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Open Regionalism in the Indian Ocean: How relevant is the APEC model for IOR-ARC?

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  • Saman Kelegama

Abstract

The Indian Ocean Rim Association of Regional Cooperation (IORARC) came into being in 1997. It is experimenting with open regionalism for strengthening economic integration in the region. The paper examines the concept of open regionalism as practiced in APEC and its validity for IORARC given the initial conditions in the region and the level of development of the member nations. The paper argues that the APEC model has little relevance for IOR-ARC, and open regionalism could be put into practice only partially in the region. It argues that IOR-ARC should stick to the WTO timetable of trade liberalization and focus more on non-controversial areas of open regionalism, viz., trade and investment facilitation, economic and technical cooperation, and maintaining a trade and investment dialogue. A stronger institutional framework to overlook the implementation of the agreed proposals in these areas of open regionalism will be necessary if IORARC is to strengthen economic integration and achieve some results. In the modern-day world, in contrast to the era of sailing vessels, sharing of Indian Ocean waters may have less relevance for effective economic integration.

Suggested Citation

  • Saman Kelegama, 2000. "Open Regionalism in the Indian Ocean: How relevant is the APEC model for IOR-ARC?," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 5(3), pages 255-274.
    • Handle: RePEc:taf:rjapxx:v:5:y:2000:i:3:p:255-274
    DOI: 10.1080/13547860050175044
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    3. Paul Krugman, 1995. "Growing World Trade: Causes and Consequences," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 327-377.
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