Regional Economic Integration between Developing and Developed states.

Regional Economic Integration between Developing and Developed States/ Moshe Hirsch Economic integration between developing and developed states is a desirable process and should be promoted by the international community through various legal mechanisms. North ? South regional integration arrangements (RIAs) generate significant economic gains to developing states and better integrate them into the world economic system. Such arrangements are also expected to gradually reduce socio-cultural differences and tensions between developing and developed states. These integration arrangements also generate important non-economic as well as economic gains to developed states. The prominent examples of such RIAs are the North American Free Trade Area (NAFTA) and the recent agreements that facilitated the accession of Eastern and Central European states to the European Union (EU). Other RIAs, which involve modest institutional arrangements, are the EU-South Africa Free Trade Area (FTA) Agreement and U.S. ? Chile FTA Agreement. The paper analyzes the principal factors that affect the formation and expansion of RIAs between developing and developed states and suggests some legal mechanisms to enhance the prospects of this desirable integration process. To attain these aims, the paper employs various theoretical tools that have been developed in political economic,political science and sociological theories of international integration. Drawing upon these theories, a variety of legal mechanisms that are likely to promote North ? South economic integration are suggested. These legal instruments include conferring on the members of these RIAs various trade and legal incentives in the global trading system (e.g., reduced tariff rates or privileged rules of origin) and extending the surveillance and adjudication operations of global institutions (like the WTO) to monitor and implement North ? South economic arrangements. Such integration arrangements should also be supplemented by legal rules that implement various sociological strategies that alleviate socio-cultural tensions and foster a sense of community among the involved societies. [ABSTRACT FROM AUTHOR]