UN General Assembly
1996

regionalization is a necessary step towards a more liberal global environment inasmuch as it allows the less endowed countries and regions with specificities of their own to experiment and to test the political, economic and social reforms of their programmes. A similar approach has been adopted by the more advanced countries and regions, as evidenced by the emergence of the North American Free Trade Agreement and the consolidation of existing groupings, such as the European Union and the Association of South-East Asian Nations, to mention just a couple of them. In addition, we have witnessed a new interpretation of the concept of regional blocs as purely geographical units that make use of their own individual characteristics to experiment, and to test political, economic and social reforms programmes within a smaller geographical entity before challenges are confronted on a worldwide scale. Regionalization is increasingly being viewed by aid donors and international financial institutions as a means to promote overall economic development and to create an enabling environment that will attract foreign direct investment in specific regions. This process has also