4.0 out of 5 stars
Eurasia Unplugged, January 28, 2001
By A Customer
This review is from: The European Union and East Asia: An Economic Relationship (Hardcover)
In a world economy dominated by Europe, North America and East Asia, competition and contention among the three regions (the `Triad') shape global economic relations to a significant extent. How the triadic relationships unfold in the future will have a major impact on the distribution of power, wealth and opportunity for the citizens of these regions, and for the world at large.
The economic relationship between the European Union (EU) and East Asia is becoming an important structural feature of the world economy, and Christopher M. Dent, Senior Lecturer in Economics and European Studies at the University of Lincolnshire and Humberside makes a commendable effort at drawing together the threads of the emerging EU - East Asian inter-regional tapestry.
Dent's latest book offers a thorough analysis of the present state of Eurasian economic relations, and their historical development, primarily in a post-war context. He examines bilateral, inter-regional and multilateral dimensions of EU - East Asia `economic diplomacy' with frequent reference to the wider triadic framework. Developments at the sub-national, state and regional level that influence the EU - East Asia economic relationship are identified.
In the concluding sections to most chapters, different theoretical perspectives from the field of international political economy are applied to enhance the reader's understanding of the substantive issues covered. The theoretical perspectives chosen from the field of international political economy - neorealism, neoliberalism, and Marxism - serve to highlight the strengths and weaknesses inherent in each approach.
The first chapter sets out the theoretical perspectives and introduces some of the economic themes echoed throughout the text. Following an overview of recent events up to 1998 in EU-East Asia economic relations, Dent details the development of `economic diplomacy' between the EU and the Association of Southeast Asian Nations (ASEAN), Japan, China, Taiwan and Hong Kong, and South Korea. These relationships are all subjected to a rigourous treatment, backed up with a good many statistical and economic data presentations.
The economic development prospects and future challenges facing the East Asian states are reviewed, with consideration to the impact and implications of the 1997-1998 financial crises that enveloped Asia. The role of regionalism in both East Asia and Europe, and the evolution of inter-regional co-operation mechanisms also are covered. The inter-regional dimension provided by the Asia-Europe Meetings (ASEM), is discussed, as are challenges related to its future development. The concluding chapter considers the future prospects of the EU-East Asia economic relationship.
Dent's principal argument is that the EU must give greater priority to the promotion of its economic relationship with East Asia, a relationship that could have a significant impact on the international economic system in the twenty-first century. As the weakest component of the triadic link, the EU risks future `geoeconomic marginalisation' as the transpacific axis endures into the twenty-first century. Dent argues that the EU and major East Asian powers therefore must assume greater responsibilities for managing the international economic order, in part to counter the continuing influence of the United States in the global economy.
The text demands a careful reading, as Dent has peppered important insights throughout the narrative. A short review cannot do the study justice, but his treatment of EU - China relations is noteworthy. Dent makes a convincing case that China's accession to the WTO will have an unprecedented impact on international economic relations.
Of relevance to the current effort to launch a new round of trade negotiations, Dent considers the EU-US initiative to include new issues (environment, investment, labour, etc.) traditionally regarded as matters of domestic economic policy as unwelcome by China. Given its sensitivity to managing its own internal affairs, and the existing suspicions among developing countries about the inclusion of new issues, China becomes a formidable force against the further extension of the multilateral trading system. Mr. Pascal Lamy, EC Trade Commissioner, has acknowledged this recently, and urged that a new round be launched if possible before the formal WTO accession of China is completed.
Dent also points out that it is likely China will request WTO dispute panels targeting the EU anti-dumping regime, and deploy other multilateral instruments to further open the EU market for its products. In this regard, China will be joining with other states in the region, such as Indonesia, which are becoming more determined to overturn the European and American anti-dumping regimes. It is clear that access to the EU textile and clothing market, among others, will be a flash point in the future.
He also takes note of the key role in Chinese domestic and foreign economic policymaking played by the provincial authorities. The internal dynamics of Chinese political economy are rarely highlighted in western policymaking circles, where it is still assumed that Beijing really does hold all the power cards. Dent, however, realises this is a flawed perspective and proposes an eyes-open approach to engaging in economic diplomacy with China. Brussels would do well to heed him on this point, and take his counsel on developing a more robust engagement strategy for reinforcing the EU in East Asia as a whole.
Students of International Economic Relations, and Asian and European Studies will find the volume offers insights to the challenges facing East Asia, and the potential role the EU can play in the region.
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