Regionalism

Theories of Regionalism

Early empirical studies of regionalism focused on the then initial stages of European integration from a mainly neofunctionalist perspective. Neofunctionalist interpretations of regional integration retained the thrust of the functionalist approach, which is that cooperation between nation-states begins with lowlevel economic and social cooperation, but then shifted their analytical focus from the international to the regional and introduced a utilitarian framework to describe the motives of rational political actors. As such, the neofunctionalist perspective seeks to understand and explain why sovereign nation-states choose to integrate in such a manner as to exchange aspects of their sovereignty for the authority of [Page 810]regional institutions. Proponents of this view argue the explanation lies in the concept of “spillover” and the interests of national and supranational political actors. Through the interdependence inherent in the various sectors of modern economies, integration in one sector “spills over” into other sectors and necessarily leads to sectoral integration. Furthermore, due to the interwoven nature of the economic and political spheres, according to this argument, functional and political spillover induces the processes of regional integration to take place. The result is that supranational regional institutions are created with the jurisdiction over their member states to facilitate these integrative functions.

In a similar manner, neoliberal institutionalists emphasize the role of institutions in the formation of regional organizations. These institutions, it is argued, lower the transaction costs of increased cooperation and thus satisfy the demand of increased interconnectedness at the regional level. Unlike neofunctionalist theories, neoliberal institutionalists focus their analyses on the state as a rational actor in an anarchical international system of states. From this perspective, states seek long-term, absolute gains from cooperation and are discouraged by the actions of states that seek to cheat or defect from their mutual obligations. Regional institutions, it is argued, may provide the transparency, unified expectations, and the mechanisms to inhibit cheating through their coordination role at the supranational level. Thus, for neoliberal institutionalists, as with neofunctionalists, the creation of regional institutions depends on the benefits of cooperation accorded to the regional actors involved. Therefore, these regional institutions are subject to the actions of states and motivated by internal political interest groups and domestic political objectives. The success and longevity of these regional institutions, then, depend on their ability to successfully carry out their coordinating and problemsolving functions.

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