Concepts Flashcards
How can we explain the proliferation of regional integration?
o Why some do not consider cooperation as regional integration
o Eg. ASEAN would not consider itself as regional integration group
o Common institutions- likely- EU, or unlikely- ASEAN-> the level of institutionalization
* The level of institutionalization is not important for existence
o The States would usually refrain from definitions- we need to look at it in a macro scope of a region cooperation-> integration
Economic Interdependence: Globalization and the growth of international trade and investment have created greater economic interdependence among countries, making it more attractive for countries to join together in regional blocs to boost their economic competitiveness and promote trade and investment.
Political Stability and Cooperation: Regional integration can help promote political stability and cooperation among neighboring countries by creating shared institutions and decision-making processes, and by fostering a sense of common identity and purpose among member states.
Global Governance Challenges: The proliferation of global challenges such as climate change, terrorism, and migration has made it more difficult for individual countries to address these issues alone. Regional integration can help countries pool their resources and expertise to tackle these challenges more effectively.
Regional Power Dynamics: The rise of regional powers such as China, India, and Brazil has spurred greater regional integration efforts as other countries seek to balance against these emerging powers and to take advantage of the economic opportunities they offer.
Normative Factors: There may also be normative factors at play, as countries seek to promote shared values and norms such as democracy, human rights, and environmental sustainability through regional integration.
Overall, the proliferation of regional integration reflects a complex mix of economic, political, and normative factors, and is likely to continue to evolve and adapt in response to changing global dynamics and challenges.
Why do states participate in forms of regional integration instead of pursuing multilateral or global integration?
It is a way to promote their economic, political, and strategic interests, and because it offers a more practical and feasible alternative to multilateral or global integration in certain contexts.
Proximity and Shared Interests: Countries that are geographically close to one another and share common economic, political, or cultural interests may be more likely to pursue regional integration, as it can help facilitate trade, investment, and cooperation in areas of mutual benefit.
Reduced Transaction Costs: can help reduce the costs and complexities of cross-border trade and investment by creating a common set of rules and regulations, and by providing shared institutions and infrastructure to facilitate economic activity.
Political Benefits: can help enhance political stability and cooperation among neighboring countries by creating shared institutions and decision-making processes, and by fostering a sense of common identity and purpose among member states.
Preference for Flexibility: allows them to maintain a greater degree of flexibility and autonomy in their foreign policy and economic decision-making.
Power Dynamics: can also be driven by power dynamics, as countries seek to balance against regional rivals or to promote their own economic or political influence within a particular geographic area.
o Global integration = nonsense
o Integration based upon common interests. In global, there is not many areas to be considered global
o Regional integration= form of conservation -> based on similarity, closeness of the actors
* Focused on similar, common areas of participants
o Models classically closed - common inside, protective outside (protectionism)
o Sometimes based on reducing conflicts, sometimes to increase conflict (as a positive aspect)
Why do we see such a diversity of institutional forms in regional integration?
The diversity of institutional forms in regional integration reflects the complex and dynamic nature of regional integration initiatives, which are shaped by a range of factors including the heterogeneity of regions, the varying objectives and priorities of member states, political bargaining and negotiation, and the evolution of regional integration over time.
Heterogeneous Nature of Regions: Regions are not homogenous, and the diversity of economic, social, and political conditions within a region can shape the institutional form that regional integration takes. For example, the institutional form of the European Union (EU) is very different from that of the Association of Southeast Asian Nations (ASEAN) because the two regions have different levels of economic development, political structures, and cultural norms.
Varying Objectives and Priorities:
have different objectives and priorities, ranging from economic integration to political cooperation to security and defense. The institutional form that regional integration takes is often shaped by these objectives and priorities, and by the specific needs and preferences of the member states.
Political Bargaining and Negotiation: The process of creating regional integration initiatives often involves complex political bargaining and negotiation among the participating countries. The resulting institutional form can reflect the balance of power, interests, and preferences among the member states.
Evolution over Time: can evolve over time in response to changing circumstances and member-state preferences. For example, the EU has undergone several rounds of institutional reform since its inception, reflecting changing political and economic conditions and the evolving priorities of member states.
o Different levels
o EU - high institutionalization vs ASEAN - almost no institutionalization
o Institutionalization is not a condition to be regionally integrated ( to be considered such)
What are the economic and political consequences of regional integration in a historical perspective?
o Creation of common sense (Eg. Europe instead of EU council…)
o But on the other hand, it might be difficult to create common sense even within regionally integrated actors
o A self-positioning of Australia as an Asian country with Western ancestry
Economic Consequences: Regional integration can lead to increased trade, investment, and economic growth, as well as greater efficiency and competitiveness in the production and distribution of goods and services. The European Union is a notable example of a region that has seen significant economic benefits from integration, including increased trade, investment, and economic growth. Similarly, the establishment of NAFTA (North American Free Trade Agreement) helped increase trade and investment flows between the United States, Canada, and Mexico.
However, regional integration can also have negative economic consequences, particularly for countries that are less economically developed or that face significant domestic political challenges. For example, some countries in sub-Saharan Africa have struggled to benefit from regional integration initiatives, due in part to weak infrastructure, limited access to capital, and political instability.
Political Consequences: Regional integration can also have important political consequences, including enhanced political cooperation and stability, as well as the promotion of shared values and norms among participating countries. The European Union, for example, has been credited with promoting greater political stability and cooperation in Europe, as well as the spread of democratic values and human rights norms.
However, regional integration can also create tensions and conflicts among participating countries, particularly in contexts where there are significant political, ethnic, or cultural differences. For example, the establishment of the African Union has faced challenges due to political tensions and conflicts among member states, particularly in regions with a history of political instability or conflict.
Vary widely depending on the specific context and circumstances in which integration occurs. While regional integration can bring significant benefits, it can also have unintended consequences and can be difficult to implement effectively in contexts where political or economic conditions are challenging.
Open regionalism vs. Closed regionalism
seeks to promote economic openness and liberalization, both within a particular region and with the broader global economy. The concept of open regionalism emerged in the 1980s and 1990s as an alternative to closed, protectionist forms of regional integration that had dominated in earlier periods.
In contrast to closed regionalism, which seeks to protect domestic industries and markets from foreign competition through the establishment of high trade barriers and other protectionist measures, open regionalism seeks to promote economic integration through the removal of trade barriers and the facilitation of greater trade and investment flows both within a region and between the region and the global economy.
Open regionalism is often associated with the promotion of free trade agreements, which aim to remove barriers to trade and investment and promote greater economic integration among participating countries. For example, the Asia-Pacific Economic Cooperation (APEC) forum has been a key driver of open regionalism in the Asia-Pacific region, promoting trade liberalization and regional economic integration through the promotion of free trade agreements and the facilitation of greater economic cooperation.
Advocates of open regionalism argue that it can bring significant economic benefits to participating countries, including increased trade, investment, and economic growth. However, critics argue that open regionalism can lead to greater economic inequality and social disruption, particularly in contexts where domestic industries are unable to compete with foreign competitors or where labor markets are vulnerable to displacement.
Closed regionalism involves creating a regional trade bloc by imposing tariffs, quotas, and other trade barriers on goods and services from non-member countries while promoting trade among member countries.
Closed regionalism is different from open regionalism, which aims to promote regional economic integration while maintaining open trade relations with non-member countries. Closed regionalism is often used as a strategy for developing countries to protect their domestic industries and promote economic growth within their region
Regionalism vs Regionalization
Regionalism: “process to identify a region given similar characteristics”- refers to the strong sense of pride and identity that people feel for a particular region, often based on shared cultural, historical, or geographic characteristics. It can manifest in various ways, such as regional accents, traditions, and customs, as well as a sense of loyalty to the region and its people.
Regionalization: “process considering consistent facts, relations (economic, military, politic), agreements. Refers to the process of creating or strengthening political, economic, or social ties between regions or countries. This can involve the formation of regional organizations, such as the European Union or the African Union, which seek to promote cooperation and integration among their member states. It can also involve the creation of regional trade agreements or the development of regional economic blocs.
Levels of integration
Free trade area
Customs Union
Common market
Economic Union
Theoretical approaches to regional integration
*Political-science approaches:
1. Functionalism
2. Neo-functionalism
3. Intergovernmentalism
*Economic approaches (usually come together with political-science models):
1. Customs union theory
2. Optimal currency area
3. Fiscal federalism (Casella)
Functionalism
Supra-national institutions. Objective: Peace through prosperity.
i. based on Mitrany - theory of integration based on sharing parts of their sovereignty- functions of the State
ii. Supra-national institutions-> peace through prosperity
iii. The main objective = PEACE
iv. Action based on the actions of National Governments, normative -rules
v. Eg. EU - dominantly based on functionalism theory (Eur. coal and steal community)
focuses on the functional benefits that cooperation can bring, such as increased economic efficiency, improved security, or better governance.
According to the functional approach, regional integration is driven by the need to address specific problems or challenges that cannot be effectively tackled by individual countries acting alone. By pooling resources and coordinating policies, countries can achieve better outcomes than they could on their own.
The functional approach differs from neofunctionalism in that it does not assume a natural spillover effect from cooperation in one area to other areas. Instead, it emphasizes the need for deliberate action to build cooperation in specific areas of mutual interest.
Neo-functionalism
Political actors at supra- and subnational levels. Objective: Welfare maximization (assumed).
i. Political actors at supra-national and sub-national levels (= not only governments)
ii. Actions of companies, NGOs, political parties,
iii. Welfare maximization
iv. 70s within EU
gradual process that is driven by the functional spillover effects of economic cooperation.
In other words, neofunctionalism argues that the initial cooperation in a particular area, such as trade or transportation, will create functional interdependence among the countries involved. This interdependence then creates pressures for further cooperation in other areas, which leads to deeper integration.
Neofunctionalism also emphasizes the role of non-state actors, such as businesses and interest groups, in driving integration. These actors may advocate for integration to increase economic efficiency, reduce costs, or gain access to new markets.
Intergovernmentalism
Heads of governments. Objective: Welfare and power maximization.
i. “Non-European” integration model (Eg. ASEAN, NAFTA))
ii. Cooperation of Heads of Governments -> doesn’t necessarily include rules and obligations. No need for existing institutionalism
iii. Based on the necessity and political will of Heads of Government to cooperate
iv. Welfare and power maximization
role of states in driving and shaping regional cooperation.
According to the intergovernmental approach, regional integration is a process that is initiated and controlled by states, who negotiate and make decisions on behalf of their national interests. The process is characterized by intergovernmental bargaining, where states come together to negotiate agreements and make decisions through a process of give-and-take.
Customs union theory
Markets (goods and services). Objective: Improvement of national income.
i. Common, shared markets -> boosting economic exchange
ii. Improvement of national income
iii. The case of Zolleverein in Germany
Optimal Currency area
Markets (goods and factors). Objective: Full employment and payments equilibrium.
i. First idea of the UK
ii. Full employment and payment equilibrium
iii. EURO area
Fiscal federalism (Casella approach)
Interaction of markets and excludable public goods. Objective: Improvement of market efficiency.
i. Second level of federalism
Categories of regional…
- Regionalization: growth of societal integration within a
region (undirected processes of social and economic
interaction) - Regional awareness and identity: how language and
rhetoric can define and redefine a “regional nature” (i.e.
identity, relative definitions) - Regional interstate cooperation: formal or informal nature,
institutional and legal relationship within a region in which economic transactions take place, or market relationship among goods and factors within a region. - State-promoted regional integration: specific policy decisions by governments designed to reduce or remove barriers (that is the EEC/EU way: intergovernmentalism)
- Regional cohesion: cohesive and consolidated regional unit coming from the combination of the four elements just mentioned.
