Explained: Regional Economic cooperation

Regional Economic cooperation refers to an agreement between groups of countries in a geographic region, to promote economic cooperation by reducing trade barriers and non-tariff barriers to the free flow of goods, services, and factors of production between each other.

The objective of regional economic cooperation is to promote the welfare of the peoples of the region and to improve their quality of life; to accelerate economic growth, social progress and cultural development in the region and to provide all individuals the opportunity to live in dignity and to realize their full potentials; to promote and strengthen collective self-reliance among the countries within the region; to contribute to mutual trust, understanding and appreciation of one another’s problems; to promote active collaboration and mutual assistance in the economic, social, cultural, technical and scientific fields; to strengthen cooperation with other developing countries; to strengthen cooperation among themselves in international forums on matters of common interests; and to cooperate with international and regional organizations with similar aims and purposes.

Regional Economic Cooperation allows participating countries to fully use underutilized economic potential in terms of human, natural and technological resources. Regional cooperation and partnership has the potential to be a very important role to deliver development, growth and stability in a manner fully consistent with the global orientation of the regional economies and markets. Since the interests of South East Asia are deeply global, regionalism is a gift for growth and development.

There are certain guidelines for promoting Regional Economic Cooperation.

Cooperation has to complement and turn on existing bilateral and different reasonable arrangements among member countries; Cooperation must involve commitment towards the common goals on the part of all collaborating countries with equal respect for each other. Decisions at all levels under the agreement are to be taken on the basis of unanimity; and except bilateral and contentious issues; Cooperation ought to support modalities of economic openness and reciprocity and as per principles of the multilateral trading system established.

Beyond Cooperation:

Cooperation between states does not imply a loss of political sovereignty. When states engage in interactions that lead to a loss of sovereignty, they have gone beyond cooperation, or inter-governmentalism, and are participating in supranationalism. This higher level of cooperation requires states to shift power and decision making to a supra-authority whose charge is to make decisions based on the welfare of the group as a whole.

Some Important Regional Organizations are as follows:

Association of South-East Nations (ASEAN)

Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC)

South Asian Association for Regional Cooperation (SAARC)

Asia-Pacific Economic Cooperation (APEC)

Indian Ocean Rim Association (IORA)

Related Posts:

1. WTO
2. IMF
3. World Bank