Chapter 1 - The Contemporary World
Chapter 1 - The Contemporary World
TO
GLOBALIZATION
CHAPTER I
At the end of this chapter, the students
will be able to:
The age of economic globalization has also been the age of regionalization a much of the analysis of
the new regionalism has been devoted o the links between the two tendencies. Thus, regionalism is seen as
critical part of the political economy of globalization and the strategies that states (and other actors) have
adopted in the face of globalization… The emergence of regionalism needs to be understood within the
global restructuring of power and production. The many worlds are very closely intertwined with the
character and fat of the one. The core driving force is global even if the manifestation is regional.
GLOBALIZATION AND
REGIONALIZATION
Globalization “goes back to when humans first put a boat into
the sea” (Sweeney, 2005, p. 203). We can understand
globalization as “the increased flows of goods, services, capita,
people, and information across borders” Jacoby and Meunier,
2010, p.1). But as we have learned from the previous discussions,
there are many controversies about and varying definitions of the
term. Defining region and regionalization is complicated.
Nevertheless, region, according to Mansfield and Milner (1999) is
“a group of countries in the same geographically specified area”
(p.2). Hurrell (2007) defined regionalization as the “societal
integration and the often-undirected process of social and
economic interaction” (p.4). In addition, regionalization is
different from regionalism, which is “the formal process of
intergovernmental collaboration between two or more states”
(Ravenhill, 2008, p. 174)
GLOBALIZATION
AND
REGIONALIZATIO
N
The motivations for the recent
regionalization in Asia, as well as other
regions in the world, cannot be isolated
from one another. It is a complex mixture
of factors. One of the reasons behind
regionalism is the concern for security,
which is to ensure peace and stability.
Confidence building can be enhanced
through economic cooperation within a
region. The ASEAN and the Shanghai
Cooperation Organization (SCO) are
regional organizations that seek strong
security in Asia through cooperation.
GLOBALIZATION AND
REGIONALIZATION
Huntington (1996), on the contrary, believed that culture
and identity guide regionalization. As he put it, “In the post-
Cold War world, states increasingly define their interests in
civilizational terms” (p. 30). For him, culture and identity are
civilizations. He identified nine major civilizations: Western,
Latin American, African, Islamic, Sinic, Hindu, Orthodox,
Buddhist, and Japanese. He agued that international
organizations like the EU or Mercorsur share a common culture
and identity are far more successful than NAFTA, whose
member states belong to different civilizations. If we follow
Huntington’s idea of the “clash of civilizations”, one could
argue that the potential for such clash can be strong in Asia
because many of those civilizations are, at the least, can be
found in the region.
GLOBALIZATION
AND
REGIONALIZATIO
N
Nevertheless, economic motivations are arguably
the main motivation behind contemporary
regionalization. By entering in the regional
organizations, Asian states may regain some control
over flows of capital and enhance their bargaining
power against transnational economic actors such as
investment groups or transnational corporation (TNCs)
(De Martino and Grabel, 2003). Aside from this,
domestic companies may benefit from belonging to a
regional market big enough to allow them scale
economies while still being protected from global
competition.. In other words, regional organizations
allow national companies the opportunity to succeed in
a protected but big enough market in a way that they
would otherwise fail if exposed t global competition.
GLOBALIZATION AND
REGIONALIZATION
Finally, non-state actors, such as the TNCs, act as
a driving force toward regionalism. These TNCs,
whose host countries are not part of a given regional
trage agreement, find themselves in a disadvantaged
commercial situation with respect to companies
belonging to the regional organization in question.
Given this situation, Ravenhill (2008) said that
disadvantaged TNCs will lobby their national
governments to sign similar trade agreements in
order to end their disadvantaged commercial
situation.
REFERENCE