LESSON 7

ZITA M. CORPUZ
Learning Outcomes:

 Differentiate
between
regionalization and  Identify the factors
globalization leading to a greater  Analyze how
integration of the different Asian
Asian region states confront the
challenges of
globalization and
regionalization.
 Regionalism
 An inspirational and revolutionary
reorganization of political,
economic, cultural and social lives
along an imagined region rather
than according to the standard unit
of the nation-state. (He &
Inoguchi, 2011)
 A phenomenon on the clustering of
 emphasizes the geographical
environmental, economic, social and
region as the unit of analysis,
governmental factors to an extent that distinct
stressing interrelationships and
consciousness of separate identity within the
functions within the
whole is realized;
geographic region (W.P. Scott)
 the need for autonomous planning and a
desire for administrative freedom. (Dimock)
 Characteristics of Regionalism

 Strong local identity and

loyalty to the Region – citizens
feel pride in the local culture of
its people.
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 The need for autonomous planning

and a desire for administrative
freedom;
 results to more power to administer
economic resources and modify
fiscal policies.
 Regionalism is a psychic phenomenon

 It is built around a n expression of group

identity, as well as loyalty to the region.

 It presupposes the concept of development of

one’s region without taking into consideration
the interest of the other region.

 It prohibits people from other regions to

be benefitted by a particular region.
 Benefits of Regionalism
(ADB Report, 2008)
 Cooperate in setting exchange rate and
 Link the Region’s competitive macroeconomic policies to minimize the
effects of regional and global shocks and
strengths of its diverse economies
to facilitate the resolution of global
to boost production and sustain imbalances.
exceptional growth;

 Connect the region’s capital

markets to enhance financial
stability, improve opportunities for
sharing risks;
 Benefits of Regionalism
(ADB Report, 2008)

 Exercise of leadership in global decision

making to sustain the open global trade
and financial systems;

 collaborate on inclusive development

to reduce inequalities within and
across economies;

 Create regional mechanisms to

 Pool the region’s foreign exchange
manage cross border health, safety
reserves to make more resources available
and environmental issues better.
for investment and development;
 Benefits of the world from Regionalism
(ADB)

 Generate economic growth, new ideas,

competition and raise income across the world;

 Contribute to the efficiency of global financial markets;

Diversify sources of global demand helping stabilize the
world economy;

 Provide leadership to help sustain open

global trade and financial systems
 FACTORS LEADING TO A GREATER
INTEGRATION OF THE ASIAN REGION

 Trade – global trade facilitates what we need

from other parts of the world and vice versa.

 Similar culture – The cultures of Asia is diverse but these

share many things. This makes it an easier fit during times of
negotiations.

 Common goals – The Asian recognized

the mutual benefit of a slow integration
 The interrelationship between
Regionalization and Globalization

Regionalization - the Globalization - the interconnectedness

process through which
geographical regions
become significant political
and/or economic units
serving as the basis for
cooperation and identity.
and interdependence of states, forming
a process of international integration
arising from the interchange of world
views, products, ideas and other aspects
of culture.
 The
 includes the largest and most
 refer together to the populous states on the globe
regions of East (or including China and India and
Northeast) Asia, South and some of the world’s smallest
Southeast Asia, and the such as the Maldives and
Pacific Islands Bhutan.

 includes some of the world’s most economically developed states

such as Japan, South Korea, Singapore, and Taiwan, and highly
impoverished countries such as Cambodia, Laos, and Nepal
 The Asia Pacific Economy

 The Asia Pacific area makes up nearly a third

of the world’s land mass and two-thirds of
the global population.
 The combined economies of the region now
generate the largest share of global GDP
(gross domestic product) at 35% , compared
with Europe (28%) and North America (23%)
-(Asian Development Bank, 2012).

 It also accounts for just over a third of total world exports of merchandise goods
up from a quarter in 2001 (Asian Development Bank, 2012).
 The End of Japan’s reign in the
region

 The rise of Japan and

the outbreak of war in
the Pacific theater after
the bombing of Pearl
Harbor marked the
beginning of the end of
Japan’s own imperial
domination in the
region.
 The success of the East Asian economies was followed in the late 1980s and 1990s
by the high-flying growth of Southeast Asian countries including Thailand,
Indonesia, Malaysia, Singapore, Philippines and Vietnam.
 The Southeast Asian ‘tigers’ had some
similarities to their East Asian
counterparts including close ties between
the state and business elite, some degree
of autonomous decision-making
structure, and the rise of manufacturing.

 However, the Southeast Asian economies

also became more reliant on infusions of
foreign capital, based on fixed exchange
rate policies and corresponding
investments and returns .
-END-