Turbulent fields and the theory of regional integration

Abstract

Theories of regional integration are becoming obsolescent because three core assumptions on which these theories have been based are becoming less and less relevant to the behavior patterns actually displayed by governments active in regional organizations. These three assumptions are (1) that a definable institutional pattern must mark the outcome of the process of integration, (2) that conflicts of interests involving trade-offs between ties with regional partners and ties with nonmembers should be resolved in favor of regional partners, and (3) that decisions be made on the basis of disjointed incrementalism. The history of the European Communities since 1968 shows that most governments no longer behave in accordance with these assumptions, although they did earlier. The explanation for the new trend is to be found in awareness of the various novel kinds and dimensions of interdependence between countries, issues, and objectives, particularly with reference to policies involving those aspects of highly industrial societies which do not respond readily to the incentives of a customs union. A new decision-making rationality–labelled “fragmented issue linkage”–seems to be competing with incremental habits, suggesting that efforts are being made to cope with “turbulence” in the industrial environment so as to avoid piecemeal solutions. The effort to cope with turbulence, in turn, is unlikely to lead to any “final” set of regional institutions.