LESSON II

At the end of the chapter, the students will

be able to:

1.Differentiate between Regionalization

and Globalization.
2.Identify the factors leading to a greater
integration of the Asian region.
3.Analyze how different Asian states
confront the challenges of Globalization
and Regionalization.
WHAT IS REGIONALIZATION?

In economics Regionalization or
sometimes termed as Localization is a
strategy in economics which focuses
on a particular region or Area - It
employs differentiation based on
regions.
Globalization – a strategy that refers to
the use of the same business strategy
by multinational companies in all the
markets they operate in. It also
exceeds regional boundaries,
products are being promoted without
region-specific focus.
EXAMPLES OF REGIONALIZATION STRATEGY
AMERICA VS. MUSLIM COUNTRIES
EXAMPLE OF GLOBALIZATION AND REGIONALIZATION
STRATEGY
 History of Regionalization in Southeast
Asia
After the great war, regional leaders around the world
look for a new structure on how they will manage their
shared interest, threats and opportunities.
Marginalized economies that had been excluded from
the world market, were increasingly seeing renewed
opportunities in the collaboration with neighboring
countries.
The ASEAN (Association of Southeast Asian Nations) is
a perfect example of a successful regional cooperation
that responds to external pressures and common
challenges.
August 08, 1967 – Five leaders of Southeast
Asian Countries met together in the Department
of Foreign Affairs building in Bangkok Thailand
and signed the document where the
“Association of Southeast Asian Nations” was
born.
Five ministers who signed the document;

Adam Thanat
Malik of Khoman of
Indonesia Thailand

Tun S.
Rajaratman
Abdul
of
Razak of
Singapore
Malaysia

Narciso Ramos of
Philippines
ASEAN Declaration

•Mindful

•Desiring

•Conscious

•Considering
Goal of ASEAN:

Cooperation in terms of;

•Economic
•Social
•Cultural
•Technical
•Educational and other fields.

Also a promotion of Regional peace and stability

through abiding respect for justice and the rule of
law and adherence to the principles of the United
Nations Character.
Akkerman (2007) she stated that the main
reason for the ASEAN cooperation is primarily
from the outside – the US feared that
communism will spred out all over the region –
to prevent this it sponsor the creation of the
association for stability purposes. After the cold
war, ASEAN started to expand its own path – it
developed cooperation with Lao PDR, Vietnam,
Cambodia, and Myanmar and adopting the
Asean Free Trade Area to attract foreign direct
investment.
 CHALLENGES RESPONSES

•Creation of Asian
Monetary Policy
Asian Financial Crisis •Bilateral Agreements with
(1997-1998) China, Japan, and South
Korea.

9/11 Bombing in New York •Take actions towards their

City where 2,996 died. Muslim Terrorists
(Including 19 population.
terrorists/Hijackers.) •Assess it’s position that
will not jeopardize the
access to the US market,
but neither grants a US
influence in the
associations affairs.
ASEAN, created bilateral agreements with
China, Japan and South Korea (ASEAN +3). A
framework that besides financial issues also
includes deeper economic cooperation.

Other primary regional organizations are;

•Asia-Pacific Economic Cooperation
(APEC)
•Shanghai Cooperation Organization
(SCO)
After 9/11 bombing (September 11, 2001),
regionalism had increased once more in the
region. U.S. encourage War against terrorism-
forcing the members (APEC) to take action
towards their Muslim Terrorists population.

In this situation, ASEAN will have to asses it’s

position that will not jeopardize the access to
the US Market, but neither grants a US
influence in the associations affairs.
Proof that there is an increase regionalism in Southeast
and East Asian Region is the success of ASEAN +3. (S.
Korea, Japan, China)

According to Prime Minister Lee Kuan Yew, a wider

regionalism under auspices of ASEAN is “an idea that
would not go away.”

Despite China challenges the region and the world,

more likely it will benefit from the growth of ASEAN.

It is Amazing that despite of diversity in many aspects,

countries in Southeast and East Asian regions came
together with just one slogan…