regionalism and globalisation Flashcards
introduction
o Telo: ‘post hegemonic era’
o Diminishing influence of nation state
o Growth of regional actors evolving political economy
o Globalisation reason why these changes occur
o But how are they actually interlinked?
o Regionalism enhance globalisation
♣ Liberalisation of trade
♣ Regional organisations compete in global market economy
o Regionalism hinders globalisation
♣ Protectionist measures
♣ Dominance of large economies
gatt-wto model point
o model on how regional organisations and institutions have faced globalisation challenges
o regional integration in an antecedent of systematic globalisation
o regionalism is an intermediary stage between national and globalised political economy enhances globalisation
gatt-wto model example
o Uruguay Round of multilateral trade talks in 1994 lead regional organisations such as the EU to sign the General Agreement on Tariff and Trade thanks to the existing regional economic links it already has
o ex: ASEAN was created as a response to an increase of global market economy. In fact, the five states that originally formed ASEAN in 1967 joined together in order to face the pressures from an increase of regional actors in the global market economy such as the EU, NAFTA
gatt-wto evaluation
o economic asymmetry within regional organisations
o Manzetti and Sergie: NAFTA disproportionate economic influence of the United States which didn’t allow the generation of jobs and the deep regional economic integration it promised
♣ Worsen regional competition and regional protective arrangements
• Trade negotiation failures on global scale
♣ Doha negotiations broke in 2008 fear of multilateralism and unbalance arrangements from small countries
o Works just for some transitional institutions – ASEAN different regional applications
regional integration as protection tool point
o Telo: Protect member states through regionally discriminatory treaties
o Regional integration = reaction to forces of global market liberalisation
o Regional trading bocks create protective measures against each other
♣ Geo-economic conflict
regional integration as protection tool example
o Oman regional cooperation in East Asia is a response to the problems associated with globalisation.
♣ Oman believed globalisation was driven by capitalism who wants to integrate has to subscribe to capitalist policies such as neo-liberalism
♣ Mark and Engles believed global market was spread through capitalism
♣ East Asia regionalised in response of globalisation as it created capitalism whose consequence had to be met with integration
o or in cases such as the European Monetary Union which wanted to create a ‘single, internal market it also encouraged geo-economic conflict along with regional integration.
o US 17% of voting share in WTO when vote 17% will think about the US’s self-interest and vote for what strengthen their economy small countries like Paraguay lose
protection tool evaluation
o doesn’t face the problem of new regionalism and how global trade works in an hyper-globalised world
o regions seek stable international trading partners a well
hyper-globalist point
o regional integration and globalisation are inseparable geo-political processes
o regional structures = political adjustments to cosmopolitan global economy based on neoliberal market values
o regional bodies ease the convergence of national economies nation state useless to the needs of global capital economy
o more important role of transnational companies, private and international policy networks and the global marketplace
o getaway for smaller national organisations
nation state = hindrance
hyperglobalist example
o Royal Dutch Shell, General Electric and BP are some of the highest transnational corporations that thanks to globalisation were able to bring small countries in the global market
o Royal Dutch Shell 60% sells abroad
o General Electric 53%
o BP 80%
hyper globalist evaluation
o Regionalisation and globalisation relation is apolitical and flawed
o Fails to take into account globalism
♣ Nation states engineer political project that enhance regionalism and regional trade interest in global scale
o Misunderstand the geo-political realities of regionalisation
o Political economy of regions are still guided by nation states interest (realist)
♣ Is not necessarily a barrier to global economic liberalisation
regionalism as finding a place in globalisation
o global market
o globalisation increase in international trade
o increase pressure on nations to find a space in the global political economy regional integration
o MERCOSUR 1991 – Brazil, Argentina, Uruguay, Paraguay, Paraguay smalles economy and now international trade counts around 97% of each county’s GDP (2013 stats)
o joining a regional block will make you economy more attractive for the Foreign Direct Investment
o NAFTA – Mexico join 1994 average cost of household goods fallen by half
♣ Increase consumer welfare as larger disposable income
♣ Allow greater investment in economy
♣ Economy grows = develop niche goods and services that will make them attractive for foreign investment
