Author : Supachai Panitchpakdi
Date : October 19, 2007
For many years now, academics have debated whether regional trade agreements are 'building blocks' or 'stumbling blocks' for development and free trade. Regionalism has recently returned to the forefront of attention, as the slow progress in the Doha Round of negotiations has led many countries to increasingly pursue regional agendas.
Frequent currency and banking crises in the last decades in emerging markets have also fuelled distrust in the multilateral financial institutions and their ability to prevent and manage such crises, and have led to growing interest in financial and monetary cooperation at the regional level.
Recent research carried out by the UNCTAD Secretariat on the benefits and drawbacks of regional arrangements for developing countries has generated some interesting results in this context, which may make an important contribution to the debate.
In an in-depth study of regional trade agreements and their implications for developing countries, UNCTAD has found that there tends to be an important difference between North-South Regional Agreements, i.e. bilateral Free Trade Agreements (FTAs) between developed and developing countries, and regional agreements between developing countries, so-called South-South agreements. In particular, our research found that developing countries should strengthen regional cooperation with other developing countries, and proceed carefully with regard to North-South bilateral agreements.
The main reason for this is easy to understand. Many of these North-South agreements are missing the developmental perspective, for at least three reasons:
- Bilateral FTAs often transform formerly non-reciprocal trade preferences between developed and developing countries into symmetric market access regulations; thus, the cornerstone of the post-war international trade system, the special and different treatment of developing countries, is continuously being eliminated.
- WTO-plus standards and Singapore issues, e.g. labour and environmental standards, government procurement, investment and competition policy, are increasingly being incorporated into North-South FTAs, while the sector in which developing countries are highly competitive - agriculture - is left out. Moreover, these FTAs usually make no provisions at all for monetary cooperation, even though the overall competitiveness of developing countries is highly vulnerable to external shocks. Thus, developing countries often have to accept far-reaching commitments regarding formerly classical domestic policy without being adequately compensated in terms of warranted market access and market success.
- Simultaneous participation in many FTAs with different rules and implementation horizons makes policy coordination in developing countries increasingly difficult, in particular with regard to the reconciliation between national development objectives, regional commitments and multilateral rules and regulations.
By contrast, UNCTAD's research has also found that South-South agreements offer developing countries many advantages, which for the time being are not provided on the multilateral level, nor incorporated in North-South agreements.
One of the key motives for developing countries to enter into agreements with partners at a similar level of development in the same area is that of market access. Of course, the benefits of market access, such as scale economies and the diversification of production, are arguments that apply to trade integration generally, be it with developed or developing countries. Nevertheless, for many developing countries that are at an early stage of industrial development, a regional orientation involving countries with similar economic structures and technological capabilities may be considered a more viable option. The initial foreign competition within the region may be less difficult to handle, the technological gap vis-à-vis competitors from more advanced countries outside the region may be easier to close, and the probability of finding a level playing field is greater. In other words, the regional market often sets less exclusive benchmarks than competition with mature suppliers, so that even production at the infant industry stage can be successfully broadened. South-South cooperation can also be advantageous when it comes to competition to attract FDI and to avoid races to the bottom.
This finding is also supported by empirical evidence of an increase in the relative share of manufactures and medium- and high-skilled products in the intraregional trade, which suggests that regional cooperation between developing countries can be an important means to accelerate industrialization.
Furthermore, regional cooperation in the monetary and financial area can provide important tools for the stabilization of intraregional exchange rates, and thereby reduce their potential to serve as a source of instability or as a transmission mechanism for global shocks. Similarly, cooperation on major investment projects can reduce common bottlenecks in public infrastructure like energy and water supply.
I think that these findings offer some interesting new perspective in the debate on regionalism.
The full report on regional cooperation for development is available here.
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Date : June 27, 2010 04:46
Dear Mr Supachai Panitchpakdi and parrticipants in the Forum
Now Vietnam development can't isolated from regional development
I put here one case for disscussion :
Yesterday I saw ADB website –Video about Regional tourism in 6 countries of Mekong region.
I see the data in 2015 ,I hope that it will take benefits to people.
This case happens in Danang Vietnam with biggest CASINO in Vietnam.
I think here are problems of law, culture, education and management in macro-level.
You please let me put it in yours topic.
Because Thailand is near Vietnam. Thailand is in Mekong region .Thailand has good tourism’s services.
I do not advice put tourism’s investment to Vietnam
ABOUT TOURISM
My father was Chairman of Danang city in 1950 th year
He had dream about development of city .He work hard for developmentof Danang.
I remember: after war 1979 I came from USSR. They discussed about Danang development strategies
My father told with strategies team in Danang about development.
They discuses about agricultural development, Industrial development and Tourism….
My father support Industrial development and Sea ports for regions.
Other opinions about tourism: they talk about Gambling and call –girls (like in Thailand with registration system and medical services) –How solve it in socialist system.
And to day I see how it difficult?
I was in biggest CASINO in Malaysia .
I hear about CASINO in Kampuchea.
I was in Gambling Center in China.
I know about real situation I know this is high ricks activities
I do not advice investors put money more to tourism’s services?
HERE IS INFORMATION FROM NEWSPAPER TO DAY
Pri- minister Nguyen Tan Dung requests “temporary" STOP same activities in Biggest CASINO in Vietnam
In Decision 4375/VPCP –QHQT, Pri-minister Nguyen Tan Dung request people committee Danang STOP Silver Shore Hoang Dat temporary STOP the activities related to GAME ( CASINO ) for foreigners, until they meet the trade conditions of Ministry of Planning and Investment
In this document 4375 Pri-minister request Ministry of Finance, Police, Social –Invalid –Cultural and Sport ,Ministry of Foreign Affair in collaboration with People committee solve the activities of Hoang Dat Company
In 2 days 20-21 /4 the Investigated team of MPI , MOLISA , Pri-minister Office find the mistakes of CASINO .Date 17/5 Ministry of Planning and Investment have submission Number 101/BKH –DTNN report about the mistakes of this company.
Date 4/6 Chairman of Danang city Tran Van Minh have submission number 3308 to Pri-minister about activities of Silver Shore Hoang dat have 147 foreigners ( 141 china man) for not have labor –Permission .
In the permission have 8 table for games .But they organize 10 tables .
Chairman Danang city request Government allow them stay in Danang until July /2010 “for technology transfer “After this time they have to have Labor Permissions
Cong Binh
S & T by Che Thuy Nhu
My comment :
Many Ministrires in government intervent to one FDI company – Focal point is MPI
It can’t live .
Please came and visit the Huu nghi Hotel in 23 Quan thanh Hanoi -Vietnam– It very near Ministry of Planning and Investment ( MPI ) .In many year the problem of company is not solve
Enterprises law, Hanoi Planning and Investment department –is manager of this team.
Company can’t live, company can’t alive.
Up to now: no body can answer about this trouble: HOTEL HUU NGHI DIED
Thank you for attention and support
Date : April 12, 2010 10:59
Dear Mr Supachia Panidichpakdi
Every days I read in newspaper that some goods from China to Vietnam are illegal and under standars ( SPS ) . It badly impact to health of our citizens .
Fruits , meat, toys,milks are under SPS requirement .
They buy from Vietnam illegal coals and other things like roots of the tree or plants or sea plants.
Poor Vietnamese people , because of money they destroy environment .
To buy roost of the tree, they kill the tree .
They buy illegal wood with high price, people cut tree even in BIG PARK or strrets of Hanoi
To buy sea plant -they kill normal life for fishs , shrimps ...
They arrested seaman and SHIPS in our sea .
We know that the china citizenz in grass roots levels do it !
Any way we needs support to formulate the rules in region .
Thank you
Date : April 4, 2010 17:03
First of all, I would like to thank Dr. Panitchpakdi for your thorough comments regarding the issue of “regionalism for development” and your provision of more “food for thought” with interesting findings of UNCTAD’s report on regional cooperation between the North-South and South-South.
The reality of the “spaghetti bowl” of European Union’s free trade agreements seems to serve an appropriate example for these findings. Once mentioning about the EU’s trade pyramid system, on agenda should be the EU as the champion of negotiating and concluding trade deals, but also the “expectation-reality” gaps in those trade deals, between the EU and developing countries. These countries (so far including South Africa, Mexico, Chile, some Euromed countries, etc) entered into these trade deals with high expectations for a more open and secured access to the EU market, higher economic growth and more increasing flow of foreign direct investment. What they receive, however, when these trade deals entered into force, is not an increasing number in terms of growth and trade balance, but in terms of unemployment and trade deficits, as found in the recent reports of World Movement Development.
In addition to the reasons mentioned by Dr. Panitchpakdi in the entry, the gap is also due to the fact that these developing countries are more dependent on developed countries in terms of trade rather than vice versa. While the North tries to seek a more open gate for their exporters, development aspects seems not to be paid much attention in these trade deals. Also, while for developing countries, they see free trade agreement as a more secured commitment to be granted EU’s preferential treatment (instead of autonomous treatment in the case of GSP, EBA), EU consider it an alternative to integrate those issues excluded in the multilateral trade negotiation, i.e. Singapore issues; as well as an escape to its being forced to remove agricultural subsidies.
All in all, with what discussed in the entry, what found out in the UNCTAD’s report, whether regionalism will lead to real development, still remains open to further discussion.
Date : November 25, 2009 05:05
Dear participants in FORUM
This new about trade in 6 ASEAN countries .
In Vietnam mass media every day I hear the bilateral agreement between 2 countries .
Why we think the Doha can not reach ? If this process is going bottom -up : country to country and than all members ???
-----------------------------------------
Vinanet 24/11/2009 6 ASEANS countries propose remove import TAX since January 2010
The Secretary committee ASEAN informs that 6 ASEANS countries Brunây, Inđônêxia, Malaixia, Philíppin, Xingapo và Thái Lan, will remove the import TAX to 0% since 1January 2010
General Secretary ASEAN said “ this is a “good chance “ for ASEAN, and this is shows that ASEAN is on the way to free trade and against protectism
From Trade aspect ASEAN ensure develop ATR ( The information points in ASEAN ) ,to supply the new information about tariff, non-tariff barriers for goods .ATR include trade law , custom’s law and the administration steps ,They can assess to Internet
The committee for consultation for trade ASEAN ( ATF-JCC) will monitoring the Trade agreement in ASEAN .Total GDP in ASEAN in 2008 is 1.504 billions USD, 2 time more than 2003 .The trade activity of ASEAN is on the way going up to 1.710 billions US D in 2008, increasing 834 billions VND compare with 2003 .The FDI is 24 billions in 2003 to 60 billions USD in 2008.
Translated by Che Thuy Nhu
Date : September 9, 2009 18:31
Dear bloggers,
I am very pleased with your interest for the issue of regional integration. Let me briefly join in the debate reopened by the UNSW classes.
Regional trade integration is both a challenge and a chance for development. The case of sub-Saharan Africa is symptomatic: although 14 subregional institutions are dedicated to economic integration, intra-African trade only accounts for 12% of total exports and imports, as compared to 60% in the European Union. Fostering regional integration is critical in order to enhance African economies´ effective participation in the global economy through enhanced productive capacity, improved competitiveness, etc. But it is even more crucial as a way to build the domestic African consumption market, which has huge potential for growth in the coming decades. By 2050, Subsaharan Africa alone will count more than 1.5 billion consumers. Facilitating regional trade will help open markets for African-produced goods, and thus boost economic growth while reducing African vulnerability to external shocks.
The evolution of intra-regional trade will depend both on internal dynamics and external factors, such as the negotiations within the WTO framework or the discussions with the European Union on the Economic Partnership Agreements (EPAs). My institution organised last year a workshop on development issues relating to EPAs. Participants underscored how important aid for trade is as a component of the EPA negotiation and implementation process. Discussions highlighted that developing countries themselves should rapidly identify the role they wish to play in the regional field. Indeed aid for trade can only support endogenous processes. This is why reinforcing the capacities of intermediary entities and structures that represent the private sector or civil society is so crucial.
Regarding your concern about connecting regional integration with the multilateral level, it is very clear to me that South-South regional integration schemes should not be pitted against a multilateral framework for negotiations such as the WTO. On the contrary, these two levels ought to be combined intelligently so as to build more effective and more legitimate structures of global governance.
Let me also widen the debate by saying that regional integration in a broader sense has multiple development benefits. First, regional public goods would be better managed if some kind of supranational entity was made accountable for them. This is typically the case with the promotion of the sustainable management of environmental resources that several countries share in common. "River basin authorities" across the world show that institution can make the difference. Many transnational challenges (food security, the fight against contagious diseases, protection of biodiversity) can be better managed at regional level. But regional integration can also foster political stability. Regional entities now play a critical role in preventing conflicts and promoting human rights.
Finally, regional schemes would be a welcome buffer in a period of economic crisis. Regional integration could help vulnerable economies resist external shocks, thanks to a smaller reliance on the world economy. The history of EU integration has shown that times of economic turmoil can accelerate progress towards regional integration.
Regional integration is no equivalent for closeness and indifference to the rest of the world. On the contrary, it needs to be carried out with the help of the whole international community.
JMS
Workshop link: http://www.afd.fr/jahia/Jahia/lang/en/home/Presse/Communique/Atelier-APE?xtor=EPR-19
Date : August 7, 2009 07:48
The last class for the week and our comments are:
1. This system would need a supporting set of institutions to govern and regulate it .
2. It has the potential to develop a region not just a country.
3. A key condition would be diverse range of industries so all parties can reach a net trade surplus position.
4. There is a risk of stagnation but at the same time helps newly industrialising countries establish a foundation. The question is where the initial capital would come from and why would developed countries invest via FDI?
5. The regional agreement would have to be very strong and binding.
6. There would need to be a shifting balance in trade between south/south and south/north.
7. Where would aid for trade fit into this picture?
That's it from all of us! Thank you
Date : August 7, 2009 06:55
We are the pen-ultimate UNSW class for this week. One of our concerns is whether economic growth through regionalism will in fact result in development, i.e. human development and guarantee more equitable income distribution within countries. What role will multi-nationals play in this scheme? Is it limited to locally owned industry? If so then why would it attract FDI?
Ultimately North-South relationships are necessary. Smooth transition to this is critical however self-sufficiency at a regional level provides a stronger base on which to build these relationships. This of course assumes that industrial development in the south meets competitive benchmarks on a glbal scale.
Regionalism might also conflict with micro-enterprise which has access to and depends on developed country markets.
Have a good weekend!
Date : August 7, 2009 02:52
Good moring! Its Friday 7th August and we are yet another class from UNSW! Our thoughts are as follows:
1. How will regional groups avoid the pitfalls of ISI and pursure integration with the global economy?
2. We appreciate the concept but are not sure that it is realistic given the strength of the developed economies and the institutional frameworks such as WTO.
3. As a transition mechanism for development its a good idea provided it does not lead to isolationism . The Indo/Chinese FTA is a good model.
4. However we are confident in the goodwill of the developed world and its willing ness to negotiate!
Thank you!
Date : August 6, 2009 09:54
Yet another development studies class from UNSW in Australia! We have focused on what would be needed to make this work:
1. Trade agreements need to be biased to LDCs until a trade balance is achieved/restored. A regional approach is a necessary but insufficient condition.
2. Regionalism could create dependency within the group and inhibit openness on other aspects of development.
3. The model requires diversity in industries between countries as noted by an earlier comment.
4. Even better if a regional model can be extended to a satellite set of institutions to interface to the existing multi-lateral institutions such as the WTO provided that they are given a stronger voice.
5. Lesson should also be taken from the EU in relation to single monetary systems or tied markets.
Thank you and good night!
Date : August 6, 2009 01:59
We are a second group of UNSW Development Studies students (thursday 9.00 am class) . While we see the potential benefits of a regional trade grouping we feel that we should proceed with caution:
a. It clearly may not work in all cases for reasons raised by other commentators such as geographic issues, governance issues, wide range in size of participating economies, may limit ability to comment on other development issues within the group (e.g. ASEAN and human rights in member countries). It could on the other hand diffuse regional conflicts.
b. It takes a narrow view of development however at the same time may allow a region to set own development priorities and take their own path to development if it provides a stronger economic base to do so based on a level playing field.
We also welcome your thoughts!
Date : August 5, 2009 09:50
This is a group response from a class of development studies students at the University of NSW in Sydney, Australia. We see benefits, risks, but also potential for better relationships long term with developed countries.
Benefits: Better cultural alignment within region, empowers local people economically, control pace of development, protecting infant industry development, stable prices, gives regions agency in international arena and better bargaining power, creates a semi-periphery player (?).
Risks: Continued access to technology from the North, reaction / counter measures from developed nations; limited resources; common geographic challenges(weather, etc.).
Even better if: regional block creates an economic unit to negotiate FTA with North to grow trade with developed countries and further enhance own development, i.e modified formof integration.
We look forward to your thoughts!
Date : December 12, 2008 05:45
In fact only sound regional cooperation will alleviate the burdens on our fragile economies...
It's yet saddening to realize that most of our head of states aren't following that more than obvious path to development and Freedom of our Nations...
Date : July 9, 2008 11:21
Vietnam -Lao -Campuchia have many benefits in collaboration under WTO rules .
(07/07/2008-01:30:00 PM)
Government Portal -This morning 7/7 in Hanoi , the seminar of Sub-regional " Sharing the experiences to join to WTO and implementation of WTO agreement by MOFA and Hanns-Seidel - Germany co- organize
The seminar involved the participation of 100 representatives from Government, Enterprises and researchers from 3 countries : Campuchia, Lao,Vietnam with UNDP and WB
In the opening speech , Vice- minister MOFA Dao Viet Trung said that the globanization, the difficulties of World economy in recently years put many problems for countries in formulation of strategies and implementation the globanization in Vietnam , Campuchia and Lao .He said 3 countries have the same level in development , they are members of ASEAN, ASEM, triangle development - east - west corridor) , 3 countries are facing many challenges and chances in the development way .So the Seminar is a chance for representatives sharing the experiences in multilateral trading system , implementation of WTO agreements and support the benefits of 3 countries .
Ph.D Hans Zehetmair. Chairman of Hanns Seidel FUND said that : join to WTO give the countries in regions challenges and chance .Highly evaluate the results of Vietnam economy after joining to WTO ( The GDP 8.5% in 2007 ) PH.D . Zehetmair promise continue support Vietnam through programmes for development competition abilities .
With 3 theme " Globanization and World economy -Tendency and impact to Campuchia, Lao and Vietnam ." experiences in negotiations join to WTO " and " experiences of implementation WTO agreement " The members of Seminar raising the commons problems of 3 countries facing the Globanization, economy integration in the World .
As new members of WTO, the representatives of Campuchia and Vietnam share the experiences in implementation WTO and share the experiences in joining the WTO with Lao in negotiation in trade , International cooperation , support the economic growth and sustainable development in 3 countries
They also study the lessons learn of Industrialization of other countries like South Korea , Malaysia , Taipei , China .
They all agree that 3 countries have natural resources , cheap labor , good place in East - Asia, the societies is safe , the economic growth can be high . 3 countries in Indo-China have a chance to jump , and Involve the FDI and to get benefit from collaboration in WTO .
H??ng Giang
Date : May 1, 2008 00:31
I personally think that regionalism does have potential for development. But, right now, I think that a lot of the problems with the proliferation of RTAs and FTAs is their mis-management. The idea of this increasingly complex "spaghetti bowl" of RTAs throughout the developed and developing world shines light on the fact that, at times, it appears that countries are signing RTAs left and right without really taking into account the costs involved and the scope and agenda of the RTAs. In the case of the developing country, this fact is detrimental to growth. I think that observation and management of RTAs need to increase to be a better tool for development. Although Asian production networks have led to significant growth in developing countries, their inherent vulnerabilities to internal and external shocks makes it a questionable choice for development. If management were to increase, and for the trade in these agreements to be more closely monitored, then regionalism may be more fruitful.
I agree with many people that South-South FTAs may be the best approach towards development via regionalism. I think that large economies, and the possible crowding-out effects of North-South RTAs are threatening to developing countries. Regional consolidarity and co-operation through trade within developing areas may have great effects.
Date : January 27, 2008 22:45
Developing Countries are in a "catch 22" call it a chicken and egg situation if you will! Whether to cooperate amongst themselves (south-south cooperation) or with the north (North-South cooperation) is not a choice they will make. There are basic facts here; i) regionalism seems to be a permanent phenomenon, ii) regionalism whether North-South or South-South confers different advantages as well different challenges in the increasingly globalized world today, iii) whether regional cooperation based on regional preferential trade agreements which forms part of the general debate on the relationship between trade liberalisation-economic growth-poverty reduction, delivers more regional development will continue to be contested for sometime, iv) whether developing countries want it or not, the trade policy space/leverage conferred by Special And Differential Treatment under multilateral trading system is rapidly waning under FTAs i.e. developing countries will continue to lose preferential margins under special and differential treatment as trade is continuously getting liberalised world wide (via MFN liberalisation, unilateral liberalisation-as is largely the case amongst the ASEAN group, or through numerous FTAs between North-North or South-North Or South-South FTAs), so southern countries pursuing special and differential objectives within any trading arrangement may not necessarily be a panacea for them and for long.
UNCTAD`s Trade and Development 2007 (Regional Cooperation For Development) presents very fascinating scenarios as summarized above by Dr. Supachai Panitchpakdi's contribution on this blog. First, the overriding recommendation of the report that "developing countries should strengthen regional cooperation with other developing countries, but proceed carefully with regard to North-South bilateral or regional preferential trade agreements" can have far reaching implications as far as continuous marginalisation of these countries in the global trading system is concerned! While it's obvious that developing countries need to strengthen cooperation amongst themselves, they need to be more pragmatic and proactive rather than being retrogressive when it comes to their northern neighbours. Caution and suspicion will not help them prepare to rip the enormous benefits that come with the unstoppable globalisation forces. This implies that;
(i) Developing countries need to prepare for a parallel approach toward "external" and "internal" integration processes not sequencing them, as the pace of global integration forces will not present them with that luxury of sequencing development strategies,
(ii) The global community including the northern rich countries should have a moral responsibility to make efforts toward reducing global poverty, this implies in the bilateral or regional FTAs they sign with their southern counterparts, should ensure that preconditions identified by the report i.e. a certain level of local production capacity, skill and technological sophistication, an array of supporting market institutions and good infrastructure are established in the process of integrating these poor countries,
(iii) It's upon the developing countries to front their development objectives as part of their negotiations agenda package. Otherwise if their development objectives are not fulfilled they would not sign up to the bilateral FTAs. Northern countries have been able to bring on trade negotiations agenda many "trade related" (to some people-trade unrelated) agendas, why not developing countries adopting similar strategy and make developing a capacity to trade a trade related and front it on both multilateral, regional and bilateral cooperation initiatives?
(iv) However, I consider that it will be more difficult for developing countries to technologically catch up under overemphasised South-South cooperation, because it will largely be between technological adopters and not innovators. And its innovators and not adopters that extend the frontiers of technology and hence development forward. Take for instance Sub Saharan Africa, its difficult to envisage the technological spillovers that will emerge from cooperation between Rwanda, Uganda and Ethiopia when all of them deal in exporting one single primary commodity-coffee as opposed to cooperation between Ethiopian coffee firm managers dealing with Starbucks executives when exporting their coffee beans (here am referring to management skills being part of technological learning and not disadvantaged export of coffee beans anyway!!). The point here, is that emphasising technological learning/spillovers from South-South cooperation may delay the technological catch up process, by not only prolonging the lag of adoption and learning but also these countries missing out on making a strong case for achieving technological learning and innovation through international linkages of international trade (largely through the import of capital goods), FDI (through ensuring joint ventures) and licensing (UNCTAD, 2007).
In summary I would argue that rather than overemphasising South-South Cooperation as a the most viable option for fast integrating the poor countries into the global economy, emphasis should be placed on how the two processes of "internal and external integration" can be parallelly achieved, how southern countries can pragmatically and proactively engage their Northern neighbours to deliver conducive environment for technological learning, innovation and catch up opportunities, through the established international linkages of international trade, FDI and licensing and development aid.
International community (including international organisations) need to respond to the immediate needs of developing countries in building national and regional trading capacities, national and regional institutions (that are essential to reducing entry costs of forming regional trading and development cooperation blocks). .
It's up to the South governments now to identify the key strategic areas that will help them integrate with the rest of the world-"it takes two to tango". Its easy and conventional wisdom to keep blaming the north for all marginalisation of the south. But after 60 years of efforts toward global integration, what has the south learned?
Overemphasising south-south cooperation at the expense of strategically engaging the north may further marginalise the south on trade, technology and innovation frontiers as well as financial and capital integration with the rest of the world. Otherwise there is a need to unpackage the "policy space agenda", what new lessons will be used when this policy space is achieved that has not been able to work in the last more than half a century ago?
Date : November 5, 2007 11:59
Now in Vietnam the flood after flood in the Central region and in North mountain's areas. The life of grassroots is very hard. The reason may be the destruction of forests in Vietnam, Lao, Campuchia ,Thailand and South China for long time ?
I think the collaboration in Forest's protection between countries in Region is neccesary .
Thank you for your attention .
Date : October 24, 2007 18:26
The article is indeed concise and factual. James Teered raised interesting questions, which I have thought about in the past. Looking at the genesis of trading arrangments between the South and the North would shed some light on some of the factors responsible for the status quo, where an insignificant proportion of the South's international trade is amongst countries in the South compared to North-South trade.
Most of the countries in the South, particularly in Africa were colonies of countries, which constitute countries in the North. We are therefore still left with colonial legacies, whereby the economies of colonised countries have been deliberately designed to be appendages or peripheries of the colonisers. Thus colonised economies were structured in terms of infrastructure and superstructure for the production of raw materials to serve the colonial governments. An example in the service industry is telecommunications, where calls from an African country destined to another African country are routed through countries in the North. In Air transport, sometimes travelling from one African country to another one can take over 24 hours because of the lack of direct routes within African countries. Having said that, some countries, particularly in Asia that have been colonised have overcome some of these legacies by adopting practical and relevant development programmes supported by the right political will.
I strongly believe that regional bodies hold great potential to practically and gradually integrate our economies and lead to more South-South trade. However, for that to happen, countries in the South, particularly in sub-Saharan Africa, which is the only region in the World that has not prospered over the last 25 years, have to do a thorough self-assessment of their performance with a view to changing course in terms of our trading arrangements. There has to be the political will to ensure that regional bodies have the required resources and mandates to ensure more South-South trade, which research by UNCTAD have shown to hold great potential.
Date : October 24, 2007 06:13
Regionalization is a concept designed to distract the increasingly impatient african masses from their ultimate goal, i.e. African union. These are a few of the flaws of regionalization:
-It will not resolve trans-African access via road or rail as each region will attempt to develop in isolation,
-regionalization is simply an expansion of the status quo 53 enclaves that Africa is today,
-these regional entities could be played against each other just as it is done today by supreme extra-African powers.
I could go on, but this is just a taste of what I am putting together in a book form these days.
Regionalization is just another delaying tactic, just like the good old OAU was to the generation of my grandfather and father.
Date : October 23, 2007 22:09
I just read an overview of the UNCTAD report, and I really appreciate the recommendations of the report.
My reaction to the report is inspired by my relative familiarity with regionalization in West Africa. New regionalist scholars have praised different regionalising forces - NGOs, informal transboder traders and other organisations that extend beyond the borders of particular countries - as true integrating forces, but studies close to the ground have shown that they have not been much of that. Informal transborder traders in the region, for instance, play on the differences in the fiscal and monetary policies of the countries to make gains. And even the amount of trade in goods that originates in the region is meager when compared with the volume of non-west African goods which the informal transborder traders trade. It all sounds very impressive in a report, but the actual practice in the regions is way different from what one would expect.
Date : October 22, 2007 19:49
The archaic concepts of territoriality and sovereignity have acquired a new meaning in this era of free trade. Using the principle of comparative advantage, every state is learning the intricate methods of strategic management to gain benefit through regional and international cooperation. Regional agreements form an important component of an effective political strategy to accelerate the economic growth of every state.
Date : October 22, 2007 15:39
Very interesting material. I am sure we would all like to hear Pascal Lamy comment on your piece. As for me, I simply wonder why South-South FTAs are so few if they really are to bring so many benefits. Are there any entry costs that prevent them from emerging ? Or is there any internal political economy reason for that ?
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