Regional economic integration and geopolitics

Background:The framework of the theory of economic integration was laid out by Jacob Viner (1950) who defined the trade creation and trade diversion effects, the terms introduced for the change of interregional flow of goods caused by changes in customs tariffs due to the creation of an economic union. He considered trade flows between two states prior and after their unification, and compared them with the rest of the world. His findings became and still are the foundation of the theory of economic integration. The basics of the theory were summarized by the Hungarian economist Béla Balassa in the 1960s. As economic integration increases, the barriers of trade between markets diminish. Balassa believed that supranational common markets, with their free movement of economic factors across national borders, naturally generate demand for further integration, not only economically (via monetary unions) but also politically—and, thus, that economic communities naturally evolve into poli...

Working Papers on Regional Economic Integration, 2011

areas of infrastructure and software, trade and investment, money and finance, and regional public goods. The Series is a quick-disseminating, informal publication that seeks to provide information, generate discussion, and elicit comments. Working papers published under this Series may subsequently be published elsewhere. The views expressed in this paper are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. By making any designation of or reference to a particular territory or geographic area, or by using the term "country" in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area.

Delivering on the WTO Round: A High-level …

1992

Regional integration arrangements are more likely te be a stepping stone toward a freer world trading system if GATT rules are strengthenedand if developing countries enter into arrangements with developed ratherthanotherdeveloping countries. PQ iyReasch WoiingPapers disseminatethe findings of woxk in pogress and anoouageth cxchange of ideas amongBank staff and aotbe aitsted inodteWopmntissuB s ThBd rpapers, distnbutedby thcRcuchAdvisory Staffc irry thcunmnes of.hcauthorsrefcct only theirviews,andshoulabousod and cited acoordingly. hefindbtgs, intrrtions, andcondlusions alctheauthors'own. Tey should nOt be attibuted to the World Bank, its Board of Dimont, its m nagcernen, or sny of its member countrics

Edward Elgar Publishing eBooks, 2021

This paper gives an overview of recent developments in the process of Asian economic integration. A large part will focus on the integration initiatives undertaken within the framework of the Association of Southeast Asian Nations (ASEAN). ASEAN was not only the first regional integration arrangement in Asia, it also remains the centre for current and future economic integration initiatives in the wider East Asian region. The progress that has been made by ASEAN’s member countries in establishing an ASEAN Free Trade Area (AFTA) will be analysed. Given the important and reasonably successful integration initiatives in other parts of the world, such as the EU and NAFTA, academics and politicians have devoted much attention to the possibilities of both deepening and widening economic collaboration in the (East) Asian region. Ten ASEAN countries already decided to establish an ASEAN Economic Community by the year 2020 and some other countries seem eager to join. We will have a closer lo...

2012

The formation of regional production networks in East Asia has occurred mainly through market forces, without much help from regional institutions in promoting the creation of a single Asian market. While this approach has served the region well in the past, the drastic changes experienced since the 2008-2009 financial crisis and the challenges Asian countries are facing-growing inequalities and competition, on the one hand, and enhanced threats to the environment and people's health on the other-have rendered more urgent the need for intergovernmental cooperation at global and regional levels. Asia's institutions for regionalism need strengthening through reform and innovation such as better governance and resourcing, greater and more effective participation and delegation of powers, overall streamlining of regional architecture, including the phasing out of outdated or irrelevant institutions and, where needed, the creation of new ones. Ultimately, given its rootedness in regional order, institutional efficacy is a function of the ability and willingness of its members, especially influential stakeholders, to collaborate. JEL Classification: F15; F55; F59

2005

2011

Asian economic regionalism has emerged from a bottom-up process, driven by market forces in the absence of a grand plan for regional integration. While the financial crisis of 1997-98 triggered new regional cooperation initiatives, more recently several Asian political leaders have formulated proposals for the creation of a regional economic community, suggesting the possible start of a top-down approach. Based on the results of a survey of Asia's opinion leaders conducted by the Asian Development Bank (ADB) in 2010, this paper discusses how Asia's institutional architecture for economic and financial integration is taking shape, suggesting the need to strengthen existing institutions that promote Asian regionalism and to create new ones. While the focus of the paper is on monetary and financial integration, the analysis also covers other integration pillars such as trade and investment, connectivity and infrastructure, and regional public goods. It suggests the need to create new institutions in support of Asian regionalism and to adopt a broad perspective in moving towards the formation of a region-wide economic community based on strong political commitment and grassroots participation.

Regional Trade Integration in South Asia: *Mr. Md. Masroor.Alam Abstract Centuries has been passed away when the classics pointed out for free trade and least government barriers on market, thereof, with the publication of Smith’s Wealth of Nations a new era began to utilize resources. Later different approaches in economic theory groomed under the analytical horizon of classical economic ideas, then monetarist and then socialist under the leading ideas of Marx came to dominate the economic regime revolting against the existing regime due to its exploiting nature and evoked about the destruction of free market economic system. Ultimately it was Keynes who reconstructed the system by approaching towards government role in the economy in his book “Nature of Employment, Money and Income” in the year 1936, shortly after the great depression. This was the period of the later first half of the 20th century. During the period the world saw the Second World War making the US as an emerging Super Power and pushing the USSR downward to its inherent flows in its socio-economic and political system. These changes were off course effected Asian Countries and made them independent from colonial system and provided an opportunity towards achieving the lost recognition after several centuries. As Kapliensky pointed out that “in the late 16th century, China counted for round 30 percent of global GDP”. On the other occasion he evoked “at the dawn of the new millennium the momentum of Asia has been significantly strengthened by the very rapid growth of two very large economies – China and India, each with around 20 percent of the global population, have seen sustained rates of economic growth exceeding seven percent annually”, thereby, both the countries became Asian drivers with the emergence of Asian tigers. Thus, with the emergence globalization (a new economic regime governed by the US and its puppet agencies) the Asian countries became hub for manufacturing products, they are achieving high rate of growth, thereof, for better utilization of their growth rate for making these countries sustainable and gaining reputation at international level in the different decision making bodies, they went for different bilateral trade agreements. During 1990s Asian countries witnessed a changing economic environment at international level as pointed out by Ramesh Chandra “The period has been marked by a sharp growth in the number of regional trading agreements and the implementation of the multi-lateral Uruguay round General Agreement on Trade and Tariff under the auspices of the World Trade Organization (WTO)”. The growth of regional economic cooperation arrangement is one of the major developments in the world political economy after the Second World War. The formation of regional integration has been greatly successful in brining historically hostile countries together. The factors that push countries closer are both economic and political but economic factors have always prevailed over the political ever since the formation of nation states – the classic example is the states in the European Union and the South East Asia where economic dimension have brought long time foes in the same dais. The present international economic situation, characterised by stagnant growth, recessionary conditions and protectionist tendencies in the developed countries has seriously underpinned the economic growth in developing countries. The worsening terms of trade, acute balance of payment crisis and debt burden on developing countries have further crippled the potential economic growth of these countries. Therefore current world economic conditions underscore the need for a greater economic cooperation among the developing countries. The term ‘economic integration’ encompasses broad areas of socio-political, economic and cultural links with nations joining together in a forum generally belong to one or several regions. The Association of South East Asian Nations (ASEA), European Union (EU), North American Free Trade Area (NAFTA) are few examples of such integration. The degree of economic integration ranges from preferential trade arrangements (PTA) to free trade area (FTA), customs union (CU), common market (CM) and economic union (EU).4 Economic cooperation among South Asian nations is not a new phenomenon. The quest of economic integration however, remained inhibited by the colonial heritage of these countries. Their economic links often remain vertically tied to the metropolitan world. Lateral links even with immediate neighbours have either never existed or have atrophied over the years. Patterns of development among the countries have been competitive rather than complementary so that current prospectus for trade among them is limited Whether economic interests will drive South Asian countries toward greater cooperation and durable peace? If so, what is the potential for the growth of regional economic integration? Given the decades of mutual hostility and mistrust, to what extents South Asian countries are able to achieve economic interdependence? What about the possibility of having Free Trade Area (SAFTA) by 2006 as expressed by the leaders in the 12th SAARC Summit, which was held in Pakistan in January 2004. These questions require a thorough understanding of the domestic political and economic dynamics of the South Asian countries. This paper will discuss prospects of peace in South Asia through economic integration.

The Developing Economies, 2007

21st centry Political Science Review, 2007

for inviting me to the conference. I would also like to thank Rodolfo Severino and Carolina G. Hernandez, as well as the conference participants, for their insightful comments and suggestions on my earlier paper. The views expressed in this paper are the views of the authors and do not necessarily reflect the views or policies of ADBI, the Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms. The Working Paper series is a continuation of the formerly named Discussion Paper series; the numbering of the papers continued without interruption or change. ADBI's working papers reflect initial ideas on a topic and are posted online for discussion. ADBI encourages readers to post their comments on the main page for each working paper (given in the citation below). Some working papers may develop into other forms of publication.

2011