The Supply of Regionalism: Interests, Power, and Norms

It is universally acknowledged that in the era of globalization and proliferation of multilateral decision-making international cooperation requires political leadership and international institutions to work. The ability of global institutions to consolidate power is unrivaled and allows to overcome market failures and collective action problems. Nevertheless there are systematic attempts to prove that demand for regionalism is sufficient for it to emerge. Although everyone agrees that political factors that shape regionalism are of primary importance, there are a number of other determiners why states choose to pursue regional collaboration strategies. The decision to enter a regional institution or agreement rests partly on the preferences and political power of various segments of society, the interests of state leaders, and the nature of domestic institutions. But states do not make the decision to form alliances on the regional level in an international political vacuum. On the contrary, interstate power and security relations as well as multilateral institutions play key roles in shaping regionalism.

Studies addressing the links between power and regionalism have placed primary stress on the effects of political or hegemonic leadership. Various scholars argue that international economic stability is a collective good, suboptimal amounts of which will be provided without a stable hegemon. This argument is also invoked by many economists who maintain that the current wave of regionalism was triggered or accelerated by the U.S. decision to pursue regional arrangements in the early 1980s, once its economic power waned and multilateral trade negotiations stalled.

In contrast to this point of view, there is evidence that over the past fifty years the erosion of U.S. hegemony has stimulated a rise in the number of regional trade agreements and states entering them. Some observers argue that as a hegemon’s power recedes, it has a reason to behave in an increasingly predatory manner. To buffer the effects of such behavior, other states might form a series of political or trading blocs, thereby setting off a wave of regionalism. A number of scholars believe that this sort of process began to unfold during the 1980s, giving rise to a system of loose regional economic blocs that is coalescing around Western Europe, the United States, and Japan. They also point out that because of the inherent problems of ‘‘pluralist’’ leadership, these developments threaten the unity of the global trading order.

Hegemonic stability theory points to powerful states, which are willing to and capable of acting as regional paymasters, easing distributional tensions and thus smoothing the path of integration. Yet, they supply regionalism for different reasons. According to these teachings, the US, China, Russia, South Africa or Nigeria supported and engaged in region-building for their geostrategic and economic interests in strengthening military alliances, promoting stability in neighboring countries, or securing access to new markets, cheap labor, water, and energy resources. The US played a key role in the creation and prevalence of the European Community and ASEAN by mitigating the security dilemma in the region. It has also acted as a regional hegemon for NAFTA to counterbalance the Single European Market. Likewise, Brazil and Venezuela have championed MERCOSUR to make it a regional power and to contain US influence in Latin America. A similar competition for containing external and exercising regional hegemonic power through promoting different forms of regionalism can be observed between Iraq and Egypt in the League of Arab States, Malaysia and Indonesia in ASEAN, Japan and China in East Asia, Nigeria and South Africa in Sub-Saharan Africa, and Russia and Uzbekistan in Central Asia. Regional powers can be engines of integration, as France and Germany have been in the EU and Brazil and Argentina are in MERCOSUR, although the latter have been criticized for not providing sufficient regional leadership. Conversely, the absence or ineffectiveness of regionalism in the Middle East or Asia is often blamed for the absence of a regional or external hegemon.

However, while using regionalism to establish and affirm their regional hegemony, powerful states are reluctant to bind themselves by regional institutions. The intergovernmental nature of MERCOSUR and NAFTA and their limited scope of regional integration are largely explained by the unwillingness of Brazil and the US to delegate authority to regional institutions. At the same time, the US has agreed to a highly legalized and inflexible agreement that does not leave much levy to the member states. This degree of self-binding goes far beyond what other regional powers have committed to and poses a puzzle to power-based approaches. Powerful states do not always get what they want as the case of Nigeria in ECOWAS seems to suggest. Nigeria’s role as a state power comes hand in hand with growing doubts about its poor capacity to elaborate and implement public policies, provide conflict management and integration agenda.

One of the most obvious drawbacks of power-based theories of regionalism is that they have little on offer to explain the differential commitment of small states. Paraguay, Uruguay, Mexico and Canada may seek to bind their regional hegemon. However, by joining MERCOSUR and NAFTA, respectively, they also become even more vulnerable to its dominance. Moreover, it is not clear why some former Soviet republics decided to bandwagon with Russia and Uzbekistan while others are engaged in attempts to counterbalance their regional dominance.

Another explanation for the supply of regional institutions is based on the idea of regional distinctiveness or the existence of a collective identity which are connected to the political expression of regional interests and thus become central to the emergence of a regionalist movement. Regional identity seems to be a prerequisite of regionalism because cultural heterogeneity requires construction and maintenance of a regional community as well as politicisation and mobilisation of its members. An explicit example of how cultural identity impacts the process of regionalization is American strategy in forming regional alliances. The US was less enthusiastic to exercise hegemonic leadership in Asia than in Europe because of the lower cultural affinity. Cultural difference is also to account for the distinct approach ASEAN states have taken towards regional integration. The “ASEAN way”, which is based on informal consensus-building, organizational minimalism, and thin institutionalization, is incompatible with Western models of legalized institutions.

Regionalism also emerges due to the processes of diffusion. The supply of regional institutions can stem from other regions or international actors, which actively promote or passively provide blue-prints for region-building. “Pax Americana” and “Pax Europaea” are two “global scripts” on regionalism. The first one is based on regional trade cooperation promoted by the US and international organizations, including the World Trade Organization, the World Bank, and the International Monetary Fund. The second is advocated by the EU, striving for regional integration, which is broader in scope and infringes more strongly on the sovereignty of states.

Furthermore, market pressures or diplomatic barriers may increase the demand for regional institutions. But even if certain institutions effectively serve specific functions and help solve similar problems, states always have choices. Institutions can be “contagious” under conditions of uncertainty, policy failure and dissatisfaction with the status quo. Regional organizations that struggle to become more effective may look to other organizations that are considered as success cases for policies and rules that effectively solved similar problems and are transferable into their context. Next to lesson-drawing, regions may also emulate others for normative reasons, to increase their legitimization or to simply imitate their behavior because its appropriateness is taken for granted. Seeking international legitimacy and signaling commitment to trade liberalization motivated ASEAN to set-up a dispute settlement mechanism (DSM) that has been hardly used so far. Emulation also might be driving the recent deepening and broadening of ASEAN, whose new Charta bears some striking resemblance with EU institutions. Likewise, ECOWAS and LAS might be following a global script that entails the establishment of certain regional institutions and for which, at least in the case of ECOWAS, the EU provides a reference model. With the establishment of the Euro, the EU has become an example to follow for countries in Latin America, Africa and Asia, which may defy supranationalism but see a common currency as an anchor of regional stability. Whether the EU will continue to inspire other regions to seek economic and monetary integration will depend on the EU mastering the current financial crisis.

The comparative evaluation of mainstream theories reveals important drivers of regionalism. However, none of them is capable of fully explaining variation across time and regions. Nor have they much to say about why such diverse regional organizations as LAS and ECOWAS appear to develop similar institutions. Yet, different ontological assumptions could be seen as compatible since they shed new light on old puzzles, give rise to new questions and form the basis for new approaches that can account for the spread of regionalism.

1. The tendency to regionalism is due to develop

A because there is no proper political leadership.

B notwithstanding the proliferation of globalization.

C in spite of decreasing demand for it.

D but countries are unwilling to enter regional agreements.

2. Regional coalitions are created

A without participation of other external actors.

B even if states do not want to follow collaboration strategies.

C on the basis of their relations with international partners.

D in case multinational institutions allow them to do it.

3. According to advocates of hegemonic leadership theories, on condition that there is a powerful hegemon

A other international actors will prosper.

B other countries will never be provided with enough benefits.

C it is sure to prevent the neighbouring countries from further development.

D multilateral agreement are impossible.

4. Some opponents of hegemonic leadership theories give grounds for the opinion that

A weaker countries seek integration with a powerful partner.

B a hegemon jeopardizes the development of its allies.

C failed leadership makes other countries collaborate.

D any regional arrangement presupposes equal status of its members.

5. Geopolitical interests as well as stronger economic ties are among principal reasons

A for developing countries not to cooperate with powerful states.

B underlying the dominance of prosperous countries in regional arrangements.

C for multilateral trade agreements to appear.

D why mighty states choose the path of regionalism.

6. Affluent countries are disinclined to follow obligations imposed by regional organizations

A due to their resistance to share power.

B in case they are not ready to enter a regional arrangement.

C to show their superiority.

D because they are not powerful enough to implement the policy of these organizations.

7. If small states enter a regional agreement,

A they are eager to assume the role of regional hegemons.

B they are willing to dominate other partners.

C they risk to be manipulated by more powerful members.

D regional hegemons are ready to collaborate with them on equal terms.

8. Regional blocks can also be established

A in order to lessen cultural differences.

B on the basis of cultural integrity and common heritage.

C in case there is low civilizational affinity.

D to protect the uniqueness of incompatible cultures.

9. International institutions, multinational companies as well as reputed regional organizations

A take a stand against regional expansion.  

B advocate universal unification policies.

C derive from the process of diffusion.

D stimulate regional integration processes.

10. On condition that an orginizations on regional collaboration flourishes, it may

A resolve integration problems of other alliances.

B make other countries of the region join in.

C set a precedent for other regional blocks to pursue similar policies.

D claim international legitimacy and authority.

Vocabulary Practice

5. a. Match the words from the text to their meaning.

A	B
1. emulation	a. smbd who pays and therefore controls
2. diffusion	b. a precondition, requirement for smth to happen
3. an affinity	c. an action of spreading through
4. prevalence	d. an imitation, a copy of smth
5. a paymaster	e. the state of being dominant, accepted
6. a prerequisite	f. likeness, similarity, common origin

b. Now use these words to complete the sentences below.

1. The United States announced a $10 million reward for information leading to the arrest of a Syrian national said to be operating as an al-Qaida ............... from a base in Iran.

2. Today the crossnational borrowing can range from simple copying of new stand-alone technologies to more complex forms such as nuclear proliferation and ............... of industrial policy.

3. Speaking at a conference at the Center on Global Counterterrorism Cooperation, Raphael Perl said enhanced diplomacy was a ............... for effective use of all tools in the counter-terrorism toolkit.

4. The Gulf of Aden, notoriously known for its ............... of piracy attacks, has become the focal point for ongoing surveillance and protection operations.

5. Among the most striking phenomena in the area of public policy are the waves of ............... that sometimes sweep across important regions of the world or across the states of a federal country, such as the U.S.

6. Religion is one primary ethnic characteristic that may be so strong as to determine a definitive boundary within an .............. group, thus constituting a sufficient reason for a separate ethnic entry in a listing.

c. Fill in the appropriate word from the list below. Use the word only once. Then give Russian equivalents to the word combinations you have made up and use them in your own sentences.

to pursue	to exercise	to provide
to smooth	to bear	to master
to mitigate	to delegate	to entail

1. …………… hegemonic leadership	6. …………… striking resemblance
2. …………… authority to regional institutions 3. …………… the path of integration 4. …………... the establishment of regional institutions 5. …………… the security dilemma	7. …………… the current financial crisis 8. …………… blue-prints for region- building 9. …………… regional collaboration strategies

d. Fill in the gaps with the words from the text in the correct form. The first letter of each word has been given.

1. The economic crisis plaguing many countries in the European Union has forced Central America to look at preventive measures to b............ its effects in this region, which could include a decline in tourism, migrant remittances, exports and investment. (to protect from harm, to soften an effect)

2. When a disaster strikes and a humanitarian crisis u............, international aid generally arrives via naval ships – often the very same military vessels designed to put troops and materiel ashore during military conflicts. (to develop, expand, evolve)

3. The Security Council has imposed four rounds of sanctions on Iran for refusing to halt its prohibited nuclear program, and Iran continues to d............ the international community through illegal arms shipments to the murderous Assad regime. (to challenge to do something, to confront, withstand)

4. According to the UN, the measures adopted by some States in their fight against terrorism i............ basic standards of fair trial and due process, and have a disproportionate and excessive negative impact on human rights. (to violate, break, restrict smth)

5.  As the nation-states w............ under the transforming power of globalization, multinational corporations are growing in power, filling in the spaces being left vacant by nation states. (to decrease in smth, to diminish in intensity)

6. While the EU has c............ "effective multilateralism" and experienced a dramatic internal reform process to improve its performance in external relations, broader multilateral processes have also undergone dramatic change. (to protect, defend, support, advocate smth)

7. Multilateralism was seen as a vehicle for securing an effective voice for Canada on the international stage as well as an instrument for constructing the necessary alignments of interests with other states which could serve to c............ the dominant influence of the United States. (to balance with an equal weight or force, to compensate, neutralize)

e. Match the underlined words and expressions in the sentences with their meaning in the box below.

A violate	C trigger	E exert much effort
B depend	D originate	F explain

1. The roots of the Iraq War stem from the fact that a brutal and unstable dictator Saddam Hussein insisted on having an illicit and aggressive nuclear weapons program, which led to U.N. sanctions and ultimatums that ultimately prompted the coalition invasion.

2. International diplomacy strives for preventive actions which undoubtedly strengthen the new role of multilateral institutions as a safety net for crisis and conflict.

3. She added that politicians should explain to the electorates their goals and aspirations because the fate of the constituency rests on the delegates who are going to make a choice for the rest of the people.

4. The  Affordable Care Act case itself demonstrates how trite the familiar law versus politics debate can be, failing to account for what the justices must actually do when presented with a politically charged legal controversy in which the decision could go either way.

5. The decree was applauded by supporters who believed the court’s decision to disband parliament was political, but it set off a fire storm of criticism from opponents who accused the President of overstepping his authority.

6. The theory of the concurrent majority states that great decisions are not merely a matter of numerical majorities but require agreement or acceptance by the major interest in society, each of which had the power to block federal laws that it feared would seriously infringe on their rights.

f. Explain the highlighted words and phrases in the text in your own words.

Discussion