Bottom-up regionalism, exemplified by East Asia, emphasizes integration driven by regional supply chains and foreign direct investments (FDIs) with low institutionalization, contrasting with Europe’s model based on institutions. East Asia’s development has been rooted in export-driven growth, particularly in countries such as Japan, South Korea, Taiwan, and, more recently, China. These countries leveraged low currency, wage, and consumption rates to boost their economies until the U.S. pushed its allies to liberalize currencies in 1985. The model also includes East Asian countries acquiring US Treasury securities and then financing American debt. The ‘flying geese’ paradigm captures key aspects of this development: Japan-led industrial expansion, followed by the Asian Tigers, then China and ASEAN nations, creating a virtuous cycle of exporting technology and organizational skills. This cascading industrialization enabled shared technological advances and decentralized manufacturing networks. Given East Asia’s reluctance to form strong regional institutions, ASEAN stands out as a unique platform for cooperation and managing ideological differences. The ASEAN+3 framework, comprising ASEAN and its partners—China, Japan, and South Korea—enhances economic, cultural, and security cooperation. East Asia’s bottom-up regionalism reflects a dynamic mix of supply chains, FDIs, and flexible frameworks, making it a key global economic player. Today, however, the export-oriented model is losing steam.

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Bottom-up Integration in East Asia

  • Mario Apostolov

摘要

Bottom-up regionalism, exemplified by East Asia, emphasizes integration driven by regional supply chains and foreign direct investments (FDIs) with low institutionalization, contrasting with Europe’s model based on institutions. East Asia’s development has been rooted in export-driven growth, particularly in countries such as Japan, South Korea, Taiwan, and, more recently, China. These countries leveraged low currency, wage, and consumption rates to boost their economies until the U.S. pushed its allies to liberalize currencies in 1985. The model also includes East Asian countries acquiring US Treasury securities and then financing American debt. The ‘flying geese’ paradigm captures key aspects of this development: Japan-led industrial expansion, followed by the Asian Tigers, then China and ASEAN nations, creating a virtuous cycle of exporting technology and organizational skills. This cascading industrialization enabled shared technological advances and decentralized manufacturing networks. Given East Asia’s reluctance to form strong regional institutions, ASEAN stands out as a unique platform for cooperation and managing ideological differences. The ASEAN+3 framework, comprising ASEAN and its partners—China, Japan, and South Korea—enhances economic, cultural, and security cooperation. East Asia’s bottom-up regionalism reflects a dynamic mix of supply chains, FDIs, and flexible frameworks, making it a key global economic player. Today, however, the export-oriented model is losing steam.