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What is the impact of
regional integration?
Regional Integration among Development Countries
           from a social constructivist point of view




                                  Elisabeth Kaneza
Overview
 Introduction


 Social Constructivism in IR
- Main ideas of soc. constructivism


   Case Study: Regional integration
-   Definition of „integration“
-   4 stages of regional integration
-   Definition of cooperation
-   Regional Integration among Developing Countries (RIDC)
-   Impact of RIDC on member countries

 Conclusion
 Suggested questions for the discussion
 Bibliography
Social Constructivism in IR

 International system exists as an
  intersubjective awareness among people
 International system consists in thoughts
  and ideas
 Since ideas can change, the system itself
  will change
Main ideas of Social Constructivism

 Social construction of reality
Human relations, social structures consist of
thoughts and ideas (Wendt)

 Understanding or verstehen
„Subjective understanding is the specific
characteristic of social knowledge“ (Weber)

 View of the state
„States are artificial creations“ (Vico)
Video: Let Africa trade with Africa

Source:
http://www.youtube.com/watch?v=4f9aZr
WdnFc&feature=player_embedded#!
Case Study: Regional integration

‘European integration has a transformative impact
on the European state system and its constituent
units […] in the process agents’ (states and elites)
identity and subsequently their interests and
behaviour have equally changed’ (Christiansen et
al., p.529)
The fallacy of transposition

 European integration served as model to
  developing countries
 Misunderstanding of regional approach:
  integration vs. cooperation
 Underestimation of special conditions in
  Europe
Definition of „integration“

   Integration is a process aiming at
    abolishing discrimination between local
    and foreign goods, services, and factors
4 stages of integration

1) Free Trade Area (FTA) ->removing
   barriers
2) Customs Union ->common external tariff
3) Common market ->mobility of goods
   and services
4) Economic Union -> harmonisation of
   nat. economic policies
Definition of cooperation

   Cooperation includes concerted actions
    aimed at lessening discrimination in
    certain areas of common interest
Regional Integration among Developing
Countries (RIDC)

-   Regional integration seen as conducive to
    economic development
-   Main argument: positive effect of infant
    industry protection in a regional union on
    quality control, marketing techniques and
    other prerequisites for later success on world
    markets (training ground argument)
-   Voting power due to politically collective
    bargaining
Impact of RIDC on member countries

   „Spill-over“ from the economic to the political arena
   Production of international collective goods, i.e.
    regional security
   Formation of common objectives by neighboring
    countries (consensus building)
   Consensus building can lead to mutual regimes of
    norms and rules or concrete agreements
   Restraints in national unilateral policy making/loss of
    sovereignty
   Adjustmet of production structures and policy reforms
RIDC unsuccessful?

 „RIDC has more or less failed…“ (Inotai,
  1986)
 Approx. 10% intraregional trade in AU
 „South-South“ trade did not offer a viable
  alternative to trade with industrialised
  countries
 RIDC cannot be a substitute for domestic
  economic policies
Conclusion (1)

   Social Constructivism stresses the
    importance of ideas and thoughts as
    preconditions for social construction
   Regional integration cannot be explained with
    realist notion of states‘ (materialist) interests
   RIDC encouraged economic policy reforms
   However, envisaged trade benefits and
    welfare were not achieved
   Move away from integration, towards
    cooperation
Conclusion (2)

 Focus on common interests or joint production of
  public goods (education, research and
  development (R&D), infrastructure, evironment)
 Cooperation has the benefit that it‘s not
  externally imposed
 Initiative for policy reforms comes from within
  the participating countries
 Remaining challenge: successful regional
  coopeartion needs stable macroeconomic and
  political environment
THANK YOU VERY MUCH FOR YOUR
        ATTENTION!!!
Suggested questions for the discussion

1) Do the gains from intraregional trade
   have the potential to be a substitute for
   foreign aid?
2) Should the European Model be exported
   to developing regions?
3) Why trading with the region at all?
Bibliography

Hopf, T. (1998). The Promise of Constructivism in International Relations Theory.
In International Security, Vol.23(1)

Inotai, A. (1986). Regional Integration in the New World Economic Environment.
Budapest: Akademiai Kiado

Jackson, R. (2006). Social Constructivism. In Jackson, R; Sörensen, G. (2006).
Introduction to International Relations. Oxford: Oxford University Press

Langhammer, R.J.; Hiemenz, U. (1990). Regional integration among developing
countries: opportunities, obstacles and options. In Kieler Studien, Vol. 232

Schimmelfennig, F. (2003). The EU, NATO and the Integration of Europe: Rules
and Rhetoric. Cambridge: Cambridge University Press

Wendt, A. (1992). Anarchy is What States Make of It. In International
Organization, Vol.46(2)

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What is the impact of regional integration?

  • 1. What is the impact of regional integration? Regional Integration among Development Countries from a social constructivist point of view Elisabeth Kaneza
  • 2. Overview  Introduction  Social Constructivism in IR - Main ideas of soc. constructivism  Case Study: Regional integration - Definition of „integration“ - 4 stages of regional integration - Definition of cooperation - Regional Integration among Developing Countries (RIDC) - Impact of RIDC on member countries  Conclusion  Suggested questions for the discussion  Bibliography
  • 3. Social Constructivism in IR  International system exists as an intersubjective awareness among people  International system consists in thoughts and ideas  Since ideas can change, the system itself will change
  • 4. Main ideas of Social Constructivism  Social construction of reality Human relations, social structures consist of thoughts and ideas (Wendt)  Understanding or verstehen „Subjective understanding is the specific characteristic of social knowledge“ (Weber)  View of the state „States are artificial creations“ (Vico)
  • 5. Video: Let Africa trade with Africa Source: http://www.youtube.com/watch?v=4f9aZr WdnFc&feature=player_embedded#!
  • 6. Case Study: Regional integration ‘European integration has a transformative impact on the European state system and its constituent units […] in the process agents’ (states and elites) identity and subsequently their interests and behaviour have equally changed’ (Christiansen et al., p.529)
  • 7. The fallacy of transposition  European integration served as model to developing countries  Misunderstanding of regional approach: integration vs. cooperation  Underestimation of special conditions in Europe
  • 8. Definition of „integration“  Integration is a process aiming at abolishing discrimination between local and foreign goods, services, and factors
  • 9. 4 stages of integration 1) Free Trade Area (FTA) ->removing barriers 2) Customs Union ->common external tariff 3) Common market ->mobility of goods and services 4) Economic Union -> harmonisation of nat. economic policies
  • 10. Definition of cooperation  Cooperation includes concerted actions aimed at lessening discrimination in certain areas of common interest
  • 11. Regional Integration among Developing Countries (RIDC) - Regional integration seen as conducive to economic development - Main argument: positive effect of infant industry protection in a regional union on quality control, marketing techniques and other prerequisites for later success on world markets (training ground argument) - Voting power due to politically collective bargaining
  • 12. Impact of RIDC on member countries  „Spill-over“ from the economic to the political arena  Production of international collective goods, i.e. regional security  Formation of common objectives by neighboring countries (consensus building)  Consensus building can lead to mutual regimes of norms and rules or concrete agreements  Restraints in national unilateral policy making/loss of sovereignty  Adjustmet of production structures and policy reforms
  • 13. RIDC unsuccessful?  „RIDC has more or less failed…“ (Inotai, 1986)  Approx. 10% intraregional trade in AU  „South-South“ trade did not offer a viable alternative to trade with industrialised countries  RIDC cannot be a substitute for domestic economic policies
  • 14. Conclusion (1)  Social Constructivism stresses the importance of ideas and thoughts as preconditions for social construction  Regional integration cannot be explained with realist notion of states‘ (materialist) interests  RIDC encouraged economic policy reforms  However, envisaged trade benefits and welfare were not achieved  Move away from integration, towards cooperation
  • 15. Conclusion (2)  Focus on common interests or joint production of public goods (education, research and development (R&D), infrastructure, evironment)  Cooperation has the benefit that it‘s not externally imposed  Initiative for policy reforms comes from within the participating countries  Remaining challenge: successful regional coopeartion needs stable macroeconomic and political environment
  • 16. THANK YOU VERY MUCH FOR YOUR ATTENTION!!!
  • 17. Suggested questions for the discussion 1) Do the gains from intraregional trade have the potential to be a substitute for foreign aid? 2) Should the European Model be exported to developing regions? 3) Why trading with the region at all?
  • 18. Bibliography Hopf, T. (1998). The Promise of Constructivism in International Relations Theory. In International Security, Vol.23(1) Inotai, A. (1986). Regional Integration in the New World Economic Environment. Budapest: Akademiai Kiado Jackson, R. (2006). Social Constructivism. In Jackson, R; Sörensen, G. (2006). Introduction to International Relations. Oxford: Oxford University Press Langhammer, R.J.; Hiemenz, U. (1990). Regional integration among developing countries: opportunities, obstacles and options. In Kieler Studien, Vol. 232 Schimmelfennig, F. (2003). The EU, NATO and the Integration of Europe: Rules and Rhetoric. Cambridge: Cambridge University Press Wendt, A. (1992). Anarchy is What States Make of It. In International Organization, Vol.46(2)