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The IUP Journal of International Relations

Jan-Apr '10
Focus

This special issue is devoted to comparative regional integration studies. The raison d'etre is that if one would like to get close to a theory of regional integration, one has to look not only at one case but at as many as possible; one has to compare. Aristotle already said it in his Politics (as for back as 330 BC).

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Regional Integration: Bringing the Classical Theories Back In?
Regional Formations and Global Governance of Social Policy
China and Regional Integration: From Bilateralism to Regional-Multilateralism
Economic Collaboration and Regional Integration in Transnational Companies' Strategic Perspective
Regional Integration/Cooperation in Brazil's and China's Development and International Political Strategies
The Dynamics of Overlapping `Shallow' and `Deep' Economic Integration: Greater Arab Free Trade Area and European Neighborhood Policy in the Mediterranean
Integrative Cooperation in Africa
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Regional Integration: Bringing the Classical Theories Back In?

-- Søren Dosenrode

This paper argues the case of usefulness of trying to create a general theory of Regional Integration (RI). One approach could be to give the classical theories of integration a `second chance' and the method would be comparative. After having discussed comparison as a method this paper discusses the concept of RI, stressing the difference between RI and regional cooperation. The concept `full regional integration' is introduced before two classical regional integration theories, federalism and neofunctionalism, are presented. In a tentative analysis the two RI theories are used to analyze the United Arab Republic of Egypt and Syria and the Mercosur. In both the cases the two theories shed light on what had happened and why. Also they indicated the obstacles to further RI. Altogether the two analyses indicated that the dismissal of federalism and neo-functionalism have been premature.

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Regional Formations and Global Governance of Social Policy

-- Luk Van Langenhove and Maria Cristina Macovei

It can be argued that we are witnessing the transition from a single world of states to a multiple world of states and regions. Important actors in this new world order are the world regional organizations and regional arrangements between states that have resulted from regional integration processes. This paper explores how governance has evolved from an essentially state-led pre-occupation into a complex phenomenon that involves many other actors and that is characterized by inter-linkages between different (geographical) levels of policy-making. This paper discusses three main varieties of regional integration that currently exist. First, there is the regional integration by removing economic obstacles, a process that has resulted in a multitude of regional trade arrangements across the world. Secondly, there is the regional integration by building institutions and regulations that often go beyond economic and trade policies and that can be described as a `pooling' of sovereignty at a transnational level. Thirdly, there is regional integration by building a geopolitical identity and actorness. Here the `world region' behaves as an actor at the global scene, both through its own `foreign' policy and through its presence in global institutions. And at last this paper begins the exploration of the consequences of these varieties of regionalism for social policy. It will be argued that regionalism aimed at only creating free trade areas can put severe pressures on existing national social policies of the countries involved. On the other hand the development of a broader and deeper form of regionalism (often referred to as `new regionalism') can act as a driver towards regional social policies. Moreover, in those rare cases where regionalism involves global actorness, the regional external policy can contribute to the development of global social policies as well.

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China and Regional Integration: From Bilateralism to Regional-Multilateralism

-- Xinning Song

Traditionally the preference of Chinese foreign policy was bilateralism or even unilateralism. From the 1990s, especially entering in the 21st Century, China paid more attention to multilateralism. This paper analyzes the reasons why China gradually changed its approach. The Chinese understanding of multilateralism is very much different from the European one. In practice the Chinese multilateral diplomacy has both global and regional dimension and is mainly referred to as China's neighborhood policy. The strategy of the Chinese new neighborhood policy is to change from the traditional `bilateral plus regional' approach, i.e., using regional platform just to deal with bilateral relations, to a new `regional-multilateral plus bilateral' approach, i.e., to engage in more regional cooperation and work with neighboring countries within the regional-multilateral arrangement to solve the bilateral problems. China's involvement in East Asian regional cooperation is focusing on economics, especially trade. The basic argument for enhancing the regional economic cooperation with East Asia countries should be a kind of functional approach. The first step is to establish three 10+1 Free Trade Areas (FTAs). The second step is to try a Northeast Asia FTA through three bilateral FTAs, and then the third step is to transfer ASEAN plus one into a real 10+3 as a group, i.e., East Asia Free Trade Area (EAFTA). In order to enhance the economic position, China also tries to upgrade its domestic industrial structure and competitiveness on one hand and to participate in the horizontal international division of labor through regional economic integration in East Asia on the other.

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Economic Collaboration and Regional Integration in Transnational Companies' Strategic Perspective

-- Olav Jull Sørensen

This paper discusses the rise of China in a business perspective and the implication of the growth of Chinese economy and Asia at large on the EU. While the rise of China will be conceptualized from basically an Industrial Economics and company strategic perspective, the implications for the EU (and China) will be discussed within the framework of three scenarios, a linear transfer of technology scenario; a dynamic market scenario, and a market-cum institutional development scenario. The basic message is that history has neither come to an end with the job being to refine the market economy, nor will we enter a period, where the winner, Asia, takes all. The present global integration processes will create a new playing field for states, transnational companies and civil society and its organizations. This paper focuses on the transnational companies and does not take into account the political aspects of business development. Politics is only entering the discussion in the form of general terms such as liberalization policies, public-private partnership and similar general terms.

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Regional Integration/Cooperation in Brazil's and China's Development and International Political Strategies

-- Steen Fryba Christensen and Li Xing

In this paper Brazil's and China's regional integration/cooperation strategies are compared. Brazil and China are two rising powers on the global arena with a high impact on their respective regions. The view taken in the analysis is not that regional integration is important in itself, instead, the analysis explains the kind of regionalism promoted by Brazil and China in their respective roles in shaping and directing regional integration/cooperation. Through the comparative analysis of their role in regional integration, we will be able to understand not only their international political strategies of emphasizing on regionalism and South-South relations but also the strategies of national development of the two states as well as their aim of changing the balance of power in the world system and gaining a more prominent position on the world stage in the current era of globalization and transnational capitalism. Our comparative analysis of the two countries' international political strategies and the particular weight given to regionalism and South-South relations highlights the significance of the wider international context, own development situations as well as the patterns of international economic insertion for the chosen strategies. The paper starts out with an analysis of regional integration in Latin America, and Brazil's strategies are followed by an analysis of regional integration in East Asia and China's strategies. The conclusion sums up the main similarities and differences between the two countries and the two regions.

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The Dynamics of Overlapping `Shallow' and `Deep' Economic Integration: Greater Arab Free Trade Area and European Neighborhood Policy in the Mediterranean

-- Wolfgang Zank

In the Mediterranean Basin two projects of economic integration overlap, namely the project of a Greater Arab Free Trade Area (GAFTA) and a process of economic integration of the European Union (EU), which neighbors into EU's Internal Market; the EU endeavors to strengthen cooperation with the neighbors practically on all fields. For decades, in spite of high-pitch rhetoric about Pan-Arabism, practical Arab integration was very limited. Hardly any other region was so divided politically. Furthermore, almost all Arab countries followed inward-oriented development strategies with high protectionist tariffs. These severely constrained economic transactions among the Arab countries. Thereby the Arab world became one of the most fragmented areas in the world. Spillover effects from economic to political integration, which played an important role in European integration could not take place. From the 1970s onwards a slow and often inconsistent transition to open marked economies began. It improved the conditions for Arab economic cooperation considerably, and in 1997 the GAFTA project was launched. It generated indeed increased trade. However, so far it remained `shallow' integration, implying tariff reductions at the border, but not `deep' integration with changes behind the border, such as common competition rules or common products standards. Therefore, numerous non-tariff barriers still exist, and competition remains distorted. Arab voices demand `deep integration', but this requires political decision-making and dispute settlements which would restrict state sovereignty. Currently not many indicators point at such a transition in the Arab world. On the other hand, `deep' integration has made considerable progress among the EU and some neighboring countries, notably Tunisia and Morocco. The impacts have been far reaching, also in the political sphere. This process is likely to impact some Arab countries much more than Arab integration. Theoretically it can be explained in terms of neofunctional theory.

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Integrative Cooperation in Africa

-- Gerrit Olivier

Since the end of colonialism and the emergence of independent nation states in Africa more than five decades ago, regional integration was embraced by the African leadership as the best way to overcome the debilitating effect of the balkanization of the continent into a large number of mostly nonviable national states. The notions of pan-Africanism, African Unity (AU) and African fraternity inspired, legitimized and underpinned the various efforts towards the integration goal starting with the formation of the Organization of African Unity (OAU), its successor the AU and the subsequent establishment of eight Regional Economic Communities (RECs) in African sub-regions. In spite of the logic and imperative force of the ideal, the transformation in Africa from interstate cooperation to supranational integration has not yet been made in any of the applicable areas or levels of interaction. The main stumbling block in this process was and still is `nationalism', the nation state, a colonial creation in Africa. The question thus arises whether integrative cooperation, which characterizes intrastate relations in Africa, will at some point metamorphose into the creation of a "United States of Africa" (USAf), or whether other regional and sub-regional permutations of African integration, like a Union of African States will become possible, or, finally, will Africa simply muddle along the same road as before. This paper explores the possibilities in this regard.

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Terrorism: Concepts and Problems

-- Author: Debnarayan Modak, Reviewed by Sobhanlal Datta Gupta

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Automated Teller Machines (ATMs): The Changing Face of Banking in India

Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.

The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario

If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.

Indian Scenario

The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.

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