than state intervention, or for
that matter regionalism. Regionalism is only one possible political response,
important for its effort to retain the territorial imperative.
If the globalist project to institutionalize the market system on a global
scale can be seen as the first phase of a (second) ‘great transformation’
in Polanyi’s sense of the word, we should thus expect various political forces
to shape the future course of globalization; in other words to ‘politicize’
it (in the sense of democratic, civil society control). This will be done
in competition between forces that are neither mutually compatible nor
necessarily benevolent. Stated in this open way, there is little in Polanyi’s
theorizing that provides a firm base for forecasting the design of future
political structures. Furthermore, ‘the second great transformation’ takes
place in a global context, with different manifestations in different parts of
the world. Some of these manifestations are local protests, many of which
are not very dissimilar from the countermovements in the original transform-
ation. To be counted as part of a ‘second’ transformation the counter-
movements should, however, address global issues, even in their local
manifestations. This means that they search for a global agenda, realizing
that local power-holders do not exercise full control and that challenges
as well as counterforces express relations between different societal levels.
‘Resistance is localized, regionalized, and globalized at the same time
that economic globalization slices across geopolitical borders’ (Mittelman,
2000: 177).
I thus conceive ‘contemporary globalization’ (Held et al., 1999) primarily
as a further deepening of the market system, which (including its disturbing
social repercussions) now takes place on a truly global scale. We should not
expect a uniform response to this ‘great transformation’ but, as history
shows, many forms of resistance, constructive as well as destructive (Gills,
2000). Regionalism is one of them. But there are others that can be related
to regionalism, as will be discussed below.
There are of course different ways, apart from regionalism, in which a more
regulated world order can be achieved, and regionalism in different forms
may very well be combined with some of these. Below we will therefore dis-
cuss a wider set of world order options and the way they relate to the new
regionalism.
The new ‘universalism’, which Polanyi was so worried about, now reap-
pears in Fukyama’s triumphalist ‘end of history’, in the form of market-led
globalization, or in the optimistic ideology of globalism, according to which
capitalism and democracy are mutually supportive systems. For globalists
34 The New Regionalism Revisited
maximum freedom for the market provides ‘good governance’ and the role
of international institutions is primarily to facilitate this.
According to the non-liberal or at least non-neoliberal more sceptical
view, globalization, in the form of market expansion on the transnational
level and beyond nation-state control, creates a governance gap, which in
turn leads to a search for a more regulated and institutionalized world order.
We may in the immediate future therefore see the ‘return of the political’ in
various forms. To interventionist thinkers who are concerned with the nor-
mative content of the ‘second movement’, the liberal project of globalism is
not realistic; they therefore tend to see the unregulated market system as
analogous to political anarchy, and consequently want to politicize the
global. Many of the classical social theorists (whether conservative or radical)
held that the liberal ideology of ever-expanding and deepening markets
lacked ethical content. Similarly, the morality of the market system, as
expressed in social capitalism which resulted from the Great Compromise,
can, according to contemporary critics of ‘hyperglobalization’, only be safe-
guarded by some kind of organized purposeful will, manifested in a ‘return
of the political’, or ‘reinvention of politics’ (Beck, 1997; Gamble, 2000), for
instance in the form of new social movements and a ‘new multilateralism’,
in which a more symmetrical relationship between the regions of the world
would be possible (Cox, 1997, 1999; Gills, 2000). The return of the political,
or what Polanyi would have called the re-embedding of the market, may
appear in various forms, some of which will be considered below, particularly
in the way they relate to regionalism of different kinds.
emphasized that the balance of power system could not by itself ensure
peace. This was actually achieved with the help of international finance
(Polanyi, 1957: 15). Finance interests may benefit from limited wars but
were instrumental in preventing general war as being destructive to product-
ive investment. Similarly, today the global financial elites might in view of
the recent crises share an interest in some kind of re-regulation in the interest
of systemic stability (Helleiner, 2000). This may also be organized on the
regional level in the form of ‘monetary regionalism’, and is most likely to
first happen in Asia (Breslin and Higgott, 2000: 337).
Plurilateralism is, unsurprisingly, favoured by realists. Henry Kissinger
(1992, 1996) has argued for a recreation of a power ‘concert’ in the current
world situation. This is not surprising, since from a realist point of view it is
the only realistic model. The contemporary concert will be constituted by
global powers: the United States, Europe (the EU), Russia (the Soviet Union
in the original Kissinger Model), Japan, China and India. In contrast, the
nineteenth-century Concert was a regional system, but this is no longer pos-
sible according to Kissinger (1996: 180): ‘Never before has a new world order
had to be assembled from so many different perceptions, or on so global a
scale.’ However, in the case of regions with a low level of regionness on the
security dimension and with comparatively consolidated nation-states, a
regional concert arrangement seems appropriate. An ‘anarchical society’
would be the best solution in the short run, and would also be an improve-
ment as far as security is concerned. This option has recently been discussed
in the Asia-Pacific context (Acharya, 1999).
The multilateral model, in a strengthened, more ‘assertive’ form, is based
on radical reforms in order to upgrade the United Nations as a world order model
(International Commission on Global Governance (ICGG), 1995). For instance,
the Security Council must be made more representative, and the General
Assembly should have representatives also from civil society. A strengthened
Economic and Social Council would take responsibility for global development
(International Commission on Global Governance, 1995). The nation-states,
at least the stronger among them, would remain in, or resume control of,
‘their’ development, although they would have to operate ‘in a complex system
of overlapping and often competing agencies of governance’ (Hirst and
Thompson, 1996: 183). Intergovernmental regionalism may facilitate this.
In fact, both the neo-Westphalian models imply a strong Great Power
influence; in the case of assertive multilateralism not only Western powers
but all regional great powers; in the case of militant plurilateralism most real-
istically the trans-Atlantic alliance (which is an inter-regional arrangement).
It is important to take note of to what degree these two models really differ.
How ‘multi’ must multilateralism be? After September 11 we need to distin-
guish between authentic and false multilateralism. Global alliance-building
for a specific purpose, such as fighting ‘international terrorism’, is not neces-
sarily a solid base for sustainable multilateralism.
36 The New Regionalism Revisited
operation, whereas the ACP (Africa, Caribbean and the Pacific) is rooted in
colonial relations. Somewhere in between these two cases one can situate
the Barcelona process, that is, cooperation between the EU and its Mediter-
ranean neighbours, where peace and stability is the first priority.
Many of these arrangements are feeble and contradictory, but they never-
theless signify an interest in and a growing need for inter-regionalism in a
more viable form. The uniqueness of ASEM is that it is one of the few inter-
national organizations where the United States is not a member. This is
what makes it inter-regional rather than multilateral (cf. Hveem, Chapter 5;
Mistry, Chapter 7). Multilateral regionalism would imply systematic
relations between all regional organizations, making up a regional form of
global governance. Such a world order can today be seen only in its most
embryonic form. Many of the emerging regions are themselves still weak
constructions and the trans-regional communication will of course be
marked by that weakness. However, a regionalized world derived from this
embryonic form would challenge the homogenizing tendency of contemporary
globalization by working for a multicentric world order, with self-centred
but not autarchic regions, each rooted in historical civilizations. The regions
should be internally multicultural, similar to the historical empires, which
for a much longer time than the nation-states system provided humanity
with a relevant polity. The regions should, furthermore, coexist in a normative
universe of converging cosmopolitan values, created through processes of
intercivilizational dialogue and intersubjective understanding.
Notes
1. A number of regional experts, both senior authorities in the field as well as
younger researchers, contributed about 60 research papers to the UNU/WIDER
project. The results have been published by Macmillan/Palgrave in a special series
consisting of five volumes (Hettne, Inotai and Sunkel, 1999, 2000a, b, c, and 2001).
The first volume deals with the complex relationship between regionalization and
globalization, emphasizing that although both processes form an integral part of
the current transformation of the global system, regionalization has a stronger
element of political reaction to the basically market-driven globalization process.
The second and third volumes illustrate and analyze various national perspectives
on regionalism in the North and in the South respectively. The fourth volume
focuses on security and development implications of the new regionalism. The
fifth has a comparative orientation with the purpose of improving the theoretical
framework and providing a foundation for further research on the role of the
‘regional’ in the current global transformation.
2. As pointed out by Castells (1996, 1998), networking also facilitates regional gov-
ernance and political institutional innovation in the European Union, which he
describes as a ‘network state’ (which would correspond to the fifth stage of the
staircase of regionness).
3. ‘Territory is understood as a contiguous part of the earth’s surface . . . Networks
depict the geographic space as points (nodes) connected by lines (links) . . . the sig-
nificant difference between the two concepts becomes apparent when important
networks become autonomous in relation to territories . . . ’ (Jönsson etal., 2000: 99).
42 The New Regionalism Revisited
4. Hedley Bull (1977) made the distinction between anarchy and anarchical society.
Bull explored what he termed a ‘new mediaevalism’ and also recognized situ-
ations of ‘intermediacy’, in which apects of sovereignty were transferred to other
institutions than the state, thus modifying but not fundamentally changing the
Westphalian logic.
5. Karl Deutsch (1957) identified a pluralistic security community whenever states
become so integrated as to settle their differences without recourse to war. For a
recent discussion see Adler and Barnett (1998).
6. The stage approach was also used by Bela Balassa in his famous distinction
between a free trade area, a customs union, a common market, an economic
union and a political union. These ‘stages’, which referred to agreement among
states, were ideal models and did not constitute an evolutionary theory. Similarly
there is an implicit stage thinking in many of the security conceptualizations dis-
cussed here.
7. The first lines of this chapter deserve to be cited: ‘Nineteenth-century civilization
rested on four institutions. The first was the balance-of-power system which for a
century prevented the occurrence of any long and devastating war between the
Great Powers. The second was the international gold standard which symbolized
a unique organization of world economy. The third was the self-regulating market
which produced an unheard-of material welfare. The fourth was the liberal
state . . . Between them they determined the characteristic outlines of our civiliza-
tion’ (Polanyi, 1957: 15ff).
8. See Telò (2001) for a list of regional and inter-regional arrangements.
3
The World Order Approach*
Andrew Gamble and Anthony Payne
In 1984 George Orwell pictured a world divided between three rival totali-
tarian powers – Eastasia, Oceania, and Eurasia. It was a condition of perpet-
ual war and total mobilization, in which two of the powers were always
fighting the third. Orwell took his names for these three powers from the
three geographical centres of the struggle for territory and resources during
the Second World War. Fifty years later, the same three areas featured once
again in predictions that the world order was dividing territorially and was
heading towards conflict. The nature of this conflict was widely assumed to
be a zero-sum game in which each state competed to improve its relative
share of territory, resources, and wealth within a global total which was
fixed. In this neorealist perspective regionalism simplified and intensified
this conflict by combining the most important states into more or less cohesive
groups under the leadership of the dominant state in each region. The pres-
sure on a region to become cohesive increased in relation to the success of
other regions in unifying themselves. As each regional power sought to
maximize its wealth and extend its territory, the risk of economic wars rose,
because in a zero-sum world each regional power was assumed to calculate
that conflict would yield more benefit than would cooperation.
An even bleaker scenario was put forward by Samuel Huntington (1993).
He foresaw the future of world politics being determined by a clash between
three civilizations – Christianity, Confucianism and Islam. These map on to
the geographical areas described by Orwell, with Christian Europe and the
Americas forming Oceania, battling against the rival civilizations of Western
and Eastern Asia. These three civilizations were seen to be rooted in different
ultimate values and to make claims which are exclusive in character, and
therefore beyond negotiation. Since no reconciliation between them is
possible, conflict once it starts is likely to be bitter and prolonged. In other
words, long before September 11 2001, Huntington was already anticipating a
* This chapter draws heavily on and synthesizes the introduction and the conclusion
in our edited collection, Regionalism and World Order (Gamble and Payne, 1996).
43
44 The World Order Approach
return to holy wars, of the sort which used to occur between Christianity
and Islam in medieval and early modern times.
Such gloomy forebodings of economic wars and holy wars appeared at the
same time as predictions of a future of increasing prosperity and peace, the
settling of the ideological conflicts which had dominated world politics for
200 years and the universal acceptance of a common set of ideas about
economic and social organization (Fukuyama, 1992). In this vision intractable
problems remained, but were seen as practical rather than ideological,
belonging to the sphere of technical rather than value rationality. Solutions
to them had to be sought within the institutional framework of free-market
capitalism and liberal democracy. That institutional framework was no
longer in question because it had proved itself the only viable way of organ-
izing modern societies. On this view, which Fukuyama has restated since
September 11, the clash of civilizations will not materialize because there is
only one civilization – Western civilization – which is adapted for survival.
The ethics of ultimate ends contained in Confucianism, Islam, and Chris-
tianity all belong to the premodern stage of social development, and are
destined to be left behind. September 11 is seen as merely one of the last
spasms of the resistance of a traditional culture to the embrace of modernity.
Even in the brave new world of a unified global civilization might not
capitalist states still fight one another as they have in the past? Neoliberal
institutionalists, however, argued that as the world economy becomes more
interdependent, it becomes rational for states to prefer cooperation to
conflict. States increasingly face common problems which can only be
handled through agreement on new institutions and rules (cf. Tussie,
Chapter 6). This optimistic scenario predicts that as interdependence deepens
so the risk of major economic or military conflict should decline. This trend
is reinforced by the observation that democracies do not fight one another,
so that as democratization spreads the less likely it becomes that conflicts
between states will be settled in the future by resort to arms. These theories
thus rejected the assumption that states face a zero-sum game. Instead they
assumed that there is a positive sum game in which states can cooperate
either through competition or through intergovernmental negotiation to
increase the total output of goods and services available for distribution.
Economic welfare can be improved for everyone so long as positional goods
such as territory and resources do not become the focus of competition.
These scenarios were at such variance in their predictions of the future
that they hardly seemed to be describing the same world. Yet such conjunc-
tions of pessimism and optimism are not new. They seem inseparable from
how modernity is experienced. Polarization of views about the future is
often found at times of increasing change in the global political economy.
The 20 years between 1971 and 1991 was such a period. It opened with the
breakdown of the Bretton Woods international monetary system, the first
major sign of the weakening of United States hegemony, and ended with
Andrew Gamble and Anthony Payne 45
the collapse of the Communist regime in the Soviet Union and the disinte-
gration of the Soviet state. These were contradictory events for the future of
the world order. The end of the Bretton Woods system brought American
hegemony into question and inaugurated a time of increasing doubt about
US capacities and political will to sustain the burdens of its global interests
and responsibilities, while the collapse of the Soviet Union appeared to
vindicate the United States post-war strategy of containment and left it
without any serious military rival. It also marked the end of the oldest
regionalism in the global political economy, the division between the capitalist
and the socialist worlds which developed after the Russian Revolution. The
unity of the global political economy was restored for the first time since
1914 and the era of national protectionism and rivalry between socio-
economic systems ended. This event, which occurred much earlier than
most observers predicted, appeared as a dramatic confirmation of the trends
towards globalization in the world economy, and their ability to undermine
and at times sweep away established political structures.
It was against this background that awareness that new regionalisms were
beginning to emerge, notably in the three broad regions of Europe, the
Americas and Asia-Pacific, assumed some significance. Globalization might
have been on the march, but many observers remarked on the ‘fortress’
dimension of the 1992 project of the European Union (EU), others gave an
alarmist reading of the defensive impulse which they detected behind the
negotiation of the North American Free Trade Agreement (NAFTA), as well
as doing all they could to write up the importance of initiatives such as
Asia-Pacific Economic Cooperation (APEC). It was this striking conjuncture
of an apparent resurgence of regionalism at the same time as heightened
awareness of trends towards globalization that prompted us to initiate a
collective research project within the Political Economy Research Centre
(PERC) of the University of Sheffield designed to find a more subtle way of
reading these events than was then offered by existing bodies of theory. We
developed a ‘world order approach’ to the study of this new regionalism
derived in good part from the theorization of world order advanced by
Robert Cox (1981, 1983 and 1987) as part of the turn towards a ‘new inter-
national political economy’ made by a small, but significant, number of
critical theorists at the beginning of the 1990s.
Viewed in this way, the contemporary world order appears as a quite different
phenomenon from the post-1945 period with which, relatively speaking, we
had become so familiar. There may be no historical precedents which can
easily illuminate the prospects of future developments. The initial stages of
globalization were accompanied by a crisis of US global hegemony in the
1970s and its attempted reconstitution in the 1980s, and the depth of this
crisis made many aware that control of the world order had slipped beyond
the capacity of any single state, and perhaps even any group of states, to
Andrew Gamble and Anthony Payne 49
exercise hegemony in the manner of the United States after 1945. Moving
into the vacuum left by the vagaries of US financial policy after 1971 and
inspiring and drawing sustenance from the ascendancy of neoliberal ideas
during the Reagan years, a ‘transnational managerial class’ (Cox, 1993: 261)
or ‘an international business civilisation’ (Strange, 1990: 260) has come to
the fore, based in the major private banks and global corporations. Under its
auspices a new global economy, grounded in production and finance, has
begun to emerge, even if very unevenly and uncertainly, replacing the
former Bretton Woods international economy premised upon exchange rela-
tions between national economies. This change is associated with other
technological and organizational trends, such as the rise of the information
economy, automation of production, robotization, the dematerialization of
production and post-Fordism, all of which have been much discussed.
Nevertheless, the formative aspect of the new global political economy is
seen to be the structural power of internationally mobile capital (Gill and
Law, 1989). States now have to recognize the power not only of other states
and inter-state organizations, on which international relations analysis has
traditionally focused, but also of international capital, the banks and the
foreign exchange markets, all of which constantly scrutinize what states are
doing and have the means, by either bestowing or withdrawing their favour,
to force them to adopt economic policies appropriate to capitalist interests.
This argument can easily be overstated. This is not the first time there has
been a global economy, and even at the height of the national protectionist
era, financial markets and capitalist interests exerted great power over
national economic policies. But aside from some determined sceptics there
is wide acknowledgement that something qualitatively new is happening
and that, even in its weaker forms, the trends towards globalization change
the way we think about the behaviour of states. The process was initially
described within new IPE as the internationalization or transnationalization
of the state, by which is meant, simply put, the adjustment of national
political practices to the exigencies of the global economy (Cox, 1981: 144–6).
In other words, all states – the strong and the weak, the ex-hegemon as well
as the would-be developer – now have to react to the pressures of global
production, choosing broadly between an offensive strategy which takes on
the challenge and usually gives some support to the competitive thrust of
national industries, and a defensive strategy which enshrines protection and
seeks to effect at least a partial withdrawal from world competition in some
sectors. In practice, during the course of the 1980s and early 1990s the
choice has been increasingly resolved in the former direction. Nearly all
states now seek, as it were, to ride two tigers simultaneously: they have to
respond to the structural power of international capital, which demands the
continuing openness of the world economy, and to the continuing pull of
national interests of various sorts, which requires that they compete for relative
advantage in the global economy as effectively as possible.
50 The World Order Approach
Once more Cox, writing in 1987, detected more clearly than most what
may be the implications of these changes for the future of the world order.
In his view, they did not imply that the world was moving towards a system
of self-contained economic-strategic blocs similar to the trend of the 1930s.
The world order was, however, likely to be characterized more and more by
‘an aggressively competitive trading pattern in which negotiating
power . . . determines outcomes’, albeit in a way ‘which tends to encourage
an emulative uniformity in the way problems are confronted and solved
rather than withdrawal into isolated spheres within which distinctive solutions
can be attempted’ (Cox, 1987: 298–9). In sum, Cox suggested that regionalist
and globalizing tendencies would coexist in the next post-hegemonic phase
of the world order. What was understandably left unexplored at that time
was the precise nature of this coexistence.
The PERC research project sought to fill part of that gap. Regionalism was
defined at the outset as a state-led or states-led project designed to reorganize
a particular regional space along defined economic and political lines. It was
thus distinguished from other types of state projects such as globalism
defined in similar fashion as a state-led project conceived at the global level.
State projects generally emerge as the outcome of detailed bargaining and
negotiation among domestic political actors. The concept of regionalism
assumes that states and state actors are a key level of explanation in a theory
of the global political economy. The calculations that state actors make of
their interests and the costs and benefits of alternative courses of action are
the starting point for understanding the wider context of their behaviour.
This wider context is constituted by two kinds of structure – the historical
residues of past social interaction and the emergent patterns of current
social interaction. Together these provide both constraints and opportunities.
Agents do not act within structures; rather they cannot act without repro-
ducing structures, confirming or modifying them through the intended and
unintended consequences of their calculations and actions.
Globalization and regionalization are not state projects but combinations
of historical and emergent structures – a complex articulation of established
institutions and rules and distinctive new patterns of social interaction
between non-state actors. State projects like regionalism typically seek to
accelerate, to modify, or occasionally to reverse the direction of social
change which emergent structures like globalization and regionalization
represent. Such structures define the limits and the possibility of agency and
have continually to be reproduced through the calculations and actions of
agents, including states. The strategic calculations of states is only one level
of analysis for understanding the global political economy but it is a neces-
sary one. If it is made the only level of analysis then it becomes narrow and
one-sided; but equally one-sided is an analysis which conceives of globaliza-
tion as though it were a process occurring outside and beyond the system of
states.
Andrew Gamble and Anthony Payne 51
trade and protection, but rather between free trade and strategic trade. The
strategic traders have argued that maintaining and improving international
competitiveness needs to be the central goal of economic policy. Instead of
insulating the economy from foreign competition the aim is to expose it to
competition while at the same time ensuring that it is able to meet it. Strategic-
trade arguments deny free-trade arguments that an optimum specialization
of labour dictated by comparative advantage will arise spontaneously. States
instead must act strategically to protect key sectors and ensure that they
become international leaders. These ideas have long been current in political
economy. An earlier formulation was the idea of the developmental state as
opposed to the laissez-faire state.
All the current regionalist projects have been driven to some extent by a
strategic-trade view. One of the benefits of greater regional cooperation has
been the possibility of enabling regional companies and sectors to be
successful in global markets. The emphasis is placed on training, research,
investment, public procurement, and infrastructure, and the need to maintain
legal and managerial control over firms. Strategic-trade assumptions have
always been important in some states, but they became more prominent in
the 1990s. Free traders regard them as a diversion from the task of building a
non-discriminatory open world trading system, and dispute that states are
equipped to plan strategically in the way that companies attempt to do
(Krugman, 1994).
The strategic-trade argument has been carried further by those like Michel
Albert (1993) who argue that there are distinctive models of capitalism
which are regionally specific. The dominant Anglo-American model with its
emphasis on free trade, arm’s-length banking and a laissez-faire policy
regime contrasts with the Japanese and Rhenish models, which emphasize
strategic trade, long-term investment, corporatist and partnership modes of
corporate governance and policy-formation (Coates, 2000). Such models,
however, are ideal types. Although there are some significant differences
between the institutional patterns the differences are easily exaggerated.
Strategic-trade considerations, for example, have always been important in
some sectors of the United States, particularly in defence, while many
sectors in Europe and Japan have been governed entirely by the rules of free
trade.
All the recent moves towards regionalism have therefore been consistent
with open regionalism, and therefore with neoliberal assumptions about
world order. The free-trade/strategic-trade debate does not question that
commitment. This commitment reflects a second factor which all the
regionalist projects have in common: they originate in discussions and
negotiations within the policy-making elites in the core states. There has
been little popular involvement or pressure for such projects, little ‘regionalism
from below’. The elites have devised them in response to changes elsewhere
in the world order. The overriding need to maintain international cooperation
Andrew Gamble and Anthony Payne 53
the strong support of the French government and the bulk of the political
elite for the Treaty. In Britain popular hostility to the Maastricht Treaty and
to further moves towards European integration was pronounced, but a
significant element of the political elite, represented in all political parties,
was in favour of further pooling of sovereignty through intergovernmental
negotiation. The decisive battle will come if and when the Labour government
decides to hold a referendum on joining the euro.
The situation in Europe is further complicated by the continuing unwill-
ingness of Germany, although now the preponderant economic power, to
assert itself politically. This fact itself was a product of the Cold War and the
division of Germany. Now that the country is reunited this reluctance of
Germany to assert itself is likely to diminish. If the project of European inte-
gration is to move forward in the next few decades, German support will be
critical. But future German leaderships will have other options available,
including expansion of economic and political influence towards the East.
The continued willingness of Germany to participate in the European
project will be tested. The sacrifice of the mark and the Bundesbank in the
cause of European Union were strongly opposed by sections of German
public opinion and, although the underlying rationale for further integra-
tion remains strong, it is not clear whether a unified political core for the EU
will emerge. The Constitutional Convention established in 2002 under the
chairmanship of Giscard d’Estaing is attempting to find a political frame-
work under which further progress, including enlargement to twenty-five or
thirty members, can take place.
The third regionalist project, in East Asia, is the least well-defined, and the
least advanced. In the Americas there is no dispute over the state which is
capable of becoming the regional hegemon. In Europe there is no prospect
at present of a single regional hegemon emerging. Capacity and resources
are divided relatively evenly between Germany, France, and Britain. But the
combination of these states in the EU has the potential of creating a very
powerful regional hegemon. In East Asia, however, the region is the least
well-defined of the three. Multiple identities exist. There are two potential
regional hegemons in Japan and China, as well as involvement in the region
by two other powers, the United States and Russia. The region is still divided
ideologically and there are major unresolved security issues. The state
currently best equipped to launch a regionalist project, Japan, is character-
ized by weakness in decision-making and an unwillingness to assert itself
politically. As in other regions a considerable amount of regionalization has
taken place, centred on the interaction of other states in the region with the
dynamism of the leading economy. East Asia, however, is a region without a
single centre from which a regionalist project could emerge. Before the East
Asian financial crisis Japan shunned the promptings of Malaysia to take a
much more active leadership role in the region through the East Asia
Economic Caucus (EAEC). Instead it gave priority to APEC which, because it
Andrew Gamble and Anthony Payne 57
even the modest redistributionist measures which are often found at the
national level. Many regionalist projects, including NAFTA and APEC, have
no institutional mechanisms for redistribution.
The position is most stark in the case of Eastern and Central Europe. The
core that is still in the process of formation as the EU is itself internally
divided, with a sharp regional split between the richest regions in Germany,
France, and the Benelux countries and some of the southern and western
regions. But this divide is dwarfed by the scale of that between the EU and
the impoverished territories to the east, all of which have suffered (from a
very low base) a sharp fall in output, employment and investment. These
countries have been rapidly penetrated by EU capital, particularly German
capital, but they are also at the same time seeking entry to the EU as full
members. The enlargement issue is a huge challenge for the EU as it is
presently constituted, because of the difficulty of managing convergence
between economies with such different levels of economic performance.
What happens in this situation is that the core reduces the countries of
the periphery to satellite status, at least in economic terms. Aid is provided
but at the price of the imposition of adjustment programmes and stabilization
packages on countries whose economic performance is poor. The question is
whether the impact of this kind of regionalism on the periphery is sustainable,
given the huge adjustments that are often involved and the austerity
programmes that they entail. Some estimated the cost of the package
needed to lay the foundations for long-term economic growth in Eastern
and Central Europe as equivalent to a new Marshall Aid Plan. What was
offered fell far short. But with the end of the Cold War there was no longer
any ideological or security incentive to provide aid on this scale, and the
preoccupations of local electorates in the regional cores made it extremely
difficult to provide even if a political leadership had emerged which was
prepared to give it priority. The result was an uneasy stand-off. The potential
regional hegemons in all three areas are mainly preoccupied with relatively
small parts of their regions and show few signs of endeavouring to construct
a more permanent and inclusive framework within which to assert their
leadership and address some of the more deep-seated problems in their
regions.
The present stage of world order after the end of the Cold War displays no
simple pattern. The United States is no longer hegemonic over the capitalist
economy in the manner that it achieved in the 1940s, 1950s and 1960s. But
in some fields, particularly the military and the cultural, its dominance is
greater in the 1990s than it has ever been. It has become the undisputed
superpower, able to intervene militarily more or less at will. The collapse of
Communism and the disintegration of alternative development strategies in
Andrew Gamble and Anthony Payne 59
the Third World have reunited the global political economy around the
ideological principles of the United States. But the United States now lacks
both the capacity and the political will to relaunch itself as the global
hegemon. To do so would require a huge commitment of resources to
develop disadvantaged regions of the world economy – particularly in Eastern
and Central Europe, Latin America, Africa, and South Asia. No such
commitment is likely to be made by the United States. All the political
pressure in its deadlocked political system has moved it in the other direction,
towards disengagement and unilateralism, trends which became still more
pronounced after George W. Bush became President in 2001. September 11
has not fundamentally altered this drift, although it has made the United
States much more interventionist in military terms to secure its interests.
A curious situation has arisen. Capitalism has triumphed and almost
everywhere the opposition to it has collapsed. But in the moment of its
triumph the political capacities to make its triumph permanent are inadequate
for the task. The new global order based on the principles of free-market
capitalism and liberal democracy is likely to prove unable to extend the
benefits of prosperity and economic development to all the states that now
seek it (cf. Hettne, Chapter 2; Falk, Chapter 4). Capitalism and democracy
have never enjoyed greater legitimacy as organizing principles than they
possessed at the end of the twentieth century. But legitimacy does not
simply depend on the claims of the powerful; it also depends on the active
consent of the powerless. If the governance of the world order fails to
address the many acute problems that the global political economy is creating,
then a new radical challenge to capitalist civilization may arise.
Regionalism is in part a response to this situation. If a global hegemony
organized around one state is no longer possible, might not a number of
regional hegemonies be more successful? The United States, the EU, and
Japan might use the undoubted economic dominance they enjoy in their
regions to establish a political and security framework and a set of economic
institutions which promote prosperity and development through trade,
investment and aid. If such regionalist projects embrace open regionalism
they would still be compatible with the pursuit of policies at the global level
through the Group of 7 to stabilize the world economy and maintain
economic growth.
The intentions of the regionalist projects, however, are much more limited
than this. What is often described wrongly as the regional hegemony of
Japan and the United States is based more on dominance and traditional
asymmetries of power than on true moral and political leadership. The key
aspect of hegemony, that which makes it a rather rare as well as very powerful
political relationship, is the incorporation of subordinate groups through
the granting of special privileges and benefits. Usually this involves not
simply the acceptance of a common set of ideological principles but the
construction of a new identity in which both leader and subordinate share.
60 The World Order Approach
This chapter seeks to assess the actual and potential contributions of region-
alism to the achievement of such widely affirmed world order values as
peace, social justice, human rights, democracy (Falk, 1975, 1992, 1995a).
This assessment proceeds by way of discussing in an introductory section,
several main features of the global setting that have achieved prominence,
initially in the immediate aftermath of the Cold War, and now modified by
the response to the September 11 attacks on the United States as combined
with the trials and tribulations of world capitalism.
The conceptual framework relied upon seeks to clarify the regional
dimensions of world order in a manner sensitive to the unfolding historical
situation. Necessarily, such an effort is both provisional, subject to modifica-
tions as political actors use regionalism to achieve their goals, and normative,
distinguishing those aspects of regionalism that are negative (to be avoided
or overcome) from those that are positive (to be achieved or enhanced).
Regionalism is thus being evaluated in relation to the quest for humane
global governance as a desirable framing of political life for the peoples of
the world (Falk, 1995a).
Background considerations
* This chapter has its origins in Falk (1999). It is considerably revised and updated in
light of recent changes in the global setting.
63
64 Regionalism and World Order
bloody, with respect to major challenges posed for the geopolitical status
quo outside of Europe, as in Korea and China. The outcome in Vietnam was
an exception to this pattern, first confirming the French defeat in an anti-
colonial war of independence and later an American setback in trying to
uphold the geopolitical status quo of a divided Vietnam. Arguably, the shifts
in alignment in Cuba and Yugoslavia also strengthened one side at the
expense of the other, if measured against the then prevailing Cold War
yardstick of success and failure.
which quickly led to the weakening of alliance and bloc ties. Such a temporary
decline in the globalization of security arrangements made regional security
and political economy factors generally more significant, yet not in a uni-
form way. This decline was offset in a contradictory manner by the rising
globalization of the world economy, stimulating tactics for participation
and protection, both types of reaction bearing on regionalist prospects in
this period. The patterns of differing influences and perceptions bearing on
the role of regionalism is complex and confusing. This role is further
complicated by the aftermath of September 11, which has combined the
divergent goals of a wide range of states collaborating in the struggle against
mega-terrorism while at the same time acting to avoid the consolidation of
the American empire-building project.
Europe, North America, and Asia-Pacific, as well as Africa and Latin America,
are currently the critical arenas for assessing the world order roles of region-
alist configurations. In Europe, the collapse of the blocs, a variety of economic
troubles, and the widening of Europe, has definitely slowed the deepening
of the EU, and has possibly deferred indefinitely political integration. So
many factors are at work that causal inferences will always seem argumenta-
tive and inconclusive. Yet there are important differences between Europe
and Asia with respect to regionalist developments. In Asia the United States
was not nearly as involved during the Cold War, allowing economic priorities
to gain precedence, especially in the face of growing feelings of cultural
sensitivity about Western influence and Asian identity (Funabashi, 1993).
Similarly, the United States was no longer concerned with geopolitical
alignments, emphasizing instead favourable trading and investment relations,
which in turn produced post-Cold War tensions that encouraged Asian
interests in defensive regional and bloc approaches. Whether this process
was setting the stage for ‘the clash of civilizations’ is doubtful (cf. Gamble
and Payne, Chapter 3), but it was shifting economic and political concerns
from the old geopolitics of Westphalia to a new geopolitics of inter-regional
relationships as mediated by the Group of Seven (reconstituted at Naples in
1994 as the Group of Eight, adding Russia in their ranks) (Huntington, 1993).
African regionalism may eventually benefit from its remoteness in relation
to the world economy, the war against global terror, and the deficiencies of
post-colonial state-building. Ambitious regional ideas are currently under
consideration in Africa, including the promising New Partnership for
Africa’s Development (NEPAD) and the possibility of a functioning regional
parliament. Africa may yet surprise the world, neglected in so many respects,
by establishing a new identity as world order innovator and creator of a
viable regional governance structure. There is a long way to go, but even the
fashioning of such an African vision deserves notice.
A focus on strategic considerations as explanatory ignores the complex
and concealed politics of instrumentalization: who is instrumentalizing
whom in relation to what? The Westphalian model of world order assumes
Richard Falk 69
(1) Clarifying the main links between regionalism and the ‘containment’ of
negative globalism. Negative globalism refers here to the conjuncture of
largely non-accountable power and influence exerted by multinational
corporations, transnational banks and financial arenas, and their collab-
orators, with the ideology of consumerism and a development ethos
weighted almost entirely towards returns on capital achieved by
maximizing growth (no matter how often qualified, yet predominantly
rhetorically, by the modifier ‘sustainable’). But also, it is increasingly
important to take into account crime and terrorism of global reach. In
essence, the main regionalist tendencies are simultaneously both
reinforcing this drift towards negative globalism and creating resistance
and alternative mitigating options, including the promotion of positive
globalism (that is, the democratizing of global institutions, creating
accountability and responsiveness to more democratic social forces, and
establishing procedures for wider participation by representatives of
diverse peoples; also relevant here is the promotion of human rights,
including economic and social rights). It should be acknowledged that
the neoliberal ideology informing global market forces disseminates
constructive ideas about freedom and the rule of law, as well as destructive
notions about greed, extreme individualism, and materialism.
(2) Containing the American project to establish a non-territorial global
empire that controls the security of the planet has assumed a new sali-
ence after September 11. It is exhibited in several quite distinct contexts:
(i) pursuing counter-terrorism in essential disregard of international law
and the sovereign rights of states; (ii) waging a struggle against ‘rogue
states’, relabelled ‘axis of evil’ countries; (iii) administering by coercive
diplomacy the non-proliferation regime; and (iv) most of all, by the mili-
tarization of space under exclusive US control. This American project
draws political energy away from political regionalism, and over time
may lead to a regional geopolitics of resistance that significantly relies
on regional solidarity as more effective than nationalism in safeguarding
Richard Falk 71
Containing empire-building
The challenge posed by the American project to establish the first empire of
global scope is an important development that cannot be adequately
addressed in this chapter (Brooks and Wohlforth, 2002; Lemann, 2002;
Wallerstein, 2002). This empire seeks dominion, but not formal territorial
authority, which will be left in the hands of states and regional organiza-
tions. The preliminary experience with this emergent empire does not yet
reveal its impact on regionalism and whether it will mean that regional
actors will remain passive supporters of this American claim to provide
security for the constructive forces on the planet, or whether it will result in
new patterns of conflict formation based, in part, on regional refusals to
subordinate their autonomy to policies directed from Washington. Much
will depend on whether the threat of mega-terrorism dissipates with time,
or intensifies, as well as whether the US economy can rebound from its
current troubles.
There are two intersecting traditions at work: first, the anxiety that effective
global governance cannot avoid encroachments on human freedom unless
it avoids centralism; a regionalized world order is one approach to reconciling
the quest for global governance with a concern for constitutional equilib-
rium, and to a lesser extent with the preservation of cultural diversity
(Hutchins et al., 1948). The overriding goals in this outlook are so ambitious –
transforming statism, ignoring globalization – in relation to the flow of events
and horizons of aspiration, that little serious evolution of this possibility has
been under consideration in academic circles (cf. Hettne, Chapter 2; Hveem,
Chapter 5). A more moderate expression of this view is somewhat more
influential in the form of an advocacy of ‘subsidiarity’ via regional institutions
as a way of allocating downward from the United Nations, particularly with
respect to security issues other than mega-terrorism, and thus in the context
of delimiting the UN role. Such an approach borrows from the European
experience, which evidently borrowed from a Vatican doctrinal tradition.
Such an approach is meaningful, of course, only to the extent that robust
regional institutions exist, which is not the case, with the possible exception
of Europe, and in extremely limited respects, Central and South America
and Africa (Knight, 1994).
The second approach here is to view regional institutions as complementary
and subordinate tools of global governance, being shaped within the United
Nations, contributing in various settings to either effectiveness or legitimacy,
or some combination (Knight, 1994). The UN Charter in Chapter VIII seems
to envisage such a relationship. Since effective regional governance has so
often in international history meant interventionary diplomacy by a hege-
monic state, and thus geopolitics, it has been viewed with suspicion by
those disposed towards more law-governed modes of governance. The
revival of practice and advocacy of spheres of influence is suggestive of a
post-Cold War pattern that acknowledges the failures of the United Nations
in the setting of pathological anarchism, but it can hardly be properly iden-
tified as a variant of ‘positive globalism’. Conservatives give some credibility
to the view that international institutions add elements of constitutional
moderation to traditional modes of interventionism and discretionary
geopolitics, conceiving of recourse to the United Nations or a regional actor
as confusing, hypocritical, and superfluous from the perspectives of a realist
worldview (Krauthammer, 1991).
At this point, it is difficult to credit regionalism with being more than an
occasional instrument for the assertion of hegemonic control that depending
on circumstances can be viewed as either legitimated by collective procedures
Richard Falk 77
or not. The US intervention in Panama in 1989 was carried out despite the
refusal to accord it legitimacy at either the regional or United Nations level,
whereas a protective intervention in Haiti enjoyed both regional and UN
blessings. There is some difference, yet in both contexts intervention is
essentially a hegemonic initiative (shaped in Washington, with respect to
time, goals, modalities, battlefield control).
Regionalism in relation to the emergence of positive globalism remains a
latent potentiality. The Charter gives ample space for complementary
regional roles in peacekeeping settings, and does in Article 52(3) express a
favourable disposition towards resolution of disputes at a regional level,
thereby seeming to endorse subsidiarity. Again, context matters: Castro’s
Cuba is under far more intense hegemonic pressures as a regional pariah
than it is in the UN setting. It would seem that the virtues of regionalism in
relation to positive globalism are, at present, mainly speculative. Its more
serious relevance would arise as a derivation from the emergence of positive
globalism, not currently in the offing, and especially backgrounded in light
of the geopolitical response to September 11.
A concluding note
The problem
* This chapter draws heavily on two previous publications by the author (Hveem,
2000a, b). It restates and updates the main arguments presented in those former
contributions, and also adds the rapid growth in the network of inter-regional rela-
tionships, some of which are being institutionalized, and an emphasis on them as a
new tool of global governance (also see Hveem, 2002). Harald Feed and Gisle Torheim
have contributed assistance in collecting information for this part of the chapter.
81
82 The Regional Project in Global Governance
The argument
Analytical perspective
to an end. The end may be the global market and the region may serve as
a stepping-stone to it, as an adjustment to and preparation for globalization.
In yet other cases regionalization may be intended neither as an end nor as
a stepping-stone, but simply be a way of hedging (Hveem, 2000a).
Many people know little about regions, or to what region they actually
belong. When collective action beyond the state is seen as necessary, the
regional project may also have to compete with bilateral strategies in being
considered efficacious. In fact bilateralism, which was the dominant trend
in the 1980s, has been resurging recently.4 However, regional projects may
trump bilateral ones on two scores: the latter is mostly an instrument that
only the major powers may make use of; and secondly, global institutions
such as the WTO see bilateralism as more problematic, less legimate than is
the case with a regional project.
The analysis appears to confront two types of problems at the outset. First,
what constitutes a comparative political advantage is controversial. Both
analysts and practitioners apply different criteria. Neoclassical economics
discusses regional cooperation as failures or successes according to whether
or not it exploits comparative economic advantage and whether or not it
promotes efficacy in allocating resources. This school looks upon regional
projects with suspicion, as something that tends to be ‘closing’ towards out-
siders – that is, as obstacles to globalized markets (Bhagwati, 1993). Other
trade economists take a more pragmatic view and see free-trade areas (FTAs)
as potentially both ‘closing’ and ‘opening’ to global markets (Frankel, 1998).
For political economy and political science the issue is not whether
regional projects appear as ‘closed’ or ‘open’ in an economic interpretation,
but whether and how regional institutions contribute to a (comparatively)
just allocation of resources (cf. Gamble and Payne, Chapter 3). The relation-
ship between the economy and the society becomes a redistributive issue.
Realism in political science, echoed by neomercantilism in political econ-
omy (Gilpin, 1987), deals with economic issues and the welfare factor in
particular by viewing actors as defensive positionalists. They will focus on
what gains other members of the regional project make as compared to their
own personal gains, and they will resent it if other members gain in relative
terms even when everybody gains in absolute terms. Pareto-optimal out-
comes will not suffice, nor will Rawls’s ‘veil of ignorance’ fully deal with the
redistribution issue. There has to be some intervention by political institu-
tions. This view may even focus on the developmental issue: that is, investigate
which institutions promote improvement of productive forces and compe-
tence-building and make development ecologically sustainable (Tussie, 2000).
It is inclined to accept a conditionally or moderately ‘open’ regional project
if the project contributes to these ends. Finally some would also focus on
security aspects of regional cooperation, either in the narrow meaning of
military security or in the broader sense of comprehensive security (cf. Buzan,
Chapter 8).
Helge Hveem 85
But is the regional project actually able to perform governance in the era of
globalization? The answer differs across regions and across sectors. Economic
globalization may appear to make the nation-state obsolete although a
strong case has been made it is not (Weiss, 1998; Hveem and Nordhaug,
2002). There is thus a widespread perception that, except in the case of the
superpower or big powers, the nation-state becomes too ‘small’ and weak to
govern foreign economic relations. Regions therefore become the optimal
alternative, partly because they are placed in the intersection between global
and nation-state institutions that attempt to cope with these processes
(cf. Hettne, Chapter 2). The deepening and widening of the European
Community as it created the European Union is believed to be, in part, a
response to the globalization process and to increasing global competition.
structure. When two or more entities find themselves in such a structure, they
may or will discover that their own behaviour is being affected by that of
the other(s), and that they themselves have the capability to affect the
other(s). The structure offers an influence reciprocity and reduces incentives
to free-ride. This also applies if all parties contribute to air pollution.
Regional cooperation may thus result out of a mutual understanding that all
parties are better served by coordinating action than by acting unilaterally.
But this is obviously not always the case. Consider the cases of pollution
control and sharing of a river. If one neighbouring party pollutes and the
other does not, the former may have no incentive to coordinate with the
latter. Similarly if one party controls the source of an international river –
the ‘upstream country’ – it is in a different and stronger position than the
‘downstream country’. This structural inequality is said to be prominent in
such cases as the Eufrat-Tigris and Jordan, not to mention Rio de la Plata
(Tussie, 2000). It is probably what caused Egypt unilaterally to declare that it
would go to war against any party that would interfere with the waterflows
of the Nile. Conflicts over waterways are widespread and latent (Clarke,
1991), but it is in fact the presence of conflicts which may push parties
towards cooperation. Cooperation is not necessary where harmony prevails.
Complex interdependence works when parties may swap their respective
bargaining positions in two or more sectors, or when successful cooperation
in one sector spills over to another or more sectors. But it may also fail to
produce integrative outcomes. Neofunctionalism’s assumption of a spill-over
mechanism, perhaps a little too mechanistic as it is, is mirrored by a ‘spill-back’
mechanism: if integration fails in one sector, failure may spill back into
another sector and pull it into non-cooperation. The problems in ASEAN
and in Mercosur after their respective financial crises may be a case in point.
Socio-economic networks and Deutsch’s community represent varieties of
societal regionalization where parties are motivated by utility or common
identity (even ethnicity). They may be a most efficient glue in regionaliza-
tion. Illustrations are found in East Asian ‘growth triangles’ (Thant et al.,
1994) but also in Africa (Igué and Soulé, 1992; Meagher, 1997; Lavergne,
1997). In the latter case, boundaries, in particular the existence of differ-
ences in tariff levels and structures between contagious states, stimulate
trade between them and lead to growth and development of the participating
agents and social groups. This trade activity – usually referred to as ‘informal’,
‘secret’, ‘parallel’ or even ‘smuggling’ – is outside the control of the state.
It represents a ‘trans-state regionalism’ that challenges, and sometimes
breaks down, state authority (Bach, 1997, 1999; Bøås, Marchand and Shaw,
Chapter 11). When transboundary trade issues combine with security and/or
environment problems, however, there are indications that the state becomes
more actively involved and also more influential in directing the socio-
economic processes across boundaries. In the East Asian case it is evident that
the state takes a role in trans-state relations, sometimes even pushing them.
Helge Hveem 91
Both the two alternative governance structures are there to stay; collective
state action may regulate them, ally with them, share power with them, but
not get rid of them. Among other things the state’s option is to exploit the
differences among the alternatives: the fact that governance by transna-
tional business is normally associated with the efficacy goal, governance by
transnational society with legitimacy and/or identity. The transnational or
trans-state tendencies identified so far may also be associated with an
increasing participatory tendency, a quest for more legitimate governance
(Hocking, 1997). All this is said to have led to a ‘new regionalism’ which
links regions or other local entities at the sub-national level across nation-
state boundaries (Hettne, Chapter 2).
I referred above to the ‘stumbling block’ hypothesis, the neoliberal idea
that regionalization is a threat to economic liberalization into a fully com-
petitive global market. But the hypothesis is contested even by liberal econo-
mists (cf. Tussie, Chapter 6; Mistry, Chapter 7). The view they present is in
line with the view of the ICGG (see above): there has to be a system of ’layered
governance’ whereby the regional level performs governance functions for the global
system. A liberal global order is an idea that carries widespread support, but
because of the complexity and variety of the issues and problems it has to
cover, that order has to be governed through delegation of some governance
tasks to different structures and lower levels of international governance
(Yarbrough and Yarbrough, 1994). The subsidiarity principle that was men-
tioned above with reference to environmental problems within a limited
geographical area, can thus be applied more widely. Its role in trade is
acknowledged in WTO agreements; after the financial crises of the 1990s
there is growing support of regional governance even in finance, namely the
relative success of the Economic and Monetary Union (EMU) and the
renewed support for the idea of East and North Asian monetary collaboration.
On several issues the ‘national to regional’ and the ‘global to regional’
tendencies converge. Corporate leaders favour regional governance when
environmental standards are closely linked to technological development
and affect competitiveness of their regional cross-border production net-
works. Developing countries thus may have a point when they openly criti-
cize the North for setting up regional environment regimes that act as blocs
and barriers to exports from the South, but they may not hit the target
when explaining why they do so. Rapidly increasing costs associated with
research and development programmes and increasing competition based
on new technologies appears to be a major cause. They make it necessary to
pool resources to finance costs and cover risks (van Tulder and Junne, 1988;
Mytelka, 1994; Sally, 1995). The region may offer more collateral than the
nation-state: in a more competitive world requiring faster adjustment and higher
risk-taking in order to preserve competitiveness for firms (and nation-states), the
region may represent collateral, or a critical mass source to finance and organize
vital research and development. Regional cooperation represents a potentially
Helge Hveem 95
the closer it comes to effectively constituting one market, the more are
other motivations and alternative institutions likely to be mobilized. One
prospect is growth in an alternative regionalism that is based on regional
politics and identity. If the latter takes hold, it will make the proposed East
Asian Economic Caucus (EAEC) a much stronger alternative (Higgott,
1998b) and probably also add stimulus to the regional actors’ interest in
a regional monetary arrangement. Some moves have already been taken in
the latter direction.
What Keating and Loughlin say for sub-national regionalism is equally
true for international regionalism: ‘While the theme of regionalism is
increasing in importance, there is an increased differentiation between types
of region and their potential’ (Keating and Loughlin, 1997:18; cf. Hettne,
Chapter 2; Jessop, Chapter 10; Söderbaum and Shaw, Chapter 12). Even
more complex is the task of attempting to make sense of inter-regional politics
(cf. Hettne, Chapter 2). I shall nevertheless make a brief contribution as a
prelude to future research on the issue.
There is a visible dynamism in contemporary inter-regional relations.
Some such relations are of long standing; the North Atlantic community
and NATO is one, the EU–Cotonou (formerly Lomé and Yaoundé) association
agreement another example. The dynamism may probably be interpreted
along two dimensions. One is related to hegemony and sees inter-regional
activism as an expression of the hegemon’s strategy or as a response to it by other
actors. If hegemonic schemes were more easily accepted in the past because
they offered security under perceptions of serious threat, this was not the
case during the 1990s. During this period the number of inter-regional
agreements also increased considerably. Most of them are centred on the EU
which appears at first glance to be the one major actor to benefit from a system
of inter-regional agreements. It is the best-organized regional entity itself, and
is likely to be best placed to profit from bargaining with others. The hegemonic
state, by comparison, meets greater reluctance in the region closer to it –
Latin America – when plans for a continent-wide free trade area are pushed.
One particular aspect of the new inter-regional dynamism is found in
the tendency to compete for a stronger position ‘in the backyard’ of
another major power. The purpose if not the practice of the Asia-Europe
Meeting (ASEM) is an illustration. It was initiated in 1996 and consists of
three pillars – economic, cultural and partly political. Its purpose is three-
fold: to advance EU representation in Asia, to establish a competitor to
APEC, and to balance the influence of the United States in the region
(Hettne, Chapter 2; Forster, 1999; Kirkpatrick and Richards, 1999). ASEM,
however, is still a weak and embryonic institution, partly because the
major powers in the EU did not want it to become a player in the political
field. Other EU agreements with other regions also appear to be more
developed and influential in the economic field, one example being the
agreement with Mercosur, probably another illustration of challenging the
backyard of the hegemon.
98 The Regional Project in Global Governance
If the EU is successful then not only will the United States respond; major
powers in Asia are also likely to respond in kind. 7 For China the United States
appears still to be the only real player in Asia; the EU does not seem to
count much. China’s long-standing rival, Japan, does however look upon
the EU more attentively, as an economic competitor and as a model of how
regional and inter-regional projects may be organized. She is apparently
seeking an improved position in East Asia, her ‘home’ region where she has
faced and is still facing strong scepticism, and she is seeking to reach agree-
ments in trade with actors outside the region such as the Oceanian states.
The anti-terrorism alliance that the United States made so successfully broad
after September 11 did alter this situation and gave the hegemonic state a
stronger position in the short term (cf. Hettne, Chapter 2; Falk, Chapter 4).
The alliance appeared to bring major powers closer together over a common
stand against a problem that plagues all of them in some degree; this
appears to reduce the element of counterhegemonic strategies found in
developments prior to the strike against New York.
The other dimension against which inter-regional governance schemes
may be viewed is the one that Verhofstadt ventured. It is seeing inter-
regional agreements as an alternative to the Great Power concert, the G8,
and as a supplement to global institutions. It may be that the proposal has
partly to do with internal EU politics, as an attempt to advance the interests
of the small countries against those of the bigger which are permanent
members of the G8 and (partly of) the Security Council. If so its chances to
mobilize legitimacy increase, and since its potential agenda is larger than
that of for instance the WTO’s rules on regional governance, it may also
look more promising from the point of view of efficacy. But whether or not
these agreements do is still an open issue.
Notes
1. Available on-line at http://www.eu2001.be/VE_adv_Press.
2. In a speech in Buenos Aires on 2 December 2002.
3. Regions are international, not sub-national regions; the latter are discussed for
instance in Keating and Loughlin (1997); also see Jessop, Chapter 10.
4. See Financial Times, 19 November 2002.
5. I am referring to Hettne and others, see this volume. There is, however, a completely
different usage of the term in Jiru (2002) who defines ‘new regionalism’ to include
‘economic globalization and regional economic integration’ and ‘the principles of
open-up, economic priority and incorporating things from diverse nature’.
6. Viner (1953) and Balassa (1962) have suggested classifications which are still
largely sufficient to account for cooperation in the narrow sense of market regula-
tion. These classifications need to be supplemented or reorganized, however, as
the scope is expanded to include more than market transactions and as there is
also greater variance in the types of market organization adopted (cf. Mistry,
Chapter 7). This appears particularly necessary in view of the agendas and experi-
ences of the EU and indeed those of several other arrangements in the 1990s,
including those of NAFTA, ASEAN, Mercosur and SADC.
7. For further elaboration see Hallenstvedt, Hveem and Torheim (forthcoming 2003).
6
Regionalism: Providing a Substance
to Multilateralism?*
Diana Tussie
Introduction
* This chapter draws on two previous works: Tussie and Woods (2000) and Tussie
(2002).
99
100 Regionalism: Providing a Substance to Multilateralism?
Over the past fifty years, international trade has been heavily dominated by
the industrialized countries. In this section, the political and economic
reasons and ramifications of this dominance will be examined so as to lay
out a framework for understanding the impact globalization is having on
the politics and the economic of world trade.
As colonial rule disintegrated in the 1950s and 1960s, international trade
changed in two ways. First, the direction of trade shifted as industrialized
countries began to trade more and more with each other and relatively less with
their former colonies. Second, the composition of trade or the kinds of goods
traded altered as industrialized countries exchanged capital-intensive goods with
each other. In other words, rather than trading cars for raw materials (as trade
theory might predict), international trade became increasingly an exchange of,
say, Renaults for Fords. Indeed, since the 1960s about two-thirds of world trade
in manufactures has been in chemical and engineering goods – goods with low
labour or raw material input in relation to capital. Overall this trading system
especially met the needs of a small group of Western industrialized countries,
and often worked against the interests of most developing countries (Tussie, 1987).
Several closely related trends supported a concentration of trade among
the industrialized countries. Greater capital mobility facilitated cross-border
investment which in turn increased trade: indeed capital and goods flowed
hand-in-hand, with trade following investments and vice versa. Some three-
quarters of international investments were concentrated in the industrialized
countries. Furthermore, trade amongst this group of countries intensified as
producers began partially to specialize within particular sectors, rather than
to specialize absolutely. Competition among producers came to focus less on
price and more on the quality and particular attributes of products. Firms
and countries used technological advances to carve out particular market-
niches owing more to the type of good produced than its price. Finally, the
growth and activities of multinational enterprises drove this process, with
firms internationalizing and thereby tapping into the benefits of interna-
tional specialization within the firm: trading within the firm so as to maximize
gains from international differences in production and technology.
Outside the hotbed of trading activity described above, trade did not
flourish. Rather, in sectors and countries where these transformations did
not occur, trade encountered numerous policy obstacles (Tussie, 1987).
Trade frictions flared, particularly between industrialized and newly indus-
trializing countries. As mentioned above, these relations were reinforced
102 Regionalism: Providing a Substance to Multilateralism?
or has declined in power relative to the EU and Asia (i.e. the world has
become ‘multipolar’). In security issues, there is no doubt a strong argument
for US preponderance: as evidenced by the Gulf War 1991, the intervention
in Kosovo in 1999 and the invasion of Iraq in 2003 regardless of European
support. Even when in the economic realm, the configuration of power was
not so clear; successive rounds of trade negotiations within the GATT frame-
work were led by the United States (together with the EU) and animated by
the containment of communism. With the fall of centrally planned economies,
for an interval the GATT was stripped of its security role. At the same time
the EU and the United States show a continuing capacity and willingness to
confront each other, as shown by acrimonious disputes over bananas and
beef hormones in 1999, and steel and agricultural subsidies in 2002.
Furthermore, the experience of the 1990s underlined a relative weakness
on the part of both the United States and Europe in the face of financial
crises in other parts of the world. Crises in Mexico 1994–5, East Asia 1997,
Russia 1998, Brazil 1998, and Argentina 2001–2 all demonstrated vulnerabilities
of powerful economies fearing a ‘systemic crisis’. Responses to these crises
underlined the need for the inclusion of new actors in multilateral arrange-
ments (especially of emerging market governments and private actors), and
at the same time underscored the continuing dominance of the United
States which took a lead in shaping the responses of the international com-
munity.
Even if the United States has retained its powerful hegemonic position in
the world trading system (let us assume for a moment that it has), the
multilateral system requires not just a leader but also a certain kind of lead-
ership. In other words, it is not enough for the US to maintain its dominant
position. Of equal importance are the trade policy preferences emerging
within the United States. These are worth analyzing.
In the aftermath of the Second World War, the United States was soon
perceived as champion (and the necessary hegemonic supporter) of a global
liberal trade order, although, as put succinctly by Ruggie (1993: 8), ‘it was
less the fact of American hegemony that accounts for the explosion of multi-
lateral arrangements than of American hegemony’. Complementing its role
as champion of international free trade, the United States worked assiduously
throughout the 1960s and 1970s to resist any efforts at closer regional ties,
particularly in Latin America and Asia, which were seen as potential challenges
to the American project and American predominance.3
In the past two decades, however, the United States has been more protec-
tionist and more regionalist. Protectionism has grown from the ‘new protec-
tionism’ of the 1970s and with the ‘aggressive unilateralism’ of the 1980s
(Bhagwati and Patrick, 1990). At the same time, in the early 1980s, the
United States exhibited a new enthusiasm for regional initiatives. Moreover,
this enthusiasm was largely due to a perception that regional arrangements
offered an important alternative to multilateralism. As Jeffrey Frankel (1998)
108 Regionalism: Providing a Substance to Multilateralism?
The past two decades have seen a strengthening and deepening of regional
trade arrangements as almost every country in the world has joined some
kind of preferential trading arrangement. The EU has moved towards a single
market. The NAFTA has cemented a free trade area between Canada, the
United States and Mexico and is now further extending its membership. A
larger, less formal arrangement has been consolidated by the Asia-Pacific
Economic Cooperation group (APEC). In South America countries have
joined Mercosur. In other parts of the world, the list includes: the West African
Economic and Monetary Union (WAEMU/UEMOA), the Southern African
Development Community (SADC), the Common Market of Eastern and
Southern Africa (COMESA) the Maghreb Union, the Association of
Southeast Asian Nations (ASEAN), the South Asian Association for Regional
Cooperation (SAARC), the Gulf Cooperation Council (GCC), the Latin
American Integration Association (LAIA), and the Caribbean Community
and Common Market (CARICOM). More recently, in the Western Hemisphere
Latin America has been quick to engage in negotiations for the creation of
the Free Trade Area of the Americas (FTAA), setting in motion a low-profile
machinery which has minced through complex technical issues.
For many developing countries who felt excluded from GATT, regional
arrangements provide an opportunity for the market access they always
wished for but had never really extracted from multilateral negotiations
(cf. Mistry, Chapter 7). Furthermore, many countries have been helped by the
unilateral liberalization of neighbours and the commitments undertaken in
the context of regional trade agreements.
The impact of regional arrangements on trade flows and relations is the
subject of heated debate among scholars (Ito and Krueger, 1997). Empir-
ically, the experience of the 1990s in most regions of the world (with the
notable exception of the EU) has been one of increasing intra-regional trade.
This is clear from Table 6.1. Note that these figures have not been disaggregated
so as directly to reveal the extent that formal trading arrangements may
have increased trade. Nevertheless they show a picture of increasingly
concentrated intra-regional trade.
In summary, at the same time as regional trade agreements are flourishing
in international economic relations, so too trade flows are also increasingly
intra-regional. In Europe, the Western Hemisphere, Asia and Africa, the
percentage of countries’ exports and imports going to and from other countries
within the region has grown over the past decade. The exception has been
in the Middle East where a breakdown in political relations since the Gulf
War 1990–1 has influenced trade.
One-dimensional perspectives fall into either over-optimistic or over-
pessimistic views of the relation between regionalism and multilateralism.
An optimistic view of the consequences of regionalism posits that regional
Diana Tussie 111
Regionalism in world trade has both positive and negative implications for
liberalization and for multilateralism. On the negative side, there is a danger
that the new regionalism will erode states’ commitment to multilateralism
and perpetuate a very partial and unequal form of liberalization. A first
crucial question is how ‘outsiders’ to prosperous regions are treated and
whether or not this alters their commitment to multilateralism. The impact
of the new regionalism on countries lying outside some regions has been
very harsh. For example, countries bordering the EU have found regionally
organized trading regimes presenting a series of closed doors to them. The
initial enthusiasm of former Eastern bloc countries to dismantle trade barriers
has been replaced by a bitter recognition that the trade practices of most
large industrialized countries are protectionist and restrictive, even though
they are legal within GATT/WTO rules (Pietras, 1998). In this context, many
countries bordering successful ‘regions’ such as the EU or NAFTA are not
only trying to gain entry but are also considering new regional areas of their
own, as evidenced by NAFTA’s catalyzing of Mercosur and progress towards
a FTAA.4
A second problem for the predominance of multilateralism is that regional
trade institutions might be used by states as an alternative to multilateral
Diana Tussie 113
institutions. Once powerful states have set up regulatory and legal institutions
at the regional level, they may well start preferring to use these institutions
even in disputes that should rightly go to the WTO – choosing the forum for
dispute-resolution according to what is most likely to serve their interests.
Such behaviour erodes the ‘rule of law’ in international trade, suggesting
different laws for different states according to their region and their power
to influence regional fora. Furthermore, if powerful states focus attention
inwards on their region and regional institutions, they are likely to neglect
international fora and organizations.
These negative implications of regionalism do not overwhelm other con-
siderations. It is worth noting that no country has a clear-cut choice
between regional trade and international trade. All regions depend heavily
on other markets: the EU relies heavily on North American markets, as does
Japan; NAFTA offers too small an arena of trade for the United States –
indeed, the US impetus for the Uruguay Round was to open up access to
foreign markets, to extend coverage to agriculture and services and to
address areas like intellectual property and foreign investment (Odell and
Eichengreen, 1998: 183). At the same time, the evidence suggests that
powerful states gain important bargaining leverage from participation in
regional blocs. The United States, for example, used the threat of NAFTA
and APEC to force other countries to take the Uruguay Round seriously.5
Hence, regionalism is not in competition with multilateralism but it can
increase the bargaining power of large players with a regional option.
On the positive side of the relationship between regionalism and multilat-
eralism, it is worth noting that the new regionalism is being driven more by
markets and less by policy, or by fiat or even enlightened bureaucrats. Few,
if any, of the new associations (with the exception of the EU) are really a
bloc. The new regionalism is more a product of the expansion of trade and
cross-border investments among neighbouring countries after unilateral
liberalization.
Furthermore, the new regionalism bridges the traditional division
between industrialized and developing countries that had marked the GATT
(cf. Mistry, Chapter 7). This was expressed (as noted above) by one-way
exports (in a North–South or South–North direction) riddled with barriers of
all kinds, and in messy efforts to compensate for the bias, such as by allowing
developing countries ‘special and differential treatment’ (whereby develop-
ing countries were not expected to provide fully reciprocal access to their
markets and were granted preferential access to industrialized countries’
markets). Special and differential treatment proved to be no solution and,
indeed, became a continuing source of friction as developing countries
remained dissatisfied with the access they obtained, and industrialized
countries grumbled about free-riding.
The new brand of regional free trade agreements tends not to make a
distinction between types of countries or levels of development. Within
114 Regionalism: Providing a Substance to Multilateralism?
Conclusion
Notes
1. Textile and clothing, for example, accounts for 24 per cent of Sub-Saharan African
exports, 14 per cent of Asian and 8 per cent of Latin American and Caribbean
exports (UNDP, 1997: 85).
2. These are the kinds of effects that scholars predict will flow from the creation of
formal institutions; see Goldstein (1998).
3. The regional efforts of the 1960s were indeed signals of the discontent with a
US-dominated ‘multilateralist’ world economy.
4. Cf. the view and the evidence that regionalism is being accompanied by stronger
global interdependencies (Poon and Pandit, 1996).
5. On NAFTA, see Schott (1989) and Wiener (1995); on APEC, see Destler (1995) and
Frankel (1998).
7
New Regionalism and Economic
Development*
Percy S. Mistry
* This chapter draws on two previous chapters produced within the UNU/WIDER
project on new regionalism, entitled ‘The New Regionalism: Impediment or Spur to
Future Multilateralism?’ (Mistry, 1999) and ‘Regional Cooperation and Economic
Development’ (Mistry, 2000).
117
118 New Regionalism and Economic Development
The post-1990 surge in regionalism is remoulding the global order while the
evolution of the EU (through widening and deepening) is influencing
regionalism in the developing world. It is changing both the notion of
regionalism and the process of regionalization. In the EU, the trade
Percy S. Mistry 119
dimensions of the new regionalism. It must accommodate not only the new
political and economic roles of regions as crypto-sovereign actors but corres-
ponding changes in the political and economic roles of nations when sover-
eignty is pooled (partially or fully) through regionalism, whether for specific
purposes (for instance, trade) or in wider senses. Until such a theory
emerges, the role of regionalism in economic development can only be
understood through empirical analysis of the history of RIAs in developing
countries and of presently unfolding practical experience, i.e. what in this
analysis is referred to as ‘pragmatic empiricism’.
This chapter attempts to do that in its various sections dealing seriatim
with: (i) a brief background to regionalism in developing countries;
(ii) new regionalism in the developing world, namely, its economic and
political dimensions and the evolution of second-generation RIAs; (iii) bar-
riers to deriving gains from regionalism; (iv) emerging inter-regionalism
vs. intra-regionalism; (v) regionalism vs. multilateralism; and finally (vi)
conclusions.
Although customs union theory was developed in 1950, RIAs and regionalism
emerged long before then. Pre-colonial empires were precursors of modern
regionalism. Some of these arrangements (such as the Roman Empire) lasted
several centuries embracing monetary and political unions. Successful colo-
nial RIAs emerged between 1850 and 1950 across most of what is now
the developing world (Mistry, 1996a). They did not last for more than a few
decades although they preceded (and, in some instances, shaped) the RIAs
that were entered into by countries that ceased being colonies. Between
1960 and 1990 developing countries experimented with a number of first
generation RIAs based on protectionism in different regions (Mistry, 1996a:
14–20). Mostly, these arrangements took the form of preferential or free
trade areas. A few graduated to the level of customs unions and, in even
fewer cases, monetary unions. But these arrangements proved fragile. They
generated limited tangible benefits that were inequitably distributed, erod-
ing popular and political support for their continuation. The lessons learnt
resulted in second-generation attempts to avoid repeating failure (de Melo
et al., 1992).
Post-1990 RIAs differ in that they: (i) involve greater diversity among
members; (ii) have an outward orientation with openness to trade, capital
flows, technology, knowledge and high-level manpower; (iii) go beyond
trade liberalization in goods to include liberalization in services, invest-
ment, technical and regulatory standards, etc.; (iv) strive to attain global
competitiveness of the region concerned as well as that of its individual
members; (v) involve arrangements among member countries that have
Percy S. Mistry 121
Second-generation RIAs
Post-1990 RIAs have tried to go beyond achieving the economic benefits of
integration in strengthening collective capacity for political, security and
Percy S. Mistry 125
Few RIAs entered into by developing countries between 1960 and 1990
attempted to achieve broad political and social objectives.5 Their main
objective was to increase intra-regional trade and capital flows through
reduction of tariffs, NTBs and the removal of impediments to investment
flows. First-generation RIAs did not succeed. Second-generation RIAs in
Latin America and Asia have made more headway, although that has not
been the case with RIAs in Africa, where intra-regional trade and investment
(outside of the Southern African Customs Union, SACU) remain abysmally
low.
What is clear is that tariff reductions do not have a significant impact by
themselves on stimulating intra-regional cross-border economic activity.
NTBs and institutional-cum-administrative barriers to trade, as well as those
affecting production and investment, are more significant obstacles to inte-
gration and regionalism. NTBs are less transparent than tariffs and are used
in a variety of ways, subtle and otherwise, not only to protect a particular
country’s firms and markets from global but also from regional competition.
The main NTBs that inhibit integration and regionalism are the following:
(i) monetary and payments barriers; (ii) production barriers; (iii) barriers to
investment; and (iv) other barriers.
Production barriers
NTBs affecting production reduce regional output by limiting market entry
or restricting competition. Such barriers also affect trade, but indirectly.
National standards and regulations that are different across contiguous coun-
tries have such effects on production. Coping with multiple national stand-
ards requires firms to hold larger inventories, distorts their production
patterns, discourages cross-border arrangements such as sub-contracting,
and undermines regional market unification.
Public monopolies (exercised by state-owned enterprises or parastatals) in
production, transport, trading and distribution pose another production
barrier. Parastatals are run with national objectives in mind. Their oper-
ations and activities are governed by domestic, political and social impera-
tives rather than by commercial, or regional market, considerations. They
are amenable neither to cross-border interaction with their counterparts,
nor to cross-investment in one another, as they would be under private
ownership and management. For that reason, privatization may be a necessary
prerequisite for regionalism to take hold. Without privatization it is difficult
to envisage either integration of regional enterprises in the same industry,
or greater cross-border trade between such enterprises – particularly in the
provision of infrastructure services.
The protection of national labour markets within regional arrangements
has the same pernicious effects on production. It encourages artificial real
wage and benefit differentials to become entrenched across member coun-
tries. Such protection usually results from domestic political pressures to
reduce unemployment and maintain higher standards of living than are
justified by increases in labour productivity and constrains production
efficiencies from being achieved on a regional scale. It worsens regional
competitiveness. When labour market protection is accompanied by restric-
tions on cross-border investment flows, the damage to regionalism can be
exacerbated.
128 New Regionalism and Economic Development
Barriers to investment
NTBs affecting cross-border investment in developing regions are well known.
They include: (i) exchange and licensing control; (ii) the insufficiency of
domestic savings and the inadequacy of capital markets; and (iii) the unneces-
sary complexity and poor administration of fiscal regimes resulting in busi-
ness taxation becoming a matter of negotiation rather than being rule-based.
These barriers inhibit investment and limit the rate of growth. RIAs attempt
to overcome these barriers by encouraging FDI flows into the region and
cross-border investment (CBI) flows within the region. To the extent that they
depend on the creation of a regional market, both FDI and CBI are influenced
by the barriers enumerated above and by investment licensing. Their removal
is a precondition for exploiting gains from investment. In that connection, a
crucial issue is how trade-related investment incentives are framed under a
RIA. They affect the level and location of regionally justified investment, the
direction of trade, and the distribution of RIA benefits within the bloc.
Investment incentives under RIAs need to be provided openly, in a way
that does not result in members attempting to outdo each other in competing
for FDI and CBI nor in the effective cost of the incentives offered being
passed indirectly to consumers. If extant national incentives for investment
were adapted on such a basis, a major issue concerning the equitable distri-
bution of RIA gains could be dealt with. For genuine regionalism to prevail
members need to offer uniform incentives so that they are not competing
with each other for FDI that would come into the region anyway, or com-
peting to distort CBI flows within the region. Instead the incentives offered
should be aimed at attracting FDI into the region that would otherwise go to
other regions and to permit CBI to flow within the region without being dis-
torted by incentives.
Other barriers
In addition to NTBs that affect payments, production and investment some
barriers affect all three and impede the progress of regionalism. They
Percy S. Mistry 129
Why are countries, developed and developing, opting for regionalism rather
than multilateralism, especially when the institutional foundations for multi-
lateralism are in place and globalization has assumed its own dynamic?
Why are countries going for an interim solution to addressing exigent problems
rather than aiming to reach the final destination without pausing en route?
(cf. Hettne, Chapter 2; Gamble and Payne, Chapter 3; Hveem, Chapter 5;
Tussie, Chapter 6).
The answer to these questions has its roots in three related phenomena
that emerged in the 1990s: the breakdown of bipolarity; accelerating
globalization; and convergence towards a market-democracy model. In retro-
spect, the relative geopolitical stability created by concentrated bipolarity
has given way to diffused multipolarity (Mistry, 1999). That is resulting in
the devolution of littoral (regional) power by default rather than by design
in a number of regions, for instance, China in East Asia and the Pacific,
India in South Asia and the Indian Ocean, Nigeria and South Africa in Sub-
Saharan Africa, Egypt and Israel in the Middle East, Brazil in South America,
Russia in Eastern Europe and so on. In some instances, emerging powers
(for example China) are consciously asserting regional dominance through
134 New Regionalism and Economic Development
political power that has occurred since 1990, especially in the growing
power of East Asia. The capacity of the multilateral system is focused more on
obstructing and resisting change, not on welcoming and accommodating it.
New regionalism is being embraced because old multilateralism no longer
works. Part of the reason for multilateralism being dysfunctional is that it
depends on interactions among nation-states that are so unequal that they
have ceased to be meaningful constituent units on which multilateralism
can reasonably rely for effective functioning (cf. Hettne, Chapter 2; Hveem,
Chapter 5). Integrating individually insignificant national units into more
influential (and more equal) regional entities may therefore be a necessary
condition for multilateralism to function more effectively. If that hypoth-
esis is validated then new regionalism may not just be conducive to a more
functional and useful form of multilateralism. It may be a prerequisite for
reconstructing multilateralism on (more equal) regional rather than (highly
unequal) national building blocks.
Given its obvious deficiencies, emerging economies in Asia, Latin America
and the Middle East (less so in Africa) are no longer constrained by the
established rules of multilateralism in deploying realpolitik to define and
achieve their national interests and regional ambitions. They are pursuing
these differently and more aggressively than before, unconstrained by the
checks and balances that existed in a bipolar world. They are unwilling to
accept the kind of multilateralism in which their growing weight is not rec-
ognized nor reflected in the shareholding and voting power of multilateral
institutions. For them, the emergence of a strong regional presence is a sine
qua non in staking their claim to become more equal partners, rather than
continuing to be patronized and remaining second or third class members
of a multilateral regime that works to obstruct their progress and to diminish
and marginalize them.
Since extant multilateralism does not work for them, developing coun-
tries are resorting to plurilateralism to tackle common concerns pragmatically
rather than ideologically. Whether this is an expedient response to the frus-
trations caused by effective exclusion from the extant multilateral regime,
or whether it reflects a more positive attempt to achieve empowerment in
the global system through collective action, remains to be seen. But region-
alism in the developing world is not simply a temporal convenience to
bypass dysfunctional multilateralism. It is unlikely to be quickly reversed. It
may, as suggested above, turn out to be an essential stepping-stone to con-
structing a different version of multilateralism based on regional blocs
rather than nation-states as the principal actors.
Conclusion
Notes
1. For customs union theory, see Viner (1950), Lipsey (1957, 1958, 1960), Cooper
and Massell (1965a, b), Johnson (1965) and Corden (1976). For a layman’s under-
standing of what is meant by trade creation and diversion in the context of RIAs,
see Mistry (1996a: 25–32). In brief, trade creation results from RIAs among member
countries when: (i) tariffs of members on imports of each other’s goods are high
prior to integration; (ii) members produce a roughly similar range of products but at
different relative prices; (iii) external tariffs on goods imported from outside the
region are relatively low and roughly at the same level across members; and (iv) firms
and industries in member countries are sufficiently flexible, responsive and com-
petitive to produce goods previously imported from outside the region at the same
or lower prices within the region. When any of these four conditions is not met,
trade diversion may occur. The extent of diversion increases with each condition
that is not met. When none of these conditions are met then losses from trade
diversion are maximized. But the gains from trade creation and diversion are not as
certain to accrue to members with the increasing globalization of production,
investment and capital flows; especially when non-regional countries have major
investments in firms and industries within the region and can capture these gains.
2. It does not capture (unorthodox) dynamic gains. Static gains have an initial (one-
time) impact on increases in intra-regional income and welfare. They occur on
the supply-side of an economy by inducing efficiencies from: (i) reallocating
resources to higher valued-added, lower-cost production; (ii) reduced transport
costs; (iii) economies of scale in investment, production and marketing; and (iv)
market expansion that results in reduced administrative and transaction costs
with the removal of distortions caused by national barriers. Static gains also
accrue on the demand-side as a result of enhanced welfare through lower prices
and greater choice for consumers within a region.
3. Mistry (1996b), for example, makes the case that structural adjustment pro-
grammes in Africa might have had better outcomes earlier had they been
designed and implemented on a regional rather than national basis. The underly-
ing reason for that assertion was that the concept of adjustment is based on mar-
kets being freed to operate more effectively and competitively so as to permit
resources to be better used. In Africa however (with very few exceptions) most
national markets are too small to be viable even if they were freed. Hence adjust-
ment has not had the impact that it was expected to based on more successful
experience elsewhere, for instance in Latin America and Asia.
Percy S. Mistry 139
4. Studies on the benefits of integration in Africa (AfDB, 1993), for example, indicate
that savings on infrastructure investment costs if infrastructure was built on a
regional rather than national basis would run into several tens of billions of US
dollars annually. These savings would dwarf present ODA flows to Africa.
5. The Association of Southeast Asian Nations (ASEAN) was an important exception.
It began life in the 1970s as a mutual peace and security organization and veered
towards becoming a broader economic community much later in the 1990s.
6. Broadly, the main public (i.e. governmental or intergovernmental) regional or
region-focused institutions fall into the following types: (i) regional secretariats,
commissions and bodies established on a plurilateral basis under a specific treaty
formalizing regional arrangements of various kinds; (ii) regional and sub-regional
development banks that are independent of specific RIA treaties and established
under their own unique charters often with the participation of extra-regional
(capital providing) member countries; and (iii) regional economic commissions
linked with the UN system. In addition, member governments of RIAs invariably
set up within their own administrative structures a ministry or sub-ministry
(department or agency) to deal specifically with regional representation and
regional affairs. To make things more complicated, each ministry has regional
working groups to coordinate policy in their area of responsibility. Mirroring
these public institutions is an array of private institutions and NGOs that also
adapt to incorporate regional dimensions and region-wide operating capacity for
collaboration, as well as for lobbying and influencing political opinion and action
on regional issues and initiatives.
8
Regional Security Complex Theory in
the Post-Cold War World*
Barry Buzan
Logic
Security complex theory was first sketched out by Buzan in People, States and
Fear (1983, 105–15; updated 1991, ch. 5). It was applied to South Asia and
the Middle East (Buzan, 1983), then elaborated, and applied in depth to the
case of South Asia (Buzan and Rizvi et al., 1986), and later to Southeast Asia
(Buzan, 1988). Väyrynen (1988) and Wriggins (1992) have applied versions
of it to several regional cases, and Wæver (1989), Buzan et al. (1990), Buzan
* This chapter is an updated version of Buzan (2000). There has not been space in the
update of this chapter (first written in 1996) to incorporate all of the new develop-
ments of regional security complex theory. Anyone wanting the full operational
version should consult Buzan and Wæver (2003). This update was written before the
US-led invasions of Afghanistan and Iraq.
140
Barry Buzan 141
and Wæver (1992), and Wæver et al. (1993) have used it to study the post-
Cold War transformation in Europe. An extensive update and application of
the theory has been made by Buzan and Wæver in Regions and Powers
(2003).
Like most other regional theory, security complexes address the level of
analysis located between individual units and the international system as a
whole. The theory posits the existence of regional sub-systems as objects of
security analysis, and offers an analytical framework for dealing with them.
Also like most other work in this area, it has been focused primarily on the
state as unit, and on the political and military sectors as the principal forum
for security relations. This framework is designed to highlight the relative
autonomy of regional security relations, and to set them in the context of
the unit (state) and system levels. One of its purposes is to provide area
specialists with the language and concepts to facilitate comparative studies
across regions, which is a notable weakness in the existing literature.
Another is to offset the tendency of power theorists to underplay the
importance of the regional level in international security affairs. This
tendency was exacerbated by the rise of neorealism in the late 1970s (Waltz,
1979), which focused almost exclusively on the power structure at the
system level. It seems reasonable to expect this bias to decline naturally with
the demise of strong bipolarity at the system level, and the advent of a more
diffuse international power structure.
The essential logic of the theory is rooted in the fact that all the states in
the system are enmeshed in a global web of security interdependence. But
because most political and military threats travel more easily over short
distances than over long ones, insecurity is often associated with proximity.
Most states fear their neighbours more than distant powers, and conse-
quently security interdependence over the international system as a whole
is far from uniform. The normal pattern of security interdependence in a
geographically diverse anarchic international system is one of regionally
based clusters, which we label regional security complexes (RSCs). Security
interdependence is markedly more intense between the states inside such
RSCs than with states outside it. RSCs are about the relative intensity of
inter-state security relations that lead to distinctive regional patterns shaped
by both the distribution of power and historical relations of amity and
enmity. The traditional definition of a security complex was a set of states
whose major security perceptions and concerns are so interlinked that their
national security problems cannot reasonably be analyzed or resolved apart from
one another.
This definition was updated to take account both of the formal switch to
constructivist method, and to move away from state-centric assumption.
The standard definition is now: a set of units whose major processes of secur-
itization, desecuritization, or both, are so interlinked that their security problems
cannot reasonably be analyzed or resolved apart from one another (Buzan et al.,
142 Regional Security Complex Theory
1998: 201). This approach sees security as socially constructed rather than
objective. What is crucial is whether securitizing actors can successfully gain
support for defining something as an existential threat requiring emergency
responses. Objective conditions may facilitate or hinder this process, but
they do not necessarily determine it. This constructivist approach to security
is set out in detail in Buzan et al. (1998, ch. 2). We argue there that such an
approach is necessary if one is to keep the concept of security coherent
while extending it beyond the traditional military and political sectors.
States may still be the main units in many regions, but they are not neces-
sarily so, and other units may be prominent or even dominant (cf. Hettne,
Chapter 2; Bøås, Marchand and Shaw, Chapter 11). The formative dynamics
and structure of an RSC are generated by the states within it: by their security
perceptions of, and interactions with, each other. Individual RSCs are durable
but not permanent features of the international system. The theory posits
that in a geographically diverse anarchic international system, RSCs will be
a normal and expected feature: if they are not there, one wants to know
why.
Because they are formed by local groupings of actors, RSCs not only play a
central role in relations among their members, they also crucially condition
how and whether stronger outside powers penetrate into the region. The
internal dynamics of a security complex can be located along a spectrum
according to whether the defining security interdependence is driven by
amity or enmity. This aspect of the theory is quite similar to Wendt’s more
recent constructivist formulation of international social structures in terms
of enemies, rivals and friends (Wendt, 1999; Buzan and Wæver, 2003:
ch. 3). At the negative end comes a conflict formation (Väyrynen, 1984),
where interdependence arises from fear, rivalry and mutual perceptions of
threat. In the middle lie security regimes (Jervis, 1982), where states still
treat each other as potential threats, but where they have made reassurance
arrangements to reduce the security dilemma amongst them. At the positive
end lies a pluralistic security community (Deutsch et al., 1957; cf. Hettne,
Chapter 2), where states no longer expect, or prepare, to use force in their
relations with each other. Regional integration (in Deutsch’s language, an
amalgamated security community) will eliminate a security complex with
which it is co-extensive by transforming it from an anarchic sub-system of
states to a single larger actor within the system. Sub-regional integration
among some members of a complex (such as the nineteenth-century unifi-
cation of Germany) can transform the power structure of that RSC.
The theory assumes that RSCs are, like the balance of power, an intrinsic
product of anarchic international systems. Other things being equal, one
should therefore expect to find them everywhere in the system. There are
two conditions that explain why an RSC may not be present. The first is
that in some areas local units are so low in capabilities that their power does
not project much, if at all, beyond their own boundaries. These units have
Barry Buzan 143
latitude for their own dynamics than during the Cold War. With the super-
power rivalry gone, there is a more regionalized international security order.
In the absence of overriding powers and system-spanning ideological rivalries,
a more decentralized pattern of international security is allowed to operate.
Two factors explain the relative prominence of the regional level of security:
the diffusion of power, and the relative introversion of the great powers.
The sources of power have become much more widely diffused throughout
the system. The Europeans/West achieved their extraordinary global control
because they possessed at least three assets not possessed by the other actors
in the system: the political form of the national state, the knowledge and
productive power of the scientific and industrial revolutions, and the firepower
of modern weapons. All of these assets, as well as the mobilizing power of
nationalism and ideology, have been thoroughly, if still very unevenly,
spread throughout the international system by decolonization and industri-
alization. The result is a huge closure in the gap of power differentials that
reached its widest point during the middle of the nineteenth century.
On top of this, and perhaps partly as a result of it, the major centres of
power in the international system are all notably introverted. After the Cold
War, none of them is willing to take on a strong leadership role in inter-
national society, and all of them are preoccupied with their own domestic
affairs. The United States still plays some leadership role, but lacks a mobilizing
crusade, and if not exactly returning to its isolationist traditions, is taking a
much more self-interested, unilateralist and restricted view of its interests
and obligations. The extraordinary sensitivity of the country to military
casualties is one hallmark of its disengagement, as is its antagonism to the
United Nations and overseas aid, and its recent spate of rejections and
renunciations of international agreements. The ‘war on terrorism’ following
the atrocities of September 11 represents a very specific US engagement and
not a general reassertion of leadership (cf. Hettne, Chapter 2; Falk, Chapter 4).
The European Union (EU) has been cast prematurely into a great power
role and has not yet even developed adequate machinery for a common
defence and foreign policy. Although one of the economic giants, it is too
beset by problems of its own development, and pressing issues in its imme-
diate region, to be able to play a leadership role globally. Japan is in some
ways similar: an economic giant, but as yet almost lacking the internal capability
for a robust international role commensurate with its power. Like the EU, it
fails to meet Bull’s criteria that a great power be: ‘recognised by others to
have, and conceived by their own leaders and peoples to have, certain
special rights and duties . . . in determining issues that affect the peace and
security of the international system as a whole’ (Bull, 1977: 202; also cf.
Gamble and Payne, Chapter 3).
Against this scenario of a regionalizing world, it could be argued that
military–political issues in general have declined sharply as the main
component of security, an issue we will explore in section 2. If true, it would
146 Regional Security Complex Theory
bring into question the relevance of security complex theory to the post-
Cold War world. One approach to this problem is to ask whether regional
logic also works in the newer security sectors. This is the burden of section
3. Another is to point out that although the military–political agenda has
certainly lost much of its relevance amongst the great powers, it is alive and
well in many other parts of the international system. Remember that RSCs
can be constructed by relations of both amity and enmity. Security interde-
pendence can be both positive and negative, and on this basis the military–
political agenda remains widely relevant. A quick survey of the present
international system suggests that the traditional politico-military model of
a security complex retains much relevance. This is most obvious in the
Middle East, South Asia, Central Asia, East Asia, large parts of Africa, and the
former Soviet Union (FSU). It is less obvious for EU-Europe (though still
relevant in the Balkans sub-complex), and North and South America. Some
regions, most notably Europe, Southern Africa and Southeast Asia, benefited
from the withdrawal of Cold War rivalries. In other places, the unleashing
of regional relations has exposed zones of conflict, as in the Balkans, the
Caucasus, and parts of Central Asia. Elsewhere, as in South Asia and the
Gulf, zones of conflict that were apparent during the Cold War have continued
essentially unchanged by the ending of the Cold War. These reflect strong
indigenous conflict dynamics, and although the ending of the Cold War has
affected patterns of alliance and arms supply, it has not basically changed
the character or intensity of these conflict formations.
One of the big regional questions is about the fate of East Asia (Buzan and
Segal, 1994). For the first time in modern history this region is largely free
from domination by foreign powers. It is composed of several powerful
states in varying degrees of industrialization. Levels of power are rising
dramatically, the distribution of power is subject to significant change, and
nationalism is strong. The region has few and mostly weak international
institutions, though the Association of Southeast Asian Nations (ASEAN)
has constructed a successful security regime in the Southeast Asian sub-
region, and through the ASEAN Regional Forum (ARF) extended this into
Northeast Asia. It also has a host of historical enmities, border disputes and
cultural divides, some very serious (China–Taiwan, the two Koreas, the
South China Sea). Rising levels of arms expenditure were moderated by the
post-1997 economic crisis, but several countries have the means to become
nuclear weapons states quickly if need be. To a Western eye, East Asia bears
some disturbing resemblances to nineteenth-century Europe, with China in
the role of Germany as the large, centrally positioned, rising, and poten-
tially hegemonic power, and Japan in the role of Britain, as the offshore
advanced industrial country trying to sustain a policy of splendid isolation
and global focus. If such structural similarities count, then one would
predict the emergence of a balance of power based RSC, albeit one mediated
by nuclear deterrence, and susceptible to whether the United States decides
Barry Buzan 147
both the regional structures of security and the interplay of these with the
global level. International terrorism of the type, and on the scale, unleashed
since September 11 does unquestionably strengthen the non-territorial
aspect of security. But it is not separable from the main territorial dynamics,
and it is nowhere close to replacing them as the prime structuring principle
of international security. Its biggest impact may well be to change not only
the security dynamics within the Middle Eastern and South Asian RSCs, but
also the relationship of both of these to the United States, and the relation-
ship of the United States to the other great powers. That would be no mean
accomplishment, but it would amount to changes within the underlying
territorial structure of international security, not a transformation of it.
Elements of the new security agenda emerged well before the Cold War
ended. The decline of military–political security issues at the centre of the
system was visible in the growing awareness that war was disappearing, or in
some cases had disappeared, as an option in relations amongst a substantial
group of states. The core group of this emergent security community was
Western Europe, Japan and North America. The effectiveness of nuclear
deterrence between East and West made it possible to think that the Soviet
Union could also, in an odd way, be included in this sphere, an outlook that
became much stronger once Gorbachev assumed power and embarked on
an explicit demilitarization of the Cold War. After the Vietnam War, there
was also an increasing tendency in the West to question whether war was a
cost-effective method for achieving a wide range of political and economic
objectives. If war was fading away as a possibility amongst many of the leading
powers in the system, then realist assumptions about the primacy of military
security became questionable.
Adding to this question was the increasing securitization of two issues
that had traditionally been thought of as low politics: the international
economy and the environment. Issues become securitized when leaders
(whether political, societal, or intellectual) begin to talk about them – and
to gain the ear of the public and the state – in terms of existential threats
against some valued referent object. The securitizing formula is that such
threats require exceptional measures and/or emergency action to deal with
them. Securitization classically legitimates the use of force, but more
broadly it raises the issue above normal politics and into the realm of ‘panic
politics’ where departures from the rules of normal politics justify secrecy,
additional executive powers, and activities that would otherwise be illegal
(Wæver, 1995; Buzan et al., 1998: ch. 2). It is not possible in this chapter to
unfold these two issue areas in any detail, but the general development was
as follows.
Barry Buzan 149
climate system; and the various regimes that attempt to control the prolifer-
ation of weapons of mass destruction (the non-proliferation treaty [NPT],
the chemical weapons convention [CWC], and the missile technology
control regime [MTCR]). Alongside the state, nations and religions have
emerged as distinct referent objects (Wæver et al., 1993). Below it, the rising
focus on human rights supports claims to give individuals more standing as
the ultimate referent object for security (Shaw, 1993; McSweeney, 1996). At
the same time, the sources of threat are also diversifying away from the
state. Many of the new threats seem to stem from complex systems both
natural and human-made, and the operation of these systems is often
poorly understood.
What the security priorities are will also depend on how a number of
intrinsically unpredictable things work out. For example, some scientists
argue, on the basis of drill cores from the Greenland ice cap, that serious
climate change in the past sometimes occurred with great swiftness, major
changes in temperature (and therefore in glaciation and sea level) occurring
within a few years. If they are correct, then current observations such as the
breakup of some Antarctic ice sheets could put environmental security at
the top of the global agenda very soon. If they are wrong, environmental
issues could remain on the margin, consisting of particular countries or
regions with particular problems: sea flooding in a few very low-lying countries;
water sharing in the Middle East; nuclear accidents in Europe, and suchlike.
The same could be said about the international economy: if it spins into a
major crisis then it will be a central security issue, but if ways are found to
overcome or contain crises, and keep the system tolerably stable, then most
economic issues will remain off, or marginal to, the security agenda. Many
of the new security issues could become major, but they could just as well
remain marginal, or of high concern only to a few actors.
Unless events take a turn which pushes some issue to the centre of global
security concerns, there is a good case for thinking that the new security
agenda will be considerably less monolithic and global, and considerably
more diverse, regional and local, in character than the Cold War one,
despite the global quality of many of the new threats and referent objects.
Although there will be some shared issues, in the post-Cold War world the
security agenda will vary markedly from actor to actor in terms of both the
issues and the priorities.
For security analysts, one major problem raised by this diversification of the
security agenda is whether the logic of security analysis must become simi-
larly diversified. Traditionalists such as Walt (1991) and Chipman (1992)
complain that such fragmentation leads to intellectual incoherence. Must
each sector have its own security logic – economic, environmental, societal,
political, military – or do they overlap and combine in some way? This larger
problem has been addressed elsewhere (Buzan et al., 1998: chs 1, 8, 9). For this
chapter we need to investigate only in terms of the logic of regions.
152 Regional Security Complex Theory
Economic
On the face of it, one would not expect to find a strong regional security
logic in the economic sector. In most parts of the modern world, the costs of
moving goods and money around the planet are so low as to have substan-
tially eroded distance as a factor in economic relations. In some places local
clusters of resources, industry and markets still make sense, but with
conspicuous exceptions such as Canada and Mexico, most states have
economic relations with distant parts of the world that are equal to or more
significant than those they have with their neighbours. The main contem-
porary feature of the international economy is the globalization of markets,
and not only for commodities, but also for finance and labour. Under these
conditions, it is less and less true that threats travel more easily over short
distances than over long ones. Coffee producers in Africa look to rival
producers in Latin America, and to commodity markets in London and
elsewhere, to find threats. Security concerns focus on one’s competitiveness
within the global marketplace, and on the overall (in)stability of the global
financial and trading systems. A major shrinkage in global credit, or a break-
down of the rules on trade, would create a severe system-wide crisis in the
world economy. There are also more day-to-day security concerns about the
dark side of the liberal world economy such as the trade in drugs, arms,
banned chemicals, and nuclear technology and materials, and the flourishing
of criminal mafias that engage in these trades, and most of these concerns
also reflect global patterns. There is little in the nature of any of these
dynamics to suggest that the territorializing logic of regions should be a
conspicuous feature of economic security.
The increasingly global focus of economic security means that its system
level structures (the market, the trading system, the financial system), and
the institutions associated with them, are rising in status as referent objects
(those entities in whose name security can be evoked). This contrasts with
the discourse in the political sector, where, although various regimes and
institutions can become referent objects, the anarchic structure as such is
almost never invoked in this way (even though the obsession with national
security implies support for anarchic structure). When economic systems,
whether abstract markets or concrete intergovernmental organizations
(IGOs), are constructed as referent objects of security, the question of what
constitutes an existential threat can only be answered in terms of the principles
Barry Buzan 153
One can conclude about the economic sector that it does contain some
regionalizing logic, mostly in reaction to the hazards of the dominant
globalizing dynamics. But political and cultural factors also play a strong
role in what at first sight appear to be economic regions. In security logic,
there is often a strong cross-linkage between the economic and other sectors
(Buzan, et al., 1998: ch. 5).
Environmental
As in the economic sector, the logic of environmental issues does not point
strongly towards regionalization, but here that logic is more plainly
reflected in the empirical world. Regional logic builds on the greater intensity
of interaction among neighbouring units, and environmental issues do not
always, or even often, work that way. The environmental agenda presents
an extremely diverse set of causes and effects. Some of them are to do with
nature impacting on human civilization, others with the impact of civiliza-
tion on nature, and the possible return loops from that on the sustainability
of civilization. Some things with global causes (CFCs in the atmosphere)
have local effects (ozone holes at the poles). Some global causes have global
effects (warming, and sea level rises). Some local causes have local effects
(many forms of pollution). And some local causes have much wider effects
(nuclear accidents).
Most of the mainstream issues on the environmental agenda do not
work according to the geographical logic of regions. Global warming, for
example, is in one sense a global phenomenon, but its impacts are very
unevenly distributed. That unevenness does not take regional form. All
low-lying states would be adversely affected by global warming and its
associated rises in sea level, but these do not form a regional group
(Bangladesh, Netherlands, Maldives, Egypt). Some states might benefit
from some global warming, for examples those with extensive territory
now under permafrost (Canada, Russia), but here again there is no
regional logic.
Regionalizing logic only comes into play in the environmental sector if
either (i) a geographically coherent group of actors behave in such a way as
to create a common problem in their own environment, or (ii) an environ-
mental impact with causes elsewhere happens to encompass a region. The
first condition arises most easily in relation to water: seas, lakes, river
systems, aquifers. It may be to do with water shortages and problems of
distribution (Israel–Palestine; Nepal–India–Bangladesh; the Euphrates
valley; the Aral Sea), or with pollution (the Mediterranean Sea, the North
Sea, the Gulf region), or possibly with fisheries management. It could also
arise over some types of air pollution (problems of sulphur dioxide in
Europe). Regional impacts with external causes, such as the ozone holes, are
hard to foresee, and would require detailed knowledge of how complex
physical systems operate.
156 Regional Security Complex Theory
Societal
In the societal sector, the logic of security relations bears some similarity to
that in the military–political one, and so regionalization should be expected
(Buzan etal., 1998: ch. 6). Like military and political threats, threats to identity
(migration, competing identities) mostly travel more easily over short
distances than over long ones. The question is whether they produce the
same regions or different ones from those in other sectors. Some types of
global threats, most notably that of cultural Westernization, come in global
form but have distinctively regional impacts. Thus the Middle Eastern
Islamic world, and the East Asian world, both generate responses of threat-
ened identity in response to the pressures of Westernization (and especially
Americanization). An offshoot of this is the unease with which Europe and
Islam face each other across the Mediterranean, and the moves in the
former to restrict immigration from the latter.
In the more conventional sense, the dynamics of societal security can
generate regional formations out of interactions amongst neighbouring
units. The ethnic conflicts that have torn apart former Yugoslavia are an
obvious example, and one can find many similarly territorialized ‘tribal’
conflict formations in Africa (Sierra Leone/Liberia; Rwanda/Burundi/DRC/
Uganda; Angola), the Caucasus (Armenian/Azeri) and South Asia (Tamils/
Sinhalese; Hindu/Muslim; Sikhs; etc.). Although having a similar structure
to traditional security complexes, those rooted in the societal sector may
well be rather smaller in scale, often occurring within the boundary of a
state, or across the boundaries of a small number of states. In Europe and
Asia, the main patterns of identity issues often line up fairly closely with the
state structures. Although some minority issues do exist (Tibet, Basques,
Hungarians), societal security in these regions corresponds quite closely to
the military–political pattern.
Thus in contrast to the economic and environmental sectors, the global
logic in this sector is quite weak. There is a strong regionalizing logic, but
where this does not line up with the pattern of inter-state security relations,
it is often on quite a small scale.
Barry Buzan 157
Taking into account the wider agenda of security, and the particular charac-
teristics of security dynamics in the new sectors, what does the logic of
regional security in the post-Cold War world look like? How, in other words,
does one tackle the question of regions when there are potentially different
region-forming dynamics at work in the different sectors? There are two
ways of approaching this question. One assumes that the different sectors
are operationally distinct, the other that they are aggregated.
If we assume that the sectors are distinct, then a complicated world of
different but overlapping RSCs emerges. Alongside the traditional, state-based,
military–political RSCs one would have to place other regional formations
deriving from economic, societal and environmental logics. In some cases,
these would be based on different units (nations, IGOs, firms) though often
the state would also be a key player. While interactions amongst states
continue to define military–political complexes, in the societal sector the
units will be nations and other identity groups not necessarily represented
by a state. In the environmental sector regions may not be unit-based at all,
but come from the operation of complex physical systems. These different
logics do not necessarily, or even probably, line up. In East Asia, for
example, one finds a conflict formation or a weak security regime in the
military–political sector, but only a faint regional dynamic in the economic
sector, and a semi-regional concern about Chinese minorities in the societal
one. In Africa and North America, societal dynamics are mostly substate in
scale, operating within and between the state structures. Many environmental
dynamics operate on a completely different logic from the other sectors,
and thus generate patterns with little connection to those in the other
sectors. In exceptional cases some or all of these patterns might somehow
line up to give a kind of layer-cake coherence, but there is no reason to
expect this to happen in any systematic way. Taking sectors as always
distinct would, in effect, mean carving Security Studies up into several
separate disciplines.
This fragmentation would only be a problem if regional dynamics in the
different sectors were in fact strongly separate and distinct. There may
indeed sometimes be good analytical reason to focus on the specific regional
dynamics within a particular sector. Occasionally, one might even find a rel-
atively pure single-sector RSC. But as a rule, this is not the case, and taking
this approach would amount to imposing the excessive neatness of an
analytical scheme onto the densely interwoven realities of international
relations. There are at least three good reasons for thinking that an amalgam-
ated approach will be the most appropriate for regional security analysis
in a multi-sectoral security environment. First is the natural overspill
between sectors, second is the way that policy-makers tend to integrate
issues into a single security picture, and third, in some places, is the existence
158 Regional Security Complex Theory
of regional institutions that will try to make issues fit within their own
geopolitical framework. Taken together, these three factors work powerfully
to amalgamate the dynamics of different sectors.
The first amalgamating force is the natural overspill between sectors. The
idea of sectors is essentially analytical: views of the same whole through
different lenses (Buzan et al., 1993: 30–3). It is a way of picking apart compli-
cated wholes in order to understand them more easily. But although the
four social sectors do have distinctive logics (the same ones that define the
corresponding academic disciplines), they cannot be separated operationally.
Politico-military, economic and societal dynamics all operate in close rela-
tionship with each other. Trade and finance require political order. State
structures both depend on identity for stability, and easily pose challenges
to existing identities. Culture and politics both affect, and are affected by,
economic activity. This linkage is particularly clear in the economic sector,
where what on the surface appears to be economic regionalism is in fact
substantially driven by political and cultural motives: what seems to be
economic security is in fact about political stability, military power, or
cultural conservation. The same logic of linkage and overspill also applies to
the environmental sector, even though its dynamics are rooted in the physical
world. Many environmental issues link strongly to both economics (costs of
pollution control) and society (landscape and identity). If it is useful to
unpack the sectors in order to get a clearer view of their dynamics, it is still
necessary to put them back together again to get the whole picture. Only
rarely will one find a single sector security dynamic that does not overspill
significantly into other sectors – or is overspilled into by them.
Nor is there any reason to think that the dynamics of mutual threat
perception will always, or even normally, take place within the confines of a
single sector. It is true that traditional regional security complex theory
generally assumed such sectoral coherence: that military threats would be
countered by military threats. But in a more diverse security environment
cross-sectoral patterns are both possible and likely. The Baltic states, for
example, might feel threatened by Russian military power, while Russia feels
threatened more societally by various forms of discrimination against
Russians living in the Baltic states. Syria and Iraq may feel threatened envir-
onmentally by Turkey because of its control over the headwaters of the
Tigris and Euphrates rivers, whereas Turkey feels threatened politically by
Syrian and Iraqi provision of safe havens for its dissident Kurds. Parts of the
Islamic world feel culturally threatened by the West, but the West is more
concerned about terrorism. Parts of the Third World feel economically
threatened by the West, but the West is more concerned about migration
and environmental threats coming the other way. Much of the reality is
thus one of threat dynamics crossing over sectoral boundaries.
The second amalgamating force is the way that policy-makers tend to
integrate issues into a single security picture. Partly for institutional reasons,
Barry Buzan 159
* This chapter builds on Neumann (1994) and two other applications of the perspec-
tive (Neumann, 2001a; 2001b). I thank Halvard Leira for research assistance.
160
Iver B. Neumann 161
Regions, then, are defined in terms of speech acts, and of other acts
(Shapiro, 1981). But instead of postulating a given set of interests that actors
are supposed to harbour before their social interaction with other collectives,
the region-building approach investigates interests where they are formulated,
namely in discourse. Where every region-builder’s goal is to make the
region-building programme as natural as possible, the approach aims to
expose its historically contingent character. Where a region has been part of
a discourse for so long that it is taken as a given fact, the approach can show
that structures which may at first sight seem to be inevitably given, will
only remain so as long as they are perceived as inevitably given.
Lastly, a region-building approach is not offered as an attempt to place
the study of regions on an entirely new footing. It does not aim to crowd
out what are arguably the two dominant approaches in the existing litera-
ture: an inside-out approach focusing on cultural integration and an out-
side-in approach focusing on geopolitics. Rather, it is offered as a
perspective from which to dot the margin of the ongoing debate by asking
questions about how and why the existence of a given region was postu-
lated in the first place, who perpetuates its existence with what intentions,
and how students of regions, by including and excluding certain areas and
peoples from a given region, are putting their knowledge at the service of its
perpetuation or transformation. Bearing this in mind, I now turn to a dis-
cussion of what the two dominant approaches in the IR literature have
made of Northern Europe, in order to use the region-building approach to
criticize and supplement their findings.
Russett’s work is but one example of how integration theory places itself
squarely towards the inside-out end of the continuum. In the 1950s,
Deutsch et al. (1957) proposed a threshold score for internal cultural and
transactional variables, beyond which the region in question turns into
what he calls a security community. For Deutsch, Nordic cooperation is an
example, in fact the example, of a pluralistic security community – that is,
one where the institutional strategies of state formation or supranational
cooperation have not been at work. According to Deutsch, then, the common
cultural traits of the Nordic region have in themselves been strong enough
for the region to transcend international anarchy (see also Etzioni, 1965,
particularly pp. 220–1).
Similarly, in his standard work on Nordic integration in the post-war
period, Sundelius (1982) identifies the societal level as the source of regional
dynamics. However, instead of explaining institutionalization in terms of
spill-over, which is a mechanism that is not necessarily dependent on cul-
tural similarity, he highlights the culturally determined similarity of the
way in which regional elites perceive the extra-regional environment.
Sundelius’s analysis is still mainly inside-out. Its focus is not internal fac-
tors seen in isolation, however, but rather internal elite perceptions of the
region’s external environment. This line of attack can, arguably, also be
found in the literature on the ‘Nordic balance’. At first glance, the idea
seems to give priority to outside factors. Arne Olav Brundtland and the
other authors behind it wanted to describe, as it were, the sum total of Nordic
security policy orientations, to name the alleged Nordic strategies for maxi-
mizing leeway vis-à-vis their respective allies and partners, and to explain
why the great powers did not increase their presence, and thereby allowed
the Nordic region to keep its characteristic low level of tension compared to
the rest of Europe. The classical formulation of the idea defines it as
the notion that the stability of the Northern European area is a result of
reduced great power involvement, and that comparable possibilities exist
for both the United States and the Soviet Union to neutralize possible
increased involvement by the other superpower, thus removing incen-
tives for initiatives leading to increasing tensions in Northern Europe.
(Brundtland, 1966: 30)
For Nordic peace researchers, to criticize the idea of a Nordic balance has
been something of a professional rite de passage. Their endeavours have
resulted in a reading of this literature that places it closer to the inside-out
end of the continuum than to the outside-in end. For example, Wiberg and
Wæver interpret it as
Ottley views the affairs of Denmark, Norway and Sweden as being clearly
interrelated, a fact which is due to geographical proximity and the possible
thrusts of penetration from Russia and Germany (and, one might add, from
Great Britain itself). To geopolitical pioneers such as Rudolf Kjellén, the
working of this great power triangle was indeed the drama of Scandinavian
politics (Kjellén, 1905).
The literature reviewed so far, although rich in insights and diverse in
assumptions, can nevertheless be criticized for sharing a major oversight.
Although it focuses on regions as entities whose contents and borders are in
a process of change – the major disagreement is indeed over how change
occurs – the existence of a region is taken as a given. The nature and causes
of the genesis of regions is treated as a priori. The best way to show up this
blank spot may be to examine what is arguably the most useful of the
approaches mentioned above, namely Barry Buzan’s combination of inside-out
and outside-in factors in the theory of security complexes.4
The security complex is represented as ‘an empirical phenomenon with
historical and geopolitical roots’, and represents a ‘durable rather than per-
manent’ pattern (Buzan, 1991: 191). Buzan acknowledges that the empirical
side of his argument ‘courts the charge of reification’, but nevertheless goes
on to state that ‘[t]he reality of security complexes lies more in the individual
lines of amity, enmity and indifference between states, than in the notion
of a self-aware subsystem’. In other words, the construct does not assert its
authority as an ‘imagined community’, a cognitive construct shared by
persons in the region themselves. Rather, it is the construct of one man –
the allegedly sovereign author. ‘The individual lines of security concern can
166 A Region-Building Approach
be traced quite easily by observing how states’ fears shape their foreign
policy and military behaviour’, Buzan (1991: 191) maintains.
The blank spot here is whose region Buzan is talking about. The most
remarkable feature of his definition of a security complex as ‘a group of
states whose primary security concerns link together sufficiently closely that
their national securities cannot realistically be considered apart from one
another’, is the absence of a subject (Buzan, 1991: 190). Cannot realistically
be considered by whom? To Buzan, the delineation of regions, understood
as security complexes, is a technical question which ‘may be a matter of
controversy’. The politics of defining and redefining the region is therefore
marginalized. The idea of security complexes, like all the other ideas about
regions discussed above, makes assumptions about what a region is. This is
an inherently political act, and it must therefore be reflectively acknow-
ledged and undertaken as such. Buzan, Wæver and de Wilde’s reworking of
the definition to read ‘a set of units whose major processes of securitization,
desecuritization, or both, are so interlinked that their security problems can-
not reasonably be analyzed or resolved apart from one another’ (see Buzan,
Wæver and de Wilde, 1998: 201; Buzan, Chapter 8) is a step in the direction
of answering this critique, because it acknowledges that a wider set of agencies
is relevant to the general question. However, the new definition does not
answer the critique as such.
This section will attempt to illustrate how one may put the two sets of
assumptions towards the ends of the inside-out outside-in continuum to
work, and construct two widely differing narratives of the Northern Euro-
pean region.
A generalized narrative of the Northern European region predicated on
inside-out style assumptions would begin by elaborating the communal
nature of the region’s culture and history. From 1389 to 1523, the region
was actually politically united in the Union of Kalmar, and for three centur-
ies after that, Denmark and Norway remained one political entity. Through-
out this period, the entire region was characterized by close cultural and
economic contacts. Indeed, the idea of political reunion was mooted at a
number of occasions, and received support from a wide array of societal
groups from the late eighteenth century onwards.
The Scandinavianist movement was particularly active in the first half of
the nineteenth century, and laid the foundation for the intensification of
cooperation towards the end of the century. For example, 1873 saw the
forging of a Scandinavian currency union, which had gradually grown into
a monetary union by 1901. In 1905, the Union of Sweden and Norway
broke up in a peaceful and orderly fashion, an occurrence that is still almost
unique in European and indeed world history. Furthermore, the League of
Iver B. Neumann 167
Whose region?
region (Børresen, 1991; cf. Deletant and Hanak, 1988). There existed an
intellectual elite with a Scandinavianist programme which was in a number
of cases not only region-building, but also state- and nation-building. However,
the project suffered a severe setback when in 1864 Sweden–Norway did not
make good on vague promises of support for Denmark in the war against
Prussia and Austria.
At this time, moreover, the Norwegian nation-building project was gath-
ering momentum. In 1905, the success of this project resulted in the
breakup of the personal union with Sweden. Scandinavianism succumbed
to the interests of the already existing states, and to the Danish, Norwegian
and Swedish nation-building projects. It survived, however, as a region-
building project with a number of traits reminiscent of a nation-building
one.
The fate of Scandinavianism presents a good illustration of the region-
building point that cultural similarities are not politically relevant in and of
themselves, but must be politically processed to become so. The political
elites of Christiania, Copenhagen and Stockholm were much closer to one
another culturally than were town and countryside within any one state.
Inside-out approaches to regions would lean towards seeing this as an indi-
cation that the Scandinavian project would emerge victorious from its
struggle with the national projects. What happened was the exact opposite.
What was politically communicated as culturally relevant (such as Finnish
lakes, Norwegian mountains, Danish phlegmatism) proved more important
for political organization than cultural similarities per se.
The participation of the Swedish–Norwegian state in the region-building
project during the run-up to the Dano-Prussian War was no isolated phe-
nomenon. Already in 1794, the Swedish ambassador to Paris summed up his
view of the Scandinavian states (Sweden and Denmark–Norway at that
time) by stating that ‘in short, everything which draws them together, is
natural. Everything which pulls them apart, is unjust and unnatural’ (Erik
Magnus Stäel von Holstein, cited in Børresen, 1991: 14). The question
posed by the region-building approach would be: whence this interest in
Scandinavia? Sweden had been historically dominant in the region ever
since the end of the Thirty Years’ War. It tended, and still tends, to see Fin-
land, Norway and to some extent Denmark, not only as a buffers against the
Atlantic Powers, Russia/USSR and Germany, but as an extension of the self.
In its post-great power existence, Sweden was able to hold onto Finland
until 1809 and to dominate the personal union with Norway lasting from
1814 to 1905. When Sweden made a virtue of necessity and declared itself
non-aligned after the Napoleonic wars, one of the benefits, especially in the
post-Second World War system, was the opportunity to launch itself as a
moral great power and an actor with a clear profile. The state’s profile was
accentuated by the existence of what was seen as a uniquely Swedish welfare
state, whose example could inspire other countries to manoeuvre between
Iver B. Neumann 171
the region. The situation invited the actors to overhaul and renew their
armoury, and test out new strategies.
The Cold War should not, however, be seen as a truce in the fight between
different definitions of the region. To reiterate some of the examples given
above, the Soviet Union launched an unceasing campaign to define it in
such a way that its own inclusion was secured. Denmark, Finland, Norway
and Sweden tried to entrench it as an area of ‘low tension’ compared to the
rest of the European region. The existence of the rivalling region-building
projects of the European Free Trade Association (EFTA) and the EC fed into
the struggle to define the Nordic region. When EFTA lost out in its struggle
against the Community and Denmark went and joined it in 1972, the
resulting overlap between the EC and the Nordic region had, among other
things, the effect of strengthening Denmark’s hand in the struggle for Norden.
The lively struggle during the Cold War notwithstanding, its discontinu-
ation raised the heat of battle by several degrees. The EC’s presence loomed
larger than ever. The Soviet Union’s demise as a global power caused it
to renew its interest in Europe, including Northern Europe. Before long,
programmes for a ‘renewal’ or ‘transformation’ of the Northern European
region cropped up everywhere.
A number of these programme took the Baltic Sea as their geographical base,
and were presented under labels such as the new Hanse, the Baltic Sea
Region, Mare Balticum, the Euro-Baltic Region and the Scanno-Baltic Polit-
ical Space. A tightly knit epistemic community of ‘Nordic’ foreign policy
intellectuals played a conspicuous role in producing the knowledge that was
used to prop up these several ideas. Their battle-cry was that under present
post-modern conditions, state sovereignty is relativized in favour of a new
European mediaevalism where different political issues are settled on differ-
ent political levels (cf. Gamble and Payne, Chapter 3).
Finally, like all other region-building projects, this one does not only try
to impose its own definition of the region, but also to fend off rivalling
projects. The ‘Baltic discourse’, Joenniemi writes,
The pledge that the Baltic Sea Region has something in store for everybody
is thus qualified by excluding actors which take a ‘narrow’, that is erron-
eous, view of their interest.
A broad social and economic thrust sits well beside the North German
initiatives from Björn Engholm and associates. As early as 1988, they began
Iver B. Neumann 173
The close ties between the peoples [of the Baltic Sea Region] are bound by
the social standards, temperaments and social characteristics which in
the last instance stem from the living conditions of the North: The land-
scape, the climate, the maritime environment and the settlement patterns.
We have a stable temperament, we are not gregarious, rather a bit inac-
cessible, yet reliable. Our sense of social justice is well advanced. The
common background of the Northern European countries covers a broad
spectrum and has deep roots. What we need, is a strategy for the future.
(Wind, 1992: 53)7
their country as the land between the seas; that is, between the Baltic and
the Black Seas.
For an actor to combine two regional projects in order to highlight his
own importance is interesting. Poland spent the interwar period vainly trying
to build a region between Russia and Germany. These failures are still seen
as a drawn-out preface to the national tragedy which took place in 1939.
Echoes of this can be heard in today’s political debate, and lend a particular
urgency to Polish region-building attempts in the Baltic Sea as well as in
Central Europe and vis-à-vis the EU.
Estonia and in a lesser degree Latvia share shades of Poland’s traumatic
memories of failed interwar attempts to forge a region which could somewhat
offset German and Soviet advances ( Järve, 1991). Like Poland, Estonia, Latvia
and Lithuania refuse to put all their region-building eggs in one basket. Although
these three states set up a Baltic Council in the 1930s, their efforts to build
an image of a three-state Baltic region only date back to the second half of
the 1980s. As recently as in 1987, an exile Estonian in a conference on
‘Regional Identity under Soviet Rule: The Case of the Baltic States’ remarked that:
It is even less surprising that the Nordic Council and this ‘reference group of
researchers’ have joined forces with the activists behind the region-building
Iver B. Neumann 175
project for a Baltic Sea Region mentioned at the beginning of this section,
and with region-builders in the North German Länder. The upshot was that
the Nordic Council arranged a series of parliamentarian conferences on
cooperation in the Baltic Sea area, and in March 1992 the foreign ministers
from all the states involved established a maximalist Baltic Council (that is,
with participation of all riparian states as well as Norway), which after five
years had already taken on a certain hue of naturalness.
Finland has been among the driving forces behind the parliamentarian
conferences, and has generally maintained a high region-building profile.
Finland has aimed to add Baltic and Russian areas to the Nordic region, and
in this way forge a Baltic region where Finland would be centrally placed
geographically.
In Sweden, too, region-building activity has centred on Sweden as a ‘natural’
core, with the Nordic region as an inner circle, and a wider Baltic cooper-
ation as an outer circle. In this way, Sweden has found a formula for trans-
forming the strategy for regional domination discussed above, to fit the new
circumstances of the post-Cold War era. Only in Iceland and Norway has
there been little region-building activity along these lines. This is hardly sur-
prising, considering that the two states are not situated at the shores of the
Baltic Sea. In Norway, the preoccupations were for the first period with pre-
serving the Nordic region, and with the widening gap between the decreasing
level of tension in the Baltic Sea on the one hand, and the sustained presence
of naval vessels in the High North on the other.
In September 1991, however, Foreign Minister Thorvald Stoltenberg
owned up to the new developments and admitted that ‘[w]e just have
to come to terms with the fact that the Nordic region (Norden) is not what it
used to be’ (quoted in Dagens Næringsliv, Oslo, 21 September 1991). Norway
then tried to go on the offensive with a two-pronged region-building attack.
First, Foreign Ministry sources started to float informal suggestions for
a ‘Northern region’, stretching from the Kola peninsula to the southern
shore of the Baltic Sea. The Kola peninsula, which is bordering Norway to
the west, harbours the world’s largest naval base, and by tying this area into
a regional constellation, Norway hopes to avoid being left alone with Russia
in the North. This region-building project was subsequently refined, in a
manner which brings to mind the Polish attempts to highlight itself as
the link between the Northern European and a Central European regions.
The ‘Northern region’ was depicted as a conglomerate of an Arctic, a Baltic
and a North Sea region. Incidentally, the ‘Northern region’ thus defined
would have Norway as its pivotal axis (Jervell, 1991).
Norway’s second line of attack was to try and get a grip, however tenuous,
on the Baltic coastline. Since, as the foreign minister remarked in a speech
at the time, ‘one can hardly call Oslo a typical Baltic city’, one had to find
some other way of staking one’s claim to Baltic status.9 This was done by
introducing something which the foreign minister, in the same speech,
176 A Region-Building Approach
Conclusion
the criteria for what is ‘natural’ come from, who formulated them, who
chose to apply them and thereby made them relevant, and who stand to
gain from them.
Proponents of an outside-in analysis may perhaps go along with such a
sentiment, but then go on to criticize the region-building approach for
pouring old wine into new bottles. The case of Northern Europe does indeed
show that it was only as the need to react to the upheaval on the inter-
national and European levels hit the local actors, that the new bout of
region-building really took off. This is indeed so, and since external factors
were thus able thoroughly to impact a region that has often served as a
showcase for inside-out approaches, it is a powerful argument in favour of
outside-in approaches.
Yet the analytical divide between an ‘outside’ that is making the running
and an ‘inside’ that is trying to avoid being run down, should in and of
itself raise suspicions about whose interest such an analysis may serve. The
region-building approach would not necessarily have any principal objec-
tions to the foregrounding of great powers; after all, it is a theory based on
the nexus between power and knowledge. Objections would, rather, be
raised against tendencies to exclude other state and societal actors, and
against the reification of the ‘national interest’ (cf. Bøås, Marchand and
Shaw, Chapter 11).
This critique reveals the normative core of a region-building approach.
Instead of adopting the accepting attitude inherent in many outside-in
approaches, it insists on an unaccepting, irreverent and therefore invari-
ance-breaking attitude.
Notes
1. Buzan (1991: 190). Buzan again follows Cantori and Spiegel (1970) by characteriz-
ing ‘the Nordic area’ as a ‘distinct sub-region’ (Buzan, 1991: 200), and Deutsch
et al. (1957) in labelling it a security community (cf. Buzan, 1991: 218).
2. One notable exception concerns economic theories of regions, where outside
pressures of capital accumulation and innovation are often held to be met not
only or perhaps not even primarily by states, but also by firms. In the literature on
the Nordic region, however, a focus on the size of the home market and the sub-
sequent enhanced ability to compete, so familiar for example in the literature on
the European region, has largely been absent. This fact, as well as the failure of the
Nordic countries to forge a customs union during the Cold War period, may be
taken to support the view that Northern Europe is a sub-region of Europe, as this
very way of denoting it indeed suggests.
3. I thank Mats Berdal for directing me to this source.
4. This critique is a reading of Buzan’s People, States and Fear (2nd edn, 1991: 186–229),
which declares itself the most authoritative statement of the theory; cf. Buzan,
1991: 228, note 9. It also takes into consideration subsequent developments,
especially Buzan, Wæver and de Wilde (1998) and Buzan (Chapter 10).
178 A Region-Building Approach
* This chapter is a revised version of Jessop (2002). It has benefited from comments
provided by Neil Brenner, Martin Jones, Markus Perkmann, Ngai-Ling Sum, and
Fredrik Söderbaum.
179
180 The Political Economy of Scale
phenomenon. The end of the bipolar world system has transformed rather
than ended security questions and they still shape the prospects for regional
cooperation in Europe. Similar problems can be found in Cross-Straits eco-
nomic development between Taiwan and the People’s Republic of China
(PRC); the Tumen River Area Development, which involves parts of Russia,
China Mongolia, Japan, North Korea, and South Korea (Jordan and Khanna,
1995); the Greater Mekong Sub-region; and areas of civil war or interna-
tional conflict in the Horn of Africa and Sub-Saharan Africa or the Balkans.
Security and immigration issues are also sources of friction in the development
of cross-border cooperation on the United States–Mexican border (Scott,
2002).
smaller scales (notably the urban, regional, and national) are still significant
(if often in new ways) as substantive sites of real economic activities. Many
strategies are also being developed to link these and other scales to the
global – including internationalization, triadization, regional bloc formation,
global city network-building, cross-border region formation, international
localization, glocalization, glurbanization, and transnationalization.1 The
emergence of cyberspace as a virtual arena of action that appears to be every-
where and nowhere has further complicated these problems.2 Moreover,
as new scales emerge and/or existing scales gain in institutional thickness,
social forces also attempt to develop new mechanisms to link or coordinate
them. This adds further layers of complexity and can trigger new bouts of
reaction and counterreaction as events or processes occurring on one scale
are used to justify action on other scales. For example, internationalization
often provokes regional responses (Perkmann, 2000); Europeanization
requires coordination of regional policies (Leresche and Saez, 2002); the
development of the North American Free Trade Agreement (NAFTA) has
prompted the formation of the Cascadia region, stretching from Alaska to
Oregon and North California (Blatter, 2001; Sparke, 2002). Thus the resur-
gence of provinces and regions within territorial states and the growth of
CBRs on their fringes are partly responses to political centralization. These
processes can also be linked to political ecological concerns, such as sustain-
ability, and in some cases to the decline of old security concerns and the rise
of new concerns in the 1990s.
This generates increasing complexity as different scales of action come to
be linked in various mixes of vertical, horizontal, diagonal, centripetal, cen-
trifugal and vortical ways. This complexity cannot be captured in terms of
simple contrasts, such as global–national or global–local, or catch-all hybrid
concepts such as ‘glocalization’ or the ‘tranversal’. Instead we now see a pro-
liferation of discursively constituted and institutionally materialized and
embedded spatial scales (whether terrestrial, territorial, or telematic) that are
related in increasingly complex tangled hierarchies rather than being
simply nested one within the other, with different temporalities as well as
spatialities (cf. Bøås, Marchand and Shaw, Chapter 11).
The proliferation of spatial and temporal horizons linked to the relativiza-
tion of scale involves very different opportunities and threats for economic,
political, and social forces from those that prevailed when the national scale
was deemed primary. It encourages actions to exploit new opportunities in
order to promote specific values, identities, and interests and/or defend
them against the frequently disruptive impact of rescaling (cf. Bøås, Marchand
and Shaw, Chapter 11). Many different actors and social forces are involved
in this exploitation–contestation, ranging from economic migrants through
legal and illegal enterprises to states and non-governmental movements.
Economic and political actors are often active in attempts to enhance place-
based competitiveness and/or to enhance competitiveness by promoting
Bob Jessop 183
administrative units that strive for autonomy (cf. Nilson, 1997). This can be
contrasted with border-regions in which the border is a unifying rather than
a dividing feature, that is, where the border functions to integrate not divide
(Africa), and which are therefore planned as a whole, not as two separate
parts (Buchanan, 1995; Gooneratne and Mosselman, 1996).
The second option is to build horizontal linkages on the same scale within an
integrated, vertically nested set of scales. Such strategies range widely from the
local to the triadic scale. Many CBRs illustrate this strategy; so do translocal
alliances and virtual regions. The latter are developed to link non-contiguous
locales with shared or complementary interests – such as the cooperation
among the so-called European ‘Four Motors’ regions, comprising Baden-
Württemberg, Rhône-Alpes, Lombardy, Catalonia, each of which is a
dynamic city-region associated with a major non-capital city. In general this
strategy builds on common territorial interests and identities and seeks to
exploit joint or complementary resources and capacities. The aim is either
to develop a critical mass through simple agglomeration economies or to
develop a division of labour at the same scale rather than across scales. This
horizontal strategy could be autochthonous and/or be promoted by bodies
on lower and/or higher tiers or scales. Thus CBRs in Europe are promoted by
local communes as well as the EU.
The third option involves building ‘transversal’ linkages, which means
bypassing one or more immediately neighbouring scale(s) to seek closer
integration with processes on various other scales. This is especially signific-
ant where foreign direct investment and production for export are involved
so that links to an immediate hinterland or even the national economy may
prove far less important than the connection between local and supranational
scales. Growth triangles in Asia exemplify this strategy (Parsonage, 1992;
Smith, 1997). So do export processing zones (EPZs), free ports, and regional
gateways – although these tend to be located within one national territory
and to be oriented outwards (cf. Chen, 1995; Ohmae, 1995).
Finally, a fourth option is to seek an escape from scalar or place-bound con-
straints by locating one’s activities in a borderless space of flows or moving into
‘cyberspace’. But this does not obviate the need for some sort of spatial fix
(offshore islands, tax havens, etc.).
These options can be combined to produce more complex strategies. They
can be applied on a range of different scales and CBRs belong primarily to
the second and third strategies. More generally, such strategies can be
considered from two viewpoints: (i) their primary carriers: private economic
agents (firms, banks, chambers of commerce) or public bodies (different
tiers of government, local or regional associations, quangos); and (ii) the
nature of the inter-scalar articulation involved: vertical (up and/or down),
lateral (extraversion or introversion), transversal, etc. My starting point
below is the primacy of the national scale in the post-war period but this
should not lead us to conclude that the relativization of scale involves no
Bob Jessop 185
has lower tiers and specialist niches which also form transnational link-
ages. Where the promotion of such linkages results in the extraversion of
urban development strategies intended to promote a city’s competitive-
ness in the global economy, we can refer to ‘glurbanization’ ( Jessop and
Sum, 2000).
• Meso-regional integration: the formation of sub-triad but supranational
blocs, such as ASEAN, Mercosur, CARICOM, which can either form
building-blocks for the next level of integration or else provide resistance
to it (cf. Hettne, Chapter 2; Tussie, Chapter 6; Mistry, Chapter 7).
• Macro-regional integration: notably triadization; the formation of state-
sponsored multilateral regional economic blocs embracing several
national economies formally in North America, Europe, and North East
Asia (cf. Gamble and Payne, Chapter 3; Tussie, Chapter 6).
• Inter-triadization: the growing interpenetration of the triad blocs as multi-
nationals headquartered in each form strategic alliances with partners
from others and the interiorization of interests of such multinational cor-
porations (MNCs) within triadic and national states (cf. Poulantzas,
1975).
• Trans-triadization: the development of bilateral fora and summits involving
different pairs of triads as they seek to develop and to deepen specific
complementarities, notably through the Asia-Pacific Economic Cooper-
ation (APEC) forum, the New Transatlantic Agenda, and the Asia-Europe
Meetings (ASEM) (this has also been discussed under the rubric of mega-
regionalization, see Hatsuse, 1999; or trans-regionalism, see Hettne,
Chapter 2; cf. Hveem, Chapter 5).
• Globalization proper: the introduction and acceptance of global norms
and standards, the development of globally integrated markets together
with globally oriented strategies, ‘deracinated’ firms with no evident
national operational base, and ‘ubiquities’ (uniformly available locational
facilities).
levels. All of this produces increasing scalar complexity, increasing scope for
deliberate inter-scalar articulation, and increasing problems in making such
inter-scalar articulation work. Similar issues affect time and its governance,
as seen in the emergence of nano-temporalities at the micro-level and long-
term action to ensure environmental sustainability at the macro-level. This
leads in turn to growing problems of inter-temporal governance.
In both geo-economic and geopolitical terms, the various types of region
are marked by different and changing degrees of hegemony and hierarchy,
overlapping spheres of influence, national components and transnational
influences, interdependencies and pockets of self-containment, embryonic
and dying regions, marginal spheres and areas of confrontation. These com-
plexities provide more opportunities for rescaling, jumping scales, and so
on; they also re-order spatial and scalar hierarchies, producing new forms of
uneven development. This is reflected not only in shifts among ‘national
economies’ but also in the rise and fall of regions, new forms of ‘North–South’
divide, and so on.
This points to potential for alliance strategies among states on similar or
different regional scales (such as the EU, whether as an intergovernmental
organization of nation-states or a ‘Europe of the regions’) to secure the basis
for economic and political survival in response to the imperatives of struc-
tural competitiveness on a global scale. These alliances will vary with the
position of the economies concerned in the global hierarchy. Thus, whilst a
small open economy (whether capitalist, post-socialist, or socialist) might
seek closer integration with the dominant economic power in its immediate
triadic growth pole, the dominant power might seek not only selectively to
bind neighbouring economies into its strategic economic orbit but also to
enter alliances with other dominant triad powers. An alternative strategy for
a small open economy is to seek niche markets in the global economy
(perhaps through encouraging strategic alliances with key firms in each triad
region) or to form regional alliances with other small economies (whether
they share borders or not) as a basis of increasing their economic capacities
and leverage. Moreover, since the national economy is no longer so taken-for-
granted, we also find sub-national regions, cities, and local economic spaces
pursuing strategies oriented to the changing forms of globalization and
international competitiveness.
Cross-border regions
They are often linked to shared resources on borders (rivers, lakes, coasts,
forests); the survival or resurgence of old trade routes and/or connections
inherited from precolonial empires; and the existence of a common
language or ethnicity. Examples include the partial re-emergence of the
Austro-Hungarian empire, the Swedish Baltic Empire, the relinking of Balkan
countries once in the Ottoman Empire, the relinking of the Central Asian
states that were once integrated into larger Turko-Islamic and Iranian for-
mations, the development of Northeast Asia (China–Russia–Japan), the rise
of ‘Greater China’, the Greater Mekong Sub-region, and the SIJORI Growth
Triangle (Johor–Riau Empire). More generally, ‘the relaxation of political
tensions has motivated many countries to open up their “shadow belts”,
sub-regions that are distant from the national trade and commercial centers,
that developed during the Cold War, sub-regions that can now be more nat-
urally linked with world markets and emerging regional ones. This is the case
with Northeast China, the west coast of Japan, the west coast of Korea, the
Russian Far East and Mongolia’ (Jordan and Khanna, 1995: 445; cf. Labrianidis,
2001). An important factor here is that some border regions, which served
as defensive buffer zones during the Cold War and were regarded as unsafe
for investment, are now seen as ‘bridges’ linking potential economic partners
(Gooneratne and Mosselman, 1996: 138). This is reinforced where borders
imposed from above had divided erstwhile ‘historic’ regions with their own
identities and, in some cases, distinctive ethnonational groupings.
Third, cross-border regions may emerge from (or be reinforced by) the
spill-over of metropolitan hinterlands and/or the growth of complementary
towns either side of shared borders. Twin cities along the Canada–United
States and United States–Mexico borderlands provide many examples
(Hansen, 1986; Herzog, 1991; Scott, 2002). This is also reflected in increas-
ing north–south linkages between Canadian and US–American regions,
although there is still more trade between any two Canadian provinces than
between any one Canadian province and an American state. There are also
many closely connected border towns in Europe (Gasparini, 1999–2000a, b).
A well-known European example is the Regio Basiliensis, which has Basel/
Basle as its metropolitan centre. This dynamic could also be a contributory
factor to the growth of other CBRs, such as the SIJORI triangle as the product
of spill-over from Singapore as an expanding city-state, or the economic
growth of the Pearl River Delta on the basis of Hong Kong’s expansion after
the opening of mainland China.
Fourth, cross-border regions may come from the creation of new functional
economic and/or ecological spaces where there are complementary resources,
common problems, or a shared peripheral status prompting a need for cooper-
ation on issues such as the environment or transport infrastructure. Such
cross-border regions are often linked with the discursive constitution of new
types of economic territory or economic space, for instance, growth triangles,
EPZs, innovation milieux, gateway cities, learning regions, bio- or eco-regions.4
190 The Political Economy of Scale
foreign direct investment has reinforced the primacy of cities and core growth
regions in ASEAN and prompted a concern to promote growth triangles and
cross-border regions in more peripheral areas (Wong, 1994: 12–14); Tokyo’s
inability to meet the development demands of localities in the Japan Sea
prefectures has helped to trigger Japan Sea cross-border cooperation; and the
EU has promoted cross-border cooperation for less favoured regions during
the period of single market construction. Uneven development may also
produce a converse reaction on the part of stronger regions. Thus Murphy
(1993: 112–13) suggests that one reason for the formation of the Four Motors
region was worries about being dragged down by poorer neighbouring
regions.
Eighth, cross-border regions may emerge as part of nation-building projects
in multinational territorial states. This may reflect the desire to enhance
national autonomy within a federal system. Quebec provides a good
example of this, since it engages in cross-border cooperation as part of a
nation-building project with a long tradition in foreign relations, concluded
many inter-regional agreements in the past and pursues lobbying activities
in the United States (Keating, 1996). Alternatively the relevant nation may
straddle territorial frontiers. The development of trans-Pyrrhenean cooper-
ation between Catalan peoples in Spain and France and the resurgence of his-
torical economic territories in post-socialism may well illustrate this situation.
More problematic cases, where the right to development of cross-border
populations exists, may also eventually lead to cross-border cooperation (for
instance, Kurds).
Ninth, CBRs may emerge from career- and institution-building initiatives as
political entrepreneurs exploit opportunities created by the crisis of the
national scale, the thawing of the Cold War, the availability of EU policies
and grants, the initiatives of international organizations such as the Asian
Development Bank or the United Nations Development Programme
(UNDP), supranational deregulation allowing regional re-regulation, the
development of new infrastructures and logistics (Perkmann, 2000). Such
cases of simple economic calculation may be reflected in ‘grant coalitions’
(rather than growth coalitions) and simple responses to windows of political
opportunity in political entrepreneurialism.
Despite their new economic importance, CBRs lack both the solid bound-
aries demarcated by national frontiers and many of the macro-economic
institutional conditions often held to be essential for stable economic growth.
It is in this context that interpersonal networking and inter-organizational
negotiation become crucial in bridging the public–private divide across
frontiers and in securing the cooperation of so-called ‘key players’ drawn
from different functional systems. Moreover, the absence of a single state
with sovereignty over a CBR may not be the handicap that national state
managers may sometimes believe. For, if neither pure market forces nor top-
down command from a single political centre can guarantee the structural
192 The Political Economy of Scale
respect both because of the enhanced role of regional or local states in eco-
nomic development and because of the development of transnational linkages
among regional or local authorities, involving what is sometimes called
‘paradiplomacy’ (Dommergues, 1992) or ‘intermestic’ politics (Duchacek,
1986). Thus the emergence of CBRs might seem to challenge the survival of
the national state – albeit otherwise than in supranational rescaling.
Nonetheless, countering this trend towards denationalization of the state,
is the continuing survival in many societies of the national state as the prin-
cipal factor of social cohesion. Elsewhere, of course, national states are in
crisis or have already decomposed. But, where the national state form does
survive institutionally, it also retains its crucial general political functions
even where more specific techno-economic, narrowly political, or ideo-
logical powers are transferred elsewhere. For supranational forms of political
organization are typically intergovernmental in character and the national
state is involved in transferring power upwards and legitimating this transfer.
As sovereign states they also retain the formal power to recentralize powers
delegated below and to regulate translocal contacts and agreements. Some
states are more powerful and effective in regard to inter-scalar articulation
than others, of course, with the imperial United States being the most
powerful state actor in this regard. Moreover, in many CBRs, the local or
regional administrative units involved on different sides of the border(s) act
as relays of national policy and are more oriented to their respective central
states than to forging political relations that undermine de jure national sover-
eignty. In this sense, national states act as ‘pivots between international
agencies and sub-national activities, because they provide legitimacy as the
exclusive voice of a territorially-bound population’ (Hirst, 1997: 21). Their
capacity to do so will continue to depend, however, on their ability to
secure social cohesion.
Second, there is a general trend towards the destatization of political
regimes. This is reflected empirically in a shift from government to govern-
ance on various territorial scales and across various functional domains
(cf. Hveem, Chapter 5). Governments have always relied on other agencies
to help them realize state objectives but there is now a major political
reordering of the relationship between government and governance. Although
this trend typically involves a loss of decisional and operational autonomy
by state apparatuses (at whatever level), it can also enhance their capacity to
project state power and achieve collective goals by mobilizing knowledge
and power resources from influential non-governmental partners or stake-
holders. This second trend occurs not only at the international and national
level but is also evident in the restructuring of regional, local, and cross-border
regional governance. Indeed CBRs are often characterized by complex multi-
level forms of governance involving a wide range of partners and stake-
holders recruited from different functional domains and scales of territorial
organization. It also means that states themselves are becoming partners,
194 The Political Economy of Scale
economic and political space within the more general economic and
political order.
Conclusion
There are many more cross-border regions and even more cross-border
regional projects than there are successful, well-functioning examples. The
feasibility of projects depends in part, of course, on the capacity of narra-
tives and other discursive forms to win support for projects, to enable appro-
priate forces to envision an alternative future and to identify the trajectory
to be followed in achieving it. But important extra-discursive conditions are
also needed to realize plausible strategies. These extra-discursive conditions
are rooted in the materiality of differentiated institutional orders (functional
sub-systems) and their complex forms of interdependence across various
spatial and temporal horizons of action; and in capacities to manage the
realization of projects over a range of interlocking spatial and temporal
horizons. This in turn depends on political will and leadership capacities,
including meta-governance capacities.
Hence no single (sub-)regional strategy is likely to become predominant.
Instead there will be a large number of small-scale strategic initiatives that
interact with an even larger number of more spontaneous developments
rooted in market exchanges, foreign direct investment, and so forth. Regional
economic strategies are most likely to develop on a local or regional scale
through decentralized collaboration and joint undertakings in which border
regions and/or economic affinities will play a key mediating role. The sheer
multiplicity of these initiatives can be seen from a partial list of programmes
for economic renewal provided by Neumann for the Nordic–Baltic region.
These include: a new Hanseatic League, a Baltic Sea Region, the Mare Balticum,
a Euro-Baltic Region, a Scann-Baltic Political Space, an Ostseeraum, a severo-
baltiyskiy poyas (Nordic–Baltic Belt comprising the Nordic states and the
four Russian political entities of Murmansk, St. Petersburg, Karelia, and
Kaliningrad),5 and a Barents region centred on Norway and extending to
the Arctic, Baltic, and North Seas (Neumann, 1994: 67–8, 71; cf. Neumann,
Chapter 9). A similar profusion of projects exists for other regions in Europe
and Eurasia.
Whilst not all of these projects can succeed, many are likely to attract
political support and economic resources. Thus eventual regional configur-
ations will be complex, tangled, and an evolutionary (rather than fully
planned) phenomenon. If a new primary scale is to emerge, it is likely to be
at the level of the Triad (cf. Tussie, Chapter 6). This is particularly evident in
the EU (especially as it continues to widen and deepen its role in structuring
European economic space) and NAFTA (with the overwhelming dominance
of the United States); but there is also a growing regional division of labour
in East Asia and China is becoming a more significant player in this regard.
196 The Political Economy of Scale
Notes
1. On glocalization, see Brenner (1998) and Swyngedouw (1997); on glurbanization,
see Jessop and Sum (2000); on transnationalization, see Smith (2000).
2. Cyberspace is, in fact, far from evenly distributed or accessible and it does have
roots in specific places – the significance of this is discussed below.
3. The blue banana curves like a banana from Greater London through the Benelux
countries, northern France (bypassing Paris), and central Germany to end in
northern Italy.
4. See Sum (1999) on the Greater China growth triangle; Söderbaum (2002) on the
Maputo Development Corridor (MDC) in Southern Africa; Blatter (2000) on
sustainable development in Cascadia and the Euroregio Boden; Maskell and Törn-
qvist (1999) on the Øresund cross-border learning region that links metropolitan
Copenhagen and the southern periphery of Sweden.
5. Note that the Nordic–Baltic Belt proposal excludes both Poland and the German
Länder bordering the Baltic (cf. Neumann, Chapter 9).
11
The Weave-World: The Regional
Interweaving of Economies,
Ideas and Identities*
Morten Bøås, Marianne H. Marchand and Timothy M. Shaw
* A previous version of this chapter was presented to the XIII Nordic Congress of
Political Science, Aalborg, Denmark, 15–17 August 2002. Comments from Björn
Hettne, Fredrik Söderbaum, Benedicte Bull, Terhi Lethinen and other participants in the
workshop on ‘regions and regionalization’ are highly appreciated.
197
198 Regional Interweaving of Economies, Ideas and Identities
towards the search by the main theorists for universalism and a single Inter-
national Political Economy (IPE) of regionalism (see Hettne and Söderbaum,
1999 and 2000; Söderbaum, 2002). To be more precise, what differentiates
what we define as the new regionalisms approach is a deliberate focus on
how nexuses of globalization and regionalization have created a whole
range of diversified patterns of interactions and responses at the local,
national and regional levels. The informality of much of these processes
suggests that they cannot be neatly broken down into narrowly defined
objects of study: how processes are increasingly acquiring a regional dimen-
sion but do not necessarily situate themselves exclusively at the regional
level. What is occurring instead, and should be acknowledged, is a ‘nesting’
of processes and activities; as such, they ‘spill over’ from one level to the
next (cf. Jessop, Chapter 10). Despite this nesting it is clear, however, that
processes and activities of a regional scope have become increasingly
important.
A regionalized world?
state of being and its consequences for our understanding of the world
around us is best captured by the term ‘globality’, which confers the notion
that current transformations provide people with a new frame of reference,
removing them from modern(izing) nation-state-centred thinking to the
global–local dyad as a starting point (Albrow, 1996; Castells, 1998). In other
words, as we experience continued time–space compressions, our way of
relating to the world changes. However, this new state of being, or globality,
is not similar across the world. The forces behind these phenomena may be
similar, but local impacts as well as interpretations of them can differ signifi-
cantly. The world is increasingly globalized, but not necessarily becoming
more uniform.
Regionalization is closely related to globalization. Regionalization pro-
cesses constitute an important dimension of global restructuring, but they
have an explicit spatial articulation. Processes of regionalization can be
state-led, but do not necessarily need to be. Within each regional space
there will be several regional projects, several regional ideas, identities and
economies, and therefore also more than one actor pursuing regionaliza-
tion. The state is most often one of the regionalizing actors, but equally
important actors can be identified within the two other realms of the state–
society–economy triangle: NGOs, new social movements, media, companies,
as well as a range of actors based in the second economy or the informal sector.
In sum, our argument is that, on the one hand, regionalization can be seen
as an integral part of globalization processes (i.e. the transformation of the
global political economy). On the other hand, however, it can also represent
formal (state-led) counterforces against globalization (as part of a broader
economic development strategy), or it can reflect a societal amalgam of
transborder activities through networks of the second, or underground economy.
This is precisely why we prefer to talk about globalization/regionalization
nexuses.
Regionalism should therefore be understood in a similar vein to that of
globalism. Regionalism concerns the ideas, identities and ideologies related
to a regional project. As such, regionalism is clearly a political project, but
it is obviously not necessarily state-led, as states are not the only political
actor around. As indicated earlier, we clearly believe that within each
regional project (formal or not) several competing regionalizing actors with
different regional visions and ideas coexist. These regionalizing actors
provide the ideational content of the region. In other words, they are
involved in processes of ‘making the region into a region’, and in these
processes they also reconstitute themselves as regionalizing actors within a
specific regional space.2 Sometimes various regionalizing actors are working
in a similar direction, whereas at other times they are in open conflict with
each other. The question of regionness and regionality is closely related
to such processes (cf. Hettne, Chapter 2). Deepening of interaction and
cooperation among and between regional actors may lead to the emergence
202 Regional Interweaving of Economies, Ideas and Identities
Theorizing regionalization
Our position is based on the idea that a region occupies a territory – material or
imagined – and as a territory it is basically an intersection of a heterogeneous
range of moving bodies: it is articulated, defined, remade and reconstructed
by the sets of movements that take place within it (Certeau, 1984). Regions
are not static, but changing continuously. This is as true for the EU, espe-
cially as it contemplates unique expansion from 15 to 25 rather diverse
members, as it is for the multitude of formal and informal regions and
regional arrangements elsewhere in the world. The West Africa region may
seem full of localized little wars and conflicts, but their causes and conse-
quences are connected through social structures, everyday practices,
Morten Bøås, Marianne H. Marchand and Timothy M. Shaw 205
discourses and regional historicities. In other words, the region has become
an important signifier for social practices because it is through this that
regions are being constructed and reified. For instance, existing conflicts in
Guinea-Bissau, Senegal, Liberia, Sierra Leone and Guinea create repercussions
and resonance in Côte d’Ivoire, Burkina Faso, Gambia, Ghana and Nigeria.
In other words, the West African region is a regional security complex, but
no matter what ECOWAS Cease-Fire Monitoring Group (ECOMOG) and its
proponents may argue, this is not a security community in the making
(Bøås, 2000, 2001). The region is an important signifier, but also a difficult
one due to its complexity and fluidity. West Africa is an important signifier
and so are the Pacific Rim, South Asian, Central Asian, Central America,
North America and the Caribbean. However, we should not make the mis-
take of drawing a connection between the region as signifier and contempor-
ary area studies because what started as a heuristic device ‘was soon
forgotten and the current maps of “areas” in “area studies” were enshrined as
permanent’ (Appadurai, 2001: 8). The point is a quite a simple one: area
studies tend to see their ‘areas’ as immobile entities consisting of enduring
properties, separated by durable historical boundaries. Instead what we need
is a political economy that sees geographies as dynamic entities defined and
redefined by all kinds of motion (such as trade, war, migration, ecology, and
so forth).
The delimitation of a region is therefore determined through social practice.
In other words, the boundaries of a region are being constructed and recon-
structed through discursive practices, that is, the region operates as signifier
(cf. Neumann, Chapter 9). As such, it is possible that various imagined
regional spaces overlap in concrete territorial terms. One example of the latter
is the clash in concrete territorial terms between Meso-America and Central
America.
A consequence of seeing regions being constituted through social practice
is that it helps us see a much broader social reality than the one constituted
by state-driven regional integration schemes. In many places in this world
these are fairly irrelevant as economic conditions are poor and poverty is
extensive. Floods, drought, famine and the AIDS pandemic contribute to
insecurity. Social and economic inequality is rising and formal employment
is often the exception and not the rule. As state structures collapse, there is
an increase in violence on all societal levels: from petty crime to regional-
ized civil wars (cf. Falk, Chapter 4). Often, collapse in one place paves the
ground for processes of regional implosion, in which country after country
or, just as often, various non-state actors from neighbouring countries, pene-
trate into vast areas of state collapse. This is true not only for West Africa.
The processes in and around Afghanistan in Central/South Asia, the Fer-
ghana Valley (Central Asia) and the Great Lakes Region also highlight this
point. In many places in this world, the most efficient integrating mechan-
ism is regional implosion as described here and not regionalizing processes
206 Regional Interweaving of Economies, Ideas and Identities
The logic of the network under the circumstance described above then
becomes the logic of unspoken (silent) knowledge: it is a condition often
based on uncertainty, unpredictability and lack of meaning. Reality is like a
fog; it cannot easily be penetrated, grasped or controlled (Mbembe, 2001). It
is under such circumstances that the entrepreneur and the logic of the net-
work become a necessity of life for those that inhabit such physical spaces.
It is also in this way that the entrepreneur becomes the manifestation of the
multitude of moving bodies that constitute the territory of the region. Here
we must add that our understanding of entrepreneurial activity is one that
goes well beyond the preconceived ideas based upon homo economicus – the
rational economic man (cf. Hettne, Chapter 2). Rather, we suggest that the
activities of the entrepreneur be placed in the social context in order to
understand the forces that shape his/her everyday activities, and the socio-
economic consequences of these activities. Entrepreneurial activity is therefore
socially embedded and based upon relations both in formal and informal
spheres of society (often the distinction between formal and informal is
purely cosmetic).
We believe that such a research strategy may enable us to incorporate into
our analysis a whole range of dimensions and practices that hitherto have
been considered outside of the domain of political and economic research
208 Regional Interweaving of Economies, Ideas and Identities
Conclusion
It is only when we make deliberate attempts to connect the two broad pro-
cesses of formal and informal regionalisms that we get a clearer picture of the
connections between them. Trade liberalization as a part of the state-driven
regionalization process can facilitate the regionalization of gun-running,
drug-trafficking and criminal networks, but formal regionalization in the
form of trade liberalization can also entail the regionalization of various
elements of civil society into a regionalized civil society that can become
a supporter of or a viable counterforce to the formal regionalization project.
The point is that the outcome of these processes is highly unpredictable,
and often there is more to these issues than meets the eye.
Here we find not only fragmented forces of regionalized civil societies that
try to carve out small niches for themselves within larger regional restruc-
turing processes, but also the warlords, the regional merchants and the
petty traders who may take advantage of liberalized markets in order to
decrease their costs in gaining access to regional markets, but who may also
be existing within a superstructure about which they have little knowledge.
Rather, what we are confronted with are juxtaposition, contradictory pro-
cesses and simultaneous cooperation and conflict interwoven into streams of
ideas, identities and more tangible resources. This is the weave-world, and
the weave-world we envision is a region of moving bodies and within an
ever-changing social space, which is increasingly becoming ‘regionalized’.
One credo for the regionalisms approach is therefore regional processes as
the politics of everyday life. Regionalisms are, after all, about social practice;
nothing more, nothing less.
Notes
1. 1990 was the first year in which worldwide sales of foreign affiliates exceeded
world exports.
2. One example of such activity is the regional development banks. These banks are
manifestations of regional cooperation, but they also help to frame further efforts
towards regionalization (Bull and Bøås, 2003).
3. In particular, critical political economy and critical security studies are shedding
new light on processes of regionalization, as well as on the emergence of regionalism
as a new world order phenomenon; see Gamble and Payne (Chapter 2), Breslin
and Hook (2002), Söderbaum and Taylor (2003) and Hentz and Bøås (2003).
4. The point of departure for the NRA was the now completed UNU/WIDER research
project, ‘The New Regionalism: Implications for Global Development and Security’.
For the results of this project, see Hettne, Inotai and Sunkel (1999, 2000a, 2000b,
2000c, 2001) also cf. Hettne and Söderbaum (1998), Schulz et al. (2001). After the
finalization of the UNU/WIDER project, Björn Hettne and Fredrik Söderbaum
initiated a post-UNU/WIDER phase in their study of the new regionalism, in
which they seek to move from the NRA towards a more coherent perspective,
i.e. a new regionalism theory (NRT); see Hettne and Söderbaum (1999, 2000),
Söderbaum (2002) and Hettne (Chapter 2).
210 Regional Interweaving of Economies, Ideas and Identities
211
212 Conclusion: What Futures for New Regionalism?
of the book to reveal similarities and differences between the theories with
relevance for policy and practice as well as analysis. There is also some dis-
cussion of the gaps or silences in the contemporary theoretical landscape,
which indicate where the field may (or in our view ought to) be moving in
the first decade of the new millennium. Of course, it is impossible to make a
fully-fledged summing-up of such a wide-spanning collection as this; what
some readers may regard as important issues may not always be very well
covered here, and still other readers may not necessarily agree with our
ideas for the future. Yet, it is our ambition that this concluding chapter
stimulates theory-building and above all discussion and communication.
After the Second World War the study of regionalism, especially the ‘old
regionalism’, was dominated by an empirical focus on Europe. Although the
neofunctionalists were somewhat conscious of their own Eurocentrism, in
their comparative analyses they only searched for those ‘background condi-
tions’ and ‘spill-over’ effects that could be found in Europe (Hettne, Chapter 2;
Haas, 1961). During the era of such old regionalism, European integration
theories were developed for and from the European experience and then
more or less re-applied or exported around the world. All too often the EC/
EU was seen and advocated as the model, and other looser and informal
modes of regionalism were, wherever they appeared, characterized as ‘different’
or ‘weaker’. Such highly normative assumptions about European regionalism
continue to be a problem within the broader research field. As Breslin and
Higgott (2000: 343) correctly point out: ‘Ironically, the EU as an exercise in
regional integration is one of the major obstacles to the development of
analytical and theoretical comparative studies of regional integration.’
In sharp contrast with much of these conventional European integration
studies, however, the new regionalism theories articulated in this volume
point to the multidimensional and complex nature of today’s regionalism,
including the case of Europe. Today, especially as its significant expansion
proceeds, there are many overlapping, parallel and competing regionaliza-
tion processes in Europe, and no single perspective can claim to articulate
the hegemonic interpretation of ‘new regionalism in Europe’. The majority
of the contributions to this volume, some more than others, provide
insights into European regionalism. Clearly, they do not by any means por-
tray a monolithic view, but rather give testimony to the multidimensional
nature of European regionalism. This shows that the fundamental problem
is not the study of Europe per se, but rather the tendency in the field to
either ignore many of the alternative theories and cases of regionalism
(Mansfield and Milner, 1997) or even regard challenging approaches as
‘non-scientific’ or ‘speculative’ (Mattli, 1999: 3–16).
Fredrik Söderbaum and Timothy M. Shaw 213
The point raised here is that more or less all major theorists – regardless of
whether they are ‘holists’, ‘contextualists’ or more outspoken ‘generalists’ –
make claims that are more or less ‘general’ (universal), in the sense that
‘their’ regionalization processes can be observed around the world. At least
for the ‘interpretivists’/ ‘contextualists’, it is not unproblematic to use concepts
such as ‘states’, ‘markets’, ‘civil societies’, ‘globalization’, ‘regionalization’
across-the-board as they in fact often tend to do. In our view, there are no
ready-made solutions, but what we suggest is that future theorizing needs to
be more explicit on important issues, such as when and where their frame-
work is and is not applicable, the relevance and ‘reach’ of their frameworks/
analyses, and to what extent theories and arguments are generally or con-
textually confined (and what that means).
We also suggest that the comparative approach can serve as a bridge
between theory and practice, between misplaced universalism and context-
ual obsession. General theory and to some extent comparative studies are
often criticized by those emphasizing deep multidisciplinary knowledge of
various contexts, cultures and peoples. There are undoubtedly a circulation
of too many culturally skewed theories and comparative frameworks, and if
not placed in proper historical context many of these are misleading and at
worst even harmful (because of their prescriptions). We believe it is crucial
to move beyond the false universalism inherent in a selective reading of
regionalism in the North in general and in Europe in particular (because it is
mainly from here the so-called general frameworks derive). Having so recog-
nized, it is our contention that the comparative method helps to guard
against ethnocentric bias and culture-bound interpretations that can arise in
a too specialized area study.
Buzan (Chapter 8) may be cited as one theorist trying to provide such a
comparative framework. Through his theory about regional security complexes
Buzan seeks to construct a set of concepts that can be used by area specialists
in order to frame comparative studies. In a similar fashion, Hettne (Chapter 2)
elaborates on the concept of ‘regionness’ as ‘a framework for comparative
analysis of emerging regions’. But Hettne is at the same time somewhat cautious
of across-the-board comparisons, and in his view an appropriate comparison
is of regions at similar stages of sophistication. In this way Hettne appears to
be somewhat more contextually sensitive compared to Buzan’s more general
framework. This is not the place to enter into a discussion about right and
wrong on this matter. But these examples illustrate the fact that there exist differ-
ent ways to look upon the comparative method and many possible ways of con-
ducting comparison, for instance in time, between regions, within regions,
and so forth. Our main suggestion is that it should be used more widely, but
also in a more nuanced way, recognizing both its strengths and limits:
Considering the amount of case study research in the field, it may be sur-
prising that there is still a lack of systematic comparison in the burgeoning
field of new regionalism, some exceptions being Hettne et al. (2001), Buzan
et al. (1998), Schulz et al. (2001). Comparison can provide an opportunity for
different theoretical standpoints to communicate, where explanatory and
interpretative theory can debate and even cross-fertilize.
It should also be said that the dichotomy is formulated and defined from a
particular standpoint whereby the end-goal of globalization/multilateralism
216 Conclusion: What Futures for New Regionalism?
So, in spite of Gamble and Payne’s affiliation with critical IPE they present
an opening for liberal arguments favouring social regulation. It should be
noted that both Tussie (Chapter 6) and Mistry (Chapter 7), a pair of eminent
theorists of ‘liberal’ disposition, are very concerned with the asymmetries
and imbalances created by globalization, multilateralism and regionalism.
Notwithstanding their affiliation this is a concern they share with a range
of other more radical scholars from different traditions, such as Hettne
(Chapter 2), Gamble and Payne (Chapter 3), Falk (Chapter 4), Jessop
(Chapter 10) and Bøås, Marchand and Shaw (Chapter 11). What this shows is
that there are many opportunities as well as imperatives for a continued, intrigu-
ing debate, stretching beyond the first decade of the new century, among vari-
ous empirical and theoretical standpoints and results around ‘new regionalism’.
Several contributions in this volume share the view that the Westphalian
nation-state is not functioning, while the ultimate manifestation of the
post-Westphalian model – globalization or fully-fledged multilateralism – is
also seen as premature. Mistry (Chapter 7) elaborates on this issue in detail.
One important part of his argument is that the Westphalian model is obsolete,
but multilateralism is not functioning either, with the result that regionalism
has emerged as a feasible mid-level management strategy. Similarly, Hveem
Fredrik Söderbaum and Timothy M. Shaw 217
By way of moving on, Hettne argues that although the possibility of global
human community should not be excluded, a regional political community
is logically prior to it. ‘Coexisting regional communities . . . may be the best
world order we can hope for in the medium-long term. . . . As formal macro-
regions emerge and take a political actor role, there will necessarily also be a
need for more organized contacts between these regions’ (Hettne, Chapter 2).
In this context Hettne draws attention to a phenomenon which has quickly
emerged as a bridge between multilateralism and regionalism and/or
between a Westphalian and a post-Westphalian pattern, namely inter-
regionalism (cf. Telo, 2001). According to Hettne,
In spite of the above, the large majority of studies of regionalism in the field
have been concerned with the macro-regions rather than meso- and micro-
regions. This has led to an under-emphasis of the heterogeneity and pluralism
of regionalism as well as micro-issues ‘on the ground’. In the future, then,
taking the insights from this reader into account, we would suggest that the
study of regionalism should not be concerned solely (or simply) with
macro-regions. It should be said that micro-level forms of regionalism may
sometimes be less formal/inter-state than the formal macro-regions; they
may be more reflective of private sector interests than those of either states
or civil societies, as in many corridors or triangles. There are many interesting
insights to be drawn from various micro-level processes, such as growth
triangles and export processing zones (EPZ) in East and Southeast Asia, old and
more recent corridors in Southern Africa, maquiladoras along the US–Mexico
border as well as the Euroregions in Europe (cf. Perkmann and Sum, 2002;
Söderbaum and Taylor, 2003).
In the past, overly sharp distinctions have been made between micro- and
macro-regions. But if regions are made up by actors other than states alone, and
if even state boundaries are becoming more fluid, then it also becomes more
difficult to uphold old distinctions between micro- and macro-regions. What
is particularly important to acknowledge is that the various spaces are intimately
connected: the latter can trigger reactions and responses at the former scale
(or vice versa). For example, Jessop (Chapter 10) asserts that ‘Europeanization
requires coordination of regional policies . . . the development of the North
American Free Trade Agreement (NAFTA) has prompted the formation of
the Cascadia region, stretching from Alaska to Oregon and North California.’
The macro–micro relationship can also be seen in what can be understood
as the expansion/dilution syndrome. The enlargement of a region’s always
somewhat fluid boundaries in terms of participants, issues or sectors affects its
functioning. In particular, as is apparent in recent cases from the EU to
the Association of Southeast Asian Nations (ASEAN) and the Southern
African Development Community (SADC), this expansion/dilution syndrome
may reinforce lower-level regional dynamics, leaving state and non-state
actors alike to concentrate their energies at a more meso- or micro-level.
Thus, in Southern Africa the unwieldy enlargement of SADC to include the
problematic state of the Democratic Republic of Congo (DRC) has already
reinforced processes of ‘variable geometry’ and ‘multispeedism’ within that
region, and renewed concentration of energy on other regionalist projects,
as well as novel corridors and cross-border micro-regions (Söderbaum and
Taylor, 2003).
220 Conclusion: What Futures for New Regionalism?
Several analyses in this volume indicate that in the post-Cold War era no
single scale is dominant. This is leading to a variety of scales and places
interacting with one another in time and place. The tendency to see a plur-
alism of regional levels and regional actors is likely to lead to an increasing
pluralism of regional definitions, scales and spaces – mega-, macro-, meso-, sub-
and micro-regions – all of which are intertwined with globalization, inter-
regionalism and national spaces. In such a situation it becomes increasingly
difficult to distinguish what is ‘regional’ from what is not. However, the
solution is not a return to a simplistic past; the future of regionalism must
not spell a return to the illusion of hermetically sealed regions and regional
borders. As already indicated, the future lies in more precise definitions and
increased emphasis on explaining what, exactly, is ‘regional’ and what is not.
by asking questions about how and why the existence of a given region
was postulated in the first place, who perpetuates its existence with what
intentions, and how students of regions, by including and excluding cer-
tain areas and peoples from a given region, are putting their knowledge
at the service of its perpetuation or transformation. (Neumann, Chapter 9)
for whom and for what purpose regionalization is being pursued in this
intriguing region. The author shows how ruling political leaders engage in a
rather intense diplomatic game, whereby they praise regionalism and sign
treaties, such as free trade agreements and water protocols. By so doing, they
can be perceived as promoters of the goals and values of regionalism, which
enables them to raise the profile and status of their authoritarian regimes.
This social practice is then repeated and institutionalized at a large number
of ministerial and summit meetings, which in reality involves no real debate
and no wider consultation within member states (Simon, 2003: 71). For the
political leaders, it is a matter of constructing an image of state-building and
of promoting important values. Some analysts would perhaps try to portray
these activities as a means to promote the ‘national interests’ of the ‘states’.
However, in many cases the so-called ‘state’ is much less than what it pretends
to be: the type of regionalism designed to enhance the reproduction-
legitimization of the state is exclusivist and centralized, ‘reflecting the percep-
tions of government leaders, small groups of civil servants and perhaps also
key bilateral and multilateral donors’ (Simon, 2003: 71). Often the ‘state’ is
not much more than a (neopatrimonial) interest group, and in the worst
cases it has degenerated into a post-modern mafia syndicate, such as in
Zimbabwe. Furthermore, although the rhetoric and ritual of regional diplomacy
serves the goal of the reproduction-legitimization of the state as such, it can
also be a means to create a façade enabling certain regime actors to engage
in other more informal modes of regionalism, such as trans-state regionalism
or networks of plunder (cf. Bøås, Marchand and Shaw, Chapter 11).
Closely related to the need to transcend conventional state-centrism is the
need to ‘bring transnational actors back in’. We hope that this volume has con-
tributed to filling the lack of research on non-state actors per se as well as on the
intriguing and evolving relations between them and states. This requires a
theoretical framework that does not privilege the state unduly and avoids
a priori assumptions about who is the dominant and ‘regionalizing’ actor or
region-builder (cf. Hettne, Chaper 2; Hveem, Chapter 5; Neumann, Chapter 9;
Jessop, Chapter 10; Bøås, Marchand and Shaw, Chapter 11). For those theories
emphasizing the importance of non-state actors, a ‘regionalizing actor’ must be
understood in a nuanced sense. It can refer both to comprehensive collectivities
(such as states, markets and civil societies) but also to more limited networks
and coalitions, or even individual actors, for instance cross-border traders,
‘survivors’, political leaders or ‘plunderers’ (Bøås, Marchand and Shaw, Chapter 11;
Söderbaum, 2002; Grant and Söderbaum, 2003; Söderbaum and Taylor,
2003). An actor is ‘regional’ when he/she takes part – consciously or uncon-
sciously – in activities on a regionally defined arena. However, as already
indicated above, activities and actors on different ‘levels’ – from local to global –
are typically related to one another. In fact, most actors operate simultaneously
on more than one level (global, regional, etc.). Mittelman (1999: 25) is correct
in that ‘political and economic units are fully capable of walking on two legs’.
222 Conclusion: What Futures for New Regionalism?
The imagery of a holy trinity, where state, civil society and market pose
as distinct, autonomous actors . . . embodies a normative position of how
the world should be rather than an accurate depiction of how it actually
works. . . . The triadic unity not only masks the potential contradictions
between the state, civil society and market but also hides from the view
the role of international donor agencies. More accurate would be the
image of a square rather than a triad. The absence of donors in this con-
ceptualization creates the illusion that donors are neutral in the relations
that unfold amongst the other three actors.
regionalism. In fact, at the start of the new millennium, there are very few
relationships or policies, let alone ‘disciplines’, that are not impacted by a
diversity of regional level forces. Regionalism, both old and new, is likely to
continue to expand as a field of research into the second decade of the
twenty-first century; hence the timelines of this collection.
For established disciplines there are some implications that follow directly
from this volume. First, for political science, new regionalism points beyond
state-centrism and the prevailing focus on formal organizations/institutions
towards a wider perspective which also recognizes the intriguing relation-
ship between formal/informal and state/non-state regionalisms. Second, in
terms of orthodox international relations, new regionalism points beyond
‘state’ security and formal inter-state conflict and cooperation to a variety of
definitions, interests, and not least a wide variety of regionalizing actors and
security referents. Third, the economics of new regionalism suggests going
beyond customs union theory and the infamous trade creation/diversion
dichotomy, in favour of the overlooked relationship between formal and
informal markets and the close relationship between global/regional/
national level economic forces, as well as the fact that non-economic
dimensions (political, socio-culture and security) interact with economic
variables (and therefore ought to be endogenous rather than exogenous vari-
ables in economic modelling).
Moreover, new regionalism serves to reinforce the imperative of innova-
tive yet rigorous conceptualization and investigation for a set of emerging
more inter- and post-disciplinary fields, such as global/human develop-
ment/security and IPE. Such innovativeness is further exemplified below
through comparative cases of new forms of regional capitalism, regional
conflict and peace-building, ecology and so forth.
The juxtaposition of new regionalism with insights drawn from compara-
tive (regional) political economy by Mukherjee Reed and Kundu (2000) and
Cox (1999) holds considerable promise when informed by a triangular con-
ceptual framework of civil societies as well as states and companies, along
with informal as well as formal sectors. In particular, these scholars identify
differences in the organization of capitalisms in different regions, whether the
latter are formally organized or not into intergovernmental institutions. The
former categorize a trio of regional capitalisms into Anglo-American ‘liberal’
(or hyper-liberal), European ‘corporatist’ and East Asian ‘developmentalist’
varieties (Mukerjee Reed and Kundu, 2000: 129–33). The latter adds less
familiar but no less telling varieties of state–corporate–civil society relations
from Eastern Europe and Africa: state breakdown and predatory capitalism
and civil society versus the state, respectively (Cox, 1999: 21–5).
Furthermore, new regionalism can be informed by economic, ecological
and/or ethnic relations as well as cultural and informal. The first of these may
be the most familiar in the regionalist literature, yet it can be micro-level
rather than macro-level. Likewise, ecological bases may stretch from the
224 Conclusion: What Futures for New Regionalism?
most malign effects of and motives for regionalization have been over-
looked in both theory and practice, which is at least partly due to an unfor-
tunate legacy of interrelated Eurocentric preoccupations and idealist
assumptions. In many regards this volume has been a counterweight against
overly positive and idealistic views about existing regionalism.
This brings our attention to the fact that informal/illegal regionalisms also
impact on the prospects for regional development, both positively and nega-
tively. The former thrives in areas of the world with many borders and
weak states and may constitute a rather primitive or embryonic form of
regionalization. Illegal cross-border trade may lead to regional inter-state
responses, but it can also reinforce long-established regional patterns and
routes (cf. Grant and Söderbaum, 2003).
In this penultimate section, we suggest alternative futures for new regional-
ism at the start of the twenty-first century. We have already pointed to the
likelihood of a further proliferation of a variety of micro- to macro-level
regionalisms, in part because of a proliferation of new, small, weak states,
especially in Central Europe and Central Asia. Similarly, we expect that the
expansion of several leading macro-regions will lead to dilution and
renewed emphasis on meso- and micro-regionalism. Likewise, we anticipate
further regional-level conflicts eliciting a range of regional-level responses,
from peace-keeping/peace-building to confidence-building and tracks two/
three. And we expect the tension between globalization and regionalism to
continue: the latter as both facilitation and resistance. This diversity and
pluralism demonstrate that the ‘new regionalism’ is likely to be a more last-
ing phenomenon than the old regionalism; that the regional factor contains
its own structural dynamics and that it is ‘here to stay’. But the pluralism
also demonstrates that what is ‘regional’ is more elusive, and at least to
some extent a moving target.
As reflected in this collection, since the start of the 1990s, studies of new
regionalism have achieved a degree of momentum and recognition that
begins to make them a field in their own right. But it is important to once
again underline that such an embryonic area cannot be divorced from
related innovations such as globalization, human development/security,
and so forth. We anticipate further developments and debates, reflections
and refinements in the future. And we would hope that such welcome
evolution would lead to at least a second edition of this state-of-the-field
collection.
Internet Resources
ACU www.acu.ac.uk
AfDB www.afdb.org
AGOA www.agoa.gov
APEC www.apecsec.org.sg; www.pecc.net
Arab League www.arabji.com/ArabGovt/ArabLeague.htm
ASEAN www.aseansec.org
CAN www.comunidadandina.org
CARICOM www.caricom.org
CBI/RIFF www.afdb.org/cbi
CEPAL www.cepal.org
CIS www.cis.int
COMESA www.comesa.int
Commonwealth www.thecommonwealth.org
Commonwealth Foundation www.commonwealthfoundation.org
Commonwealth Games www.commonwealthgames.com
CSGR www.csgr.org
ECA www.uneca.org
ECLAC www.eclac.cl
ECOWAS www.ecowas.int
ESCAP www.unescap.org
ESCWA www.ecswa.org
EU www.europa.eu.int
Foreign Policy www.foreignpolicy.com (links/regional sources)
FTAA www.ftaa-alca.org/alca_e.asp
IADB www.iadb.org
IFG www.ifg.org
IGAD www.igad.org
LAIA www.aladi.org
LATN www.latn.org.ar/
Mercosur www.demon.uk/itamaraty/msul.html
www.dpr.mre.gov.br/dpg/merc00-i.htm
NAFTA www.dallasfed.org/fedhome.html
NAFTA Agreement the-tech.mit.edu/bulletins/nafta.html
NAFTA Secretariat www.nafta-sec-alena.org/english/index.htm
NATO www.nato.int
NEPAD www.nepad.org
NRA home-page www.padrigu.gu.se/presentationer/
soderbaum_reg.html
OAS www.oas.org
OAU/AU www.africa-union.org
OECD www.oecd.org
OECS www.oecs.org
One World Net www.oneworld.net
PanAsia www.panasia.org.sg
226
Internet Resources 227
This guide to further reading seeks to assist in navigating through the jungle of recent
literature on new regionalism. The emphasis is placed on books dealing with the new
regionalism in a theoretical perspective, implying that works specifically focusing on
particular regions are not included. The books are listed in alphabetical order of
author (unless there are several volumes that stem from the same research project).
Adler, Emanuel and Michael Barnett (eds) (1998), Security Communities. Cambridge:
Cambridge University Press (462 pages).
Bøås, Morten, Marianne H. Marchand and Timothy M. Shaw (eds) (2004), New
Regions and New Regionalisms. Basingstoke: Palgrave (forthcoming).
The authors argue that what differentiates the ‘new regionalisms approach’ from
other approaches is the deliberate focus on how nexuses of globalization and
regionalization have created a whole range of diversified patterns of interactions
and responses at the local, national and regional level. Against this background it
is important that the processes of global restructuring to which these terms apply
are addressed in the plural instead of their singular form in order to reflect their
multidimensionality. These terms should also not be pinned onto one specific
type of actor (most often the state), but should rather reflect the activities of and
interactions between states, firms and community (groups) as well as NGOs and
new social movements. From this perspective the various contributions reflect on
regionalist processes in the Americas, Southeast Asia and Southern Africa.
Breslin, Shaun, Christopher W. Hughes, Nicola Philips and Ben Rosamond (eds)
(2002), New Regionalisms in the Global Political Economy. Theories and Cases. London:
Routledge/Warwick Studies in Globalisation (257 pages).
228
A Guide to Further Reading on New Regionalism 229
the context of globalization and the changing nature of the global political
economy, serves to knit the chapters together. As a whole the volume provides a
comprehensive base for the comparative study of the new regionalism.
Buzan, Barry and Ole Wæver (2003) Regions and Powers. The Structure of International
Security. Cambridge: Cambridge University Press.
This book explores the idea that, since decolonization, regional patterns of secur-
ity have become more prominent in international politics. It examines the inter-
play both among the global powers, and between them and all of the security
regions that make up the contemporary international system. Individual chapters
cover Africa, the Balkans, CIS Europe, East Asia, EU Europe, the Middle East, North
America, South America and South Asia. The main focus is on the post-Cold War
period, and the theoretical framework is explicity comparative. These portraits
give a clear and detailed answer to the much discussed question about the nature
of the ‘new world security order’ that followed the ending of the Cold War.
Coleman, William D. and Geoffrey R.D. Underhill (eds) (1998), Regionalism and
Global Economic Integration. Europe, Asia and the Americas. London: Routledge
(253 pages).
Fawcett, Louise and Andrew Hurrell (eds) (1995), Regionalism in World Politics.
Regional Organization and International Order. Oxford: Oxford University Press
(342 pages).
This book explores the theory and history of regionalization and the balance
between globalization and regionalism/regionalization. It also takes a critical look
at recent trends towards the new regionalism in specific regions – i.e. Pacific-Asia,
the Americas, Europe and the Middle East – assessing their origins, present and
future prospects and place in the evolving international order.
Gamble, Andrew and Anthony Payne (eds) (1996), Regionalism and World Order.
Basingstoke: Macmillan (282 pages).
Hook, Glenn and Ian Kearns (eds) (1999), Subregionalism and World Order. Basingstoke:
Macmillan (268 pages).
Breslin, Shaun and Glenn D. Hook (eds) (2002), Microregionalism and World Order.
Basingstoke: Palgrave (264 pages).
This trilogy of books stemming from the Political Economy Research Centre
(PERC) at the University of Sheffield focuses on states-led regionalist projects at
different levels (regionalism, sub-regionalism, micro-regionalism), through the
prism of the ‘New International Political Economy’, or what lately has been
230 A Guide to Further Reading on New Regionalism
referred to as the World Order Approach (WOA). The point of departure is that
globalization has provided a new context for the new regionalism. However, an
important result is that regionalism does not conflict with the trend towards
greater globalization, although the potential is there for it do so. By illustrating the
complex relationship amongst the political, economic and social dimensions of
various forms of regionalism all over the world, the three books advance the theor-
etical debate on regionalism at the same time as they provide new empirical
insights.
Grugel, Jean and Wil Hout (eds) (1999), Regionalism Across the North–South Divide.
State Strategies and Globalization. London: Routledge (216 pages).
This volume analyzes the role of the semi-periphery and vital countries in the
semi-periphery in creating the new regionalism that is emerging in the 1990s. The
text examines their responses and reactions to global change, and the place of
regionalism within their foreign economic policy. Case studies cover Brazil and
Mercosur, Chile, South East Asia, China, South Africa, the Maghreb, Turkey and
Australia. These are framed by introductory chapters focusing on the creation of
the semi-periphery in the context of globalization and regionalism, and the
underlying theoretical perspectives and trends in approaching the subject.
Hentz, James J. and Morten Bøås (eds) (2003), New and Critical Security and Regional-
ism: Beyond the Nation State. Aldershot: Ashgate (264 pages).
Hettne, Björn, Andras Inotai and Osvaldo Sunkel (eds) (1999), Globalism and the New
Regionalism. Basingstoke: Macmillan (270 pages).
Hettne, Björn, Andras Inotai and Osvaldo Sunkel (eds) (2000), National Perspectives on
the New Regionalism in the North. Basingstoke: Macmillan (284 pages).
Hettne, Björn, Andras Inotai and Osvaldo Sunkel (eds) (2000), National Perspectives on
the New Regionalism in the South. Basingstoke: Macmillan (317 pages).
Hettne, Björn, Andras Inotai and Osvaldo Sunkel (eds) (2000), The New Regionalism
and the Future of Security and Development. Basingstoke: Macmillan (313 pages).
Hettne, Björn, Andras Inotai and Osvaldo Sunkel (eds) (2001), Comparing Regional-
isms: Implications for Global Development. Basingstoke: Palgrave (292 pages).
both processes form an integral part of the current transformation of the global
system, regionalization has a stronger element of political reaction to the basically
market-driven globalization process. The second and third volumes illustrate and
analyse various national perspectives on regionalism in the North and in the South,
respectively. The fourth volume focuses on security and development implications
of the new regionalism. The fifth has a comparative orientation with the purpose
of improving the theoretical framework and providing a foundation for further
research on the role of the ‘regional’ in the current global transformation.
Keating, Michael and John Loughlin (eds) (1997), The Political Economy of Regionalism.
London: Frank Cass (504 pages).
This book examines the effects of economic and political restructuring on micro-
regions in Europe and North America. The main theses are: international
economic restructuring and its impact on micro-regions; political realignments at
the regional level; questions of territorial identity and their connection with class,
gender and neighbourhood identity; policy choices and policy conflicts in micro-
regional development.
Lake, David A. and Patrick M. Morgan (eds) (1997), Regional Orders. Building Security in
a New World. University Park, PA: Pennsylvania State University Press (406 pages).
The point of departure of this book is the fact that, after the bipolar Cold War
struggle, states in differing regions are taking their security affairs more into their
own hands. This trend towards new ‘regional orders’ is the subject of the book.
The purpose is both to document the emergence and strengthening of these new
regional arrangements and to show how international relations theory needs to be
modified to take adequate account of the salience of regional orders in the world
today. The book presents theories of regional order that both generalize about
regions and predict different patterns of conflict and cooperation.
Mansfield, Edward D. and Helen V. Milner (eds) (1997), The Political Economy of
Regionalism. New York: Colombia University Press (274 pages).
Mattli, Walter (1999), The Logic of Regional Integration. Europe and Beyond. Cambridge:
Cambridge University Press (205 pages).
This books reveals that regional integration is not a new phenomenon. Mattli
claims to provide the first analysis of regional integration across time and across
regions. The book examines regional projects in nineteenth and twentieth-century
Europe, but also in Latin America, North America and Asia since the 1950s. The
key questions are why some integration schemes succeed and others fail, what
232 A Guide to Further Reading on New Regionalism
forces drive the process of regional integration, and under what circumstances
outsider countries seek to join. The author uses a political economy approach,
which stresses the importance of both market forces and institutional factors.
This book challenges the traditional manner in which regionalization has been
approached and suggests that the failure to understand the phenomenon is the
result of the modernist relegation of space to the margins of analysis. Niemann
proposes an alternative approach that views space as a social construct. From this
perspective, regionalization represents the construction of new layers of social
space in a search for an institutional fix to the challenges of globalization. This
model is applied to Southern Africa, Central America and South America. Finally,
Niemann proposes that regions may also serve as spaces for counterhegemonic
mobilization which takes advantage of the weakening of the state.
Perkmann, Markus and Ngai-Ling Sum (eds) (2002), Globalization, Regionalization and
Cross-Border Regions. Basingstoke: Palgrave (266 pages).
Schulz, Michael, Fredrik Söderbaum and Joakim Öjendal (eds) (2001), Regionalization
in a Globalizing World. A Comparative Perspective on Forms, Actors and Processes.
London: Zed Books (304 pages).
This edited volume uses an eclectic and multidisciplinary version of the New
Regionalism Approach (NRA) and examines eleven macro-regions in a comparative
perspective. It concentrates on core questions, such as: (i) What constitutes a
region? (ii) How is the historical process of region-formation unfolding? (iii) What
are the main actors and motives of regionalization? (iv) What forms of regional
awareness and institutionalization are emerging? and (v) What are the future pro-
spects of the new regionalism? Focusing on all the major regions in the world, this
book shows that regionalization is an unevenly developing, highly heterogeneous
and multidimensional phenomenon.
Telò, Mario (ed.) (2001), European Union and New Regionalism. Regional Actors and
Global Governance in a Post-Hegemonic Era. Aldershot: Ashgate (330 pages).
This edited collection takes as its point of departure the fact that globalization and
new regionalism are not only economic but also political processes. Its particular
A Guide to Further Reading on New Regionalism 233
234
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252
Index 253