ABSTRACT
The key model for approaching regionalism is that of Bela Balassa, he argued that there was a logic or inherent necessity in regionalization, meaning that all regional blocks would sooner or later end up in the same category as the European Union (EU). This chapter explains that one basic framework for analyzing real economic outcomes is convergence theory stating that when countries with different levels of Gross Domestic Product (GDP) interact during a long period of time, then the GDP differences will grow smaller. Regionalism is on its way to becoming a new interdisciplinary field in the social and economic sciences. The economic interests behind regional blocks cannot be doubted, given the global emphasis upon trade and trade liberalization. The key economic approaches to regionalism do not really address the key issues in institutionalization and constitutionalization respectively of regionalism. The FORUM model is also attractive when the goals of regional cooperation are mainly cultural ones.
