Provides an analytical account of the new wave of regionalism in the world since the 1990s, presenting and critiquing the view that regionalism is a reaction to the failures of the WTO.
Written in 2005; 1,950 words; 14 sources; APA; $ 62.95
Paper Summary:
Many prominent scholars, and even the World Trade Organization (WTO), have attributed the wave of regionalism during the past decade to developments in the WTO, such as the slow, difficult, or failed negotiation process. This paper shows that frustration with the WTO negotiation process is not the principal explanation for the expansion of regional integration (RTA) in the past fifteen years. Although several developments in the WTO have contributed to the expansion of regional integration (RTA), there are other accounts that are relatively important, such as systemic, societal, and ideational that have to be considered. First, the paper reviews the account centered on the frustrations with the WTO negotiation process and brings it under the umbrella of broader developments in the WTO, which have encouraged RTAs. Second, the paper demonstrates that there is a political economy process behind the formation of RTA in which state relations, domestic interest groups, and ideas all play important roles. Third, the paper discusses the effects of changing international political conditions on the expansion of regional integration. Prior to the concluding remarks, the paper mentions the domino theory in order to move beyond the distinctions that give primacy to one account of RTA. Finally, the paper provides concluding remarks.
From the Paper:
"Central to the societal-state explanation is the ideational account of RTA expansion. This relates to the rethinking of neo-liberalism underway by the end of 1990s, which is crystallizing into the emergence of a new mode of market governance. A key element revolves around the notion of public power and its deployment within the confines of a broadly neo-liberal model. Emphasis has squarely fallen on the state in governing markets in order to make the capitalist structure more legitimate and sustainable. This signifies a movement towards market making role of the state, in particular in the Southern Cone and other developing countries."
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