“Economic Integration in East
Asia:
A European Point of View”
[Draft]
by Wolfgang PAPE
(independent from any institution)
Regional Integration

“Associative system of countries” (Johan
Galtung)

“Process by which countries remove the
barriers to free trade and the free movement
of people across national borders, with the
goal of reducing the tensions that can lead
to international conflict” (Wikipedia)
2
Economic Integration

World-wide trade:
– Volume of global exports rose 25% in 2001-2005
– Roughly 1/3 of trade is intra-firm across borders

Intra-regional trade:
– within EU amounts to at least 60% (? >open borders)
– within East Asia to about 50%
3
Current drivers of Economic
Integration

World-wide:
– Falling cost of transport and communication
– Liberalisation of transactions across frontiers
– Massive entry of new people into the economy

Regionally:
– More of all the above …
plus
– Trust-enhancing rules and institutions … plus
evtl. ”from diplomacy to democracy”
4
Original drivers of Integration

in Europe:
– Peace, after learning from decades and
centuries of devastating wars

in East Asia:
– Economy, after 1968 Myrdal’s “Asian Drama”,
1993 World Bank’s “Asian Miracle” and 1997
Asian financial crises (=> institutions?)
5
East Asian Integration

“Market-oriented”, with high level of intra-firm
trade because of diversity of economies

“Trust-based” amongst economic actors with still
low level of common binding rules

“Dualism” of high level of economic, but low level
of political interaction because of ‘differences’
(=/=trust)
6
European Integration

“Rule-based” in continental law tradition
“The moment the ink hits the paper in Europe it becomes a
global piece of legislation.” (NY Times, 6.7.04)
“EU rules are steadily emerging as the international standard.” (Asahi, 9.9.06)

“Pooling” political sovereignty equally
to stabilise institutions for peace and prosperity

Experiencing diversity as a chance for creativity
as well as a burden with cost
“Unity in Diversity”
East Asian linguistic pragmatism
– de-facto one spoken language, plus traditionally one common script
EU respect of multiculturalism
–
de-lege 21 languages for official documents, thus creating the biggest
and most costly language service in the world (hardly comparable to the only
six official languages at the UN with 189 member countries)
8
The E u r o up-front
Same numbers
of one civilisation:
9
The E u r o back
« Vive la différence! »
10
Diversity in Asia
– from largest (China, India) to smallest (Brunei)
– from richest (Singapore) to poorest (North Korea)
– from most open market (Hong Kong) to most closed
(DPRK)
– from ‘largest democracy’ (India) to small absolute
monarchy (Bhutan)
plus cultures, 5 main religions, languages etc. … cf. 危機
11
Regionalism in East Asia

Association of South-East Asian Nations
‘ASEAN plus One, Two,Three ...’ (cf. “ACU”)

APEC and ASEM as link with outside

… or now rather bilateral FTA’s
(all WTO but Mongolia!)?
12
ASEANations
’Nation-bldg’ v. multi-ethnicity?

‘Melting-pot’ or multi-cultural?

Plurilateral chance to leap-frog ‘nation’?

Risk of “Un-Balance of Power”
as in 19th century Europe ?
… or chance of Governance beyond nation ?
13
21th century: Asia to share with
EU experiences in integration
Integration: a
fact for the economies,
a need for policies and governance
Bottom-up Sharing
, beyond ideologies
Sharing

20th century: EC as elite-driven with warexperience top-down
– From Coal and Steel Community to EURO

21st century: Bottom-up sharing
– From LINUX to WIKIPEDIA in cyberspace
– From ‘social sharing’ to
– more legitimate Governance?
15
Public Sphere History
From past
To future
Greek ‘AGORA’ and
medieval village
square in Europe
Open Digital
Cyber-space
for Civil Society
SHARING
16
Changing Public Sphere
for better governance

Not anymore based
solely on the
principles of
representative
democracy, nor
exclusively on the
logic of pressure
groups or opinion
polls
 Past: Quantitative

…But to be based on
openness and
participation
including ‘votes and
voices’ with respect
for subsidiarity

Future: Qualitative
17
Governance => multi-level

Treaty of Westphalia (1648):  Today’s trends:
Independent nationInter-dependent economies
states of absolute political
with democratic decisionauthority within territorial
making, ranging from local
sovereignty; need for
via national and regional to
‘balance of power’
global governance (‘from
between nations
diplomacy to democracy’) and
ideally
Omnilateralism
18
“How Asia looks at Europe”
Study by Prof. Martin Holland, NZ, 2006

“Coverage of the EU in the Asian media is
very poor…”

“There is a communications gap between
the EU and Asia.”
19
Commissioner Peter Mandelson
8.6.06 in Beijing:
“Asia has received
insufficient priority in
Europe.”
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