Some concepts of regional Co-operation


  • 201102_3354 New-Zealand - Matheson by ├ Ad de Cort ┤



            There is no denying the fact that a few decades ago; the conception of regional cooperation came as a signal in the different parts of the world signifying to establish a relationship among some developing countries in the world. Several regional organisations were created in different region. After the creation of the European community in 1958, regional cooperation proliferated in East Asia, Africa and Latin America .Although there was towering optimism amongst the embryonic countries but regionalism did not boom outside Europe. Notwithstanding that, regionalism again being viewed as a way of solution of their economic problems. In present time, the concept of regional cooperation is different than that of thirty years ago. Before amplification the main differences it is necessary to bring up a few words about the causes of the emergence of new regionalism. During the cold war, although regionalism was an international agenda but its scope was limited. Because all regional arrangements at that time was subordinate to bipolarism. End of cold war or collapse of old bipolarism gave regionalism a new momentum.

            In new circumstances, regional organisations are regarded as an important helping hand of the United Nations. For regional problem solving, UN growing dependence on regional organisation gave regionalism a new force. For many developing countries economic marginalization after the end of bloc politics became a major threat. For becoming self reliant developing countries gave more emphasis on regional cooperation. The success of the European Community and their different new type of plans positive others to rethink their policies towards economic regional cooperation Signing of North American Free Trade Agreement predisposed some countries to reassess the possible gain from regional cooperation. The developing countries are also creating free trade area and trying to include developed partner into their free trade arrangements as a tentative flow. In old regional cooperation, primary motive in the developing countries were industrialization through import substitution. Regional protectionism for example erection of trade barriers were the instrument. Now trade liberalization i.e. removal of trade barrier has become the main policy in their regional cooperation. In old regional cooperation inward looking strategies were the high priority but now in new regionalism is out ward looking for example export promotion, currency devaluation, economic growth and ultimately global competition is the main goal of new regional cooperation.

            In the 60s United States was the defender of multilateralism and opponent of regionalism. Now it has become an active partner of regional cooperation. At that time regionalism was viewed as a threat to multilateralism. On the other hand now it has become the helping hand of multilateralism. The old regional cooperation was homogeneous partners based. For example regional cooperation was South-South and North-North based. Now North-South regional cooperation is visible and it is a new dimension. United States, Canada and Mexico has created largest trading bloc in the world economy. This North American Free Trade Agreement was signed in 1992. Here Mexico is Southern country. Greater diversity among the partners is new dimension in regional cooperation which was not present in old regional cooperation. A European Union relation with East European countries and with Turky is also new. Another dimension is inclusion of Vietnam in the ASEAN, which is a communist country.
            The treaty provisions are also new in the present regional cooperation. In NAFTA treaty the provision of rules of business (new type of protectionism), dispute settlement, intellectual property rights and environmental protection and sustainable development clauses are new. Old regional cooperation arrangement are often formed in response to common external threat or based on political factor. Political ideology played prominent role for the creation of most of those regional cooperation. On the other hand new regional cooperation is a multi dimensional, trade and economic issues are prominent here. For example communist threat was the important reason for the creation of ASEAN. Now the policy of this regional organisation has changed. Trade and economic aspects gaining priority in their relations. The Soviet threat played important role in the formation of European Community. The new regional cooperation is spontaneous which is market and consumer driven. On the other hand the old type of regional cooperation was imposed from above or bureaucracy driven and was therefore more limited. The free trade concept is an important issue in comparison to old regional cooperation arrangement. For example beyond simple trade liberalization of trade in services, liberalization in movement of capital and labour, investment, technical and regulatory standards, customs formalities etc. are new. These policies are now followed by most of the regional organizations. The EU and the NAFTA has these provisions. The new regionalism is putting the nation- state system under strain.


In the old regionalism the nation- state was the main actor of regional cooperation. In the European Union much of the state’s responsibilities are not being done by this regional body. The EU is therefore now focusing a common monetary policy, common social policy and common foreign and security policies. Intra-regional South- South trade has increased much in the new regional cooperation than under the old regional one. In the old regional cooperation this volume of trade was much lower than the present trade volume. In view of the above it is evident that the changes in the concept of regional cooperation have based to a high degree on the changes in international politics. As we know that after Second World War power politics dominated the international system. For that reason regional cooperation arrangements were mostly political and security based. After the cold war, although political and security issue remains there as always, economic and trade aspects have become the main focus in the new cooperation.

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