Building blocs: Regionalism and globalization in the Asia-Pacific

The emergence of Asia as the epicentre of the global supply chain is owed entirely to the globalization of production. This chapter examines the impact of globalization and regionalism on the global economic and political order, as well as the role that regionalism now plays in the strategies of individual states to maintain or strengthen their positions in the global political economy. The first part examines how Asia-Pacific states have responded to the challenge of globalization, and discusses the growth and development of a number of regional initiatives. The second part considers the links between economic globalization and the growth of regionalism, particularly regional organizations. Both trends may reinforce each other: the spread of globalization can inhibit the ability of the state to implement national policy preferences and, as a result, globalization may encourage the state into closer regional co-operation. In summary, the thrust of this chapter is that globalization and regionalism are integrally interdependent and mutually reinforcing.