Is regionalism a stumbling block or a stepping stone in the process of globalisation?

Author: Rudi Guraziu

Middlesex University School of Health and Social Sciences Globalisation: International Political Economy Political & International Studies MA International Relations May 2008

Since the end of the Cold War, there has been a resurgence of regionalism across the globe.1 The number and salience of Regional Trade Agreements (RTAs) have grown significantly. As of July 2007, 380 RTAs have been notified to the World Trade Organisation (WTO). Of these 205 RTAs were in force at that same date.2 The process of regionalism appears irreversible, no longer to be dismissed by critics as a mere fad.3 However, this trend has raised controversial issues such as whether regionalism is becoming a stumbling block or a stepping-stone toward the processes of globalisation. Some see regionalist projects as an obstacle to economic globalisation -- others as a way toward multilateralism. Hettne argues that new regionalism cannot simply be a stepping stone in a linear process, but this does not necessarily mean that it constitutes a stumbling block either.4 In this paper, I will be investigating whether regionalism is a stumbling block or a stepping stone in the process of globalisation. I will do this by focusing on the development of regionalism and its several aspects and its developing links with globalisation. In the first part, I will explore the concepts involved in some detail, with a particular focus on the concept of regionalism. I then go on to examine different approaches to regionalism from the perspective of three dominant theories of international relations, neo-realism, neo-liberalism and neo-marxism. The stumbling block - stepping stone controversy I will explore both theoretically and empirically. In the last part, I will look at regionalism in Europe, Asia, and Americas. As a prelude to the stumbling block or stepping stone debate it is important to explore the concepts of: region, regionalism, regionalisation, globalism and globalisation that are relevant to this essay.

See for example: Bjrn Hettne, The New regionalism: A Prologue, in Bjrn Hettne, Andras Inotai and Osvaldo Sunkel, eds. Globalism and the New

Regionalism Volume 1 (Macmillan Press, Basingstoke, 1999). p. xvii.; Louise Fawcett, Exploring Regional Domains: A Comparative History of Regionalism, International Affairs 80, 3 (2004), p. 438.; Charalambos Tsardanidis, The BSEC: From New Regionalism to Inter-regionalism?, Agora Without Frontiers Volume 10 (4) 2005: p. 363.; Michael Smith, Regions and Regionalism, in Brian White, Richard Little and Michael Smith (Third ed.). Issues in World Politics (Basingstoke: Macmillan 1997), p. 69.; Louise Fawcett, and Andrew Hurrell, Introduction, in Louise Fawcett and Andrew Hurrell, eds., Regionalism in World Politics: Regional Organisation and International Order (Oxford: Oxford University Press, 1995). p. 1; Karen A. Mingst, Essentials of International Relations, Fourth Ed. (W. W. Norton & Company, New York, 2008), p. 274. 2 The WTO, Regional trade agreements, Available at: http://www.wto.org/english/tratop_e/region_e/region_e.htm [accessed 24 April 2008]. 3 Louise Fawcett, Exploring Regional Domains: A Comparative History of Regionalism, p. 438.
4

Bjrn Hettne, The New regionalism: A Prologue, p. xx.

The first question that comes to mind: what is region? Region along with all the aforementioned terms is a contested and ambiguous concept. Regions, like states, are of varying compositions, capabilities and aspirations. They may also be fluid and changing in their make-up.5 They can be formal and informal, created and recreated in the process of globalisation.6 In other words, regions exist where politicians want them to exist. While regionness, like identity, is not given once and for all: it is built up and changes.7 What is regionalism? Anthony Payne defines regionalism as a state-led or statesled project designed to recognise a particular regional space along defined economic and political lines.8 In similar vein, Grugel, and Hout, assert that regionalism is a states-led project which has as its aim that of reorganising particular geo-economic spaces. 9 However, not everyone agrees with this narrow definition of regionalism. Bs et al for example argue that regionalism is clearly a political project, but it is obviously not necessarily state-led, as states are not the only political actor around . . . we clearly believe that, within each regional project (official or not), several competing regionalising actors with different regional visions and ideas coexist.10 That is, although the state is still important (if not the most important and powerful actor) that dos not necessarily mean that other non-state actors have to be ignored. In fact, Bs et al believe that even though the state is most often one of the regionalising actors, [nonetheless] equally important are NGOs, new social movements, media, companies as well as a range of actors based in the second economy of the informal sector.11 This concept is now known as new regionalism .The term new regionalism is generally used in the post-Cold War era.

5 6 7 8

Louise Fawcett, Exploring Regional Domains: A Comparative History of Regionalism, p. 434. Bjrn Hettne, The New regionalism: A Prologue, p. xv. Amin Maalouf cited in Louise Fawcett, Exploring Regional Domains: A Comparative History of Regionalism, p. 434. Anthony Payne, Globalization and Modes of Regionalist Governance, in David held and Anthony McGrew, eds., The Global Transformations Reader;

An Introduction to the Globalization Debate (Polity Press, Cambridge, 2003). p. 213.

9

Jean Grugel, and Wil Hout, Regions, regionalism and the South in Jean Grugel and Wil Hout eds., Regionalism across the North-South Divide: State

Strategies and Globalization (London: Routledge, 1999). p. 10.

10

Morten Bs, Marianne H. Marchand and Timothy M. Shaw cited in Fredrik Sderbaum, Introduction: Theories of New Regionalism, in Fredrik

Sderbaum and Timothy M. Shaw, eds, Theories of New Regionalism: a Palgrave Reader, (New York, Palgrave Macmillan, 2003).pp. 8-9.
11

Bs et al in ibid, p.14.

Most of the literature on regionalism since 1990s refers to two main waves of regionalism identified as old and new. The first wave started in the late 1940s and ended in late 1960s and early 1970s (arguably due to the uneven distribution of benefits in regional trade agreements), the second part began in mid 1980s and in particular, the world trading system in 1990s has witnessed a resurgence of regionalist projects worldwide often referred to as new regionalism. However, in order to understand what is new about regionalism one has to identify its differences from the old understanding. In contrast to classical regionalism, the new regionalism involves non-state actors, and is more open and more comprehensive.12 Regionalisation on the other hand refers to the growth of societal integration within a region and to the often undirected processes of social and economic interaction early described as informal integration while nowadays this phenomenon is known as soft regionalism.13 Here, it is important to distinguish the concepts of regionalisation and regionalism, which sometimes are used interchangeably. 14 Regionalisation is a process that can occur even without regionalism.15 It refers to the regional expression of the global processes of economic integration and the changing structures of production and power.16 Yet, Hettne et al assert that the process of regionalisation can only be understood within the context of globalisation. To deal only with regionalisation would be to miss the other side of the coin, which is globalisation.17
12

The distinction between the old and the new regionalism according to Hettne is in the following respects: (a) Whereas the old regionalism was formed in a bipolar Cold War context, the new is taking shape in a more multipolar world order. (b) Whereas the old regionalism was created from above (that is by superpowers), the new is more spontaneous process from within (in the sense that the constituent states are themselves main actors). (c) Whereas the old regionalism was specific with regard to objectives, the new is a more comprehensive, multidimensional process. Bjrn Hettne, Global Market versus the New regionalism, in
David held and Anthony McGrew, eds., The Global Transformations Reader; An Introduction to the Globalization Debate (Polity Press, Cambridge, 2003), p.362.; For detailed differences between the new and the old regionalism see, Bjrn Hettne, Globalisation and the New Regionalism: The Second Great Transformation , pp. 7-8.
13

Andrew Hurrell, Regionalism in Theoretical Perspective, in Louise Fawcett and Andrew Hurrell, eds. Regionalism in World Politics: Regional

Organisation and International Order (Oxford: Oxford University Press, 1995). p. 39. 14

See Louise Fawcett, Exploring Regional Domains: A Comparative History of Regionalism, p.433.; Manuela Spindler, New Regionalism and the
Tun Aybak, Globalisation and Regionalism. Jean Grugel, and Wil Hout, Regions, regionalism and the South, p.10. Bjorn Hettne et al, Editors Introduction, in Bjrn Hettne, Andras Inotai and Osvaldo Sunkel, eds. Globalism and the New Regionalism Volume 1

Construction of Global Order, Centre for the Study of Globalisation and Regionalisation, CSGR Working Paper No. 93/02 p.6 March 2002. Available at: http://www2.warwick.ac.uk/fac/soc/csgr/research/workingpapers/2002/wp9302.pdf
15 16 17

(Macmillan Press, Basingstoke, 1999).p. xxxi

McGrew et al regard Globalisation as a process that is transforming the spatial organisation of social relations and transactions.18 Contrary to some economists who see globalisation as a positive others, including national policy-makers and their constituencies, especially in the OECD [Organisation of Economic Cooperation and Development], see globalisation as threatening.19 In other words, globalisation produces both negative and positive effects. When it comes to the relationship between regionalism and globalisation, some observers view regionalism as an integral part of globalisation others as concepts bouncing against one another.20 However, Mittelman for example argues that any imputed conflict between regionalism and globalisation is more theoretical than real, for political and economic units are fully capable of walking on two legs. He points out that, if globalisation is understood to mean the compression of the time and space aspects of social relations, then regionalism is but one component of globalisation. Properly understood, the dynamics of regionalism are a chapter of globalisation.21 Still, this does not so clearly answer the question of how do these ideas of globalisation relate to regionalism.22 The answer obviously is not an easy one. Indeed the answer is very complex and ambiguous. According to Hurrell there are many ways in which globalisation works against the emergence of regionalism23 and visa-versa. Moreover, as Margaret Lee observes the weave-world of regionalism and globalisation () does not co-exist well within the African context. In fact, it appears to be counterproductive to the African agenda of economic growth and development.24

18

It generally refers to the stretching of social, political and economic activities across political frontiers, regions and continents and the intensification, or the growing magnitude, of interconnectedness and flows of trade, investment, finance, migration, culture, etc. David held, Anthony McGrew, David Goldblatt, and Jonathan Perraton,
What is Globalisation, Available at http://www.polity.co.uk/global/whatisglobalization.asp [lased accessed 21 April 2008], emphasis on the original.

19 C. Oman, cited in Percy S. Mistry, The New Regionalism: Impediment or Spur to Future Multilateralism?, in Bjrn Hettne Hettne, Andras Inotai and Osvaldo Sunkel, eds. Globalism and the New Regionalism Volume 1 (Macmillan Press, Basingstoke, 1999). p. 148
20

Held et al assert that the new regionalism is not a barrier to political globalisation but, on the contrary, entirely compatible with it if not an indirect encouragement. David Held and Anthony McGrew, and David Goldblatt and Jonathan
Perraton, Global Transformations: Politics, Economics and Culture, (Polity Press, Cambridge, 1999). p. 77

21 James H. Mittelman, Rethinking the New regionalism in the Context of Globalisation, in Bjrn Hettne, Andras Inotai and Osvaldo Sunkel, eds. Globalism and the New Regionalism Volume 1 (Macmillan Press, Basingstoke, 1999). p. 25 22 Andrew Hurrell, Regionalism in Theoretical Perspective, p. 55.
23

Ibid.

24 Margaret Lee, Regionalism in Africa: A Part of Problem or a Part of Solution, p.21.

Theoretical approaches to regionalism The controversy regarding regionalism is evident also amongst the three dominant theoretical schools of thought in the field of international relations. Neo-realist theories, based on power politics, would hold that even if a state were to derive an absolute gain from cooperation it will refrain from entering into a cooperative relationship if it expects that its partner will benefit relatively more from the relationship and will end up comparatively stronger.25 Further, neo-realists argue that since the developing countries lack the domestic legitimacy to defend their economic resources their elite tend to form alliances with the more powerful countries. Levy and Barnett have argued that there is an incentive for political leaders to ally with an economically more powerful state that might provide scarce resources26, which, in turn, might help resolve internal economic and political problems.27 According to them security threats often stem from weaknesses in the domestic political economy rather than from more narrowly defined and autonomously generated political threats.28 Furthermore, neo-realists expect that regionalist agreements between the developed countries and the developing countries will be security related 29. In addition, neo-realists argue that regionalist arrangements will be evaluated on the basis of the relative gains accruing to the different partners in the arrangement.30 For realists international organisations are nothing more than interstate institutions, therefore it is irrelevant whether such institutions are global or regional.31 Nevertheless, although political realism is sometimes convincing, as a theory it fails to recognise the changes in the world. The
25 Wil Hout, Theories of International Relations and the New Regionalism in Jean Grugel, and Wil Hout, eds., Regionalism across the North-South Divide: State Strategies and Globalization (London: Routledge, 1999). pp. 14-28
26

Buzan et al, by using water shortages as an example argue that a water shortage could become securitised at the global level, but the major battles will

be more likely to be regional. Barry Buzan, Ole Waever, and Jaap de Wilde, Security: A New Framework for Analysis, (London, Lynne Rienner 1998). p. 18
27 28

Jack Levy and Michael Barnett cited in Wil Hout, Theories of International Relations and the New Regionalism, p. 15. Ibid.

29 Barry Buzan et al, have termed security issues within regions as regional security complex which he defines as a set of units whose major processes of securitisation, desecuritisation, or both are so interlinked that their security problems cannot reasonably be analysed or resolved apart from one another. Buzan et al A New Framework for Analysis p. 201. Although Buzans et al analysis on security has been criticised as state-centric, (Peter Hough, Understanding Global Security, (London and New York, Routledge, 2004), p. 9.) ,nevertheless, the complex itself is defined by the actions and relations in the region () [because, otherwise] (), it would not be a regional security complex. Buzan et al, Security: A New Framework for Analysis, p. 200.
30

Wil Hout, Theories of International Relations and the New Regionalism,p.16.

31 Louise Fawcett, Regionalism in Historical Perspective, in Louise Fawcett and Andrew Hurrell, eds. Regionalism in World Politics: Regional Organisation and International Order (Oxford: Oxford University Press, 1995). p. 13.

EU integration is a case in point: EU member states have voluntarily given up parts of their sovereignty to supranational bodies posing a direct challenge to the realists view on regionalism. Neo-liberalist theories on the other hand dominate most of the literature and are strongly Eurocentric focusing on the changing character of intra-regional relations, on the conditions that were likely to promote or to hinder the movement towards regional economic integration.32 According to neo-liberals, regional groupings need not be either building blocs or stumbling blocs of world order. In contrast to neo-realist view, neoliberal approach to international relations seems to place much more stress on cooperation among states.33 Moreover, neo-liberals tend to see cooperation among states as the rule, rather than the exception, especially in those areas where policy coordination, is necessary to realise the procurement of public goods, such as stable monetary relations, free trade or sustainable ecological development.34 Neo-liberals believe that, by encouraging domestic economies to compete in the world market, regional integration will lead to multilateral co-operation on a global scale and thus reduce conflict. 35 However, the credit crunch seems to be putting negative pressure in this assertion. Neo-liberalist position is that the same rules of economic development can be applied to both developed and underdeveloped countries. Obviously, centres could impose the rules on peripheries as they wish since they are in charge of the World Bank and the International Monetary Fund (IMF). As Mittelman points out neo-liberal theory has been put into practice in the form of adjustment policies drawn up by the World Bank and the IMF.36 In contrast, to neo-liberalists who believe that regionalism is useful as long as it leads to free trade, neo-marxists who mainly draw on the theory of imperialism have focused on the developing regions. Johan Galtung describes imperialism as a structural relationship between countries from the centre and periphery. Galtung contends that the relationship between the EU and the developing world is a relationship of collective
32Andrew Hurrell, Regionalism in Theoretical Perspective, p. 46 33 Wil Hout, Theories of International Relations and the New regionalism, p.16.
34

Wil Hout, Theories of International Relations and the New Regionalism, pp. 16-17.

35 James H. Mittelman, Rethinking the New regionalism in the Context of Globalisation, p. 29.
36

Ibid., p. 45.

colonialism37. Similar assertions have been voiced recently by various civil society organisations of Africa who have called on EU to stop trying to re-colonise Africa. 38 Furthermore, Galtung argues that the EC policy is aimed at fragmenting the South: the EC enters into separate trade agreements with different groups of developing countries, such as the so-called African, Caribbean and Pacific (ACP) countries.39 Similarly, during the recent EU-Africa summit held in December 2007 in Lisbon, Alpha Oumar Konare, Head of African Union accused Europe of playing certain African regions off against each other.40 Further, contrary to some enthusiasts for globalisation and open regionalism, Samir Amin views regionalisation as a building block for a reconstruction of a different global system.41 Amin argues that regionalism is the only efficient response to the challenges of a continuously deepening polarisation generated by the capitalist globalisation processes.42 According to Amin a countrys position in a globalised world is defined by its capacity to compete in the world market [where such] competitivity is a complex product of many economic, political, and social factors.43 Amin contends that the centres use the following five monopolies to prevent the peripheries from developing. (i) technological monopoly, (ii) financial control of worldwide financial markets, (iii) monopolies of access to the planets natural resources, (iv) media and communication monopolies, (v) monopolies of weapons of mass destruction.44 These five monopolies define the framework within which the law of globalised value operates.45 Since states cannot possibly fight against these five monopolies on their own, Amin asserts that regionalisation is the only alternative.46 For Amin regionalisation might work as a shield against the capitalist led globalisation.
37 Johan Galtung in Wil Hout, Theories of International Relations and the New Regionalism, p. 19 .
38

Brigitte Weidlich, Africa: Stop Re-Colonising Africa, Civil Society Tells EU, All Africa.com 6 March 2008, Available at:

http://allafrica.com/stories/200803060264.html [accessed 2 April 2008].

39 40 41

Johan Galtung in Wil Hout, Theories of International Relations and the New Regionalism, p. 19 Barbara Stocking, Africa-European union Trade; Seismic Rupture, The World Today , Vol. 64: No. 1, January 2008. p. 21. Samir Amin, Regionalisation in Response to Polarising Globalisation, in Bjrn Hettne Hettne, Andras Inotai and Osvaldo Sunkel, eds. Globalism and

the New Regionalism Volume 1 (Macmillan Press, Basingstoke, 1999). p. 54.

42 43 44 45 46

Ibid. Ibid., p.64 Ibid., pp. 64-65. Ibid., p. 65. Ibid., p. 66.

In contrast to Amin, Naisbitt argues that new forms of regionalism can be seen as

building blocs towards the processes of economic globalisation. What is evolving around the world writes Naisbitt is not protectionist trading blocs designed to isolate any given region from the rest of the international players, but economic alliances that promote development within regions, while making all borders more porous.47 Naisbitt contends that the examples of the Association of South East Asian Nations Free Trade Area (AFTA), the Common Market of the South (MERCOSUR) and NAFTA [North American Free Trade Agreement] will show politicians and the general public alike that a countrys well-being does not hamper anothers wealth: they will come to realise that the global economy is not a zero-sum game, but an expanding universe.48 Similarly, for Baldwin regional trade blocs are building blocs toward free trade. North-South free trade agreements are probably the only way to liberalise industrial tariffs in developing nations.49 The then WTOs Director-General Mike Moore during his speech in Buenos Aires stated that Regional trade agreements, in tandem with multilateral liberalisation, can help countries - particularly developing countries - build on their comparative advantages, sharpen the efficiency of their industries, and act as a springboard to integration into the world economy. They can also help focus and strengthen their political commitment to an open economy.50 It is obvious that the differences among various theorists (and possibly policymakers too) in relation to regionalism vis--vis globalisation are too great to overcome. As was mentioned in the introduction of this essay it is since the demise of the Cold War that there has been a rush into regionalism and the number of the RTAs has grown rapidly. Under the terms of GATT (now GATS) when states sign regional trade agreements they notify the WTO.51 Among hundreds of RTAs, three seem to dominate the trade flows: (a) NAFTA based on the USA, (b) the EU, and (c) East Asia based on Japan. Some research shows that most of the trade is within rather than between regions
47 48

John Naisbitt cited in Wil Hout, Theories of International Relations and the New regionalism, p. 25. Naisbitt cited in ibid.

49 Richard E. Baldwin, Stepping stones or building blocs? Regional and multilateral integration, Graduate Institute of International Studies, Geneva, 10 September 2004. p. 9. Available at: http://hei.unige.ch/~baldwin/PapersBooks/SteppingStonesOrBuildingBlocks.pdf [accessed 17 April 2008]. 50 Mike Moore, Globalizing Regionalism: A New Role for Mercosur in the Multilateral Trading System, Buenos Aires, 28 November 2000, http://www.wto.org/english/news_e/spmm_e/spmm45_e.htm [accessed 11 April 2008]. 51 Russett, B. and Harvey Starr and David Kinsella, World Politics; The Menu for Choice, Sixth ed. (Bedford /St. Martins, Boston, 2000), p.391.

as pointed out by Alan Rugman, the Professor of International Business at the University of Indiana. For example, in NAFTA, 57 per cent of trade is intra-NAFTA, in Europe, 61 per cent is intra-EU, and in Asia, 50 per cent is intra-Asia. 52 Rugmans research suggests that most trade is regional rather than global. However, some statistics suggest that, intraregional trade in 1980s was only 34 per cent in NAFTA, 52 per cent in the EU (then the EEC) and 35 per cent in Asia.53 Arguably, the most successful regional project is the EU, prompting some to assert that this could ultimately lead to the construction of a kind of regional state, in which the traditional roles of national state authorities are transferred to the European level.54 Some see European integration as a counterweight to the interests of the USA. 55 The EU according to Held et al is probably best described neither as an international regime nor as a federal state, but as a network of states involving the pooling of sovereignty56. Until the mid 1980s, EU regionalism had a protectionist outlook57, in other words, it was a stumbling block, in particular when it came to its agricultural policies. 58 Since then, the European Round Table of Industrialists (ERT) has at the core of internal market regionalism competition, free market integration and neoliberal deregulation.59 European industry, according to ERT, expects more open access to world markets, in return to giving competitors better access to the Single Market in Europe. 60 Yet, the EU farm subsidies, even now remain very controversial. In addition, it is argued that the fear about the emergence of a Fortress Europe, led to other regional grouping being established, i.e. NAFTA, the Association of South-East Asian States (ASEAN), Asia
52 Alan Rugman in Tim Harcourt, All trade is regional?, 17 February 2005, Available at: http://www.austrade.gov.au/All-trade-is-regional-/default.aspx [last accessed 24 April 2008]
53 54 55

Ibid. Michael smith, Regions and Regionalism, p.71 Thomas Christiansen, European Integration and Regional Cooperation, in John Baylis and Steve Smith, eds., The Globalisation of World Politics: An

Introduction to International Relations, third edition, (Oxford: Oxford University Press, 2006). p. 590.
56

David Held and Anthony McGrew, and David Goldblatt and Jonathan Perraton, Global Transformations: Politics, Economics and Culture, (Polity Press,

Cambridge, 1999). p. 74. 57 Manuela Spindler, New Regionalism and the Construction of Global Order, p.17. 58 Richard E. Baldwin, Stepping stones or building blocs? Regional and multilateral integration, Graduate Institute of International Studies, Geneva, 10 September 2004. p.10. Available at: http://hei.unige.ch/~baldwin/PapersBooks/SteppingStonesOrBuildingBlocks.pdf [accessed 17 April 2008]
59

Manuela Spindler, New Regionalism and the Construction of Global Order, (Emphasis in the original). p.20.

60 ERT cited in ibid.

10

Pacific Economic Cooperation (APEC), MERCOSUR and Organisation of African Unity (OAU) now African Union (AU).61 Regionalism like globalisation undoubtedly has many positive qualities as well as negative impacts. Stiglitz has stated that, the borderless world through which goods and services flow is also a borderless world through which other things can flow that are less positive meaning transnational crime, terrorism etc.62 Both regionalism and globalisation create winners and losers. Stronger states use (abuse) these (regional) agreements to consolidate their political influence over the weaker ones. Further, the incumbent members introduce terms inhibiting and restricting underdeveloped countries in exploitive fashion. New regionalism risks subjecting hundreds of millions of people to permanent underclass - leaving them abandoned in rural regions where spent agricultural economies face further decline. This not only denies people their basic rights to decent occupation and standards of living but also could lead to future instability.63 For instance, low tariffs in Asia-Pacific have contributed to rapid trade growth but this has come with a rise in unequal incomes. In the Least Developing Countries (LDCs) 38% of the population lives below $1-per-day. Asia still has more hungry people than any other region in the world over 510 million. 64 The picture is worse in African regions, where diseases, famine and intra-state conflicts kill millions of people every year, while at the same time each European cow receives more than $ 2.2 per day in subsidies.65 With a political will, which in the developing world lacks so far, this bleak situation could improve. Lee argues that regionalism as practiced in Africa is part of a problem and not part of the solution.66 On the positive, side apart from promoting economic, political and security cooperation and community, regionalism can consolidate state-building and

61 Thomas Christiansen, European Integration and Regional Cooperation, p. 59.; See also, Louise Fawcett, Regionalism in Historical Perspective p.24; Bjrn Hettne, Global Market versus the New Regionalism. p. 362. 62 Bob Kelly, and Raia Prokhovnik, Economic Globalization?, in David Held A Globalizing World? Culture, Economics, Politics, ed. (New York: Routledge, 2004).p.97 63 Asia-Pacific Human Development Report 2006. -Trade on Human Terms: Overview. Transforming Trade for Human Development in Asia and the Pacific. p..11.
64 65

Ibid., p.3. Heather Stewart, How Europe cheats Africa, the Observer, 19 June 2005, Available at:

http://www.guardian.co.uk/business/2005/jun/19/g8.hearafrica051 [last accessed 29 April 2008]. 66 Margaret Lee, Regionalism in Africa: A Part of Problem or a Part of Solution, p.22.

11

democratisation. In addition, it can also help to manage the negative effects of globalisation. Recent examples from Europe, the Americas, Africa and parts of Asia support this assessment.67 In the ASEAN case, for instance it can be argued that regionalism gives weaker countries an opening, enabling them to avoid either domination by predominant powers or marginalisation by them.68 Since the establishment of ASEM (Asia Europe Meeting) in 1996, the EU and ASEAN states have increased cooperation in areas of common concerns such as economics and human rights.69 In addition, the EU has established relations with MERCOSUR and commenced negotiations with NAFTA on creating an AFTA (Atlantic Free Trade Area). Likewise, the US, as the most important agent of NAFTA, has entered a dialogue with MERCOSUR with respect to encouraging closer cooperation.70 Regionalism introvert or extrovert in global society? Many scholars and policy-makers believe that the new forms of regionalism, which are more extroverted rather than introverted may well, serve as a stepping stone in the process of globalisation.71 The report of the Commission on global governance suggested that, regionalism enables states to make progresses in cooperation and liberalisation in ways that provide a stepping-stone for global initiatives.72 Moreover, open regionalism as is evident most explicitly in Asia-Pacific is one way of coping with global transformation, since the recent economic recession indicates that states lack the capability and the means to manage global issues on the national level. Open regionalism also is more appropriate for regions with security problems such as the Balkans and BSEC (Black Sea Economic Cooperation). Cooperation within the region allows states such as Greece and Turkey, or possibly Kosovo and Serbia, to look on the positive sides economic cooperation and further integration, rather than conflict. In any case, deep international policy integration is unlikely to occur without deep regional integration
67 68

Louise Fawcett, Exploring Regional Domains: A Comparative History of Regionalism, p.429 Michael smith, Regions and Regionalism, p.81.

69 David Held and Anthony McGrew, and David Goldblatt and Jonathan Perraton, Global Transformations: Politics, Economics and Culture, (Polity Press, Cambridge, 1999). p. 77. 70 Ibid.
71

Karen A. Mingst, Essentials of International Relations, p. 276.

72 The Commission on Global Governance, our Global Neighbourhood: the Report of the Commission on Global Governance, (Oxford University Press, New York, 1995). p.171.

12

occurring first.73 Furthermore, for developing countries, like most of the BSEC and the Western Balkans states, participation in regional cooperation schemes alongside more developed and experienced states is a step towards integration into the broader global system.74 Therefore, the BSEC example ought to be considered as a stepping stone towards economic globalisation.75 Some European countries for instance have used the participation in the Central European Free Trade Agreement (CEFTA) as a preperation for EU membership.76 Similarly, BSEC is often viewed as a stepping stone in Turkeys advance towards European integration.77 Conclusion The demise of the Cold War seems to have boosted the salience of regionalism across the globe and the number of RTAs has blossomed since. Again, the aforementioned evidence suggests that regionalism like globalisation certainly creates winners and losers. A more detailed study on how these RTAs are implemented may yield more evidence about the uneven distribution of benefits. While the old regionalism was state-centric, internally focused and imposed from above; the new regionalism involves non-state actors and is more open and more comprehensive. Optimally, open regionalism ought to be seen as a stepping stone towards the process of globalisation, still it remains a highly ambiguous and contested concept. Neo-realists assumptions, based on power politics, argue that the reasons behind regionalist arrangements are mainly security related. International organisations for them are nothing more than interstate institutions; therefore, it is irrelevant whether they were regional or global. Yet, successful EU integration where member states of the union have voluntarily given up parts of their sovereignty to supranational bodies poses a direct challenge to the neo-realist view on regionalism.

73 C. Oman, cited in Percy S. Mistry, The New Regionalism: Impediment or Spur to Future Multilateralism?, p.149. 74 Charalambos Tsardanidis, The BSEC: From New Regionalism to Inter-regionalism?, p. 367.
75

Ibid., pp. 368-9

76 Poland, Hungary, Czech Republic, Slovakia, Slovenia, Rumania, Bulgaria, have all used CEFTA as a training ground before they joined the EU.
77

Tun Aybak, Black Sea Economic Cooperation (BSEC) and Turkey: Extending European Integration to the East?, in Tun Aybak, Politics of the

Black Sea: Dynamics of Cooperation and Conflict, ed., (London: I.B. Tauris Publishers, 2001), pp. 31-60

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Neo-liberals, with strongly Eurocentric views, seem to emphasise cooperation among states and focus on the promotion of free trade and open regionalism. For neoliberals, regionalism need be neither a stepping stone nor a stumbling block. Neomarxists, in contrast, argue that the new regionalism promoted by neo-liberals intends to divide the developing countries so that capitalist centres can exploit their economies. They could confront this continuously deepening polarisation generated by the capitalist globalisation processes with regionalisation.78 In the end, it must be acknowledged that in regions like Africa where the European model appears to have failed some other form of collective cooperation might work against the waves of globalisation. However, the empirical evidence indicates that international trade is mainly happening in an intra-regional and inter-regional level, more precisely between and within the EU, NAFTA and APEC. Consequently, the new regionalism is increasing political, economic, security, and community cooperation within and between regions. The cooperation between EU, NAFTA, MERCUR, and APEC supports this assertion. In this sense, open regionalism may well serve as a stepping stone in the processes of globalisation. References:
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