Prospects for regional cooperation between Latin America and the Caribbean region and the Asia and Pacific region: perspective from East Asia

Prospects for regional cooperation between Latin America and the Caribbean region and the Asia and Pacific region: perspective from East Asia

The economic success of the East Asian region during the past four decades and its proven resilience during times of crisis demonstrate that regional integration, supported by both open trade and regional cooperation, is a key factor for sustained growth and development. Latin American countries and the Caribbean, on the other hand, have not displayed the same success as the Asia and Pacific region in integrating their economies and securing a stronger role in the global economy. Unlike the Asia and Pacific region, and in particular East Asia, the Latin American and Caribbean region has not embraced open regionalism and has not been aggressive enough in looking for third markets. Latin American markets remain fragmented and the business environment needs to be restructured to make it more attractive for foreign direct investment (FDI).

This paper explores the potential for regional cooperation between the Asia and Pacific region and Latin America and the Caribbean. The first section provides an overview of regionalism and how it has evolved as a strategy to manage regional externalities. The second section provides a background on Asian regionalism and the factors for its success. The third section deals with prospects for interregional cooperation between the Asia and Pacific region and Latin America and the Caribbean. The fourth section provides the
conclusion and some recommendations on how to build a partnership between the two regions.

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