Regional integration

Stages of economic integration around the World (each country

colored according to the most integrated form that it participates
with):
Economic and Monetary Union (CSME/EC$, EU/)
Economic union (CSME, EU, EEU/EAEU)
Customs and Monetary Union (CEMAC/franc, UEMOA/franc)
Common market (EEA, EFTA, CES)
Customs union (CAN, CUBKR, EAC, EUCU, MERCOSUR,
SACU)
Multilateral Free Trade Area (AFTA, CEFTA, CISFTA,
COMESA, GAFTA, GCC, NAFTA, SAFTA, SICA)

Organisations grouping almost all the countries in their respective continents. Note that Russia is member of both the Council
of Europe (COE) and the Asia Cooperation Dialogue (ACD), and
Cuba was reinstated as a member of the Organization of American States (OAS) in 2009.

v
t
e
Several smaller regional organizations with non-overlapping
memberships.

Regional trade blocs:

European Union (EU)
African Union (AU)
Union of South American Nations (USAN)
Caribbean Community (CARICOM)
Central American Integration System (SICA)
Arab League (AL)
European Free Trade Association (EFTA)
Eurasian Economic Community (EAEC)
Association of Southeast Asian Nations (ASEAN)
Central European Free Trade Agreement (CEFTA)
North American Free Trade Agreement (NAFTA)
South Asian Association for Regional Cooperation (SAARC)
Pacic Islands Forum (PIF)

Several non-overlapping large alliances. Softer colours indicate

observer/associate or candidate countries.

See also: Economic integration and Regionalism (international relations)

Regional integration is a process in which neighboring
states enter into an agreement in order to upgrade cooperation through common institutions and rules. The objectives of the agreement could range from economic to
political to environmental, although it has typically taken
the form of a political economy initiative where commercial interests are the focus for achieving broader sociopolitical and security objectives, as dened by national
1

governments. Regional integration has been organized

either via supranational institutional structures or through
intergovernmental decision-making, or a combination of
both.
Past eorts at regional integration have often focused on
removing barriers to free trade in the region, increasing
the free movement of people, labour, goods, and capital
across national borders, reducing the possibility of regional armed conict (for example, through Condence
and Security-Building Measures), and adopting cohesive
regional stances on policy issues, such as the environment,
climate change and migration.
Intra-regional trade refers to trade which focuses on
economic exchange primarily between countries of the
same region or economic zone. In recent years countries within economic-trade regimes such as ASEAN
in Southeast Asia for example have increased the level
of trade and commodity exchange between themselves
which reduces the ination and tari barriers associated
with foreign markets resulting in growing prosperity.

Overview

Regional integration has been dened as the process

through which national states voluntarily mingle, merge
and mix with their neighbors so as to lose the factual attributes of sovereignty while acquiring new techniques for
resolving conicts among themselves.[1] De Lombaerde
and Van Langenhove describe it as a worldwide phenomenon of territorial systems that increases the interactions between their components and creates new forms of
organisation, co-existing with traditional forms of stateled organisation at the national level.[2] Some scholars see
regional integration simply as the process by which states
within a particular region increase their level of interaction with regard to economic, security, political, or social
and cultural issues.[3]

OVERVIEW

the development of strong public sector institutions

and good governance;
the reduction of social exclusion and the development of an inclusive civil society
contribution to peace and security in the region
the building of environment programmes at the regional level
the strengthening of the regions interaction with
other regions of the world.[5]
The crisis of the post-war order led to the emergence
of a new global political structure. This new global political structure made obsolete the classical Westphalian
concept of a system of sovereign states to conceptualise
world politics. The concept of sovereignty became looser
and the old legal denitions of the ultimate and fully autonomous power of a nation-state are no longer meaningful. Sovereignty, which gained meaning as an armation of cultural identity, has lost meaning as power over
the economy. All regional integration projects during the
Cold War were built on the Westphalian state system and
were designed to serve economic growth as well as security motives in their assistance to state building goals. Regional integration and globalisation are two phenomena
that have challenged the pre-existing global order based
upon sovereign states since the beginning of the twentyrst century. The two processes deeply aect the stability
of the Westphalian state system, thus contributing to both
disorder and a new global order.
Closer integration of neighbouring economies has often
been seen by governments as a rst step in creating a
larger regional market for trade and investment. This is
claimed to spur greater eciency, productivity gain and
competitiveness, not just by lowering border barriers, but
by reducing other costs and risks of trade and investment. Bilateral and sub-regional trading arrangements
have been advocated by governments as economic development tools, as they been designed to promote economic
deregulation. Such agreements have also aimed to reduce
the risk of reversion towards protectionism, locking in
reforms already made and encouraging further structural
adjustment.

In short, regional integration is the joining of individual

states within a region into a larger whole. The degree
of integration depends upon the willingness and commitment of independent sovereign states to share their
sovereignty. Deep integration that focuses on regulating
the business environment in a more general sense is faced
Some claim the desire for closer integration is usually rewith many diculties.[4]
lated to a larger desire for opening nation states to the
Regional integration initiatives, according to Van Lan- outside world, or that regional economic cooperation is
genhove, should full at least eight important functions: pursued as a means of promoting development through
greater eciency, rather than as a means of disadvantag the strengthening of trade integration in the region ing others. It is also claimed that the members of these arrangements hope that they will succeed as building blocks
the creation of an appropriate enabling environment for progress with a growing range of partners and towards
a generally freer and open global environment for trade
for private sector development
and investment and that integration is not an end in it the development of infrastructure programmes in self, but a process to support economic growth stratesupport of economic growth and regional integra- gies, greater social equality and democratisation.[6] Howtion
ever, regional integration strategies as pursued by eco-

2.1

Deep Integration Recognition

nomic and national interests, particularly in the last 30

years, have also been highly contested across civil society. There is no conclusive evidence to suggest that the
strategies of economic deregulation or increased investor
protection implemented as forms of regional integration
have succeeded in contributing to progress in sustainable economic growth, as the number of economic crises
around the world have increased in frequency and intensity over the past decades. Also, there is increasing evidence that the forms of regional integration employed by
nation states have actually worsened social inequality and
diminished democratic accountability. As a result of the
persisting contradiction between the old promises of regional integration and real world experience, the demand
from across global civil society for alternative forms of
regional integration has grown.[7]
Regional integration arrangements are a part and parcel
of the present global economic order and this trend is now
an acknowledged future of the international scene. It has
achieved a new meaning and new signicance. Regional
integration arrangements are mainly the outcome of necessity felt by nation-states to integrate their economies
in order to achieve rapid economic development, decrease conict, and build mutual trusts between the integrated units. The nation-state system, which has been the
predominant pattern of international relations since the
Peace of Westphalia in 1648 is evolving towards a system
in which regional groupings of states is becoming increasingly important vis-a-vis sovereign states. Some have argued that the idea of the state and its sovereignty has been
made irrelevant by processes that are taking place at both
the global and local level. Walter Lippmann believes that,
the true constituent members of the international order
of the future are communities of states.[8] E.H. Carr
shares Lippmann view about the rise of regionalism and
regional arrangements and commented that, the concept
of sovereignty is likely to become in the future even more
blurred and indistinct than it is at present.[9]

Regional
ments

Integration

Agree-

Regional integration agreements (RIAs) have led to major developments in international relations between and
among many countries, specically increases in international trade and investment and in the formation of regional trading blocs. As fundamental to the multi-faceted
process of globalization, regional integration has been a
major development in the international relations of recent years. As such, Regional Integration Agreements
has gained high importance. Not only are almost all the
industrial nations part of such agreements, but also a huge
number of developing nations too are a part of at least
one, and in cases, more than one such agreement.

such agreements is about 35%, which accounts to more

than one-third of the trade in the world. The main objective of these agreements is to reduce trade barriers among
those nations concerned, but the structure may vary from
one agreement to another. The removal of the trade barriers or liberalization of many economies has had multiple
impacts, in some cases increasing Gross domestic product (GDP), but also resulting in greater global inequality,
concentration of wealth and an increasing frequency and
intensity of economic crises.
The number of agreements agreed under the rules of the
GATT and the WTO and signed in each year has dramatically increased since the 1990s. There were 194 agreements ratied in 1999 and it contained 94 agreements
form the early 1990s.[10]
The last few years have experienced huge qualitative as
well as quantitative changes in the agreements related to
the Regional Integration Scheme. The top three major
changes were:
Deep Integration Recognition
Closed regionalism to open model
Advent of trade blocs

2.1 Deep Integration Recognition

Deep Integration Recognition analyses the aspect that
eective integration is a much broader aspect, surpassing the idea that reducing taris, quotas and barriers will
provide eective solutions. Rather, it recognizes the concept that additional barriers tend to segment the markets.
This in turn impedes the free ow of goods and services,
along with ideas and investments. Hence, it is now recognized that the current framework of traditional trade
policies are not adequate enough to tackle these barriers.
Such deep-integration was rst implemented in the Single Market Program in the European Union. However
in the light of the modern context, this debate is being
propounded into the clauses of dierent regional integration agreements arising out of increase in international
trade.[10] (EU).

2.2 Closed regionalism to Open Model

The change from a system of Closed regionalism to a

more Open Model had arisen out of the fact that the
section of trading blocs that were created among the
developing countries during the 1960s and 1970s were
based on certain specic models such as those of import substitution as well as regional agreements coupled
with the prevalence generally high external trade barriers. The positive aspects of such shifting is that there has
been some restructuring of certain old agreements. These
agreements tend to be more forward in their outward apThe amount of trade that takes place within the scope of proach as well as show commitment in trying to advance

ALTERNATIVE REGIONAL INTEGRATION

international trade and commerce instead to trying to put industrialisation, boosting global trade volumes and ina cap on it by way of strict control.[10]
creasing GDP. This has been accompanied by a stark increase in global inequality, growing environmental problems as a result of industrial development, the displace2.3 Advent of Trade Blocs
ment of formerly rural communities, ever-expanding urban slums, rising unemployment and the dismantling of
The Advent of Trade Blocs tend to draw in some par- social and environmental protections. Global nancial
ity between high-income industrial countries and devel- deregulation has also contributed to the increasing freoping countries with a much lower income base in that quency and severity of economic crises, while Governthey tend to serve as equal partners under such a system. ments have increasingly lost the sovereignty to take acThe concept of equal partners grew out of the concept of tion to protect and foster weakened economies, as they
providing reinforcement to the economies to all the mem- are held to the rules of free trade implemented by the
ber countries. Under these section the various countries WTO and IMF.
agree upon the fact that they will help economies to mainAdvocates of alternative regional integration argue
tain the balance of trade between and prohibit the entry
strongly that the solutions to global crises (nancial, ecoof other countries in their trade process.
nomic, environmental, climate, energy, health, food, soAn important example of this would be the North Amer- cial, etc.) must involve regional solutions and regional
ican Free Trade Area (NAFTA), formed in 1994 when integration, since they transcend national borders and terthe Canada - U. S. Free Trade Agreement was extended ritories, and require the cooperation of dierent peoto Mexico. Another vibrant example would entail as to ples across geography. However, they propose alterhow EU has formed linkages incorporating the transition natives to the dominant forms of neoliberal integraeconomies of Eastern Europe through the Europe Agree- tion, which attends primarily to the needs of transnaments. It has signed agreements with the majority of tional corporations and investors. Renowned economist,
Mediterranean countries by highly developing the EU- Harvard professor, former senior vice president and
Turkey customs union and a Mediterranean policy.[10]
chief economist of the World Bank, Joseph Stiglitz has
also argued strongly against neoliberal globalisation (see
Neoliberalism). Stiglitz argues that the deregulation, free
trade, and social spending cuts or austerity policies of ne3 Recent Regional Integration
oliberal economics have actually created and worsened
global crises. In his 2002 book Globalization and Its DisRegional integration in Europe was consolidated in the
contents he explains how the industrialized economies of
Treaty on the European Union (the Maastricht Treaty),
the US, Europe, Japan, South Korea and Taiwan develwhich came into force in November 1993 and established
oped not with the neoliberal policies promoted in develthe European Union. The European Free Trade Associaoping countries and the global South by the WTO, IMF
tion is a free trade bloc of four countries (Iceland, Liechtand World Bank, but rather with a careful mix of proenstein, Switzerland and Norway) which operates in partection, regulation, social support and intervention from
allel - and linked into - the European Union. In January
national governments in the market.
1994, the North American Free Trade Agreement was
formed when Mexico acceded to a prior-existing bilateral
free trade agreement between the US and Canada.In The
Pacic there was the ASEAN Free Trade Area (AFTA) in 4.1 The Peoples Agenda for Alternative
1993 which looked into reducing the taris. The AFTA
Regionalisms
started in full swing in 2000.

Alternative Regional Integration

In the last decade regional integration has accelerated and

deepened around the world, in Latin America and North
America, Europe, Africa, and Asia, with the formation of
new alliances and trading blocks. However, critics of the
forms this integration have consistently pointed out that
the forms of regional integration promoted have often
been neoliberal in character, in line with the motives and
values of the World Trade Organization, the International
Monetary Fund and the World Bank - promoting nancial
deregulation, the removal of barriers to capital and global
corporations, their owners and investors; focusing on

The Peoples Agenda for Alternative Regionalisms

(http://www.alternative-regionalisms.org/?page_id=2)
is a network of civil society, social movement and
community based organisations from around the world,
calling for alternative forms of regional integration.
PAAR strives to promote cross-fertilisation of experiences on regional alternatives among social movements
and civil society organisations from Asia, Africa, South
America and Europe. Further "[i]t aims to contribute to
the understanding of alternative regional integration as a
key strategy to struggle against neoliberal globalisation
and to broaden the base among key social actors for
political debate and action around regional integration
and is thus committed to expanding and deepening global
democracy.

5
PAAR aims to build trans-regional processes to develop
the concept of peoples integration, articulate the development of new analyses and insights on key regional
issues, expose the problems of neoliberal regional integration and the limits of the export-led integration model,
share and develop joint tactics and strategies for critical
engagement with regional integration processes as well
as the development of peoples alternatives. It draws on
and extends the work of such, Southern African Peoples
Solidarity Network- SAPSN (Southern Africa).

[6] Thongkholal Haokip (2012), "Recent Trends in Regional

Integration and the Indian Experience", International Area
Studies Review, Vol. 15, No. 4, December 2012, pp. 377392.
[7] Peoples Agenda for Alternative Regionalisms. About
PAAR. What is the Initiative Peoples Agenda for Alternative Regionalisms?
[8] Source Needed
[9] Carr, E.H. The Twenty Years Crisis, 1919-1939. Macmil-

lan, 1978: 230-231.

The PAAR initiative aims to develop these networks and
support their eorts to reclaim democracy in the regions, [10] RIA.
recreate processes of regional integration and advance
people-centred regional alternatives. In the video Global
Bsl, Anton, Breytenbach, Willie, Hartzenberg,
Crises, Regional Solutions the network argues that reTrudi, McCarthy, Colin, Schade, Klaus (Eds), Mongional integration and cooperation is essential for tackitoring Regional Integration in Southern Africa,
ling the many dimensions of the current global crises
Yearbook Vol 8 (2008), Stellenbosch 2009. ISBN
and that no country can face these crises alone. The
978-0-9814221-2-1
video also calls for countries to break their dependency
on the global markets, as well as the dominant develop Claar, Simone and Noelke Andreas (2010), Deep
ment model that has failed to address increasing global
Integration. In: D+C, 2010/03, 114-117.
hunger, poverty and environmental destruction, resulting
instead in greater inequality and social unrest. Regional
Duina, Francesco (2007). The Social Construction
integration, the video argues, should be much more than
of Free Trade: The EU, NAFTA, and Mercosur.
macro-economic cooperation between states and corpoPrinceton: Princeton University Press.
rations; it should protect shared ecological resources and
Haas, Ernst B. (1964). Beyond the Nation State:
should promote human development - health, wellbeing
Functionalism and International Organization. Stanand democracy - as the base of economic development.
ford: Stanford University Press. ISBN 978-0-80470187-7

See also
Free trade area
Globalization

Lindberg, Leon N., and Stuart A. Scheingold (eds.)

(1971). Regional Integration: Theory and Research.
Cambridge: Harvard University Press. ISBN 9780-674-75326-6

European integration

Michael, Arndt (2013). Indias Foreign Policy and

Regional Multilateralism. Basingstoke: Palgrave
Macmillan. ISBN 9781137263117.

References

Nye, Joseph S. (1971). Peace in Parts. Boston: Little, Brown. OCLC 159089 OCLC 246008784

[1] Haas, Ernst B. (1971) The Study of Regional Integration:

Reections on the Joy and Anguish of Pretheorizing, pp.
3-44 in Leon N. Lindberg and Stuart A. Scheingold (eds.),
Regional Integration: Theory and Research. Cambridge,
MA: Harvard University Press.
[2] De Lombaerde, P. and Van Langenhove, L: Regional Integration, Poverty and Social Policy. Global Social Policy
7 (3): 377-383, 2007.
[3] Van Ginkel, H. and Van Langenhove, L: Introduction and
Context in Hans van Ginkel, Julius Court and Luk Van
Langenhove (Eds.), Integrating Africa : Perspectives on
Regional Integration and Development, UNU Press, 1-9,
2003.
[4] Claar, Simone and Noelke Andreas (2010), Deep Integration. In: D+C, 2010/03, 114-117.
[5] De Lombaerde and Van Langenhove 2007, pp. 377-383.

7 External links
United Nations University Institute on Comparative
Regional Integration Studies (UNU-CRIS)
Towards Unity
Asia Regional Integration Center
Transnational Institute, Video: Global crises, Regional Solutions
Peoples Agenda for Alternative Regionalisms

8 TEXT AND IMAGE SOURCES, CONTRIBUTORS, AND LICENSES

Text and image sources, contributors, and licenses

8.1

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Regional integration Source: http://en.wikipedia.org/wiki/Regional%20integration?oldid=649046628 Contributors: Bryan Derksen,

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