The Regionalism in the World Economy: Novel Expectations From an Old Habit

Abstract

M. Sait AKMAN* Muzaffer DART AN** World economic relationships have recently been transformed by a process of globalisation whereby economic activity between nations and blocs of nations has become influenced by and (arguably) inextricably linked to the resurgence of the regional integration arrangements (RIAs). This article postulates that, despite the fact that regional bloc formation is not something new, the old theory and practice of regionalism cannot adequately describe the spirit and structure of modern RIAs. This study attempts to assess what countries expect to gain from membership of RIAs and tries to distinguish the motives and forces which derive them towards such organisations. In this respect, modern RIAs are compared with the initial, post-war, model of regional integration. The authors seek to establish that, as regional economies have become increasingly interdependent and homogenous, ever deeper regionalism has become the favorued means of economic regulation unless prompt and wide-ranging multilateral solutions are available to reverse this trend.