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Definition
• A process in which neighboring states enter into an agreement in order to upgrade cooperation through common rules and institutions (inter-governmental or supranational)
• Goals of the agreement could range from economic to political, environmental, social or cultural
Activity:
• Form groups of 3
• Answer the questions (20 minutes):–What are the goals and expectations of a regional
integration?–What are the barriers to regional integration?–What are the factors that can foster the
integration? (help to upgrade and to sustain the cooperation)
• Make your presentation
What are the goals and expectations of a regional
integration?
1. To build Peace through interdependence + sharing values + common identity + environment of mutual trust… (Kantian philosophy)
2. To reach a Mutual consolidation (politically and economically) (Argentina-Brazil after 1985 and the military dictatorships) (Rojas 2008) It allows:– To consolidate mutually the national orders – To stimulate together the same development model
(market economy and democracy in the case of MERCOSUR)
Mercosur• Sub-regional bloc • 5 members: Argentina, Brazil, Paraguay, Uruguay and Venezuela• Very deep integration since it established a customs union (common
external tariff = same tariffs in its relation with the rest of the world)• Associate members: Chile, Bolivia, Colombia, Ecuador and Peru• Observers: New Zealand and Mexico• Goal: To promote free trade and the fluid movement of goods, people, and
currency• Official languages: Spanish, Portuguese and Guarani• Paradigm: Pragmatism (slow integration into globalization without affecting
internal sectors; many consider it as protectionist) + it gives a preference to the relations South-South ≠ Pacific Alliance (neoliberal approach; total open regionalism; to deepen relations with current hegemon)
• Founded in 1991 by the Treaty of Asunción; but actually originated in 1985, when presidents Alfonsín of Argentina and Sarney of Brazil signed the Argentina-Brazil Integration and Economics Cooperation Program
• Strong institutional architecture: Parliament
• Mercosur and the Andean Community of Nations have a FTA since 2012Purpose is to merge into a common integration (Union of South American Nations)Problem: 2 different paradigms: – Colombia and Peru: neoliberal (total open regionalism; both have a
FTA with USA) – The rest: much more pragmatics; slow and under control integration in
the globalization, much more protectionists and south oriented=> Lack of political synchronization between LAC affects integration (upgrading cooperation)=> significantly weakens their negotiation position (political weight)
3. To create and to defend common strategies in global governance (Kacowicz 2008) (i.e: Latin American and Caribbean States Community; Shanghai Cooperation Organization; Commonwealth of Independent States )
Þ To Impact in the global model (to shape the new order)Þ To create a counter-power in order to balance alliances
dominating the current international/regional order: – China and Russia in Asia– Brazil, Argentina and Venezuela in Americas – South Africa is trying in Africa with African Union
Þ To allow a better insertion in the GlobalizationÞ The purpose is much more than economic
They also offer a platform to promote dialogue among members to deepen sub-regional integration
Shanghai Cooperation Organization (SCO)• Eurasian political, economic and military organization
• Founded in 2001 in Shanghai
• 6 members: China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan
• Oficial languages: Russian and Chinese
• Last week, it was decided to admit India and Pakistan as full members => they are expected to join by 2016
• Observers: Mongolia, Iran, Sri Lanka, Belarus, Turkey…
• Officially: to promote cooperation against terrorism and separatism but many say that the real purpose is to brake US interest in the region (access to energy in the Caspian Sea) as well to limit US military presence [strong after 9/11 and intervention in Afghanistan])
• Many see SCO as a global counter-power undermining US and European influence
Latin American and Caribbean States Community (CELAC)
• Regional bloc of Latin American and Caribbean states • Founded in 2010 and implemented in 2011 in Caracas
• 33 members (600 million people) => All the countries from Americas except USA and Canada and a couple
of Islands belonging to France, UK and Netherlands
• Goal: To deepen Latin American integration and to reduce the interference of the USA in the region => It is seen as an alternative to the Organization of American States (OAS) = the regional organization created by Washington in 1948
CELAC members
African Union (AU)• Continental union • 54 members => all African countries except Morocco (AU accepted
Western Sahara whose status is disputed; territory claimed by Morocco => it felt betrayed so decides to withdraw)
• Founded in 2001 in Addis Ababa (Eth.)• Wide range of Goals:– To achieve greater unity and solidarity– To defend the sovereignty, territorial integrity and independence– To accelerate the political and social-economic integration of the continent– To promote and defend African common positions on issues of interest to
the continent and its peoples– To encourage international cooperation– To promote peace, security, and stability on the continent– To promote democratic principles and institutions, popular participation and
good governance…
Currently there are 8 Regional Economic Communities (REC) recognized by the AU:
• Arab Maghreb Union (UMA)• Common Market for Eastern and Southern Africa (COMESA)• Community of Sahel-Saharan States (CEN-SAD)• East African Community (EAC)• Economic Community of Central African States (ECCAS)• Economic Community of West African States (ECOWAS)• Intergovernmental Authority on Development (IGAD)• Southern Africa Development Community (SADC)
Arab Maghreb Union
Common Market for Eastern and Southern Africa
Community of Sahel-Saharan States
East African Community
Economic Community of Central African States
Economic Community of West African States
Intergovernmental Authority on Development
Southern Africa Development Community
4. To coordinate public policies; Goals:
– To slow destructive competition (to avoid competition in order to receive FDI based on the sacrifice of the national normative frameworks = race to the bottom)=> Creating a common front it allows to balance global market forces (FDI or financial flows) and to preserve the welfare state (Gilpin)
– To create a political unity in the globalization (coordination of PPs leads to common interests)
=> Increases to political power of the regional bloc (“critical mass”)
5. To create a regional market => to extend the market perspective for all the actors => It improves the competitiveness of economic fabric:
• It gives more opportunities to the Small and Medium-sized Enterprises thanks to the wider market (CEPAL, 2009)
• It allows to Consolidate the value chains (=> it increases the size of the production units)
• It gives more opportunities for the Diversification of productive bases
• It increases the probability to connect FDI with regional actors (allowing spill-over effects)
6. It is easier for governments and firms to get funds in the financial market
– Due to the size/visibility/stability of the regional economy it is easier to get access to the global financial market (regionalism allows to get a critical mass)
– To get a loan cheaper. Ex.: Before monetary union, when Italian Government wanted to get money it issued bonds in Lira => due to the limited market it had to pay a high interest rate ≠ with Eurozone: actors issues bonds in Euro, the potential number of buyers is much more important than before => less expensive and faster
What are the barriers to regional integration?
1. Different internal and external political agendas (sometimes drastically opposed paradigms) => divergent objectives – Objectives are not necessarily regional (ASEAN, MERCOSUR,
Central American Market, CARICOM…)– Lack of a common strategy for global integration: some
wants a rapid integration and others a pragmatic integration (Kacowicz 2008)
2. In many DCs there is a lack of long-term vision due to the political/social/economic instability/precarity => uncertainty about commitment to the regional integration
3. In many DCs there is a lack of a regional infrastructure => it is difficult : – To create an integrated economy and society at the
regional level – To foster the circulation of informations/ideas/products– To promote a regional identity => to build up the idea of
“territoriality” among the population (i.e. sense of belonging to the same community => it could be necessary to have the support of the society to be a sustainable project)
Constructivist perspective: new regionalism (Habermas, Wendt, Hettne)
• Bottom-up vision (Giacalone): “Shared ideas” have to build the regional order, more than the material forces (market or officials)
• Integration based on shared conviction of belonging to the same community of values (feeling of high interdependence and the conviction that all the region is sharing the same history)
Þ Regionalism is strong and dynamic (high level of adaptation) + cooperation is much more sustainable
Þ Naturally the society will create supranational and democratic institutions (the social perspective will change from local/national to regional)
• Requires:– To foster a Collective learning process– to construct an Identity to guide the economic and
political behaviors– To foster the construction of a “Social reality” Þ At the beginning it requires an important intervention of
the authorities to build regional infrastructures (to foster regional synergy)
=> Integration has to be socially constructed
Preferential
agreement
(Commonwealth)
FTA (NAFTA)
Customs Union
(Mercosur; Andean
Community; Southern
Africa Customs Union)
Common market
(CARICOM)
Monetary Union
(Customs and
Economic Union of Central
Africa; West African
Economic and
Monetary Union)
Towards a political
union (Commonwealth of
Independent States or EU)
It reduces tarrifs but no elimination
The purpose is to eliminate tarrifs among members (free movement
of goods) (1)
The purpose is: (1) + to
adopt a Common
Customs Tariff against the rest of the world (2)
The purpose is: (2) + free
movement of capital, services and individuals
(3)
The purpose: (3) + common currency
Constructivism is opposed to the Functionalism (top-down perspective) :
The Deepening and consolidation of the integration through a step by step strategy promoted by material forces (Balassa)
Commonwealth• Association of former members of the British
Empire• Intergovernmental organization • 53 members
1. Different internal and external political agendas => divergent objectives
2. In many DCs there is a lack of long-term vision due to the political/social/economic instability => uncertainty about commitment to integration
3. In many DCs there is a lack of regional infrastructure Þ It makes it difficult to foster circulation + economies of
scale => affect competitivenessÞ Probability the integration will benefit a few people
(not an inclusive project)
What are the barriers to regional integration?
Other barriers…4. Very often there is a strong concern for relative gains among DCs i.e. it is important for the members to win more than the others (they compare each other: “how much do they earn?” is important) (Grieco 93) (they are afraid that economic gains could be transformed in political power and military threat) (Realist)Þ the high level of competition may brake the cooperation
≠Neoliberal approach: countries tend to privilege absolute gains (do not care about how much other players will earn)
5. Very often there is a Lack of complementarity among the markets due to the low level of purchasing powers (similar productive structure)
– Few incentives to deepen integration to avoid destructive competition (Padrón 2007)
– Few trade relations
Low interdependence (±8% average among LAC and less important among African countries) (Hurrel 95)
=> Integration can vanish easiliy
6. Weak regional institutions (Serbin 2014; Dabene 2014)– Weak control mechanisms => low level of confidence– National interests prevail distrust– Without normative framework, members do not know what
would be the future behavior of the others
7. Very often in a regional integration between DCs there is a Lack of access to own funds and difficult fiscal situation
Necessary to search for external financing sources Þ It creates dependency and interference Þ It affects autonomy
8. Absence of a strong and clear regional hegemon – Competitive environment prevails– May be there is a regional leader but it is often perceived as
a competitor – Few countries are willing to assume the political-economical
support/leadership for integration
9. DCs (despite the regional integration) still depend a lot on the political and economic situation in ICs => it means uncertainty for regional integration
2 schools analyze the presence of an hegemon in a regional integration
Neorealism• Integration requires the presence of an hegemon to be sustainable • Hegemon fosters stability of regional order => confidence and
visibility + maintain integration active (has a long term vision) (SADC; CIS; Mercosur)
Neoliberalism • It is possible to reach an integration without any hegemon (Keohane,
Axelrod, CEPAL)
• There is a rational interests for cooperation- Why? Because naturally States are seeking:– To vanish uncertainty and to foster predictability– To generate confidence with neighbors
=> they are willing to commit
What are the factors that favor regional integration between DCs and
beyond?
1. International outlook: (1) Stagnation of Multilateral negotiations (impossibility to go
further): can create incentives to initiate regional cooperation (TPP)
(2)Current crisis of the model and global rearrangement: allows South-South relations/alliances (BRICS; Shanghai Cooperation Organization; Commonwealth of Independent States)
2. Presence of an internal hegemon willing to boost the cooperation (Solis 01)
3. Presence of an external hegemon (Fawcett) (EU supports Mercosur and most of regional integrations in Africa; China supports ASEAN; USA supports Pacific Alliance)
ASEAN• Founded in 1967 • Original States: Indonesia,
Malaysia, Philippines, Singapore, and Thailand.
• After cold war it expanded to Brunei, Cambodia, Laos, Myanmar, and Vietnam
• 625 million people = almost 9% of the world's population
• Goals: – Economic growth– Social progress– Regional peace and stability => to
resolve differences peacefully
• AFTA (ASEAN FTA) implemented only in 1992 (25 years later)
• 1990: Malaysia proposed the creation of an East Asia Economic Caucus: ASEAN + China + Japan + South Korea– Objective: to counterbalance the growing influence of USA in the Asian
region – It faced heavy opposition from USA + Japan– However in 1997 it was created an ASEAN + 3– Most recently was created the East Asia Summit (EAS), which includes
“ASEAN +3” + India + Australia + New Zealand + USA + Russia
• Strong intentions for further integration (it is clear since 1990) when they committed with the idea of an “EU-style community“
• There is a project for a common currency since the 1990s however:– ASEAN trade more with other countries (80%) than among its
member countries (20%)– There is no sufficient macroeconomic convergence
• Currently it serves as a platform for FDI coming from EU, Japan, USA and China to produce with low cost (low wages, low taxation, low environmental legislation, low labor legislation…)
Þ Turned to be a “world manufacture center” i.e. basis for production and export used by MNFs
Þ Based on “open regionalism” and there are external pressures to remain with this status
5. The small amount of “players” might benefit integration (Haggard 97)
6. Connectivity (increases cohesion and mobility) (CEPAL)
7. Construction of the idea of “territoriality”, common identity and shared vision, sense of belonging = constructivism (Giacalone; Rojas)
8.Legitimacy of the project and the support for the integration project among private sector and civil society (Identification to the project; Ojeda 2010) => Allows a Bottom-up construction (Giacalone)
5. Cooperation not restricted only to trade dimension: useful to open the cooperation in other areas to promote the connection of many political and social actors (Serbin 2014)
6. Political/ideological coincidence/alignment: it impacts positively on the degree of regional cohesion and on the capacity to share goals
10.Existence of regional Institutions and control mechanisms (CEPAL 2009; Perales 1997):
To allow “good behaviors”, transparency, certainty, long-term vision, confidence and compromise
