Global Trends

Chapter Four

Globalization and Regionalism

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 Globalization is “the integration
the political, economic and cultur
activities of geographically and or
nationally separated peoples”.
he term Globalization means adopting a global outlook for t
usiness and business strategies aimed at enhancing global
ompetitiveness and mutual inter-dependence among the
conomies of different countries.
is multidimensional concept that refers to the transformation
rade, technology, industry and economy in a universalizing
irection.

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 Cont.…
 Globalization can be defined as a multidimensional
process characterized by:
 The stretching of social and political activities across
state (political) frontiers
 Scholars explained it differently. On one hand
globalization would mean westernization and as a
worldwide integration of all.
 One can also talk about globalization as the widening
and deepening of international flows of trade, finance
and information in a single, integrated global market
Modern technology, modern science, modern means of
communication, and the modern world market, have
made the world truly one world, with all the nations
and parts closely inter-linked.
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 CONT’D…
Such interconnections has been deepened
by the process of trade liberalization,
increased role of international organization
such as world Bank (WB), international
monetary fund (IMF), World trade
Organization (WTO), transnational
corporations (TNC’S).
The evolution of worldwide systems of
transport and communication increases
global interactions and process.

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 Perspectives/theories/ of Globalization

There are three perspectives that

deliver a distinct response to the
questions of: What is new about
globalization and what are its
political consequences for
sovereign statehood
In this regard, there are three
perspectives:
5  The Hyper-globalists
 The Hyper-globalists
 Hyper globalists argue globalization is a positive
process of economic growth and increasing
prosperity for the majority and the spread of
democracy.
 For the hyper-globalists, in globalization nation
states become obsolete to regulate their economy
and boundary.
 This view of globalization privileges the economic
over the political, the market over the state, and
heralds the decline of states
 The market is the central actor in globalization than
the state

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 Hyper-Globalists
State has no role in the process of globalization.
They argue that economic globalization is
bringing about a de-nationalization/de-
territorialization of economies through the
establishment of transitional networks of
production, trade and finance.
Made national governments powerless institutions
marginalized by the growing significance of local,
regional and global mechanisms of governance.
Argued that the authority and legitimacy of states
are undermined due to they are unable to
control the Trans-boundary movements and flows
of commodities, ideas and different socio-
7 economic activities inside their borders
 Generally, hyper globalists argue
that:
The role of state is undermined
Accepts a boundary less state
Gives more emphasis to market
Economy is the first while politics is the
second option
Market is more rational than governments
could ever be
Globalization is all about the establishment
of one or single world/global/market by
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capitalism
 The Skeptics
 The skeptics rejected the view of Hyper- globalist since it
fundamentally underestimate the enormous power of national
governments to regulate international economic activities.
 For Skepticisms, globalization, is very much dependent on
the regulatory power of the state.
 States are central actors and agents of globalization playing
central role.
 States shapes and regulates the economic activities including
the Trans-boundary flows of ideas, goods and peoples.
 For them, the so called globalization is not more than
regionalization.
 Skeptics argues that there is no free flow of goods, resources,
technology and finance at the global level; instead we have
regional based globalization.
 Unlike hyperglobalists, the skepticisms do not believe that
globalization would narrow the economic and technological
gap between the Global North and the Global South.
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 The Transformationalist
They reject both the hyper globalists’ view of
the end of the sovereign state as well as the
skeptics claim that nothing much is displacing
traditional conception of state power as an
absolute, indivisible, territorially exclusive
power
At the core of the transformationalist view is
the belief that globalization is reconstituting
or reengineering the power, function and the
authority of the state.
Even though the state has ultimate legal power
to control events inside its boundary, it can’t
command sole control over trans-boundary
10 issues, actors, resource movements.
 Cont…
They opposes any kind of cultural uniformity
that can be endanger by globalization and they
do not refuse cultural diversity
They tried to transform the powers of the nation
states to cope up with pressures of globalization.
They says “Act locally think globally”
They want to compromise (balance) the
existence of nation-state and globalization.
They also compromise the local & global culture.
It holds the idea of being global as well as local
at a time

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 CONT’D…
 They reject both the hyper-globalist view of the

end of the sovereign state as well as the Skeptics

claim that nothing much has changed.
 Instead they assert that a new sovereignty
regime is displacing traditional conception of
state power as an absolute, indivisible,
territorially exclusive power.
 Under globalization, there are non-state actors as

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multinational corporation, transnational social
 Pros of Globalization
1. Access to New Markets
Globalization gives businesses the opportunity to expand
into new markets, reach international buyers, and increase
revenue.
2. Spread of Science, Knowledge and Technology
In order to cooperate globally, companies must share similar
technology and a technological structure. E-commerce, for
example, allows companies to sell products worldwide
through [Link].
3. Enhanced Global Cooperation and Tolerance
Globalization enhances cooperation by enabling countries to
specialize. This allows them to leverage their economic
strengths and trade those products for other resources. For
example, a country in South America that specializes in
sugar cane can export it to a developed country in
13 exchange for manufactured goods.
 4. Promotes Economic Growth
Studies have found that
globalization enhances economic growth by
distributing resources more efficiently because
countries can specialize in activities with
comparative advantages. It also promotes
growth indirectly through complementary
reforms in terms of capital and financial
development.
 The invention of internet technology
 The transfer of technology and knowledge

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 Cons of Globalization…
1. Exploitation of Labor and Resources
Wealthy, industrialized nations sometimes
enter trade agreements with developing
countries in order to exploit weak labor and
environmental laws. For example, the United
States has been known to use foreign
sweatshop labor to produce cheaper goods.
2. Increased Competition
Although free trade can increase a nation’s
wealth, it also increases competition. Local
businesses must compete with multinational
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corporations that produce cheaper goods at
lower costs, which puts them at a
 3. Imbalanced Trade
A trade imbalance, also known as a trade
deficit, occurs when a country spends more
on imports than it makes on exports. This
creates a shortfall in capital that the
country must make up for either by
borrowing money from foreign lenders or
permitting foreign investments in its assets.
Brain drain, the migration of skilled
professionals to the industrialist countries
especially in areas of medicine &
engineering.
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 Defining Regionalism and Regional Integration
Regionalism refers to intensifying political and/or economic
processes of cooperation among states and other actors in
particular geographic regions.
Regionalism normally presents the sustained cooperation
(either formal or informal) among governments, non-
governmental organizations, or the private sectors in three
or more countries for mutual gains.
Regional integration: is the process by which two or more
nation-states agree to co-operate and work closely together
to achieve peace, stability and wealth.
Regional integration also refers to a process where
neighboring states agree to intensify their cooperation
through common rules and common institutions. While the
European integration process with the European Union (EU) is
by far the most extensive example of regional integration,
similar processes has been launched both in Africa (African
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Union), Asia (ASEAN).
 Major Theories of Regional
Integrations
Functionalism
 The very character of functionalism in integration draws
from analytical functionalism in sociology as it deals with
the achievement of regional cohesion through the
creation of institutions which are largely typical and
incremental in decision making.
 In the early years of integration it was predicted that
European integration would be a gradual spill-over
process from non-political aspects of social life, like
common markets, which would eventually result in the
deepening of political aspects of integration
 Functionalist theory of regional integration holds that
cooperation and integration among countries in a
particular region will lead to greater economic and
political stability, ultimately leading to the creation of a
supranational entity.
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
 Functionalism…
 This theory argues that integration will lead to a
"spillover" effect, where cooperation in one area
will lead to cooperation in other areas, and that
integration will lead to mutual benefits for all
countries involved.
 The theory also posits that integration will lead to
the resolution of conflicts and the reduction of
tensions among countries in the region.
 The like-minded states would spread the web of
international activities and agencies in which and
through which the interests and life of all states
would be gradually integrated from one activity to
others (Mitrany 1946).
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 Functionalism…
 Therefore, 'spillover' is the key explanation of
functionalist regionalism.
 Functional spillover is the interconnection of
various economic sectors, and the integration in one
policy-area spilling over into others.
 Political spillover is the creation of supranational
governance models, as far-reaching as the European
Union, or as voluntary as the United Nations.
The spillover effect typically emanates from a single
source, and its impact leads to other non-participants
experiencing negative or positive social, political, or
economic interference

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 Neo-functionalism
It emerged in the 1960s based on the key works of Ernst
Haas and Leon Lindberg.
Among regional integration theories that have
evolved since the 1960s, Neo-functionalism remains
one of the essential tools to understand why nations
decide to put together their economic and political
destinies and how a regional integration process
explains.
The European Union remains the most advanced
integration case so far, but integration movements
may emerge in other parts of the world, as well.
By devolving more authority to the supranational
organizations they have created, states make sure
that their citizens will begin shifting more and more
of their expectations to the “union.” The economic
and social integration will then “spillover” into
21 political integration.
 Neo-functionalism…
In the early years of integration it was
predicted that European integration
would be a gradual spill-over process
from non-political aspects of social life,
like common markets, which would
eventually result in the deepening of
political aspects of integration.
For instance, in the early stages of
European integration, economic more
than political interdependence was the
driving force behind the integration of
Western Europe
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 Regionalization versus Globalization and State
 The way regionalization, globalization and the
state interact have various forms based on the
issues under consideration.
 For instance, the nature of interaction among the
three on issues of economics and security greatly
differ.
 In the international economy, globalization and
regionalization appear to be pushing states in
different directions.
 However, there is today no major motivation
toward globalization in the security arena,
perhaps with the exception of nuclear issues such
as nonproliferation.
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 The Relations between Regionalization and
Globalization
 There are three possible options regarding the mutual relations
between regionalization and globalization, especially in the
economic dimension:
1. Regionalization as a Component of Globalization:
Convergence .
 According to this view, by helping national economies to become
more competitive in the world market, regional integration will
lead to multilateral cooperation on a global scale.
 Thus, the process of regional integration can be interpreted as
part of the international (or global) economic order at the end of
the 21century.
 EU,UN
 2. Regionalization as a Challenge or Response to
Globalization: Divergence
 The regionalization is a reaction and challenge to the
amorphous, undemocratic, and unavoidable economic rules of
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globalization.
 CONT’D…
 It opposes the neoliberal ‘harmony of interest’ view of the world
economy in favor of national (and regional) loyalties and frameworks.
 Ex; BRICS
3 .Regionalization and Globalization as Parallel Processes:
overlap
 Regionalization and globalization are often seen as parallel processes
that can overlap in certain ways.
 Regionalization refers to the process of creating and strengthening
economic, political, and social ties within a specific geographic region,
such as Europe or Southeast Asia.
 Globalization, on the other hand, involves the increasing
interconnectedness and interdependence of countries and regions on
a global scale.
 While regionalization focuses on fostering cooperation and integration
within a specific region, globalization involves the expansion of
economic, cultural, and political activities across national borders.
Despite these differences, regionalization and globalization can
overlap in certain areas. For example, regional trade agreements and
25 organizations can be seen as both regionalization efforts and
components of the broader process of globalization.
  Additionally, regionalization can be seen as a
response to globalization, as countries and regions
seek to protect their interests and identities in the
face of increasing global competition and
integration. At the same time, regional cooperation
and integration can also facilitate and enhance a
country's participation in the global economy.
 Overall , regionalization and globalization are
complex and interconnected processes that can
influence each other in various ways, leading to
overlapping and complementary outcomes.

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 Regionalization, Globalization and the State
1. Nation-States and Nationalism as Rival Processes of
Globalization
 Processes of disintegration, fragmentation, autarky, and
localization diverge from the overall trend of globalization.
 The persistence or resurgence of nationalism can be regarded as a
response to the alienating forces of the global market, by
relocating or strengthening legitimacy and loyalties at the national
or even sub-national levels, in direct contradiction to the
transnational or supranational logic of economic globalization
2. Globalization as a Force of Nationalism and the
Formation of
New States
 Through a process of technological dissemination, globalization
might actually promote nationalism and the formation of new
states.
 Hence, globalization and nationalism might converge, through a
27 new (global) revolution of ‘rising expectations,’ which encourages
states to cope with and to manage the forces of globalization.
 THANK YOU

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