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CriticalStudiesoftheAsiaPacificSeries SeriesEditor:MarkBeeson,ProfessorofInternationalPolitics,MurdochUniversity,Australia Critical Studies of the Asia Pacific showcases new research and scholarship on what is arguably themostimportantregionintheworldinthetwenty-firstcentury.TheriseofChinaandthe continuingstrategicimportanceofthisdynamiceconomicareatotheUnitedStatesmeanthat theAsiaPacificwillremaincruciallyimportanttopolicymakersandscholarsalike.Theunifying theme of the series is a desire to publish the best theoretically informed, original research on theregion.Titlesintheseriescoverthepolitics,economicsandsecurityoftheregion,aswellas focussingonitsinstitutionalprocesses,individualcountries,issuesandleaders. Titlesinclude: ThomasBirtchnell INDOVATION InnovationandaGlobalKnowledgeEconomyinIndia LindsayBlack JAPAN’SMARITIMESECURITYSTRATEGY TheJapanCoastGuardandMaritimeOutlaws AurelCroissant,DavidKüehn,PhilipLorenzandPaulW.Chambers DEMOCRATIZATIONANDCIVILIANCONTROLINASIA GiovannaMariaDoraDore,JaeH.KuandKarlJackson(editors) INCOMPLETEDEMOCRACIESINTHEASIA-PACIFIC EvidencefromIndonesia,Korea,thePhilippinesandThailand KellyGerard ASEAN’sENGAGEMENTOFCIVILSOCIETY RegulatingDissent FelixHeiduk(editor) SECURITYSECTORREFORMINSOUTHEASTASIA FromPolicytoPractice BrendanHowe THEPROTECTIONANDPROMOTIONOFHUMANSECURITYINEASTASIA JaneHutchison,WilHout,CarolineHughesandRichardRobison POLITICALECONOMYANDTHEAIDINDUSTRYINASIA EunMeeKimandPilHoKim(editors) THESOUTHKOREANDEVELOPMENTEXPERIENCE BeyondAid JikonLai FINANCIALCRISISANDINSTITUTIONALCHANGEINEASTASIA JonathanLondon(editor) POLITICSINCONTEMPORARYVIETNAM Party,State,andAuthorityRelations ArndtMichael INDIA’SFOREIGNPOLICYANDREGIONALMULTILATERALISM MohammadZulfanTadjoeddin EXPLAININGCOLLECTIVEVIOLENCEINCONTEMPORARYINDONESIA ClaudiaTazreiterandSiewYeanTham(editors) GLOBALIZATIONANDSOCIALTRANSFORMATIONINTHEASIA-PACIFIC TheAustralianandMalaysianExperience SowKeatTok MANAGINGCHINA’SSOVEREIGNTYINHONGKONGANDTAIWAN WilliamTowandRikkiKersten(editors) BILATERALPERSPECTIVESONREGIONALSECURITY Australia,JapanandtheAsia-PacificRegion BarryWain MALAYSIANMAVERICK MahathirMohamadinTurbulentTimes MikaelWeissmann THEEASTASIANPEACE ConflictPreventionandInformalPeacebuilding RobertG.Wirsing,ChristopherJasparroandDanielC.Stoll INTERNATIONALCONFLICTOVERWATERRESOURCESINHIMALAYANASIA HidetakaYoshimatsu COMPARINGINSTITUTION-BUILDINGINEASTASIA PowerPolitics,Governance,andCriticalJunctures CriticalStudiesoftheAsiaPacificSeries SeriesStandingOrderISBN978–0–230–22896–2(Hardback) 978–0–230–22897–9(Paperback) (outsideNorthAmericaonly) Youcanreceivefuturetitlesinthisseriesastheyarepublishedbyplacingastandingorder.Please contactyourbookselleror,incaseofdifficulty,writetousattheaddressbelowwithyourname andaddress,thetitleoftheseriesandtheISBNsquotedabove. CustomerServicesDepartment,MacmillanDistributionLtd,Houndmills,Basingstoke,Hampshire RG216XS,England AlsobyHidetakaYoshimatsu(publishedbyPalgraveMacmillan) INTERNATIONALIZATION,CORPORATEPREFERENCESANDCOMMERCIALPOLICYINJAPAN JAPANANDEASTASIAINTRANSITION:TradePolicy,CrisisandEvolution,andRegionalism THE POLITICAL ECONOMY OF REGIONALISM IN EAST ASIA: Integrative Explanation for DynamicsandChallenges Comparing Institution-Building in East Asia Power Politics, Governance, and Critical Junctures Hidetaka Yoshimatsu RitsumeikanAsiaPacificUniversity,Japan ©HidetakaYoshimatsu2014 Softcover reprint of the hardcover 1st edition 2014 978-1-137-37054-9 Allrightsreserved.Noreproduction,copyortransmissionofthis publicationmaybemadewithoutwrittenpermission. Noportionofthispublicationmaybereproduced,copiedortransmitted savewithwrittenpermissionorinaccordancewiththeprovisionsofthe Copyright,DesignsandPatentsAct1988,orunderthetermsofanylicence permittinglimitedcopyingissuedbytheCopyrightLicensingAgency, SaffronHouse,6–10KirbyStreet,LondonEC1N8TS. Anypersonwhodoesanyunauthorizedactinrelationtothispublication maybeliabletocriminalprosecutionandcivilclaimsfordamages. Theauthorhasassertedhisrighttobeidentifiedastheauthorofthiswork inaccordancewiththeCopyright,DesignsandPatentsAct1988. Firstpublished2014by PALGRAVEMACMILLAN PalgraveMacmillanintheUKisanimprintofMacmillanPublishersLimited, registeredinEngland,companynumber785998,ofHoundmills,Basingstoke, HampshireRG216XS. PalgraveMacmillanintheUSisadivisionofStMartin’sPressLLC, 175FifthAvenue,NewYork,NY10010. PalgraveMacmillanistheglobalacademicimprintoftheabovecompanies andhascompaniesandrepresentativesthroughouttheworld. Palgrave®andMacmillan®areregisteredtrademarksintheUnitedStates, theUnitedKingdom,Europeandothercountries. ISBN 978-1-349-47531-5 ISBN 978-1-137-37055-6 (eBook) DOI10.1057/9781137370556 Thisbookisprintedonpapersuitableforrecyclingandmadefromfully managedandsustainedforestsources.Logging,pulpingandmanufacturing processesareexpectedtoconformtotheenvironmentalregulationsofthe countryoforigin. AcataloguerecordforthisbookisavailablefromtheBritishLibrary. AcatalogrecordforthisbookisavailablefromtheLibraryofCongress. Contents ListofTablesandFigures vi PrefaceandAcknowledgements vii ListofAbbreviations ix 1 Introduction 1 2 FrameworksforAnalysingInstitution-BuildinginEastAsia 9 3 PromotingTradeLiberalisationthroughFreeTradeAgreements 35 4 DevelopingInstitutionsforRegionalFinancialStability 64 5 FoodSecurityCooperationthroughEmergencyRiceReserve 92 6 EnergySecurityCooperationunderASEAN+3 116 7 EnvironmentalCooperation:TheMonitoringofTransboundary AirPollution 144 8 Conclusion 173 Notes 197 References 210 Index 228 v Tables and Figures Tables 3.1 FTAsamongcountriesinthewiderEastAsia(asofApril2013) 36 4.1 TheresearchprojectsoftheASEAN+3researchgroup 73 4.2 CMIMcontributions,purchasingmultiple,andvoting-power distribution 82 5.1 ReleaseofreservedriceundertheEAERR 94 5.2 Members’contributionstotheAPTERR 106 7.1 Members’contributionstotheEANETsecretariatbudget (thousand$;%) 157 8.1 Thetwostagesofinstitution-buildinginfivepolicyfields 174 Figures 2.1 Independent/dependentvariablesinanalyticalframeworks 29 3.1 VariousFTAframeworksintheAsia-Pacificregion 47 6.1 ThestructureofASEAN+3energycooperation 118 7.1 OrganisationalstructureofEANET 146 vi Preface and Acknowledgements The internationalrelations of East Asia are multifaceted. On the one hand, major states in the region have achieved steady economic growth, which hasledtoincreasingeconomicandsociallinkagesamongtheirsocietiesand peoples.Thisgrowthhasalsoraisedtheregion’spoliticalstatus,whichistyp- icallygivenprominenceintheGroupofTwenty(G-20).Ontheotherhand, despitegrowingeconomicandsociallinkages,nationalisticsentimentsstill remainstronginmostofthecountries.Moreover,politicalanimositiesand security tensions constitute critical issues in international relations of East Asia.WhilethetensionsintheKoreanPeninsularemainunresolved,those relating to maritime security are escalating in the East China and South ChinaSeas. A key factor in promoting regional cooperation is the development of formalinstitutions.Foralongtime,initiativesforadvancingexplicitcoop- erationthroughformalinstitutionsremainedatapreliminarystageinEast Asia. Not only is East Asia’s history of regionalist initiatives and projects a shortone,butthemajorcountries’propensitytomaintainsovereignrights andterritorialintegrityhasalsohinderedtheinitiationanddevelopmentof regional institutions. As a background factor, diversity in terms of political regimes, economic development, and cultural traditions including religion has hindered the formation of a common regional identity. Since the late 1990s, however, countries in East Asia have gradually strengthened their aspirationstoadvanceformalinstitutionsdesignedtotacklecommonchal- lenges that the region is facing and to provide regional public goods for collectiveinterests. Thedevelopmentofregionalinstitutionsin EastAsia isprimarilydepen- dentontheextenttowhichstateactorscancoordinatetheirdiverseinterests towards long-term collective objectives. At the same time, practical pro- cessesofinstitution-buildingareinfluencedbyvariousfactors.Whileoverall historical trends on the global scene influence the speed and direction of regional institution-building, the presence and involvement of non-state actors provide particular input for deepening regionalist initiatives and projects. This monograph aims to make some contributions to the study ofregionalisminEastAsiabylinkingpracticalmovestowardsregionalcon- solidation to key perspectives and concepts in the theories of politics and internationalrelations. It is a pleasure to acknowledge my debt to those who have provided significant assistance for the completion of this volume. In the process of preparing it for publication, many scholars have become a source of inspi- ration and support. I am particularly thankful to Purnendra Jain, Glenn vii viii PrefaceandAcknowledgements D.Hook,MarkBeeson,ChristopherW.Hughes,Seung-YoungKim,Yoichiro Sato,VyasUtpal,In-WonHwang,andMin-jeLee.Ialsowishtoexpressmy deep gratitude to the Graduate School of Asia Pacific Studies, Ritsumeikan Asia Pacific University (APU). Although APU is a relatively new university located in a small city in southwestern Japan, its internationally oriented academic environment has provided me with valuable intellectual stimu- lusthroughparticipationininternationalconferencesanddailydiscussions with other colleagues. I also thank the Centre for Asian Studies, University ofAdelaideandtheSchoolofEastAsianStudies,UniversityofSheffield.Vis- iting fellowships at these organisations helped crystallise the thinking that resulted in this book. This work was supported by the Grant-in-Aid for Sci- entificResearch(23530208)fromtheMinistryofEducation,Culture,Sports, ScienceandTechnology,Japan. Finally,gratitudegoestomywife,Mutsumi,andourson,Satoshi,fortheir willing sacrifices and continuous support. They have sustained my life as a researcherbyallowingmetospendtimeonresearchevenduringweekends. Without their understanding and encouragement, this project would not havebeenpossible. Abbreviations ACAP AsiaCentreforAirPollutionResearch ACE ASEANCentreforEnergy ACFTA ASEAN–ChinaFreeTradeArea ACU AsianCurrencyUnit ADB AsianDevelopmentBank AEC ASEANEconomicCommunity AEM ASEANEconomicMinisters AERR ASEANEmergencyRiceReserve AFSIS ASEANFoodSecurityInformationSystem AFSRB ASEANFoodSecurityReserveBoard AFTA ASEANFreeTradeArea AJCEP ASEAN–JapanComprehensiveEconomicPartnership AMAF ASEANMinistersonAgricultureandForestry AMEM ASEANMinistersonEnergyMeeting AMF AsianMonetaryFund AMRO ASEAN+3MacroeconomicResearchOffice APEC Asia-PacificEconomicCooperation APF AsianPolicyForum APSA ASEANPetroleumSecurityAgreement APTERR ASEAN+3EmergencyRiceReserve ARF ASEANRegionalForum ASEAN AssociationofSoutheastAsianNations ASEAN+3 ASEANPlusThree ASEM Asia–EuropeMeeting BSA bilateralswapagreement CASS ChineseAcademyofSocialSciences CCP ChineseCommunistParty CDM CleanDevelopmentMechanism CEPEA ComprehensiveEconomicPartnershipAgreementin EastAsia CMI ChiangMaiInitiative CMIM ChiangMaiInitiativeMultilateralisation CNEMC ChinaNationalEnvironmentalMonitoringCentre DPJ DemocraticPartyofJapan DSM disputesettlementmechanism EAERR EastAsiaEmergencyRiceReserve EAFTA EastAsiaFreeTradeArea EANET AcidDepositionMonitoringNetworkinEastAsia EAS EastAsiaSummit ix

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