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Union, and the Organization of Security and Cooperation in Europe (OSCE). Underlying the
institutional arrangement is a sense of shared values, norms, and interests among regional states.
Institutions & Institutionalization
- Institutions
Institutions are the rules of the game of a particular social group, or a set of norms that shape
behavior in a social space. They define and condition the choices of individuals.
Institutions can be understood as persistent and connected sets of rules (formal and informal) that
prescribe behavioral roles, constrain activity, and shape expectations, and such institutions may
include organizations, bureaucratic agencies, treaties and agreements, and informal practices that
states [as well as non-state actors] accept as binding.
- Institutionalization
Institutionalization is a process that varies in formality.
Institutionalization is a core progress in the creation and perpetuation of enduring social groups.
Institutionalization is an equilibrium phenomenon and is associated with better policies and better
results in terms of economic development.
Institutionalization is the process by which norms, or shared standards of behavior, are created and
developed.
Regional institutionalization refers to the degree of the functional activity and political authority
that states delegate to their regional integration arrangement.
Approaches to Regional Integration
Regional integration is a process in which states enter into a regional cooperation framework in
order to enhance regional cooperation and reduce regional tension. Regional integration is the
joining of individuals states within a region into a larger whole. The degree of integration depends
on the willingness and commitment of independent sovereign states to share their sovereignty.
In theory, regional integration can be divided into two categories:
1. Regionalism: the process of institutionalized cooperation in top-down manner that
normally requires formal government approval and includes the establishment of
permanent organizations (government-driven integration). Simply put, it refers to those
state-led projects of cooperation that emerge as a result of intergovernmental dialogues
and treaties. European integration is the best example for this approach of integration.
2. Regionalization: a progress in bottom-up cooperation & relationships which take place
outside the governmental framework (market-driven integration). It simply refers to those
processes of integration that arise from markets, private trade and investment flows, and
from the policies and decisions of companies rather than the predetermined plans of
national or local governments. East Asian integration is primarily based on this approach.