Chapter 3 Theory and Literature Review
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CHAPTER 3 THEORY AND LITERATURE REVIEW ASEAN, a regional block and Thailand one of the member countries of the same is the primary focus in this study. As such it has been divided into three broad parts. The first part, will deal with an overview of the whole concept of Regionalism; the second part will deal with ASEAN as an emerging regional block and in the third there will be a general overview of the endurance of Thailand through the ages. Part 1 1.1. The concept of Regionalism and Regional Trade Blocks The concept of Regionalism has come from the basic idea of forming Regional groups in order to promote economic integration among them and it can be dated back to 1960s. In general, Regions in international politics has been described as “a limited number of states linked by a geographical relationship and by a degree of mutual interdependence, and could be differentiated according to the level and scope exchange, formal organizations and political interdependence”. (Joseph S Nye1968, p. 149) However, there are certain ambiguities regarding the definition of Regions, because, the issue of areas which constitute a region is something controversial. Although many regions are denoted by obvious geographic or cultural boundaries and there is some amount of arbitrariness present. For instance, the Asia – Pacific region is a classical example. Some observers consider it as one region, while for some others it consists of two different regions, yet for a third group, it is an amalgamation of more than three regions. For the formation of a region “the major criteria remain geographical contiguity, interaction, and a subjective perception of belonging to a distinctive community and having a collective regional identity”. (Hass 1958, p.16). However according to Bruce Russett, “the geographical criteria are too limiting in an increasingly interdependent and globalized world” (Russett 1967, p. 120). Today, the term Region implies a social system largely based on trans-local relations. It is 1 regarded as a dynamic process characterized by economic political as well as different socio- cultural matters. “The region as international society is characterized by norms and rules which increase the level of predictability in the system. Regions can be ordered in the world system hierarchy and thus three structurally different types of regions can be distinguished: Core Regions, Peripheral Regions and between them, Intermediate Regions”. (Hettne. Bjorn 2005). Thus, a useful definition of a Region in the present scenario is- “Regions are distinguished by first by their relative degree of economic dynamism and second, by their relative political stability and the dividing separating line may run through existing states. The borderlines are impermanent. Rather, one could think of the hierarchical structures as consisting of zones which the region enter or leave depending on their economic position and political stability, as well as the level of regionness”. (Hettne Bjorn 2005) Many studies have emphasized on these non-geographic criteria and argued that “besides proximity members of a region also share cultural, economic, linguistic or political ties” (Russett. 1967, p 75). On the basis of this, it can be argued that other factors like, common historical experiences, power and wealth distribution levels, cultural social and ethnic traditions, and ideological as well as political preferences etc also play its role in the formation of regions and regional groupings. In spite of the contradicting ideas regarding Regions, Regionalism as a concept, holds its own good in the area of International Politics and Economy, and has often been described as the condition by which group of nation-states, usually in the same geographic region, agree to cooperate and share responsibility to achieve common goal (Balam. David M & Veseth. Michael. 2005). Thus, in a way, we can say that Regionalism is the logical solution to problems faced by nation-states that are too big to be solved alone. Joseph S Nye in his book International Regionalism (1968) has suggested that- “the process of regionalism and integration across many areas of the globe were aided by the growing number of newly independent former colonies, by some degree of relaxation in the tensed superpower relations, by a growing realization that economic interdependence and an open multilateral trading regime brought their own pitfalls, and by a successful rapprochement of key west European countries through economic integration schemes” (Joseph S Nye 1968, p 124). Regarding Regionalism, the definition given by Ernst B. Hass is worth noting. According to Hass – “Regional cooperation is a vague term covering any interstate activity with less than universal participation designed to meet commonly experienced need”. (Hass. 1958, p 49). 2 Based on the definitions provided by these scholars, we can say that, Regionalism is in fact a state- led project, characterized by a formal and law based inception as a result of the intergovernmental dialogues and treaties between states in order to solve some common problems or to achieve common needs. At this point it is important to note the two concepts of Regionalism and Regionalization. Regionalization in its simplest refers to the tendency to form regions or we can say the process of doing so. “Regionalization can be conceived as the growth of societal integration with a given region, including the undirected processes of social and economic interaction among units” (Hurrell. 1995, p. 251). As a matter of fact, regionalization is a process that is characterized by transnational cooperation among the neighbouring states caused solely by non political forces, whereas, Regionalism is a deliberate attempt to steer the process of regionalization politically. Thus, the basic difference between these two concepts is that Regionalization is the tendency to form regions whereas Regionalism is the deliberate and purposive proneness to create regional institutions and arrangements. However, regionalism and regionalization as a matter of fact are very important variations of regionalism. These variations can be explained in accordance with various factors. According to Fiona Butler, “the level of growth in socio-economic interdependence; the extent to which shared values and cultural traditions persist; the extent to which formal institutional arrangements are sought; the extent to which a regional grouping displays a cohesive identity and external presence” (Butler 1997, p. 410) The key variables or the key actors of the different regional groupings may differ owing to the own uniqueness of the region or due to several other factors. Butler explains that, “they may be governments and states as well as particular economic interests. The main objectives of the regional groupings may also vary. They may be concerned particularly with intra-regional trade and investment or with the defence and security, or even with the protection of social and cultural traditions” (idem). In general, Regionalism has been divided into two kinds – the Old Regionalism and the New Regionalism. “The Old Regionalism, developed in 1930s, is a regionalisation process that engages countries in the same geographical area which lead to the regional integration as its end goal. On the other hand the New regionalism, developed in 1990s, is not only engage countries in the same geographical position and does not aim to create a regional integration” (Hwee. Yeo Lay 2005, http://revistas.ucm.es/cps/16962206/articulos/UNIS0505230008A.pdf) 3 In a way, the old regionalism was mainly focussed around the emergence of the European regional organizations and was largely characterized by the focus on the internal functioning of the region and the changing pace and attributes of the intra-regional relations. Thereby this wave was often believed to be an inward looking process but was also considered to be a ray of hope for the progressive development that successfully moved from consultation and coordination among the different nation states with certain common objectives into a new era of integration. Thus, this can be seen as developing the very base for the next phase of cooperation and ultimately integration which is often referred to as New Regionalism. In fact, the growth of this concept of new regionalism as a worldwide phenomenon which though varies in scale, character and significance from region to region can be dated back to 1980s through the first half of 1990s. “What is ‘new’ about the regionalism that surfaced in the 1980s and became prominent in the 1990s is its outward-looking focus on external links with other regions” (World Wide Web Document: Hwee. Yeo Lay 2005, Realism and Reactive Regionalism: Where is East Asian Regionalism heading, http://revistas.ucm.es/cps/16962206/articulos/UNIS0505230008A.pdf , accessed on 28th October 2012) Therefore, this new regionalism which is also called the open regionalism is often regarded as an outward-looking and market-driven process of integration characterized by increasingly by avoidance to a high level of protection. Also, it is believed to be a part of the ongoing process of globalization and internationalization of the world’s political economy. Professor Bjorn Hettne defines this new regionalism as “a multidimensional process of regional integration which includes economic, political, social and cultural aspects... Regional integration is a package rather than a single policy, whether concerned with economies or foreign policy... It is spontaneous and from below (firm, market and customer driven), whereas the old type was imposed from above (bureaucratically flat driven) and was therefore more limited and more prone to failure of the kind that grand designs invariably suffer” (Hettne Bjorn & Inotai. A 1994, p.13) 3.1.1. Regionalism and Globalization Globalization, as a concept has gained much attention and importance. It is a new age phenomena which “describe the breakdown of discrete economic spaces” (Rosamond 1999, p. 179). Globalization has always been linked to the liberalization of the global finance, the trans-nationalization of production, integration of the world markets, the growth of the world trade and a borderless world.