Asian Regionalism Globalization has affected various social units in the global community. One of them is the observable experience of the global south not only in the traditional global north countries but also in the global south countries. There are some smaller groups within the world wherein the global arena known as continents Within the continents, there are smaller groups called regions Asia Regionalization vs. Globalization Both refer to integration Integration = the making of many facets of society, culture, politics, and economics as an interdependent. interrelated social relations. Globalization – integration of social relations and consciousness across world-space and world-time Regionalization – societal integration within a region, and often undirected process of social and economic integration The concept of having the relationship integration among a group of countries or nations without the interference of political power or politics. Because the moment when there is politics involved, there is authority involved, that is already different and that is what we call regionalism. Undirected process of how societies integrate themselves socially and economically. In terms of scope Globalization is borderless. Regionalization happens in a specific geographical portion of the world. e.g., Asia is undirected because of diversity (development, politics, economy, religion) grouping of the different states or nations from a specific geographical location Regionalization refers to regional concentration of economic flows as OPPOSED to Regionalism refers to a political process by economic policy of cooperation and coordination among countries. Regionalization is undirected There is no such thing as a policy, or a law, or a norm that is being observed. Regionalism has the involvement of political power of governance of how the economic policies for cooperation and coordination among countries. ASEAN is a regionalization Preliminary stages of ASEAN as a group ASEAN acknowledge the power that resides in the individual government in terms of decisions and agreements among each other is called regionalism. Politics involved = regionalism Factors of Greater Asian Integration 1. Driven by the market In terms of labor and product, it prioritizes the Asian needs first before the rest of the world. Asia facilitates interactions of a variety of systems, institutions, social relations and infrastructures. East Asia economies get labor from southeast Asian nation like the Philippines and Indonesia. East Asian economies = China, South Korea, Japan Thailand exports its grocery products to different 24-hour convenience stores, while Indonesia and Vietnam sell their bags and clothing to the other parts of the region. Asian regionalism is driven by the need of the people within Asia before the others. 2. Establishment of formal institutions Asian Development Bank - Japan is the major sponsor to its finances - Asia accepts the fact that we can help each other Asian Infrastructure and Investment Bank - Financed by majority China - Supported by countries Vietnam, Myanmar and the rest of Southeast Asia Ph is not part of it Financial institutions. 3. Economic grants and overseas development assistance programs Japan International Cooperation Agency (JICA) Asia does not necessarily need to go outside its boundary in order for us to be helped by other nations, you just go to JICA JICA’s primary goal is for us to have a better life in Asia and the rest of the world. 2013, skyway stage 3 initial stage, JICA offered the government accepted Overseas development assistance programs China overseas development assistance Japan, South Korea, Singapore They are great economies in Asia that tries to help other countries within Asia 4. Production networks There is a system in the ASEAN regionalism that says “One country specialized production” In the Philippines, one province one product Coffee = Davao Coal = Benguet PH – electronics and copper Indonesia – palm oil, rubber, and natural gas South Korea – machinery products and motor vehicles 5. The Asian bond ASEAN + 3 Financial Ministers’ Process established two economic structures 1. Chang Mai Initiative An event in 2010 in Chang Mai in Thailand Its goal is to establish the Asian monetary Fund, it is the copycat of the International Monetary Fund that specifically focuses more on Asian needs IMF is sponsored by US majority in which they didn’t allow the establishment of the Asian Monetary Fund because if these people were hard headed enough in 2010, IMF promised and tried to pressure Asia, they will never extend loans or grants to Asia if they will push through the AMF. They would pull their foreign exchange reserves among these 13 countries so that these will be accessible to all the central banks in the 13-nation community And that is to prevent or to fight any currency speculation or any currency being brought to an unstable condition Chang Mai Initiative – a reaction to 1997 Asian financial crisis The currency of Thailand loss its value to its lowest degree to the effect that it has affected the rest of Asian economy. This Asian bond binded together to prevent a financial crisis Thus, they created the Chang Mai Initiative 2. Asian Bond Market Initiative 2002 The members of the ASEAN plus the three east Asian economies tried to collectively strengthen the financial stability in the region And reduce the region’s vulnerability or being exposed from the attacks of reversal capital flows. We cannot hide the fact that there are many capital flows that come in the non-Asian countries. Imagine yourself that these capital flows will suddenly stop. If we Asia will not prepare for this and the Asian Bond was not created in the 2002, there is a great problem in the economy of Asia when there is a sudden stop of capital flows. The pulling of the finances of the cash and reserves among these countries to the extent that if one needs help, the others have to help the one in need. There is always a limitation to that but at least we somehow lessen the great impact that COVID19 has affected Asia among the Asian bond community. Group of countries in Asia in which it is composed of the different governments represented by their financial ministers or financial secretaries plus their governors of their central banks. They gathered together and created the Asian bond 6. ASEAN Experience If European Union is rules-based, ASEAN decides based on consensus or general agreement. Unity in Diversity Despite the differences in our institutions, economic policies, governance, religion, cultures, we still unite ourselves and act as one. In the European Union, if the majority of the countries in favor of one VISA for the European Union’s member country wins in the votation; it is the thing that has to be applied in the whole of Europe Through votation, whatever wins at a majority, it becomes applied to all. In the ASEAN experience, we believe that there is a sense of respect among the members who would not agree itself from any policy or law that is being crafted by the ASEAN. 2014, ASEAN decided that we are going to limit the sending of migrants to the different parts of the world The ASEAN believes that the priority of ASEAN states should be ASEAN members. If you did not vote a certain policy in the ASEAN, then it is not applicable to you and that is respect in the ASEAN perspective. Despite our diversities in our communities We are still able to facilitate good movements and good decisions in the ASEAN experience that is a very good factor that contributes to the ASEAN integration. Asian Response to Globalization and Regionalization They responded as a group and individual member As a group, 1. They establish the Asian Development Bank So that we will be self sufficient 2. They work on different forms of loans and grants As a group, as a whole group like ASEAN + 3 plus south Asia 3. They share information esp. on security like terror groups ISIS 4. They work for the achievement of ASEAN Declaration Members of the ASEAN Despite our diversities we can help as one Individually, 1. Countries make bilateral and multilateral agreements How do we react to globalization or regionalization? By entering multilateral agreements or organizations Asian countries respond to regionalization and globalization by agreements 2. China, India, and Japan started a dialogue in formulating visions, shared goals and roadmap for regional cooperation. They believe that their economies are better with the other economies in Asia These great economies in Asia India and China are part of bricks economy Brazil India China Economies. Developing and emerging economies 3. Indonesia, Philippines, and Malaysia made use of their available resources to combat the effects of civilian-victims like displacements. Ex. Vietnam-US war. Refugees went to Ph, Indonesia, Malaysia How did we respond to that globalization event? By helping other countries in their fight for their lives We have to accept them as refugees It shows that globalization although it is an integration of how the societies lived but if there is a need to help and we can help, then we have to accept that we can accommodate these people in our country. If we are talking about the overseas development assistance of Philippines to other countries in Asia, that is we are not capable of Offering our country for those who seek for political asylums, they are very much welcome in the Philippines. That is a response to the challenge of globalization. 4. Santi Suk in Thailand created its own currency “bia” that regulated by a central bank in a village. This is a reaction to IMF; these group of people in this village in Thailand refused to become a part of the global IMF They were able to assert their being a part of a small community despite of the international pressure This currency only lasted for a few years They realized that their currency has no equivalent with the Thai baht and US dollars 5. Some countries preferred traditional herbal medicine, community – own rice and cooperative shops, etc. So that they wouldn’t be pressured by globalization. Because of globalization, there is an influence of chemical medicines that we are into right now It is not only the big pharmaceutical companies that provide medicines, but we have to accept the fact that there are people specially in Asia who still believes in traditional herbal medicine. This is one of the cultural diversities that we have to appreciate in Asia.
