Collective Hedging: What Drives Regional Institution-Building in the Asia-Pacific?

Abstract

Why have so many overlapping regional institutions been established in the Asia-Pacific? Is there any possibility of a convergence of these institutions into a single (or a few) “authoritative” regional institution(s)? What implications do the emerging overlapping regional institutions have for an evolving regional architecture in Asia? I argue first that the proliferation of regional institutions reflects complicated strategies taken by the countries to respond to the increased insecurity and uncertainty caused by the structural changes. Second, the countries of the region are taking a variety of national strategies through regional institutions, ranging from engagement to soft balancing and risk-hedging, to respond to these changes. Third, all the states of the region want to maintain a variety of institutional choices to respond to their uncertain futures. Fourth, what makes the institution-building so complicated lies in the fact that there are two major (and uncertain) powers to whom the regional countries have to respond through regional institutions: the United States and China. This makes the bargaining game for regional institution-building more complicated and competitive. Fifth, the amalgamation or convergence of the existing institutions into a single (or few) “authoritative” institution(s) through “institutional competition” will not take place in the foreseeable future. Sixth, the countries of the region may engage in “forum shopping.” Seventh, the roles of these institutions have been and will be quite modest. However, the regional institutions could to some extent contribute to moderating inter-state tensions and putting institutional constraints on the deviant behaviors of member countries.

Citation

Kikuchi, T. (2015), "Collective Hedging: What Drives Regional Institution-Building in the Asia-Pacific?", Asian Leadership in Policy and Governance (Public Policy and Governance, Vol. 24), Emerald Group Publishing Limited, Leeds, pp. 45-67. https://doi.org/10.1108/S2053-769720150000024003