Multilateralism and Regionalism in Global Economic Governance Reconciling regionalism and multilateralism is a challenge common to all branches of global economic governance. While the Bretton Woods/GATT (WTO) institu- tions, a decades-old multilateral framework for global economic governance, are facing serious challenges to their effectiveness, regional frameworks are emerging as complementary or alternative means of global economic governance. The real challenge is how to reconcile multilateralism and regionalism in global economic governance. This book tackles this problem by analysing issues of multilateral/ regional conciliation and coordination in global economic governance, focusing on Asia. Chapters of the book deal with challenges of multilateralism and regionalism in three fields of global economic governance: global monetary/financial govern- ance, global investment governance and global trade governance. The major regional focus is on Asia, though some chapters deal with regionalism in Europe and North America. Topics include the Asian Monetary Fund and Asian financial architecture, open accession provisions of regional trade agreements and APEC’s role in multilateral investment rules. As a whole, the book elucidates the contemporary reach of Asian regionalism in global economic governance and shows the neat balance between regionalism and multilateralism in global economic governance. It is of particular relevance to students and practitioners of international economic law, international polit- ical economy, international finance and international economics, both with and without an Asian focus. Junji Nakagawa is Professor of International Economic Law at the Institute of Social Science, University of Tokyo, Japan. His publications include International Harmonization of Economic Regulation (Oxford University Press, forthcoming), Anti-Dumping Laws and Practices of the New Users (Cameron May 2007) and Manag ing Development: Globalization, Economic Restructuring and Social Policy (Routledge 2006). Routledge Studies in the Modern World Economy 1 Interest Rates and Budget 7 Competition Policy in the Deficits Global Economy A study of the advanced economies Modalities for co-operation Kanhaya L. Gupta and Bakhtiar Edited by Leonard Waverman, Moazzami William S. Comanor and Akira Goto 2 World Trade after the Uruguay Round 8 Working in the Macro Prospects and policy options for Economy the twenty-first century A study of the US labor market Edited by Harald Sander and Martin F. J. Prachowny András Inotai 9 How Does Privatization 3 The Flow Analysis of Labour Work? Markets Edited by Anthony Bennett Edited by Ronald Schettkat 10 The Economics and Politics of 4 Inflation and Unemployment International Trade Contributions to a new Freedom and trade: Volume II macroeconomic approach Edited by Gary Cook Edited by Alvaro Cencini and Mauro Baranzini 11 The Legal and Moral Aspects of International Trade 5 Macroeconomic Dimensions of Freedom and trade: Volume III Public Finance Edited by Asif Qureshi, Hillel Essays in honour of Vito Tanzi Steiner and Geraint Parry Edited by Mario I. Blejer and Teresa M. Ter-Minassian 12 Capital Markets and Corporate Governance in Japan, Germany 6 Fiscal Policy and Economic and the United States Reforms Organizational response to market Essays in honour of Vito Tanzi inefficiencies Edited by Mario I. Blejer and Helmut M. Dietl Teresa M. Ter-Minassian 13 Competition and Trade Policies 22 The New Industrial Geography Coherence or conflict Regions, regulation and Institutions Edited by Einar Hope Edited by Trevor J. Barnes and Meric S. Gertler 14 Rice The primary commodity 23 The Employment Impact of A. J. H. Latham Innovation Evidence and policy 15 Trade, Theory and Edited by Marco Vivarelli and Econometrics Mario Pianta Essays in honour of John S. Chipman 24 International Health Care Edited by James C. Moore, Reform Raymond Riezman and A legal, economic and political James R. Melvin analysis Colleen Flood 16 Who Benefits from Privatisation? 25 Competition Policy Analysis Edited by Moazzem Hossain Edited by Einar Hope and Justin Malbon 26 Culture and Enterprise 17 Towards a Fair Global Labour The development, representation Market and morality of business Avoiding the new slave trade Don Lavoie and Emily Chamlee- Ozay Mehmet, Errol Mendes and Wright Robert Sinding 27 Global Financial Crises and 18 Models of Futures Markets Reforms Edited by Barry Goss Cases and caveats B. N. Ghosh 19 Venture Capital Investment An agency analysis of UK 28 Geography of Production and practice Economic Integration Gavin C. Reid Miroslav N. Jovanović 20 Macroeconomic Forecasting 29 Technology, Trade and Growth A sociological appraisal in OECD Countries Robert Evans Does specialisation matter? Valentina Meliciani 21 Multimedia and Regional Economic Restructuring 30 Post-Industrial Labour Markets Edited by Hans-Joachim Braczyk, Profiles of North America and Gerhard Fuchs and Hans-Georg Scandinavia Wolf Edited by Thomas P. Boje and Bengt Furaker 31 Capital Flows without Crisis 41 Linking Local and Global Reconciling capital mobility and Economies economic stability The ties that bind Edited by Dipak Dasgupta, Marc Edited by Carlo Pietrobelli and Uzan and Dominic Wilson Arni Sverrisson 32 International Trade and 42 Tax Systems and Tax Reforms National Welfare in Europe Murray C. Kemp Edited by Luigi Bernardi and Paola Profeta 33 Global Trading Systems at Crossroads 43 Trade Liberalization and A post-Seattle perspective APEC Dilip K. Das Edited by Jiro Okamoto 34 The Economics and Management 44 Fiscal Deficits in the Pacific of Technological Diversification Region Edited by John Cantwell, Alfonso Edited by Akira Kohsaka Gambardella and Ove Granstrand 45 Financial Globalization and the 35 Before and beyond EMU Emerging Market Economies Historical lessons and future Dilip K. Das prospects Edited by Patrick Crowley 46 International Labor Mobility Unemployment and increasing 36 Fiscal Decentralization returns to scale Ehtisham Ahmad and Vito Tanzi Bharati Basu 37 Regionalisation of Globalised 47 Good Governance in the Era of Innovation Global Neoliberalism Locations for advanced industrial Conflict and depolitization in development and disparities in Latin America, Eastern Europe, participation Asia and Africa Edited by Ulrich Hilpert Edited by Jolle Demmers, Alex E. Fernández Jilberto and Barbara 38 Gold and the Modern World Hogenboom Economy Edited by MoonJoong Tcha 48 The International Trade System 39 Global Economic Institutions Alice Landau Willem Molle 49 International Perspectives 40 Global Governance and on Temporary Work and Financial Crises Workers Edited by Meghnad Desai and Edited by John Burgess and Julia Yahia Said Connell 50 Working Time and Workers’ 58 Globalization and Self Preferences in Industrialized Determination Countries Is the nation-state under siege? Finding the balance Edited by David R. Cameron, Edited by Jon C. Messenger Gustav Ranis and Annalisa Zinn 51 Tax Systems and Tax Reforms 59 Developing Countries and the in New EU Members Doha Development Round of Edited by Luigi Bernardi, Mark the WTO Chandler and Luca Gandullia Edited by Pitou van Dijck and Gerrit Faber 52 Globalization and the Nation State 60 Immigrant Enterprise in The impact of the IMF and the Europe and the USA World Bank Prodromos Panayiotopoulos Edited by Gustav Ranis, James Vreeland and Stephen Kosak 61 Solving the Riddle of Globalization and Development 53 Macroeconomic Policies and Edited by Manuel Agosín, Poverty Reduction David Bloom, George Chapelier Edited by Ashoka Mody and and Jagdish Saigal Catherine Pattillo 62 Foreign Direct Investment and 54 Regional Monetary Policy the World Economy Carlos J. Rodríguez-Fuentez Ashoka Mody 55 Trade and Migration in the 63 The World Economy Modern World A global analysis Carl Mosk Horst Siebert 56 Globalisation and the Labour 64 Production Organizations Market in Japanese Economic Trade, technology and less-skilled Development workers in Europe and the United Edited by Tetsuji Okazaki States Edited by Robert Anderton, 65 The Economics of Language Paul Brenton and John Whalley International analyses Edited by Barry R. Chiswick and 57 Financial Crises Paul W. Miller Socio-economic causes and institutional context 66 Street Entrepreneurs Brenda Spotton Visano People, place and politics in local and global perspective Edited by John Cross and Alfonso Morales 67 Global Challenges and Local 75 The Macroeconomics of Global Responses Imbalances The East Asian experience European and Asian perspectives Edited by Jang-Sup Shin Edited by Marc Uzan 68 Globalization and Regional 76 China and Asia Integration Economic and financial The origins, development and interactions impact of the single European Edited by Yin-Wong Cheung and aviation market Kar-Yiu Wong Alan Dobson 77 Regional Inequality in China 69 Russia Moves into the Global Trends, explanations and policy Economy responses Breaking out Edited by Shenggen Fan, Ravi John M. Letiche Kanbur and Xiaobo Zhang 70 The European Economy in an 78 Governing Rapid Growth in American Mirror China Barry Eichengreen, Michael Equity and institutions Landesmann and Dieter Stiefel Edited by Ravi Kanbur and Xiaobo Zhang 71 Working Time around the World 79 The Indonesian Labour Market Trends in working hours, Shafiq Dhanani, Iyanatul Islam laws, and policies in a global and Anis Chowdhury comparative perspective Jon C. Messenger, Sangheon Lee 80 Cost–Benefit Analysis in Multi- and Deidre McCann Level Government in Europe and the USA 72 International Water Treaties The case of EU cohesion policy Negotiation and cooperation and of US federal investment along transboundary rivers policies Shlomi Dinar Alessandro Ferrara 73 Economic Integration in the 81 The Economic Geography of Americas Air Transportation Edited by Joseph A. McKinney Space, time, and the freedom of and H. Stephen Gardner the sky John Bowen 74 Expanding Frontiers of Global Trade Rules 82 Cartelization, Antitrust and The political economy dynamics Globalization in the US and of the international trading system Europe Nitya Nanda Mark LeClair 83 The Political Economy of 89 Foreign Direct Investments in Integration Asia Jeffrey Cason Edited by Chalongphob Sussangkarn, Yung Chul Park and 84 Critical Issues in Air Transport Sung Jin Kang Economics and Business Rosario Macario and Eddy Van 90 Time Zones, Communications de Voorde Networks, and International Trade 85 Financial Liberalisation and Toru Kikuchi Economic Performance Luiz Fernando de Paula 91 Miraculous Growth and Stagnation in Post-War Japan 86 A General Theory of Edited by Koichi Hamada, Keijiro Institutional Change Otsuka, Gustav Ranis, and Ken Shiping Tang Togo 87 The Dynamics of Asian 92 Multilateralism and Financial Integration Regionalism in Global Edited by Michael Devereux, Economic Governance Philip Lane, Park Cyn-young and Trade, investment and finance Wei Shang-jin Edited by Junji Nakagawa 88 Innovative Fiscal Policy and Economic Development in Transition Economies Aleksandr Gevorkyan Multilateralism and Regionalism in Global Economic Governance Finance, trade and investment Edited by Junji Nakagawa First published 2011 by Routledge 2 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN Simultaneously published in the USA and Canada by Routledge 711 Third Avenue, New York, NY 10017 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2011 Editorial selection and matter, Junji Nakagawa; individual chapters, the contributors All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging in Publication Data Multilateralism and regionalism in global economic governance : trade, investment and finance / [edited by] Junji Nakagawa. p. cm. -- (Routledge studies in modern world economy ; 92) Includes bibliographical references and index. ISBN 978-0-415-59569-8 (hb) -- ISBN 978-0-203-81394-2 (eb) 1. International economic relations. 2. Regional economics. 3. Regionalism. 4. Globalization--Economic aspects. I. Nakagawa, Junji, 1955– HF1359.M847 2011 337--dc22 2010050805 ISBN 13: 978-0-415-59569-8 (hbk) ISBN 13: 978-0-203-81394-2 (ebk) Typeset in Times New Roman by Bookcraft Ltd, Stroud, Gloucestershire