Regionalism in Asia April 27, 2006 Regional Anatomy I Ken JIMBO Mid-term Report Select One from following Five Topics on ‘Regionalism’ ‘Regionalism and Regionalization in Asia (or in certain region)’ ‘Open-Regionalism’ vs. ‘Bilateral Networks’: Comparative Analysis Rise of FTA/EPA in World Economy Economic Integration and Regionalism Security Interdependence and Regionalism Socio-Cultural Interaction and Regionalism Essay Guidance Essay Length: 1200 words (minimum) ⇒ academic format Essay Deadline: 31st March, 2006 Software: Microsoft Word (Attached File) To be Submitted to: kenj@sfc.keio.ac.jp Review 1) Three Waves of Regionalism The First Wave (1950-60s) The Second Wave (1980-90s) Between small and medium States Failure in achieving economic development ‘Open Regionalism’ ‘Inclusive (nested) Mechanism’ Stunted Progress (early marginalization) The Third Wave (2000s-?) Bundle of ‘bilateral networks’ Regional endorsement of ‘ad-hoc mechanisms’ Review 2) Rise of the Third Wave of Regionalism? Level of Cooperation/ Integration Third Wave Regionalism ? Second Wave Regionalism Timelines Review 3) Globalism / Regionalism / Bilateralism and the ‘Recursion’ of the Region Economic Sphere Security Sphere Global Framework GATT / IMF UN / Multinational Mega-Regionalism APEC ARF / OSCE Regionalism Coalition Bilateralism EU / ASEAN +3 Multilateral FTAs Bilateral FTAs EU / ASEAN Anti-Terrorism Bilateral Alliance Evolution of Regional Integration Degree of Integration State Integration Economic Union Common Market Free Trade Area: FTA Tariff Union AFTA MERCOSUR NAFTA Free Inv. & Services FTA(1992- ) FTA(1989- ) Free Inv. & Service C.Economic Policies C. Tariff Custom Union(‘86- ) EU euro(2002) F Affairs &Defense C. Economic Policies C. Market & Infra FTA(1958- ) BENELUX Tariff U (’55) ASEAN-6(’67) USA+Canada(’92) B&A EEC-6(’58) ASEAN-10(’99) +Mexico(’94) + P&U(’95) EU-12(’86) + China (2010?) ASEAN=21% EU-15(’95) EU-27 ? FTAA-34 ? (2005?) 54% 21% 62% East Asia=40% ------ INTRA-REGIONAL TRADE SHARE (%) OUT OF TOTAL TRADE -------Source: Kakazu + TY Regionalism in Asia General Perspective Cultural Diversity Language Religion Historical Backgrounds Pre-Modern Asia (-1840?) China-centric (tributary) regional order Modern Asia Great power imperialism (1840-1945) Greater East Asia Co-Prosperity Sphere (1920-1945) Post-WWII and Asia Decolonization and Nation Building Sovereignty and Nation Building Economic Re-construction Cold War Fragmentation China Civil War (1947-49) Korean War (1950-53) Vietnam War (1965-74) Post-Cold War Experience Europe and Asia Compared In Europe, both the security (NATO) and economic structures (EEC→EC) created the basis for subsequent institutionalization of intra-European ties Many of America’s Asian allies had far stronger ties across the Pacific than they had among themselves Cold War Structure and Asia Alliance Structure Europe: NATO Asia: Bilateral Alliances (San Francisco System) plus SEATO and ANZUS Threat Perception Europe: USSR + Eastern Europe Asia: USSR / China / North Korea / North Vietnam US-led Alliance System (Cold War) NATO Warsaw Pact European Theater (Regional Approach) Asian Theater (Bilateral Approach) Bilateral (Hub-Spokes) Alliances Major Conflicts in Asia Northeast Asia Divided Korea Divided China Sino-USSR Confrontation Southeast Asia Sino-Vietnam Confrontation Sino-India Confrontation Internal Revolt (communism, fundamentalism) Wake of ‘Regionalization’ in Asia ‘De Facto’ Economic Integration Japan’s Economic Success ‘Flying Geese’ Model (Kojima, 2001) Production Networks Fragmentation Model Production Cycle Model (R. Vernon, 1966) Foreign aid, trade, investment and technology transfe Benefit of export-oriented ‘late comer’ ASEAN Integration (Political/Economic) Bali Concord / TAC AFTA / ASEAN 10 ASEAN Community (economic/security/socio-cultural) Flying Geese Model (1) Source: http://www.grips.ac.jp/module/prsp/FGeese.htm Flying Geese Model (2) Source: http://www.grips.ac.jp/module/prsp/FGeese.htm Product Cycle Model (1) Product Cycle Model (2) Product Cycle Model (3) De Facto Economic Integration (1980) 319.1 409.1 207.9 615.9 276.7 428.5 366.9 72.8 198.0 239.1 Europe 366.6 Asia 274.0 (unit:one hundred million dollars) De Facto Economic Integration (2000) 1440.1 (4.5times) 2140.9 (5.2times) 645.1 (3.1times) 1645.9 1333.1 3114.2 (2.7times) (7.3times) (4.8times) 1973.1 72.8 (5.4times) 1249.2 484.6 (4.0)times (5.2times) 1684.3 (4.6times) Asia 2193.1 (8.0times) (unit:one hundred million dollars) 世界の各地域経済共同体と東アジアにおける 貿易の域内依存率(2002年) 70.0% 60.0% 50.0% 40.0% 30.0% 62.5% 51.9% 20.0% 10.0% 0.0% 39.2% 45.8% 22.5% 13.8% 日中韓 日中韓港台 ASEAN +日中韓港台 NAFTA EU MERCOSUR ※日中韓は日本・中国・韓国間の貿易に占める3カ国の割合、日中韓港台は日本・中国・韓国・香港・台湾の貿易に占める5カ国・地域の割合、ASEAN+日中韓港台はASEAN 及び日本・中国・韓国・香港・台湾の貿易に占める前述の各国・地域の割合。 (出所)日本:財務省貿易統計。中国:中国統計年鑑2003年、韓国:Korea Customs Service HP、台湾:Statistical Yearbook 2003 Edition, National Statistics of Taiwan, the Republic of China。その他はIMF Direction of Trade Statistics ASEAN’s Regionalization Process Chronology 1967: 1971: 1976: 1976: 1992: 1995: Treaty on the Southeast Asia Nuclear Weapon-Free Zone 1997: ASEAN Vision 2020 2003: ASEAN Concord II Bangkok Declaration Zone of Peace, Freedom, and Neutrality (ZOPFAN) Treaty of Amity and Cooperation (TAC) ASEAN Concord I ASEAN Declaration on the South China Sea ASEAN (Bali) Concord II and ASEAN Community ASEAN Economic Community ASEAN Security Community ASEAN Socio-Cultural Community APEC Process (Rise of Second Wave) ARF Process (Rise of Second Wave) Mechanism for Conflict Resolution Preventive Diplomacy (PD) Confidence Building (CBM) Four Drivers of East Asian Linkages Governments In European regionalism, the focus on national governments is a given. Multinational governmental cooperation results in formal regional organizations. In Asia, although governments have been key players, regional integration were not always driven by formal process. Corporations Regional trade, investment and cross-national production networks. Four Drivers of East Asian Linkages (contd.) Functional Cooperation Ad-hoc Problem-oriented Bodies Growing Middle-class Networks Similar Life-style Common Social Security Concerns Middle Class Culture Sharing “Standard Package” (car, TV, video, PC, cosmetics…etc) Middle Class in China Reference T.J. Pempel, “Introduction: Emerging Webs of Regional Connectedness” T.J. Pempel ed., Remapping East Asia: The Construction of a Region (Cornell University Press, 2005) Etel Solingen “East Asian Regional Institutions: Characteristics, Sources, Distinctiveness” T.J. Pempel Ed., op.cit. Paul Evans, “Between Regionalism and Regionalization: Policy Networks and the Nascent East Asian Institutional Identity” T.J. Pempel ed., op.cit. Edward Lincoln, East Asian Economic Regionalism (Brookings Institution Press, 2004) Peter J. Katzenstein, World of Regions: Asia and Europe in the American Imperium (Cornell University Press, 2005) Ch.2,3,4 Kiyoshi Kojima, The 'flying geese' model of Asian economic development: origin, theoretical extensions, and regional policy implications. Journal of Asian Economics 11, 2000, pp.375-401. Raymond Vernon, "International Investment and International Trade in the Product Cycle." Quarterly Journal of Economics 80 (May 1966), pp.190-207. Takashi Shiraishi, “The Third Wave: Southeast Asia and Middle-Class Formation in the Making of Region” Peter Katzenstein and Takashi Shiraishi eds., Beyond Japan: The Dynamics of East Asian Regionalism (Cornell University Press, 2006)