APEC and its enemies: The failure of the new regionalism in the Asia-Pacific

Abstract

This article looks at the rise of APEC as a vehicle for the promotion of free trade in the Asia-Pacific. It argues that, although the Japanese government was more interested in trade cooperation than free trade, it played a key role, along with the Australian government, in the establishment of APEC, while the main challenge to APEC came from the Malaysian Prime Minister, Mahathir Mohamed. During the 1990s, however, Mahathir's proposal for an East Asian Economic Bloc which excluded the USA, Australia, New Zealand and all other 'non-Asian' nation-states, was incorporated into APEC and took the name of the East Asian Economic Caucus. The accommodation of Mahathir's proposal to the APEC process, and his inability to get Japanese support for his pan-Asian initiative, symbolised the limits on any and all regional challenges to US hegemony in the Asia-Pacific. The article also emphasises that, with the coming of the East Asian crisis, the prospects of a successful regional challenge to US hegemony have become even more remote. In particular, the growing influence of the IMF in the region since the crisis has made APEC irrelevant, while the inability of regional elites to deal with the crisis in a unified fashion has thrown into sharp relief the serious obstacles which exist to any pan-Asian effort to challenge neoliberalism. At the same time, although the East Asian crisis has precipitated a reassertion of US hegemony and a consolidation of neoliberalism, the present juncture may also herald the start of a crisis of neoliberalism, with regional and international implications.