Question

1. Does regionalism support, or undermine, globalisation? (Please discuss the answer within 800 words - at most 1000 words! Thanks!)

Answer 1

Regionalism can also be seen vague in some context. A region is defined not just as a geographical unit but also a social system, organized cooperation in a certain field such as security, economy, cultural, or an acting subject with a distinct identity. It should be explained that there is a sharp contrast between “old regionalism” which existed during the Cold War period and “new regionalism” which is seen arising in modern day. regionalism prevailing in anciet times revolved around countries siding with hegemonic powers, implementing protectionist policies, acting inward oriented and specific intentions, and holding the structural realist approach of concerning itself with the actions of states.NATO and the Warsaw Pact are both excellent examples of old regionalism as they were forced regional agreements as a result of the bipolar system their creators resided in.

New regionalism has taken shape out of the multi-polar world order and is a more spontaneous process from within the regions, where constituent states now experience the need for cooperation in order to tackle new global challenges. It is a more comprehensive and multidimensional process which not only includes trade and economic development but also environmental, social, and security issues.In addition,it forms part of a structural transformation in which non-state actors are also active and operating at several levels of the global system. Modern regionalism goes far beyond free trade and addresses multiple concerns as the world struggles to adapt the transforming and globalizing world.

In the economic context, regionalism has proven to be extremely effective in helping to secure markets and providing economic strength through the creation of Regional Trade Agreements (RTAs). In globalizing institutions such as the International Monetary Fund and the World Trade Organization, agreements binding governments to liberalization of markets restrict their ability to pursue macroeconomic policies.However, under RTAs, economic policies remain more stable and consistent since they cannot be violated by a participant country with provoking some kind of sanctions from other membersAn excellent example of this is the North American Free Trade Agreement’s (NAFTA) stabilization and increase of Mexico’s political and economic policies.

In the globalizing market system, huge amounts of capital can be disinvested and reinvested in a relatively short amount of time. Thus, states lose control over exchanges and economic development and as a result holds a reduced its role in its own economy. Regional Trade Agreements help nations gradually work towards global free trade through allowing countries to increase the level of competition slowly and give domestic industries time to adjust. The increasing membership of less economically developed countries within the European Union, Southern Common Market (MERCOSUR), and Asia-Pacific Economic Cooperation (APEC) is testament to the economic stability offered by regional economic organizations ASEAN countries have already begun vying for RTAs with China in hopes of rebuilding economic stability and renewing growth that was shaken by the economic crisis of 1997.In end, entering regional pacts with hegemonic powers can be easily seen to be more beneficial for smaller countries than subjecting themselves to the hegemonic-controlled free market.