Cross-Border Tourism Cooperation Potentials and Dynamics
Keling Wanga, Jianxin Donga*, Junmin Dongb,a
a School of Business and Tourism Management, Yunnan University, Kunming 650091, China
b Yunnan Leaf Tobacco Redrying Co., Ltd., Kunming 650031, China
*Corresponding author: Jianxin Dong, School of Business and Tourism Management, Yunnan University, China. Tel: +8615287191708; Email: jasondongyn@hotmail.com
Received Date: 22
September, 2018; Accepted Date: 05
October, 2018; Published Date: 15
October, 2018
Citation: Wang K, Dong J, Dong J(2018) Cross-Border Tourism Cooperation Potentials and Dynamics. Tourism Hospit Ope Acc: THOA-122. DOI: 10.29011/THOA -122. 100022
1. Abstract
Globalization and regionalization are the strong trends for both the economic and political development. Nation states are more cooperative than insular, and once impermeable borders become thinner, which is evident with the foundation of European Union and signature of the North America Free Trade Agreement (NAFTA). States manage to balance the security and interests at the border regions by inheriting legacy, inventing and establishing mechanism to keep border regions functional. Approaching from temporal, spatial, sector and institutional perspectives, this paper investigates the mechanism for the cross-border tourism cooperation through a sketch of the migration history, theories in this regard, and a case study of the NAFTA.
The tentative conclusions are: the border region is dynamic, its potential may be achieved by means of agglomeration, innovating and reforming cross-border regime, encouraging participation of public and private stakeholders. It is a top-down dominated process responding to external pressures.
2. Keywords: Cross-Border Cooperation; Competitiveness; Institution; Mechanism; NAFTA
3.
Introduction
Tourism
in nature is a kind of free movement, a free movement of people and capital in particular. The extent of tourist’s pleasure and enjoyment depends
substantially on the degree of this free movement. The tourist can go as far as
where they can reach. The easier a place is accessible; the more tourists will
come to the place. In this sense, accessibility is vital for the development of
tourism sector. When the tourist activities only take place in the tourist home
country, the free movement is not much the concern. Whereas if you are planning
to travel to another country, you need to concern first about the barriers to
your mobility. The barriers to this mobility are manifold, and different in kind. They may be physical,
cultural, spiritual, artificial, systemic or political. Many of these obstacles
have yielded to tourism industry through learning process and interaction,
collaborative programs, business investments and existent etc.; nevertheless,
borders are still widely existing and functioning adversely to the tourist
mobility in many parts of the world today [1].
Borders
are diverse in nature and their geopolitical functions are changing with times,
especially when the world maintains the long-time peace. Borders are invisible
or visible lines demarcating state sovereignty over a mass of land, space or
water between and among adjoining countries, marking the geographic domain that
a country freely functions as a nation-state politically, economically, and
socially. Historically borders mainly existed as barriers to intrusion and
trespassing, as a mark of military protection. They are there between countries
for national security and defence. It manifests a political existence and
absolute sovereignty[2]. But border communities, natural resources, lakes and
rivers, forests and mountains may straddle the borders. On both sides of
borders there may be villages, towns, cities popularly or sparsely inhabited by
residents commuting frequently. Trades and transactions may also exist across
borders. With the fast development of globalization and regionalization,
economic and political cross-border cooperation catches the world attention,
academic world as well.
The
paper intends to investigate the mechanism which propels the development of
cross-border tourism cooperation and collaboration from a global perspective.
Tourism is one of the world's largest social-economic activity with the largest
employment and revenues. The research methods are a diachronic investigation,
literature review regarding theories on clustering, competitiveness, regional
development, cross-border cooperation, and
collaborative mechanism. We conclude by taking NAFTA as an illustrative
example.
4.
Research Methodology
Cross-border
tourism cooperation is not a new phenomenon, and it is substantially
subordinated to political regime institutions, which has a development process
from being hostile to contact, negotiations to cooperation, once-a-time
temporal collaboration to institutionalized permanent arrangements. It is
firstly a historical process shaped over time. The authors first take a
diachronic approach to investigate the cross-border collaboration in the historical
context. To avoid repetition of past tourism policy failures, inefficiency, and
declines, cross-border tourism research should cover the historical trends in
its process and examine the methods applicable to elaborate the temporal
changes and evolution of the tourism cross-border collaborative mechanism, a
kind of social structure reproduced over time. They are rules, norms, legacies,
and practices guiding our cultural, social, economic and political relations
and people can resort to them for handling collective problems[3]. The case
study of the former North American Free Trade Agreement (NAFTA), now the
newly-signed The United States-Mexico-Canada Agreement (USMCA), usually
conceived stable, is evolving too in the dynamic global setting. Once hailed as
one of best practices in the field of cross-border cooperation, the NAFTA
underwent a longitudinal development with arising issues and policy changes to
be dealt with institutionally. Based on the review of past research literature,
the paper aims to shedding light on the dynamics of the path creation and path
dependence and their interconnections.
By
the diachronic method, the focuses are on the institutional creation, and
impacts of material events on institutional and political processes. This diachronic
investigation is similar to the empirical case study, except the theorizing and
cross-referring of research literature[4]. Besides temporal effects, the role of actors engaged
in is worth investigation. When an organization is established and operated, it
will become difficult to change its direction or to take an alternative path,
thus it is, to some extent, locked down and inclined to a path-dependent development. Path dependence occurs because of self-reinforcing
feedback, which means that the organizational values and procedures have been accepted and internalized among the actors[5]. Political
authority and legitimacy can also contribute to the self-reinforcing feedback
process. Path dependence is forged over relatively long periods of time. On the
other hand, the institutional transformation occurs in the long development as
factors causing path creation. A new path may arise from several potential
sources of gradual path-creating institutional changes,
such as frictions within institutions around their related actors, ideas and
policies, the different interpretation and application of rules, shifts in the
coalitions among actors involved in institutional arrangements, and new
circumstances following a political election[6]. The diachronic perspective focuses on incremental
knowledge pooling within the existing body of knowledge of the role of
institutions. It can be referred to in other borderland contexts by providing a
starting point for further theorization of the interrelations between
institutions and the spatial, political and historical borderland settings in
cross-border tourism development.
Second,
a qualitative research design is chosen to deepen our practical understanding
of the impacts and spillover effects of cross-border tourism cooperation to
cross-border integration. The analysis is based on empirical observations. The
empirical study is related to the current body of knowledge of institutionalized
cross-border tourism collaboration. The goal of this comparison is to describe
the phenomenon, to reveal the patterns, and to
understand the temporal trends.
This
paper adopts an empirical research approach with an in-depth qualitative case
study of the continuance and evolution of the successful cross-border
cooperative institution of the NAFTA, now the USMCA[7]. It combines evidences to
theories. Nowadays, borderlands exist in various situations and status, from
absolute absence of daily contact to barrier-free flow of people and goods,
they may be impermeably alienated, coexistent, cooperative or integrated. It is
obvious that this development is not a linear process and cross-border
cooperation can occur in any situation. In a collaborative frontier land with
an open policy, there will be a higher extent of regional integration.
Meanwhile, differences and alienation themselves are also
the lure and incentives for at least tourism cooperation[8]. Therefore,
both the assimilation and the nature of complementarity are the potential
factors that bring about the integrative borderlands through tourism
cooperation.
Thirdly,
NAFTA once stood for the highest achievement in terms of cross-border
collaboration. It plays a symbolic and institutional role for the regional
development trend in the future. In this sense, it is worth our while studying.
Although the shared values, mindsets and longtime cooperation practices tend to
lead to the path dependence and continuity of this institutional regime, as the
evidence from the case study shows, the role of the agent actors are also vital
in many aspects, especially in the global context of Brexit, arising of global
trade conflicts and the loom of the NAFTA and the proposal to build walls along
the U.S-Mexico border. The transnational collaboration seems to have come to a
transformative point for either upgrading or reversing to national
protectionism and isolationism. The success and failure of the case selected is
symbolic regarding cross-border collaboration, facilitating social-economic
development and soft regional integration process.
4.1.
Phenomenal
Trends of World-wide Tourism Development
The
establishment of European Union (EU) and the North American Free Trade
Agreement (NFTA) are best examples in terms of globalization and
regionalization development, reflecting the human achievements regarding
cross-border cooperation, collaboration and coordination. They are still in the
process of development, they are still growing, and it is hard to tell where
they will reach. It is also true even in the business world, we see that
corporations have been acquired and merged and the big companies become bigger
in scale and size, and the number of corporations is reducing steadily. You
will find that airline companies in U.S dropped from 10 in 1970s to 4 at
present. Worldwide there are only couples of Smart phone companies (Apple Co.,
Samsun Co. etc.) now which survive from many Cell phone manufacturers. Google
dominates the internet business. It is fascinating to see that clustering, grouping, regionalization,
globalization, and integration are leading the trend of world economic
development.
The
regionalization takes place in the area where two or more nation-states locate,
concerning border regions,
border management, and cross-border cooperation. It can be termed as the border
development zone[9]. There are many
perspectives to look at the border zone, for instance, you can approach it from
the historical legacy, or from the spatial geography, sectoral industries and
the institutional arrangement and interaction. By investigating these
dimensions, we try to understand the motivations, patterns and mechanism
driving the formation of the border regional economy, tourism in particular.
4.2.
Brief
History of Movements of People
Travels
are as old as human beings. Travelers go across borders, oceans, and mountains for adventures, trades,
explorations, learning, jobs and new settlements escaping from tribal conflicts
and wars or varied persecutions. English convicts were sent to Australia, and
people from England, Holland, and France moved to North America and Africa.
People inhabiting a continent are a mixture of people originating from
everywhere, Europeans and Africans spread all over the United States, Canada,
Australia, New Zealand, and Brazil.
In the earlier days, a majority of these travellers were labourers or slaves
who were sent to work on farms, on construction sites or in mines. Their
movement and resettlement in different continents set up a solid foundation for
the later close exchange and communication between the
Europe and Americas.
The
international movement of people on a large scale reduced with the outburst of the First World
War. In order to stop the enemy's entry, the passport control measures were
introduced in Europe. In the United States, immigration laws were passed to
control the international movement of people. The great depression in 1930s was
a hard stroke to the economy, and the consequent high unemployment rate
refrained the massive movement of people. With the end of the World War II,
thousand millions of refugees seeking settlement scattered everywhere in
Europe, America and Latin America.
The
period from 1940s to 1970s is the time to reconstruct and recover from the damages of the two world
wars. Economy is recovering quickly and manufacture industry needs a large number of skilled and semi-skilled
workers. European countries like
Britain, France and Germany received immigrant from Indian and Caribbean
islands, North Africa, Yugoslavia and Turkey respectively; meanwhile around 10
million people arrived in the United States and Canada to seek economic
opportunities. After this move with the end of the rapid economic growth and
recovery and full employment as well in Europe, international movement of
people gradually came to a stop. A majority of immigrant countries in Europe
passed the immigrant laws to restrict immigrants. A small scale of immigrants
from Europe and developing countries in other continents are still being
accepted by the United States and particularly Canada for permanent residence
under the strict control of various immigration laws.
In
addition, a stream of temporary movements of labourers seeking temporary or
seasonal jobs still continues at present in many parts of the world. The
countries attracting temporary labourers are usually industrial developed countries
or newly-industrialized ones or countries with high income. A large migration
of labourers from developing countries with large
labour-surplus migrated to labour-scarce developed countries to take
half-skilled temporary or seasonal jobs make countries in this stream more
interdependent and closely linked economically and socially. We can see this
close link between the U.S and Mexico, Canada and Mexico. The sources of
temporary migrants are mostly from South Asia, Southeast Asia, North Africa, and Latin America. This kind of
migration takes a regular pattern in terms of source countries and occupations
to be taken. And it is also a kind of footstep which sometimes leads to
permanent settlement[10].
The
refugee and asylum seekers are also a substantial component of the
international movement of people. The two world wars brought about a large
number of displaced people who were seeking resettlement in places other than
their home countries. Since then on, the world was locked into a long period of
cold war, and regional conflicts and small-scaled military actions have been
taking place frequently, which lead to a sharp rise of refugees and
asylum-seekers. The situation is constantly worsened with ethnic issues such as
ethnic political identity, religious violence, political persecution, famines,
natural disasters, exclusive nationalism, and the list can go on and on. The
refugees come from everywhere around the world and have an extensive geographic
source, nevertheless, they have very limited accepting host countries, such as
the EU, the U.S and Canada. Oversee students are also a phenomenal
international movement of people in nowadays. Historically, the developed
countries with qualified world-class higher education attract and recruit
students around the world. These higher educational institutes usually locate
in Europe, U.S., Canada, and Australia, but nowadays they spread all
over on every continent. The trend now goes beyond the domain of high
education, and primary and secondary education in the developed
countries also begin to accept international students. This is a fundamental
change and a substantial number of people are involved in this huge
international movement. A student at a minor age studying at the elementary or
high school is usually accompanied by an adult (parent, brother, sister or
other relatives) for the first foreign trip, or is frequently visited by them
in future. It is hard to obtain an exact data of oversee students and this
number is very dynamic and changes quickly. We can imagine they are thousand
millions. They travel annually and keep the world
closely linked economically and socially.
The
destinations of the international movement of people are very important for
studying this migrant phenomenon. Whether they are labourers, refugees, asylum-seekers, or oversee
students, they move with a clear and definite destination. At most time, it is
a one-way movement. Observing the migration direction, whichever streams they
are, a pattern is obvious: that is
the general flow from agricultural societies to industrial ones, from
developing countries to the developed ones. This flow goes along well with the
structural change of the economy. As industrialization progresses, the demand
for labourers rises, and the
manufacture sector, later the service sector as well, offers new employment opportunities with higher
wages at the time when the agricultural sector peaked and stagnated and began
to fall in employment and returns.
When
the demand side is strong and cannot be satisfied within the domestic labour
market, international labours are supplied. From the supply side of the labour,
push- and pull-factor are important, which divide the forced and voluntary
migration of people. For those living in the poor rural area with high unemployment
or low income, they are pushed to look around for new opportunities to support
themselves and their families. They migrate for a secure economy and life. They
go where they can be hired. Therefore, this kind of migration can be short or
long, from rural to urban, from domestic to international. On the contrary, an
emigrant called "brain drain" is voluntary, because these
well-educated, professional talents with good technique expertise and
management skills are pulled mostly to a more industrialized foreign country,
which is perceived to offer better living quality
and opportunity as well as economical returns. From demand side,
labour-shortage in the immigrant receiving countries is the fundamental cause
of the international migration. In an open, competitive economy, the employers
always seek benefits from their investments and costs including wages.
When
the wages rise or when they anticipate a scarcity of labour supply in the
domestic market, they need to take measures to balance the returns and costs.
The means to reach this balance are usually the following four. The first
choice is to seek technology improvement and advance through capital investment
to substitute for labour, to reduce the number of the labourers or to improve the productivity of the
current product capacity. This is the safest and most effective way if it
succeeds. Meanwhile it is also the most time-consuming way, because technology
advances are conditioned on too many factors and some are beyond their
capabilities. Second, they can take the trade to substitute for their own
production by sourcing domestically or internationally if it is feasible and
applicable. The third option for the capitalist is to transfer their production
site to a country where labourers are
abundant and cheap. In this way, the reliance on the influx of migrants from
foreign countries is solved once for all. The last resort is to import labourers and accept international migrants to
fill the lack to the low-skilled positions open. The international migrants are
not a limitless resource and always ready for use. They are also regulated and
controlled by the state government. Especially, with industrial upgrading and
advancement, the requirements and qualifications to the labourers are rising. The evidence to respond the
qualification requirements to labourers is
that the oversee students and the skilled professionals now dominate the
international migration[11].
Besides
economic factors, geography, history, and sociology all play an important role
in the dynamic international movement of people. Geographic proximity, a colonial tie, share of a common language
or similar languages, and similar cultures and values contribute to the
decision-making in terms of migrant direction and destinations. Maybe this can be
supported with the fact that there are more migrants from Indian Subcontinent
and Caribbean Islands to Britain, and more
labour flows from north Africa to France. There are more Mexico immigrants in
U.S and Canada, more east Europeans in the West Europe. Looking from the social
dimension, it may be noted that the migrant flows followed the trails opened by
their pioneers. They were friends, relatives or
people residing in the same community and usually knew each other before
moving, and when they arrived, they often settled down in the same community or
city, took the similar jobs and occupations.
Thus,
in the accepting countries there are so named Chinese Town full of Chinese
restaurants and convenient shops, Little Italy community with Italian architectures
and Italian flavour foods and eateries, and German towns observing German style
of living, etc. This kind of social formation of race-based
communities and township is a vital agent driving international economic
cooperation, tourism collaboration in this context.
4.3.
Spatial Characteristics of Border Region
An
outstanding geographic feature of humane economic activity is that it always
highly concentrated spatially in some specific regions endowed with
indispensable factors. The reasons behind the spatial concentration may be
either natural or humane, may be related to the value chains or to some other
social or economic considerations. In a free competitive society, this kind of
geographic concentration is associated with maximum returns from scale and
agglomeration economies that arise from clustering, intense interactions
obtained from proximity. For instance, the U.S manufacturing industry mainly
concentrates in a relatively small part of the north-east and the eastern part
of the mid-west of the United States[12]. The Ruhr, Northern France and Belgium compose the
manufacturing triangle in the Europe Continent. It is also true in Britain:
Birmingham for engineering and manufacturing, and Glasgow and Liverpool for
shipbuilding. In Canada, the manufacturing industry spreads in the Five Lake
area.
A
scale economy brought about with the closer economic interdependence across
national borders is achieved [13]. One obvious advantage of the scale economy is the
pooling of the scarce resources, talents, technologies, and the sharing of the
infrastructures, so that the production can be organized to play at the full
potentials. Clustering occurs both spatially and sectorally for attaining high
efficiency and increasing returns.
Speaking
of border region, the twin challenges of being
peripheral and the border policy cannot
be neglected. The typical example is the Continental European manufacturing
triangle that covers the land of three countries. One of the good reasons for
its base like this arrangement is the consideration of the geographic proximity
and open border policy implemented there. It is also true for U.S-Canada
concentration of the manufacturing industry. Most Canadian cities locate within
150-mile distance to U.S. border, that is why some of U.S manufacturers located
in Canada for their production during time of the World War II. The mechanism
for U.S.-Canada border region cooperation will be covered in detail in the
following case study section. Border openness substantially influences the
occurrence of the clustering. If the border is open for smooth movement of
people and goods and the tariff is substantially reduced or even eliminated,
clustering may take the form of specialized development, in this way the
company may focus on developing what they are most capable of, and hence
specialization and new logistical strategies may be exploited. One good example
is the Just-In-Time (JIT) production management adopted in the U.S-Canada
border region, because the two countries maintained such kind of an open
border. In addition, the proximity of border cities is also a great advantage.
Rapid advances in technology and declining transport and communications costs
from the 1960s onwards facilitated the global dispersal of specialization in a
certain value chain with the global foreign investment by multinational corporations.
These strategies involving changes on the supply chain, improvements of the
operation processes, reorganization of the distribution network and warehouses,
as well as relocation of the production sites greatly boosted the
competitiveness and efficiency. A cost-effective production was established and
attained[14].
Agglomeration
is presumed to improve company's performance, take advantage of expertise
regarding value chain division, and strength regional and countries'
competitiveness[15]. Porter states that the clustering is synonymous with
competitiveness, given that it contributes to the innovation processes. It
facilitates linkage between organizations and institutions, and it responds and
better meets consumer needs, and channels knowledge and information dispersal
for technology development[16].
4.4.
Cross-Border
Regionalization Development
Sectorally
and institutionally, clustering is an interconnected system whose value as a
whole is greater than the sum of its parts[17]. Some material fruits of the clustering are
agglomeration and interconnection. The agglomeration reflects the geographic
concentration of an industry or related activities[18].
Whereas, interconnection involves the competitive/cooperative relationship that
is established between the regional actors [19]. The tourism sector does not exist alone
independently. Whereas it is closely related to the other private and public
sectors and develops in a cohort with other sectors and requires fundamental
supports from a wide range of cross-sector cooperation. Meanwhile it is also an
activity endowed with the enormous possibilities that may produce direct,
indirect, and induced effects in an economy through employment, collaborative
interaction and dynamics of other sectors and institutions already established.
Different
from other economic activities in which the product is transferred and
delivered to where the market and customer locate, tourism (like agriculture
and service sector) exists and operates in precisely the opposite way. To
obtain the utility of and consume the touristic product, the tourist will go to
the structure that supports it: the tourist destination. One inborn feature of
tourism is the inseparability between the tourist destination and the tourist
product. To a substantial extent, a tourist destination per se is the tourist
product. Tourism also has external spill overs and generates multiplier effects
on economic activity, reflected not only by the generation of significant added
values, but also by the ability to motivate the development of other economic
activities through extension. The clustering leads to a higher-level stage of
development, that is the creation of regional blocks, or regionalization, like
the institutional structures of European Union (a supranational institution)
and the North American Free Trade Agreement (NAFTA) (national institution)
signed among U.S, Canada and Mexico. Regarding regionalization, geographic
proximity plays an important role in the perception of the region as an organic
wholeness and environment for tourism players, maintains the survival of
tourism businesses, and contributes to the competitiveness of the tourism
sector.
The
competitiveness of a country, or a region here in the context of this paper,
comes from the synergic action of four determinants that shape the environment
in which companies compete, promoting or preventing the creation of competitive
advantages. These determinants are: (i) the factor conditions: allocation of a
country in production factors such as expertise or infrastructure, required for
the competitive activity of a given industry; (ii) the strategy, business
structure, and rivalry: conditions that in the country regulate the creation,
organization, and management of business and the nature of domestic rivalry;
(iii) the demand conditions: characteristics of domestic demand for a
particular good or service, namely the presence of sophisticated and demanding
customers; (iv) the existence of related and supporting industries: the
existence or not of supplying industries that may or may not be related, that
are competitive in international markets. This determinant includes the issue
of agglomeration economies and its effect on competitiveness[20-22].
Regarding
tourism sector, location per se is a source of competitive strength, for the
region in the form of the tourist destination presents itself in the
simultaneous combination of both the regional image and the tourist product.
There are many tourist products presented to the market in this manner, for
example, 17-day European Tour Package, 15-day North American Tour Package, or
7-day North Europe Tour Package etc. Thus, it is important to identify these
factors that a region can take advantage of to strengthen the competitiveness
of the region both as a tourist destination and the distinguishing tourist
products, to work out procedures to market them by the joint activity of all
regional actors.
Development
of the tourism potential of any country or region depends substantially on its
ability to maintain a competitive advantage in supplying goods and services to
visitors. Competitiveness in the tourism sector is defined as the capacity of a
tourist destination to attract visitors, foreign and domestic. The tourism
sector has a comparatively long value chain, involving multitudinous players
including enterprises (on the same stage or on different stages of the value
chain) and related agents (e.g., education or research entities, associations,
chambers of commerce). Its competitiveness is - more than any other sector - a
framework of strategic partnerships, involving all who directly or indirectly
contribute to the construction and promotion of the tourism product.
To
compete in the tourism field, a destination needs to have a more or less broad
variety of quality tourism products and resources; what is more important is
that these products and resources must be managed effectively and efficiently.
On the regional destination scope and scale, the tourism competitiveness can be
maintained through a dynamic capacity for innovation and constant improvements,
growing, and sustaining within the life cycle of the tourism products.
According to Porter's theoretical model, tourism competition does not occur
between countries but between clusters of tourism businesses[23,24].
4.5.
Institutionalized
Cross-Border Cooperation and Policy
For
an effective operation of any cross-border collaborative program or
cross-border region, players from the public sector are substantially
important, for they provide the public services and policies as well as the
direction for the development. The institutional framework is established to
ensure the implementation of the policy decisions as well as to provide
supportive and facilitating roles. In Adam Smith’s day, economic activity took
place on a landscape largely defined and circumscribed by the political borders
of nation states: Ireland with its wool, Portugal with its wines. Nowadays, by
contrast, economic activity is what defines the landscape on which all other
institutions, including political institutions, must operate[25]. The typical
example is the European Union, a supranational institution where member states
have delegated large portions of sovereign prerogatives. Within EU, internal
borders among member states are permeable by their citizens.
Concerning
cross-border cooperation, it is obvious that two hands "the invisible hand
of free market and the visible hand of government intervention" are
playing in the game. Cross-border management is related to the sovereign
prerogatives and jurisdiction, the state has the absolute power on how the
border region is controlled and regulated. However, the two hands interact and
respond and adjust in accordance to the economic or political needs. To a great
extent, they depend on and serve each other. The private sector provides the
public policy makers market information, presents proposals and requests; while
the public sector provides the other side security protection, infrastructures,
policies, funds, facilitating vehicles, coordination and guiding services etc. [14]. Each has one's
own exclusive domain but also some overlapping fields.
In
terms of economic dimension, cross-border policy coordination is the main way
to exploit untapped economies of scale and reduce market failures. The
institutional failures tend to arise as a result of knowledge deficits (e.g.
imperfect understanding of the structure of regional cross-border economies);
institutional jurisdictional issues (e.g. legal constraints on the operation of
‘national’ development agencies); policy and administrative gaps (e.g. small
and under-resourced local government development functions and capacities); a
lack of regional development focus by the higher educational establishments and
an inability to achieve close cross-border synthesis between them; and
weaknesses in non-governmental socioeconomic agencies (e.g. chambers of
commerce, etc.)[26]. Different policy approaches can be used to obtain
coordination, but what is most important is to establish trust between and
among all players, nation-states in particular. Close political and
institutional ties between regions tend to be established if they highly trust
each other. People who do not trust one another will end up cooperating only
under a system of formal rules and regulations, which have to be negotiated,
agreed to, litigated and enforced. Fukuyama states that “widespread distrust in
a society ... imposes a kind of tax on all forms of economic activity, a tax
that high-trust societies do not have to pay” [27].
Policy
entrepreneurship is an important method that could be adopted to deepen
cross-border economic connections. This policy in this category is usually
experimental in nature[28]. Both the political and economic situations are
dynamic and changeable; thus initiatives are always welcome to respond these new
challenges. So the forces that drive the policy entrepreneurship vary. The
science and technology advances can contribute materially to policy
entrepreneurship, and new ideas, researcher's proposals and brand-new devices
are being adopted and applied into the practice to address and resolve new
arising issues and challenges or to strengthen the cross-border regional
competitiveness. On other occasions, the calculation may be more instrumental,
and the cross-border initiatives may be just launched to get access to external
financial sources and to attract Foreign Direct Investment (FDI). Or the
motivation for further cooperation may be altruistic. The policy makers shall
conduct thorough consultation and investigation,
and representatives from both sides representing public, private and NGO's
interests shall work closely together so as to advance the so-called new
political dispensation. Whatever the precise motives or goals are, collaborative initiatives of this type
are significant as they can create a snowballing effect, which involves the
initial activity generating even further action and so on[29].
With
the increasing cohesion, harmonization and integration of the cooperation and
policies, the cross-border region is also integrated to a higher extent in
terms of shared values, principles, cultures, and behaviour patterns [30]. Due to the
nature of the cross-border cooperation is comprehensive, covering both the
economic and political fields, including a wide range of internal and external
actors from various levels representing all kinds of interests, which have been
well adjusted for integration under the enduring institutionalization. The
integration mechanism of cooperation, collaboration and coordination of this
model is dynamic and full of potentials. This dynamic cross-border
collaborative mechanism circulates and spills
over from one policy field to another, evolves from low to high levels,
increases the importance and complex of the network, interlinks to foster the
cohesion and integration of the cross-border zone so that a supranational
intergovernmental institution like Europe Union is founded, just as clearly
illustrated by the steel and coal communities that have expanded into the
European community, where the traditional functions of internal borders are
diminishing and more and more programs for cross-border cooperation among
member and non-member states are funded.
With
regard to NAFTA, do we have reasons to argue about its directions and outcome
of the cross-border cooperation? Where will it go? Is it possible that economic
integration leads to political integration? We will try to look into these
questions with a case study in the following section.
4.6.
NAFTA:
Case Study
Based
on the thoughts presented in the preceding section on the trend of the regionalization and cross-border
cooperation, this section illustrates the mechanism process by taking NAFTA,
now USMCA, as an illustrative example. The following case study highlights the
roles played by participants in the process of cross-border collaborative
mechanism. It serves as an historical geography of institutional change,
tracing both the history and varying spatial scales and locations of the
endogenous and exogenous forces affecting events.
4.7.
Geography
of the Border
For
decades, the United States border with Canada was called “the undefended
border”. The United States and Canada share a 5,525-miles border which runs
from north to south between Alaska and the Yukon Territory and British Columbia
as well as from east to west from the Pacific to the Atlantic. 90 percent of
Canadians live within 150 miles of the U.S. border, and many cross the border
frequently each year for business and pleasure. Most of the border is a land
border, but some miles of the border run through four of the Great Lakes
(Superior, Huron, Erie and Ontario); the Great Lakes divide the industrial
heartland of the United States from that of Canada, and so it is in this region
that bridges carry traffic to the busiest border crossings in the world. The
border between the United States and Canada is geographically diverse, crossing
through forests, plains, mountains, rivers, and lakes. Just as important, some
parts of this border trace the edges of major metropolitan areas. Seattle and
Vancouver in the west, Detroit and Windsor, Toronto and Buffalo, and Ottawa and
Montreal are border cities that rank among the largest metropolitan areas in
North America, and nearby border crossings are the busiest by volume and value
of trade and the number of travellers who cross daily. There are four primary
corridors for traffic flows of goods and people across the U.S.-Canadian
border. Each has distinctive characteristics and related problems.
4.8.
History
of the Cross-Border Cooperation
The
trade history between U.S and Canada can be traced to the beginning of the
1900s. As trade between the two countries grew,
justified private firms built
bridges to connect Buffalo, New York and Fort Erie, Ontario (the Peace Bridge)
in 1927, and Detroit, Michigan and Windsor, Ontario (the Ambassador Bridge) in
1929[31]. During
and after the first and second world war, the industrial heartland of Ontario
and the U.S. Great Lakes economic region coordinated wartime production on an
unprecedented scale. Trade between the two countries grew in the post-war years
as more sectors integrated production to better supply customers through
economies of scale. This was especially important for Canada, with a smaller
population that was spread out geographically across the continent. In 1986,
the two countries signed the Canada-United States Free Trade Agreement, which
brought about the huge volume of border crossing by the residents. NAFTA was
signed in 1994, followed by the Illegal Immigration Reform and Immigrant
Responsibility Act including a provision which required that a record be kept
of every person who exits or enters the United States. This sparked a strong
reaction in Canada.
4.9.
Reform
the Border Regime
4.9.1.
Issues
Regarding Border Management
After
the terrorist attack on September 11, 2001 U.S tightened security at the border
and brought cross-border traffic to a halt. The economic impact was swift, the
logistics to auto plants was disrupted and delayed, and the adoption of
just-in-time inventory management once made
firms more productive but now left
them vulnerable to such disruptions. Some temporary measures intended for
emergency fixes have been shifted from provisional to permanent, the matured
border services were replaced by new infrastructure, new policies, and new
personnel. To address the issue, the two countries signed in December 2001 the
U.S.-Canada Smart Border Declaration (setting out principles and a shared
vision of an efficient and secure border) and Action Plan (the list of action
items to be addressed by both governments, separately or jointly). The
U.S.-Canada Smart Border Action Plan had 30 points, grouped into four
categories. Specific steps were taken to ensure the "Secure Flow of
People" by categorizing border-crossers, for example, NEXUS for frequent
border users, measures for screening terrorist-related border crossers, a joint
review of visa waiver country lists and a sharing of watch lists among U.S. and
Canadian visa issuance offices. In addition, “the Secure Flow of People”
section of the U.S.-Canada Smart Border Action Plan committed the governments
to continue to implement the preclearance of U.S. bound air passengers at major
Canadian airports, sharing of air passenger information with binational
passenger analysis teams positioned at major international airports in the two
countries. Canada and the United States also agreed to jointly-develop
compatible immigration databases, increase the number of immigration officers
each country posted overseas and enhance the joint training of airline
personnel regarding documents checking. The Action Plan of the U.S.-Canada
Smart Border agreement has sections regarding “the Secure Flow of Goods” and
“Secure Infrastructure” to coordinate physical and technological improvements
to border points. Additionally, the governments planned to study and to develop
emergency response. The U.S.-Canada Smart Border Action Plan has a section,
“Coordination and Information Sharing in the Enforcement of these Objectives”
stipulating law enforcement by expanding the use of Integrated Border Enforcement
Teams, and Integrated Maritime Enforcement Teams (IBETs/IMETs). The creation of
the new Department of Homeland Security (DHS) had a dramatic effect at the land
borders, reorganizing border personnel and reducing the autonomy of port
directors. Whereas the U.S. Customs Service had sought a balance between
security and traffic facilitation at the border, and put security first at the
checking points. The new officials at the border were stricter and the culture
of the U.S. borderlands gradually adapted to the new, less open approach to
borders.
In
Canada, however, changing U.S. border policy was a top concern. Canada
protested in vain the requirement that U.S. citizens show passports to return
to the United States from foreign countries (this had not been required for
certain nearby countries in the past).
In
March 2005, the Security and Prosperity Partnership (SPP) was introduced as a
new model for coordinating the governance of North American integration and its
attendant security risks. Under the SPP, the three federal governments
established ten working groups to address security cooperation. The ten
security working groups were matched by an equal number of “prosperity” working
groups that operated on the same model, but separated regulatory issues related
to trade, investment, and product safety from more security inspection and
enforcement issues. The SPP is a quite complicated institutional arrangement
involving too many agencies and departments to coordinate. The SPP failed to
address the separation of the economic and security issues but brought about
new problems. First, the SPP reinforced the split between security and
facilitation at the border that was already a concern. Second, the SPP was a
process that brought together federal officials only, leaving state,
provincial, and local governments on the outside. The SPP operated entirely
from a federal perspective. The failure of the SPP to meet the concerns of the
business community became clear and there was a strong call to reform the border
regime[31].
4.9.2.
Diversity
of Borders and Border Users and Corresponding Solutions
Many
problems became obvious and were complained for
long. However, they are different in nature and urgency: some are old and
persisting problems to be addressed immediately, while others are transitional;
or are not possible to be approached due to great disagreements or no solutions
identified yet. Some issues are obvious and easy for a solution. Generally, the
border crossing is very cost and time-consuming, which in turn increase
additional cost. As we can see from the above, many persisting problems are
specifically related to particular sectors, businesses, regions or communities,
they are difficult for federal governments to address without inputs from
stakeholders. They are also not easy for federal officials to recognize before
they are complained. Thus, when these problems do occur, the federal officials
respond clumsily and defensively.
In
order to maintain an effective and efficient border, the federal administration
need to treat the border as a diverse set of
communities. Those who cross the border are not a homogenous group, but have
similar diversity. There are four geographically distinct northern border
regions: Cascadian, Great Lakes, Rural, and Perimeter corridors, for access to
and from the United States. Each requires a different mix of technology and
infrastructure in response to local conditions. There are also five
identifiable types of U.S.-Canadian border users: commercial shippers, regular
commuters, energy flows, amateur travellers, and illicit border users, further
enriching the heterogeneity of this border. Of the fiver users, only amateur
travellers are related to cross-border tourism. The U.S federal government
developed the Enhanced Driver’s Licenses (EDL) that met Department of Homeland
Security and Department of State standards for secure travel documents that can
now serve as an alternative to passports for border crossers. The busiest
section of the U.S.-Canadian border is the Great Lakes corridor. It collects
Detroit and Port Huron in Michigan and the Buffalo and Niagara Peninsula
crossings in New York, all connecting the U.S. industrial and agricultural
heartland with Ontario, which is Canada’s economic heart and home to 40 percent
of the Canadian population and nearly half of Canadian GDP. Crossings here are
very crowded and time-consuming and cost the users a lot. To address the issue
of being long delayed, the border administrator established the Free and Secure
Trade (FAST) Trusted Traveller program to reduce the cost. To address the
congestion problem, the local government plans to improve the infrastructures[31].
By
identify the specific issues and categorizing border users, the border regime
is actively responding and solving problems arising duo to prioritizing the
security to efficiency. They are innovative with ideas and options to
facilitate border crossing. Though the U.S-Canada border become thicker and
less impermeable, we have full confidence to expect a security-efficiency
balanced, tourist-friendly border regime.
5.
Conclusion
Cross-border
tourism has a very long history, and it passes down to us a rich legacy to
inherit. At early days, people migrated for employment, but they were pioneers
to mark the trails for us to follow. Their successful settlement at an alien
land is a myth a waiting for us as tourists to uncover.
Wars
and regional conflicts stopped the free movement of people with structures of
border controls. Nation states dominate the world. Nevertheless, the thickening
border does not absolutely stop exchanges, communication, travel and trade
across the border. Globalization and regionalization lead us to the
cross-border cooperation. The collaborative models are in the process of
evolution. The mechanism for the cross-border cooperation is dynamic and its
potential is still great.
It
is necessary to mention that inter-dependencies and tensions of the
cross-border collaborative arrangement will likely entail continuities and
changes over time as indicated with our NAFTA case study. This means that
institutional path creation and path dependence are mutually inter-connected,
reflecting agency-structure interactions. As a result, this shows the
importance of the reciprocal institutional relationships between structural
dependence and more open processes of human agency, chance occurrences and path
creation.
Cross-border
tourism cooperation could lead to ‘soft’ effects such as shared mentalities and
the recognition of cross-border relations among the wider public instead of
only among professionals and political stakeholders. It is applicable and
transferable widely in social, cultural, and political transnational
collaboration without geographic confinements. The established infrastructure
and institutional arrangements could lead to a widespread local use and thereby
break down infrastructural barriers to improving cross-border social life in
borderlands.
It
is also true as far as European Union and European integration are concerned.
Cross-border tourism collaboration has become significant tourism phenomena
throughout Europe. Various cross-border collaborative projects have been
developed and practiced on different scales and on a Pan-European level as a
vital means for European region-building, regional marketing and increasing the
awareness for sustainable economic, social and political development.
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