Chapter - 2
Contemporary centers of power
New centers of power
- New centres of power refer to those organisations and countries in the world whose influence has increased politically at the international level.
- It has emerged as an alternative to America in the unipolar world.
- These centers will limit America's dominance politically and economically in world politics .
- Important among these are
Country | Organization |
1. India2. China3. Japan4. South Korea | 1. European Union2. ASEAN |
European Union
1. The beginning of the European Union
- After the Second World War, the economy of European countries suffered a lot. After 1945, due to the Cold War, mutual interaction among European countries increased.
- America helped a lot in improving the economy of European countries which is known as Marshall Plan.
- Economic aid to Western Europe began in 1948 with the establishment of the Organisation for European Economic Cooperation under the Marshall Plan.
- With time its form kept changing like:-
1. 1949 With political cooperation it became the European Council .
2. 1957 Economic integration of capitalist countries led to the formation of European Economic Community .
3. It became the European Union in 1992 with the formation of the European Parliament .
2. The European Union as an organisation
- The European Union was established in February 1992 with the Maastricht Treaty.
- Initially it functioned as an economic organization but later it started functioning as a political organization.
- It came into existence as a huge nation.
- It has its own flag, anthem, foundation day, currency.
- The EU attempted to create its own constitution in 2003 but failed.
- The flag of the European Union has a circle of 12 gold stars, symbolizing the unity and reconciliation of the people of Europe.
- Currently there are 27 member countries in the European Union including new and old members.
Older members | New members |
Austria | Estonia |
3. Features of the European Union
- The European Union can influence economic, political, military and social matters at an international level.
- The economic influence of the European Union extends to the countries of Asia, Africa and Europe.
- In 2016, it emerged as the world's second-largest economy, with a GDP of over US$17000 billion.
- Its currency, the Euro, is a threat to the dominance of the US dollar.
- It has three times more share in world trade than the US, which enables it to negotiate trade matters with the US and China on its own terms.
- France, a member country of the European Union, has veto power in the Security Council of the United Nations.
- Due to which it can influence the international policies of America and other countries.
- It has the second largest army in the world and its member country France has 335 nuclear weapons.
- It acts as an important group within the World Trade Organization.
4. Drawbacks in the European Union
- The member countries of the European Union have their own foreign and defense policies, which sometimes go against each other.
- Example - When America attacked Iraq, Britain supported the attack while Germany and France were against it
- Of the EU member states, Denmark and Sweden oppose the Maastricht Treaty and the common European currency, the euro.
- Since the founding of the European Union, several member states have been part of the EU alliance
- Due to some of the policies of the European Union, Britain decided to leave the European Union through a referendum in June 2016, which is called Brexit.
ASEAN
( Association of Southeast Asian Nations)
- ASEAN was established in 1967 by the signing of the Bangkok Declaration by five countries.
- Initially there were 5 countries in it but later 5 more countries joined.
Founding countries | New countries added later |
Indonesia | brunei myanmar |
Malaysia | Darussalam |
Philippines | Vietnam |
Singapore | Laos |
Thailand | Cambodia |
Objectives of ASEAN
1. Accelerating economic growth.
2. To carry out social and cultural development.
3. Reform law and governance.
4. Promoting regional peace and stability based on United Nations rules.
What is the ASEAN style ?
1. ASEAN has gained considerable praise for providing a new model of informal , non-confrontational and cooperative interaction.
2. It is called the ASEAN style.
3. The fastest growing organization.
Three pillars of ASEAN: -
1. ASEAN Security Community
- Resolving disputes among member countries .
- To promote peace and cooperation .
2. ASEAN Economic Community
- Promoting common markets and free trade .
- Resolving financial disputes .
3. ASEAN Sociocultural Community.
- To promote the social and cultural development of ASEAN countries .
ASEAN Regional Forum
- Establishment and objectives
1. Established – 1994.
2. Objective - To protect ASEAN countries.
3. Maintaining coordination in the foreign policy of ASEAN countries.
5. What is meant by ASEAN Vision 2020 ?
1. ASEAN Vision Document 2020 will have ASEAN's outward-looking role in the international community.
2. This has emerged from the policy of promoting dialogue instead of conflict.
3. ASEAN ended the Cambodia conflict.
4. ASEAN has handled the East Timor crisis.
China
1. China in the 1950s
- China became a People's Republic of China in 1949 following a communist revolution led by Mao.
- Influenced by the Soviet system, adopted a communist based economy.
- China was an economically backward country ; China had broken its ties with the capitalist world and became communist .
- In such a situation, China had no other option but to survive with its own resources .
- China used to withdraw capital from agriculture and invest it in industry .
- China had a shortage of foreign currency , so China gradually started manufacturing the goods imported from outside at the domestic level.
- The employment situation in China was good , the economy was also growing at the rate of 5-6% , but the population rate of China was increasing rapidly , due to which China had to suffer losses .
- China made population control laws and controlled the increasing population rate .
2. The rise of China's economy
- The development that China has achieved at present is all because of its economic policies .
- China was initially not involved in world trade and remained dependent on its resources due to its communist based economy.
- China aimed at a large industrial economy and invested all resources into industry .
- In 1978 , China adopted the open door policy and joined world trade .
- The Open Door Policy was adopted by Deng Xiaoping, after which China's economic development started growing rapidly .
- China is ahead of developed countries in providing benefits of employment , health facilities and social welfare schemes to its citizens .
- It is believed that China will overtake America by 2040 .
- Due to this, China's influence is increasing across the world .
3. Reforms in China
- China improved relations with America in 1972 and established political and economic ties .
- In 1973 , Chou En Lai proposed modernization in four areas .
1. Agriculture
2. Industry
3. Army
4. Science and Technology
- In 1978 , Deng Xiaoping adopted the Open Door Policy , after which China started to develop rapidly .
- China did not adopt shock therapy but opened up its economy in a phased manner .
1. In 1982 – Privatisation of agriculture.
2. In 1998 – Privatisation of industries, Special Economic Zones (SEZ) were established.
3. China opened its economy to other countries by joining the World Trade Organization in 2001.
- Due to these important changes, today China has huge reserves of foreign currency which it invests in other countries.
4. The downside of Chinese reforms
- China's economic growth has not benefited all sections of society
- Even today 10 crore people are looking for employment in China, unemployment is increasing day by day
- The income gap between people living in villages and cities and between those living on the coast and the mainland has increased.
- China has caused a lot of environmental damage in its pursuit of economic development
- Due to one party rule in China, corruption has increased in administrative and social life.
5. Chon as the new center of power
- The country with the highest population in the world, a vast land area, natural resources, and advanced in terms of science and technology.
- Emerging as a major world economy with membership of the World Trade Organisation in 2001.
- Due to China's increasing economic growth, Japan, America, ASEAN and Russia have all forgotten all the other disputes with China in the name of trade.
- China's economic rise has greatly helped in sustaining the economies of ASEAN countries after the financial crisis of 1997.
- China is a nuclear power country.
- China is also a permanent member of the Security Council.
- China's investment policies in Latin America and Africa show that China is emerging as a new power in the world.
Discussion on relations between India and China
- The slogan 'Hindi-Chinese are brothers' was very famous .
- The 1962 war between India and China took place in which India lost .
- Border dispute (in Jammu and Kashmir and Arunachal Pradesh)
- China annexed Tibet .
- Dalai Lama sought refuge in India .
- The Panchsheel Pact .
Panchsheel Samjota
- Respect for each other's territorial integrity and sovereignty .
- Do not attack one another .
- Do not interfere in each other's internal matters .
- Equality .
- Coexist peacefully .
In 1962 , there was a war between India and China. In which India had to face defeat . Relations between India and China have been tense many times. Trade between India and China takes place on a large scale .
SAARC
( South Asian Association for Regional Cooperation)
- SAARC was established on 8 December 1985 .
- At the time of establishment of SAARC, it had 7 countries in it .
- Its headquarters is in Kathmandu (Nepal) .
There are 7 countries in SAARC. |
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