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p. 3 of 5 BACK | NEXT ADB: A Natural Partner Regionalization in a Global Context Dimensions of Regional Cooperation Economic Cooperation Initiatives Conclusion

Empowering Nations Through Regional Cooperation

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Dimensions of regional cooperation

Regional cooperation exists regardless of globalization. Historically, several regional arrangements were initiated to provide strategic defense, especially during the post-Second World War period, but security was not their only reason for existence. Regional cooperation also exists to nurture and enhance economic development, social development, environmental protection, and protection against crime and terrorism—especially significant in the aftermath of 11 September.

Economic development

Regional cooperation eliminates physical and nonphysical barriers. It amplifies domestic development by widening the options available to participating countries, expanding markets and access to key imports. This is particularly important for countries—or regions within countries—with limited access to markets and resources. Integrating smaller economies into larger regional economies expands the size of the market, thus facilitating cost reduction through economies of large-scale production.

Regional cooperation makes possible the coordinated development of basic infrastructure, from crossborder power grids and telecommunications links to railways, highways, and inland waterways. Transport projects, in particular, can reduce physical barriers to the movement of goods and people across national boundaries, which may in turn expand regional trade and tourism, increase foreign exchange earning capability, and create employment-intensive activities.

However, cooperation alone is not sufficient to enhance a participating economy’s growth potential. The benefits of infrastructure that reduce physical barriers to trade and investment may still be severely constrained by nonphysical barriers to the movement of goods, services, information, and people. Procedures, regulations, and policies must be streamlined to increase the efficiency of investments in infrastructure and production facilities. A streamlined policy framework can also stimulate crossborder investment and trade growth. Regional cooperation that simultaneously addresses physical infrastructure and software needs, such as trade and investment facilitation, can increase the subregion or region’s potential attractiveness to investors, to the benefit of all participating economies. It can also help integrate the region more closely into the global economy.

Likewise, the effective collection and sharing of financial information as well as regional policy coordination and cooperation can support global financial stability.

Social development

As regional and global integration accelerates, so too does the crossborder transmission of diseases such as malaria, tuberculosis, and HIV/AIDS. The ability of individual DMCs to monitor and respond to outbreaks of these diseases varies. The overall health of a region can improve if the spread of diseases is prevented.

Just as regional cooperation can help control the spread of disease, it can help promote education. Networks of advanced learning centers can serve as resource centers for the entire region. For example, while it may not be financially feasible for individual countries to host a large learning center or university, centers such as the International Rice Research Institute and the Asian Institute of Management in the Philippines and the Asian Institute of Technology in Thailand can and do service entire regions.

Environment and natural resource management

Environmental degradation is not confined to individual countries. This is especially so in the Asian and Pacific region, which covers 23% of the world’s land area and contains 55% of the world’s population—a population density of 93 people per square kilometer, compared with a worldwide density of 24 people per square kilometer. The rate of urbanization is unprecedented. The region’s environment is besieged by pollution and resource degradation. Renewable resources are being depleted faster than they are regenerated; air and water pollution, poor sanitation, and urban congestion are causing profound long-term health problems; traffic congestion is resulting in millions of dollars of lost work; and fragile ecosystems are being destroyed with critical long-term development implications. The region is often struck by floods, droughts, landslides, forest fires, and chemical and nuclear accidents—all of which are aggravated or caused by environmental degradation. Better environmental management can prevent such disasters. Regional cooperation initiatives can help mitigate the effects of natural environmental disasters and those caused by human activities, such as erosion, flooding, forest fires, and air and water pollution.

Crime prevention

Globalization has led to a surge in crossborder activities—legal and illegal. And while crime is becoming increasingly global, law enforcement remains constrained by national boundaries. Crossborder trafficking of people especially women and children, drugs, arms and other contraband, and money laundering through global banking and capital markets have grown rapidly. These global crimes require a coordinated international response, which is reinforced by regional initiatives based on close cooperation among countries.

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