By:

Dr. CESAR A. ARAO, Ll.B.

Objective:
 Differentiate Regionalization and
Globalization
 Identify the Factors Leading to a
Greater Integration of the Asian
Region.
 Analyze How Different Asian States
confront the Challenges of
Globalization and Regionalization
Regionalization and Globalization
Regionalization
 Regionalization can be defined as
a political administrative
processes by which regions
emerge as relevant units of
analysis for economic and
political activity, and, welfare and
service provision.
 It is the tendency to form
decentralized regions, and can be
observed in various disciplines: In
the globalization discourse, it
represents a world that becomes
less interconnected with a
stronger regional focus.
 The concept of regionalization is
reserved for more spontaneous
processes of region formation by
different actors – State and Non-
Nation States.
Globalization
 Globalization is the process of
the shrinking of the world,
shortening of distances and the
closeness of its things. It allows
increase interaction of any
person, in order to benefit.
(Thomas Larsson)
 The development of an
increasingly integrated global
economy marked especially by
free trade, free flow of capital,
and the tapping of cheaper
foreign labor markets .
 Represents the global
integration of international
trade, investment, information
technology and culture.
Asian Regionalism
What is Region?
Region is defined not just as a geographical unit
but also a social system, organized cooperation in a
certain field (security, economy, cultural), and/or an
acting subject with a distinct identity.
What Regionalism?
Regionalism is the defined as the process of
strengthening collective identity in a conglomerate
of nations occupying a particular geographical area
or aiming at shared goals; increase in economic
exchanges in a particular area:
Asian Regionalism
There are many regions in the world where regionalism
can be observed. Asia is among these regions where
regional cooperations are emergent and becoming more
influential. Hernandez (1996) mentioned specific trends
which probably necessitates regional cooperation in the Asia
Pacific regions. Security challenges, ecological breakdown,
demand for human resources, labor migration, international
terrorism, epidemics, and drug trafficking are just among
the issues faced in this part of the world which demands
multilateral response. (Botor, et al. 2020)
The Asian Region
Asia is the largest and most populated continent in the
world. It composed of regions such as Central Asia, East
Asia, South Asia, Southeast Asia, and the Middle East.
Today, Asia has become an economic force characterized by
reduced poverty and fast pace economic development.
(Asian Dev’t. Bank, 2008)
Asian Regionalism
Asian Regionalism is the product of
economic interaction, not political
planning. As a result of successful,
outward oriented growth strategies, Asian
economies have grown not only richer,
but also closer together. East Asian
economies, in particular, focused on
exporting to developed country markets
rather than selling to each other. Initially,
they specialized in simple, labor-
intensive manufactures.
Why Asian Regionalism?
Asia is a center of global economy and already similar in size
to those Europe and North America, and its influence
continues to increase around the globe. Asia’s extraordinary
success has brought new challenges-while rapid economic
growth remains a priority.
Asia is now so important to the world economy that must
also play a larger role in global economic leadership.
Regional economic cooperation is essential for addressing
these challenges.
Asia’s economic rise is unprecedented. The region is home
for over half the world’s population, produces three tenths
(3/10) of global output (in terms of purchasing power), and
consistently records the world’s highest economic growth
rate. The economies are increasingly connected through
trade, financial transactions, direct investment, technology,
labor and tourist flows, and other economic relationships.
Factors Leading to the Greater Integration
of the Asian Region.
Greater Integration with other Asian
Economies would lead to substantial
investment, as well as rapid tourist growth
and robust export that would benefit not only
big businesses but micro and small
enterprises as well.
Asia’s economic integration and the
potential contributions of its emerging
regionalism would provide a unique
perspective and insights on the great issues
that will help to shape Asia’s future.
Factors Leading to the Greater Integration of the
Asian Region.
There are many factors that are leading the Asian Region into
greater integration, are the following:
1) Trade - The world economy is intertwined with each other. People need
something from another part of the world. Hence, trade is one of the
important factors that would lead for a greater integration of Asian region.
2) Similar Culture - The cultures of Asia is diverse but they do share many
things. This makes it easier for them during times of negotiations.
3) Common Goals - The Asian region recognizes the mutual benefit of a slow
integration. The territories involved are not far from each other and the
industriousness of its population can work as a powerful negotiating block
against those from other parts of the world.

These factors that lead to the greater integration of Asian regions

contributes to its emerging regionalism.
How Regionalism can Benefit Asia
Regionalism can benefit Asia if
regional cooperation are effectively
structured and implemented. This is
the powerful tool in addressing
challenges as well as to provide
stronger foundations for its global
role.
How Regionalism Can Benefit Asia
An Integrated Asia Can:
 link the competitive strengths of its diverse economies in
order to boost their productivity and sustain the region’s
exceptional growth;
 connect the region’s capital markets to enhance financial
stability, reduce the cost of capital, and improve
opportunities for sharing risks;
 cooperate in setting exchange rate and macroeconomic
policies in order to minimize the effects of global and
regional shocks and to facilitate the resolution of global
imbalances;
 pool the region’s foreign exchange reserves to make more
resources available for investment and development;
How Regionalism can Benefit Asia
 exercise leadership in global decision making to sustain the
open global trade and financial systems that have supported a
half century of unparalleled economic development;
 build connected infrastructure and collaborate on inclusive
development to reduce inequalities within and across
economies and thus to strengthen support for pro-growth
policies; and
 create regional mechanisms to manage cross-border health,
safety, and environmental issues better.
These are the opportunities that would benefit Asia if they
are integrated and deserves a high priority in national policy
making. What is needed is trust, innovation, and
compromise-policy makers at the highest levels appear
committed in pushing the regional agenda, but considerable
leadership and energy are needed to achieve best result.
How Regionalism can Benefit Asia
These benefits from cooperation could
extend also to developing Asian economies
that are not yet part of the region’s
integrating core. Indeed, in relative terms,
newcomers to regional integration have the
most to gain from the expanded
opportunities for economic development that
it provides. Hence, development strategy and
to provide guidance on how to build stronger
regional connections would benefits not only
Asia but the world.
How Asian Regionalism can Benefit the World
The rest of the world could benefit, so long
as Asia’s economies continue to integrate not
just with each other, but also with the rest of
the world, sustained Asian dynamism,
strengthened by regional cooperation, could
bolster Asia’s role as a new and stabilizing
engine of global economic growth. Indeed,
because an integrated Asia will continue to
have a powerful stake in the global economy,
it would have both an incentive and the
leverage to play a bigger role in keeping
global markets open and vibrant.
How Asian Regionalism Can Benefit the World
An Integrated Asia Can:
 generate productivity gains, new ideas, and competition that
boost economic growth and raise incomes across the world;
 contribute to the efficiency and stability of global financial
markets by making Asian capital markets stronger and safer,
and by maximizing the productive use of Asian savings;
 diversify sources of global demand, helping to stabilize the
world economy and diminish the risks posed by global
imbalances and downturns in other major economies;
 provide leadership to help sustain open global trade and
financial systems; and
 create regional mechanisms to manage health, safety, and
environmental issues better, and thus contribute to more
effective global solutions of these problems.
Asian regionalism can help to sustain global economic
progress at a time when other major regions are reaching
economic maturity.
Sources:
https://aric.adb.org/emergingasianregionalism/
pdfs/Final_ear_chapters/chapter%201.pdf

Botor, et al. 2020. The Contemporary World

Thank you!!!