Regionalisation is a dynamic politico administrative process by which regions emerge as relevant units of analysis for economic and political activity and welfare and service provision.
Some argue that regionalisation may lead to a more pluralistic world order and that it is arising as a challenge to the undemocratic rules of globalization. The creation of trade blocs is often cited as an instance in this context. However, others argue that regionalisation and globalisation are parallel and overlapping processes rather than the two opposing divergent processes.
In this context, there have been arguments that regionalisation may be the key to a sustainable future in the globalised world, and the following are often cited to support this claim:

• Environmental sustainability: Regionalisation tools have been increasingly applied to a wide range of climate-change problems, proving to be important resources for climate change research.
  • For example, countries party to the Paris Agreement submit their Nationally Determined Contributions (NDCs) where they set targets for mitigating the greenhouse gas emissions that cause climate change and for adapting to climate impacts.
• Stability in the region: There are major multilevel organisations like UNSC for maintaining peace in the whole world, however it is seen that solving the inter-state issues at bilateral/regional level is often more effective as compared to resolutions provided by organisations like the UN.
  • For example, the recent border problem with China & Pakistan has forced India to revisit and strengthen regionalisation efforts.
• Efforts towards Sustainability Goals: Globalisation has narrowly focused on implementing the Sustainable Development Goals (SDGs). However, at the same time on the regional level there are many instances of a stronger focus on sustainability.
  • For example, Seychelles (a small island developing state), has been internationally applauded for its efforts at developing and implementing its Sustainable Blue Economy Strategy. This is in contrast to global efforts like UN Ocean Conferences held for sustainable use of oceans.
• Interdependence in the region for sustainable economy: Regional Trade Agreements have helped nations gradually work towards global free trade through allowing countries to increase the level of competition slowly.
  • For example, the recently enacted trade agreements by the EU as well as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership have established a higher reciprocal trade agreement than trade at the Global Level.
• Lessons during the Pandemic: COVID-19 Pandemic had put strain on globalisation where global supply chains & distribution networks were highly susceptible to disruption.
  • For example, during Pandemic, there was shortage of Active Pharmaceutical Ingredients (API) and India in order to sustain its pharmaceutical industry launched the PLI Scheme for promotion of domestic manufacturing of critical KSMs (key starting material) /Drug Intermediates and APIs.

Whether regionalisation is seen as a component of globalisation, or as a challenge and response to globalisation, or as parallel processes that have overlapping trends, it is clear that embracing and deepening regional ties is a way to succeed in an internationally connected and competitive world.