University of South Australia


University paper(Undergraduate)

By: Khaled Azizi
10 June 2007
Grade: D(82%)




Does regional integration contribute or is it inconsistent with globalisation:The case of the European Integration


It is argued that regionalism and therefore regional integration is shaped as a safeguard against globalisation. However it is also argued that regional integration contributes to globalisation and accelerates the process of globalisation. Both globalisation and regional integration have positive and negative effects, but when combined together the results would be different, depending on how they are accepted among different states. There are differences between these terms which might be a source of inconsistency. One example of regional integration is European integration which has been effective and successful in many areas of politics, economic and social and it has been able to shape many institutions which govern the region with regard to sovereignty and national identity of the member states. On the other hand globalisation is a process which arguably threatens the national identity, sovereignty and the economic statues of the states despite its effective role in some bringing the world communities closer than ever through powerful information technology. There is a dual nature relationship between these two terms and the aim of this essay is to discuss this relationship specifically in Europe.

In the beginning of the essay the concepts ‘regional integration’, ‘regionalism’ and ‘globalisation’ will be defined, then a background of the creation of the European Union which resulted in the European integration, as well as its effectiveness will be discussed. The essay will focus on the interaction between globalisation and regional integration, in order to find out whether globalisation is contributing to regional integration or if it is inconsistent with it. Some scholars argue that regional integration is a way of confronting the process of globalisation and others believe that regional integration accelerates the process of globalisation therefore it is contributing to it. The aim of the essay is to state that both points are valid however regional integration might be more inconsistence rather than contributing

Griffiths and O’Callaghan (2002, p.156) state that regional integration is “where a number of states within close proximity to one another join together to form a federal political and economic union” and an obvious example of regional integration is the European Union. According to Molchanov (2005, p.431) “no discussion of globalisation would be complete without an assessment of the European Union”. The European Union (EU) is the outcome of sixty years of integration which began from the end of World War II and “it has been a forerunner in manifesting several important tendencies that are now regarded as key features of globalisation” (Molchanov 2005, p.431). It is necessary to know how the EU formed because in itself the EU is a form of globalisation which works in different ways and for different purposes. Before the creation of the European Union, in 1951 the European Coal and Steel Community (ECSC) was established by political leaders of France, Germany, Italy, Belgium, the Netherlands, and Luxembourg, it was a practical step toward regional economic and political integration (Hancock 1993, p.462). According to Hancock (1993, p.462) the aim of the ECSC was to “eliminate customs duties on iron, coal, and steel products among the six member countries…”. The power to run the works was divided between a council of ministers which was represented by the six members. Also a European Court of Justice was created in order to “adjudicate disputes over the interpretation and implementation of the ECSC treaty” (Hancock 1993, p.462).

Consequently, the success of ECSC encouraged the members to create a European Economic Community in 1957 which got them closer to each other. The tremendous achievements attracted the attention of other European states such as the United Kingdom to join the EEC and therefore as the number of the members increased, broader policies were made until it led to the creation of the European Union (Hancock 1993, p.462-463). Additionally, the EU was created through intergovernmental treaties between the Member States. These intergovernmental treaties brought up a number of institutions, and defined their capability (What is the EU? n.d). The EU is regarded as a unique institution because it is a free trade area in which most of the product-related regulation is coordinated. Also it is a free movement area of labour and the region which shares many common environmental standards and many common social standards and consequently, it attempts to develop a unified foreign policy (What is the EU? n.d).

The European integration has been successful in many areas. One positive example of its positive impacts can be pinpointed in the area of higher education where both teaching and research have received a European dimension; this has been done through successful student exchange programs and large scales of funding (Baylis & Smith 2001, p.587).

According to Griffiths and O’Callaghan (2002, p. 273) the term regionalism “refers to intensifying political and/or economic process of cooperation among states and other actors in particular geographic regions…”. Regionalism is the result of “the increasing flow of goods, people, and ideas within a spatial entity which thus becomes more integrated and cohesive” (Griffiths & O’Callaghan 2002, p.274) and it is developing strongly all around the world. There have been many attempts towards regionalism but not all of them have been successful. The only one which has achieved success to some extent is the EU (Karns & Mingst 2004, p.147). Political and economical factors drive regionalism; some of these factors are identity, domestic politics, internal and external threats (Karns & Mingst 2004, pp.148-150).

Regionalism and regional integrations are based on regional cooperation. Additionally, regional cooperation may also be used as a support to balance the uneven globalisation of the world economy (Griffiths & O’Callaghan 2002, p.274). Molchanov (2005, p.431) affirms that regional integration among states is often regarded as the proper response to the economic and cultural strains which are generated by the globalisation of market forces and he also agrees that Europe acts as a safeguard against globalisation in order to protect Europe’s cultural identity, however it can also be seen as a vanguard of globalisation which eliminates traditional barriers.

Soltes (n.d, p.54) believes that globalisation is the outcome of the collapse of socialism and the end of the bipolar world and it has negative and positive aspects. Globalisation has many different definitions. According to Kegley and Wittkopf (2006, p.262) “globalisation is a shorthand for a cluster of interconnected phenomena that together are transforming world politics”. In addition, Worthington (2001) defines globalisation as the spread of communication, commercial, and transportation networks across the world and the increasing rapidity which they can move people, capital and produce. For instance from an economical perspective, globalisation is seen as a race between national governments as they attempt to attract more investment through undercutting competition by offering states low taxation and labour conditions. Socially, rapidity of communication and increased population movement is believed to be the reason behind the erosion of established national identities. Also those who are disadvantaged may feel isolated from their traditional communities (Worthington 2001).

It is now agreed that regional integration and globalisation have a complicated relationship. This is true in the case of the linkage between globalisation and European integration which is described as a complex relationship and is continuously changing (Molchanov 2005, p.435). In the case of the EU, the relationship between EU integration and globalisation has a dual nature. On one hand the integration acts as a shelter from global process and on the other hand it acts as an accelerator of the global process (Baylis &Smith 2001, p.587). Consequently, in the political debates there are two different interpretations on the relationship between European integration as a successful example of regional integration and globalisation. Based on the assessment of the integration process, some observers regard the European integration as “an expression of turbo-charged globalisation” and others regard it as “a protective shield against the negative fall-out from globalisation” (Baylis & Smith 2001, p.587). Those who regard it as an expression of turbo-charged globalisation believe that the EU integration is accelerating the process of globalisation through the policies of the European Union, for instance multinational corporations get benefits from the improved access to the market (Baylis & Smith 2001, p.587). Molchanov (2005, p.435) supports this view stating that European integration has contributed to the spread and intensification of globalisation on a great scale through revolutionising the development of supernational institutions with few analogues in the world. However, in the view of the advocates of the single currency, integration provides nation-states and electorates in Europe with a mechanism to confront the challenge of globalisation (Baylis & Smith 2001, p.587).

Arguably one reason behind the inconsistency of regional integration in regard to globalisation is the differences which they have. According to Beckfield (2006, p.7) there are three key differences between regional integration and globalisation. The first one is that regional integration is geographically bound while globalization is defined as the increase of cross-border flows, and the crossed borders can be any national borders. For instance the trade between the USA and Germany is as much globalisation as the trade between France and Germany, but the difference is that “regional integration involves the intensification of international interaction within bounded regions” (Beckfield 2006, p.7). The second difference between regional integration and globalisation is political; the way which the regional polities are institutionalised is stronger than the world polity. In addition, the European Union has the power to compel compliance with their directives. For instance, the EU requires its members to meet budgetary and other requirements before they could join the currency union (pp.7-8). However, “only a few global organisations, such as the World Trade Organization (WTO), have such coercive power and its power is not nearly as far-reaching across policy domains as the EU’s” (Beckfield 2006, p.8). Finally, the progress of regional integration is far ahead of globalization; in fact, most of what is called globalisation may be regarded as regionalisation (Beckfield 2006, p.8).

Arguably, regional integration is more inconsistent rather than contributing because the aim of regional integration is to provide opportunity for all individuals within the member states and improve their economy while respecting their national identity and sovereignty; nonetheless it is argued that globalisation has resulted in widening the gap between people’s income in rich countries and poor countries and the rate of unemployment is higher than ever before (Kegley & Wittkopf 2006, p.289). Additionally, regional integration encourages and supports the process of development of all aspects (social, political and economical) among the member nations, while for instance “globalisation has interrupted several aspects of social structure that have in the past encouraged the development of the nations” (Scholte 2000, 162). To be more precise “globalisation has shifted the balance of accumulation to include commodities that are much less tied to territorial geography” (Scholte 2000, p.162).

Regional integration is a process where a number of states join together and form a political and economical federation. One obvious example is the European integration. The idea of Regional integration is now more popular than ever before. One successful example is the European integration which has resulted in establishing many effective political, economical and social institutions such as the European Court of Justice. It is believed that regional integration is a type of globalisation but on a smaller scale and with some differences. For instance European integration respects and protects the sovereignty of the states and the national identities within the Union and it is referred to as a contradictory process rather than a developed state of affairs. Similarly globalisation is a process which spreads information technology and the markets all around the globe and aims to bring the world closer together. However it has negative effects, for instance, it might destroy national identities and cultural values; also it might leave poor people poor and ensures that rich people get the most benefits out of it. Regional integration and globalisation have a dual nature relationship together. Some scholars argue that regional integration contributes to globalisation and others believe it is inconsistent with it. Both points are valid, however, evidence shows that it is more inconsistent and this might be because of some major differences between them, such as the high level of the EU compared to globalisation, as well regional integration is far ahead from globalisation.




References


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