Why Regionalism Has Become a Popular Strategy to Cope with Globalization - Coursework Example

WHY HAS REGIONALISM BECOME SUCH A POPULAR STRATEGY TO COPE WITH GLOBALIZATION? Name Institution Course Date Introduction Global economic as well as social forces keep on affecting people and places everywhere. Despite its assertion as an instrument for universal growth, the adoption of a neo-liberal world view has basically led to an explanation in restoring and creating more power for the economic leaders, thus inviting strong competition among major global towns such as Paris, New York, Hong Kong, and London together with other cities all over Europe, North America, and Asia. This global competition has instilled great pressure upon emerging cities to become more used to and receptive to global developments of modernity. Since the late 19th century, the growth and strengthening of free trade, global monetary systems, in addition to the mass movement of goods, services and people, have gone hand in hand with the need to join the globe through set of connections (Kaika and Swyngedouw, 2000). Optimizations in expertise definitely have led to homogeneous processes of architectural and urban delivery. However, it has been noted that there is a global occurrence of uneven development due to social, geographical as well as monetary exclusion or mixture of these factors (Harvey, 2006). In response the effects of globalization, the idea of regionalism attests to be such an effort to put a stop to a boisterous universalism. At its root, regionalism is featured by main ideas of cultural production and identity as well as relationships of geographical zoning or neighborhood. What is seen today is a novel mercantilist strategy to foreign strategy, which has worries as to unregulated merchandise but goes beyond the state logic, in contention for a fragmented global arrangement that is composed of principally autonomous alliances big enough to make available for strong local marketplaces. The New Regionalism appears to be a political will to slow down the process of globalization, with an aim of safeguarding some degree of territorial control and cultural diversity. This paper critically discusses why regionalism has become a popular strategy to cope with globalization. In order to address this heated concept, it would be important to examine the basic theoretical characterization of globalization through current interpretation and historical reference. Interpreting Globalization The term ‘Globalization’ has different meaning to various people. It has a dual aspect and results to considerable confusion to people and nations. Its dichotomy comes from huge socio-economic, cultural as well as political inter-relations between global participants on one-hand, and splitting up and breakdown on the other. Globalization is linked with the universal increase of contemporary expertise of industrial manufacture as well as communication of various types across the borders of business, assets, and manufacture in addition to information. This increased association across borders is itself an aftermath of the increase of new-fangled expertise to till now pre-modern humanities. Globalization is a chronological development and thus does not necessitate that financial life be uniformly and rigorously incorporated all over the globe. Globalization cannot be termed as an extraordinary situation, or a linear progression or even an ultimate end-point of societal transformation. Furthermore, globalization is not a universal state of identical amalgamation in a global financial movement. Rather, the augmented inter-connection of monetary movement all over the globe highlights uneven growth among diverse nations. It overstates the dependence of marginal developing nations like African countries on the developed nations like America (Henrique, 1996). Main features of globalization Globalization can be seen as a continuance of growth that has been continuing for some substantial time. Immediately after the Second World War, globalization was primarily driven by speedy expansion in overseas trade whilst in the 1950s and 1960s, direct foreign investment (DFI) begun to take a progressively more significant task in this development. Based on a worldwide inclination of business as well as venture liberalization, the last two decades have seen the global economy evolve into an extremely incorporated structure. Currently, globalization entails several features, but amongst them, here are the three major drivers of worldwide monetary integration: (a) internalization of production leading to alterations of the configuration of manufacture, (b) development of global trade in goods and services, and (c) expanding and intensifying the global wealth flows. Technological changes that are being witnessed today have affected the limitations of expertise and invention surge across nations. We have seen greatly improved means of transport and information technology, which have significant implications on the nature of fabrication actions, the flow of information as well as the marketing of products. Due to the restructuring of businesses, the completion for business establishment has become more and more intense than before. This has left the poor countries, mainly African countries with low bargaining power. They have very little influence of the way business is conducted at international level. Furthermore, fresh forms of worldwide invention expose upcoming businesses to new threats, since invention suppleness requires changing the combination of subcontractors. It is there clear that as much as globalization has brought new technology and information to many countries, it has also been a hindrance to the developing countries from having a say in the global market. Consequently, the rich countries continue becoming rich at the expense of the poor countries. Due to these factors, most countries that have some commonness in socio-culture, politics and geographical zoning, are coming together to form blocs that would otherwise help them attain some bargaining power in global market. Thus, regionalism is becoming the key strategy to cope with the effects of globalization in different parts of the world. There are several regional groups such as European Community, African Union, Asian countries, and Sub-Sahara African and many more (Nederveen, 2000). Regionalism Regionalism, regionalization or Regional Integration has turn out to be a kind of opposition notions as far as globalization is concerned. It has now become popular the way nation-states are organizing a sort of bloc or union so as to have economic co-operation and security regime. Regionalism can be defined as a project or a process representing the group of thoughts, principles as well as tangible goals that are intended at forming, upholding or amending the provision of protection and affluence, tranquility and growth inside an area. It is an advocate by several groups of actors to restructure alongside a specific regional liberty. Regionalism may be seen as an activist element that denotes the empirical process of transformation from virtual heterogeneity and being deficient of collaboration headed for improved co-operation, amalgamation, union, coherence as well as identity in several fields like culture, security, and financial development in addition to politics within a given geographical space (Vayrynen, 2003). Regionalism depicts as tough to international alterations and is about to develop in several parts of the globe, in regard to fresh forms, developments as well as programs. In connection and disconnection with the history, it is an issue of a third, post-hegemonic, regionalism as an element in a new-fangled unstable and diverse global structure. The current process of globalization comprises of a highly differentiated, wider and profound fresh nature of regionalism. For the past two decades the globe has experienced, in line with the expansion of global business as well as overseas investments, the concurrent developments, or restoration, of several and highly differentiated regional planning and regional associations: the mainly renowned are the EU, NAFTA, ASEAN, Andean Community, MERCOSUR, SADC, SAARC and many more. Domestic and systemic causes of the new regionalism For us to be able to address these factors and see how regionalism is being used as a strategy to cope with globalization, we need to ask ourselves two questions. First, what is the sense of balance linking domestic and systemic aspects of regional amalgamation? Secondly, what is the relationship between regionalism and globalization? Looking at the first divergence of opinion, domestic aspects have a significant role in expanding fresh regionalism: the determination of countries, and primarily of regional influential, to liberate their dominion and recuperate their intercontinental negotiation supremacy, or the desire by the small countries to balance the area leader within a universal structure. The second reason is the personal curiosity of export businesses and financially viable divisions, of societal collections, lobbying and coming together on a nationwide as well as regional foundation. Thirdly, there is the domestic practical spillover as a result of flourishing – although restricted to comparatively marginal sectors - co-operation agreements. Political parties, alliances, connections, NGOs, might strengthen regional edifice in accordance to their individual wellbeing along with principles. Lastly, there is the will of the developing nations to progressively deal with international rivalry by co-operating and congregating with regional bosses (Young, 1993). The alleged ‘domino theory’ highlights the significance of shared emulations as well as responses in regards to the growth of regional associations, especially the emphasis of the ‘multiplier effect’ provoked by the latest advancement of the EU and NAFTA, in Latin America and worldwide. However, the effect of systemic as well as opinionated reasons makes it easier to emphasize what is universal amongst regional associations and to scrutinize differences aggravated by the pressure of state or sub-national causes. R.O. Keohane (1984) states that, “without an overview of common problems, constraints and challenges set by the international system, we would miss the analytical basis to better understand the weight of domestic factors and distinguish them from external causes”. The main and sort of ambiguous systemic cause of regionalism is globalization. The pressure of the international structure on nationwide social orders as well as on the states of the globe augmented at some stage in the twentieth century and its speed increased after 1945, and further in the preceding three decades. Global forces, political actors as well as transnational corporations are effective on and determining the relationships and chain of command between countries, financial wellbeing as well as global regions. From a financial viewpoint, regional associations offer comprehensible merits in terms of locality (business and venture, cutback in transportation as well as economies of scale). Moreover, regional modifications alleviate the recuperation of the rising regions of the earth, which have suffered great deal of economic catastrophes, and moreover assist them to manage progressively with the restraints of global rivalry. Lastly, bigger regional markets enable small businesses to develop and to prepare for global contest. Regionalism continuously stands in the middle of the globalized finances and global political affairs (Schulz, Söderbaum, and Öjendal, 2001). Among other contradictory explanations for this boom, GATT-WTO revelation views regionalization as component and precursor of systemic globalization. Regional trade liberalization and co-operation amalgamations are viewed as essential transitional ladder, making it possible for companies and states to deal with the threats and opportunities of the international market in addition to agreeing to innovative many-sided regulations. We can see some truth in this explanation. In most cases, regional co-operation is definitely an excellent grounding for an open global economy, as we can see by example during the wrapping up of the Uruguay Round (where incorporation into the EU persuaded some associate states to agree to the GATT agreement) or by the highly effect of NAFTA on investments liberalization, or by the dynamics of ASEAN. Several researchers have highlighted that dread of over-asymmetric globalization reinforces prejudiced deals as well as antagonism on a regional foundation. Region edifice is viewed by several people as a motivation to respond to worries and to contend strongly with other regions and financial authorities. The issue remains open as to whether the novel regionalism and inter-regionalism can in an enhanced way offer the exceptional community possessions of supremacy and steadiness or will it in its place destroy international monetary liberalization (Ohmae, 1995). The new regionalism can be interpreted as a strategy by nations to act in response by intensifying regional power when conventional federal nationwide dominion no longer works and to negotiate jointly with extra-regional allies. The up-and-coming physical – or protective – aspect of biased guideline and exterior relationships is regularly regional, as a replacement for national (Richard, 1997). Countries are making efforts to revitalize political ruling by teaming power at regional echelon, together as a deliberate as well as inventive resolution and as a replication of neighbor states or of replicas brought in from overseas. The fact that most nations belonging to the similar area share identical tribulations and get similar strategy counsels from global associations (such as new dictatorial frameworks, liberalization, transparency, financial and economic co-operation, and increased infra-regional trade) is persuading them to reinforce their co-operation at regional level (Global Economic Prospects and the Developing Countries, 1999). In conclusion, the fundamental goal of regionalism is for affiliates of every regional amalgamation system to minimize dependence on the external humankind and to make environment that can result to self-sufficient, self-governing growth achievable. It is very clear that globalization has not addressed the poor who form the global majority and has no theory of justice and equity. Therefore, regionalism is the only way to overcome the effects of globalization. References: Global Economic Prospects and the Developing Countries. Washington, D.C.: The World Bank, 1999, pp 173. Harvey, David. “Neoliberalism as Creative Destruction” in Geografiska Annaler: Series B, Human Geography, 2006. Vol. 88, No. 2, pp. 145-158. Henrique F. Caroso, “Globalization and International Relations,” (paper presented at the University of Witswaterstrand, South Africa, 1996). Kaika, Maria and Swyngedouw, Erik . “Fetishizing the Modern City: The Phantasmagoria of Urban Technological Networks” in International Journal of Urban and Regional Research, 2000. Vol. 24, No. 1, pp. 120-138. Nederveen Pieterse, J . Global Futures: shaping globalization. London, Zed Books. 2000. Nederveen Pieterse, J. ‘Globalization as hybridization’, 1995 in M Featherstone, S Lash, R Robertson (eds) Global Modernities. London, Sage, pp 45-68 Ohmae Kenichi. The End of the Nation-State: The Rise of Regional Economies (London: HarperCollins, 1995), 367. Ohmae, Kenichi. The Borderless World: Power and strategy in the global marketplace. London, HarperCollins, 1992. Omahe, Kenichi. The End of the Nation State. The Rise of Rgional Economies. New York: Free Press Paperbacks. 1996. R. O. Keohane, The World Political Economy and the Crisis of Embedded Liberalism, in J. H. Goldthorpe ed. (1984), Order and Conflict in Contemporary Capitalism, Clarendon Press, Oxford. Richard Falk, “State of Siege: Will Globalization Win Out”? International Affairs 73 (1997): 316-24. Schulz, Michael., Söderbaum, Fredric., and Öjendal, Joakim., Regionalization in a Globalizing World, London: Zed Books, 2001, p.5. Sorens, Jason. Globalization, secessionism, and autonomy. USA, New Haven, Elsevier, 2004. 727-752 Vayrynen Raimo. Regionalism: Old and New. International Studies Review, 2003. Pp. 25 -51 Young, Soogil. “Globalism and regionalism: complements or competitors?” 1993. Pp. 111- 131 in Fred Bergsten y Marcus Noland (Eds.) Pacific Dynamism and the International Economic System. Washington, D. C.: Institute for International Economics, in Association with The Pacific Trade and Development Conference Secretariat and The Australian National University. Read More