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Regionalism

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Very little is said when studying what is the political economy, and much less about what is regionalism within it. This is often confused by the adaptation given to words according to a culture or ethnic origin, such as: what is avocado in Chile, in Venezuela is avocado. However; Within regionalism as a political-economic system, it is something that each nation must correctly evaluate as a tool that supposes great improvements for the country if it is carried out correctly.

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What is regionalism?

Regionalism is a kind of socio-political model, which means a great reduction in trade barriers at the international level between nations, as well as a great improvement at the level of national integrity and also a way in which each country can measure itself against to another in the productive sphere. The term is also used in the linguistic area to refer to the various adaptations of a word according to the identity that is given to them within a regional society.

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  • Definition
  • Characteristics of regionalism
  • Source
  • Story
  • Types of regionalism
  • Causes
  • Consequences
  • Regionalism in the world
  • Examples
  • Importance

Definition

Regionalism is defined within the political sphere as a strategy which functions as an integration system in the economic sphere which is used within a country in order to improve national trade exchanges of goods and services, as well as commercial political – economic plans between the various regions .

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For its part, it also works as a system in which there is a kind of competitiveness, and also as a comparative system which allows evaluating the progress of a country in various areas.

Characteristics of regionalism

Regionalism is considered by seven characteristics which make it unique:

  • Diversity: this translates as support for various political projects that support regionalism , such as new integrations within Latin American countries.
  • Multiplicity: it is translated as the performance of the different states within based on regionalism , even if they act in a greater or lesser way.
  • Broad Market Liberation – This translates as the various agreements in order to support the markets through geographic strategies, flexible trading rules, and full state support.
  • Business leadership: this translates as the support in which the state has established itself in private industries with the aim of a real integration between the two, so that there is a real impulse and development hand in hand with both.
  • Establishment of stable and transparent rules: this is translated as the regulatory system that is developed in order to avoid any eventuality or risk that implies a stabilization within the broad market.
  • Establishment of a common external tariff: this is translated as a kind of tax system in order to safeguard against others who would brand the negotiations as unfair. This in turn is actually quite low in order to avoid a smuggling system.
  • National treatment of extra-regional investment: this translates into a system in which different investors are protected through a system recovery system.

Source

The first exchanges or negotiations that are known between regions are during the civilizations of Rome and Greece. Everything originates with a few small negotiations between these nations, but due to flaws in their trading system they ended up in wars between these nations.

With the passage of time it was understood that this system was necessary to improve in various areas, since for example, while in one nation various foods were grown due to the arid climate, in another it is achieved due to a humid climate. This is why trade relations began to strengthen between nations like Rome and others like Persia .

History

As the history of the world advanced, various large-scale trading systems were created, being very strengthened during the industrial revolution in England long after the origins of this system.

They really understood the utmost importance of trading with other nations, for example their extensive negotiations with France for their metals. That is why a regulatory system was developed that sought to maintain and strengthen these business relationships.

Types of regionalism

Within regionalism, only that is divided into two types:

  • Classic or traditional regionalism: At first regionalism was shown as a great policy in terms of the import system that is applied within a region. This implies a great improvement within the commercial sphere with the rest of the world, not including neighboring countries.
  • Open regionalism: This was the later adaptation of classical regionalism, where they differ mainly from this in that it seeks to strengthen neighboring countries and break down barriers between them.

Causes

Among the most important causes of regionalism we find:

  • The search for support and strengthening of the economy of a nation. (either due to financial problems or also due to improvement projects)
  • Enter various organizations which work under these bases in order to enter the international market at the national level.
  • Strengthen the private production sector assisting it through state policies with this system so that it is of mutual impulse.

Consequences

To see the true consequences that this political-economic system brings , one would first have to understand in what political situation the nation in question finds itself, for example: in the case of Puerto Rico for seeking political and economic support from the United States , without a well Structured of rules and negotiation amendments , it ended up being embargoed so it became a colony of it.

For their part, nations like Venezuela are currently in a serious economic crisis for which they have carried out various negotiations with countries such as Russia and China for military material , money loans, structural materials, among others; in exchange for mineral reserves that are the patrimony of the state.

Regionalism in the world

When we speak of regionalism, we see the integration of various countries for this purpose, for example: American countries seek to maintain at least two agreements that form the bases of regionalization. This is better understood when we analyze the bases within the different members of CAN  as well as those that participate in MERCOSUR, which are part of ALADI. An example of these nations more specifically would be Chile , Mexico and Peru, who are always actively acting in the Asia-Pacific Economic Cooperation Forum called APEC.

Examples

  • The aligned countries of MERCOSUR.
  • The ALBA summit in Latin America.
  • The forum for cooperation in Asia and the Pacific APEC
  • The economic measures applied by the European Union.

Importance

The regionalism is a system of exchange between nations almost unavoidable or impossible as this involves many advantages over the nation in question, either because it improves the state budget , involves improvements in infrastructure and quality of life of the inhabitants , or also the safeguarding of it with respect to military effects such as the purchase of war materials or preparation and training plans for them.

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