NCERT Made Easy CONTEMPORARY CENTRES OF POWER CBSE Political Science Class 12 Contemporary World Politics Chapter 02
Overview: Rise of Alternative Centres of Power
- After the end of the Cold War and the bipolar world order, new political and economic powers began to emerge.
- These alternative centres, such as the European Union (EU) and the Association of Southeast Asian Nations (ASEAN), started challenging American dominance.
- Both the EU and ASEAN focused on regional cooperation and economic integration, promoting peace and prosperity.
- China's economic rise further contributed to shifting global power dynamics.
- This chapter examines the roles and influence of these emerging powers in world politics.
European Union (EU)
Background and Evolution
- Post-WWII, Europe needed reconstruction and reconsideration of inter-state relations.
- The US helped revive European economies through the Marshall Plan.
- The OEEC (1948) and the Council of Europe (1949) promoted economic and political cooperation.
- The European Economic Community (EEC) was formed in 1957, leading to further integration.
- The collapse of the Soviet Union sped up the process, resulting in the formation of the European Union in 1992.
Institutional and Political Development
- The EU gradually evolved from an economic union to a political entity.
- It introduced its own flag, anthem, currency (euro), and attempted a constitution.
- The EU developed a Common Foreign and Security Policy and promotes cooperation on justice and home affairs.
Expansion and Integration Challenges
- The EU expanded by including former Soviet bloc countries.
- However, there was hesitation in ceding national powers to the EU, and integration faced resistance.
- Skepticism exists in several member states, limiting EU’s effectiveness in foreign and defence matters.
Economic Power
- The EU is the second-largest global economy (over $17 trillion GDP in 2016).
- The euro competes with the US dollar in global markets.
- The EU’s share in world trade is larger than the US, enabling leverage in global economic affairs.
Political and Diplomatic Influence
- France holds a permanent UN Security Council seat; other EU nations have held non-permanent seats.
- The EU uses diplomacy, investment, and negotiations over coercion (e.g., dialogue with China on human rights).
Military Capacity
- The EU has the world’s second-largest armed forces and defence budget (after the US).
- France, an EU member, holds about 335 nuclear warheads.
- The EU is a major player in space and communication technologies.
Internal Divergences
- Not all EU members align on foreign and defence policy (e.g., UK supported the Iraq War; Germany and France opposed it).
- Euroscepticism has been prominent in countries like the UK (which voted for Brexit), Denmark, and Sweden.
Association of Southeast Asian Nations (ASEAN)
Historical Context and Formation
- Post-WWII Southeast Asia suffered due to colonialism, poverty, and Cold War pressures.
- Regional cooperation efforts like the Bandung Conference and NAM were limited in success.
- ASEAN was founded in 1967 by Indonesia, Malaysia, the Philippines, Singapore, and Thailand (Bangkok Declaration).
- Objectives included promoting economic growth, social progress, and regional peace.
Growth and the ‘ASEAN Way’
- Brunei, Vietnam, Laos, Myanmar, and Cambodia joined later, making 10 members.
- ASEAN emphasizes informal, cooperative, and non-confrontational interaction.
- It strongly respects national sovereignty and avoids supranational structures (unlike the EU).
Economic and Security Cooperation
- In 2003, ASEAN adopted the ASEAN Community vision with three pillars:
- ASEAN Security Community
- ASEAN Economic Community
- ASEAN Socio-Cultural Community
- The ASEAN Regional Forum (ARF) coordinates security and foreign policies.
- ASEAN nations agreed to non-interference and peaceful conflict resolution.
Economic Strength and Influence
- Though smaller than the US, EU, and Japan, ASEAN's economy is growing faster.
- Focuses on creating a Free Trade Area (FTA) for goods, services, investment, and skilled labour.
- ASEAN aims to improve its Dispute Settlement Mechanism.
- The US and China are negotiating FTAs with ASEAN due to its growing importance.
Regional and Global Role
- ASEAN has helped mediate in regional conflicts like Cambodia and East Timor.
- It provides a platform for dialogue on political and security issues in Asia.
- India signed FTAs with Malaysia, Singapore, and Thailand and is engaging more through its Look East and Act East policies.
Timeline of European Integration
- 1951 (April): France, West Germany, Italy, Belgium, Netherlands, and Luxembourg sign the Treaty of Paris, forming the European Coal and Steel Community (ECSC).
- 1957 (March 25): The same six nations sign the Treaties of Rome, establishing the European Economic Community (EEC) and Euratom.
- 1973 (January): Denmark, Ireland, and the United Kingdom join the EEC.
- 1979 (June): First direct elections to the European Parliament are held.
- 1981 (January): Greece joins the EEC.
- 1985 (June): Schengen Agreement signed to abolish border controls among member states.
- 1986 (January): Spain and Portugal join the EEC.
- 1990 (October): Germany is reunified, increasing the EC’s political weight.
- 1992 (February 7): Maastricht Treaty signed, establishing the European Union (EU).
- 1993 (January): Single Market becomes operational.
- 1995 (January): Austria, Finland, and Sweden join the EU.
- 2002 (January): Euro introduced as common currency in 12 EU countries.
- 2004 (May): Ten new members join: Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia.
- 2007 (January): Bulgaria and Romania join. Slovenia adopts the Euro.
- 2009 (December): The Lisbon Treaty comes into force, reforming EU structures.
- 2012: EU awarded the Nobel Peace Prize for promoting peace, democracy, and human rights.
- 2013: Croatia becomes the 28th EU member.
- 2016: UK votes to leave the EU in the Brexit referendum (51.9% in favor).
Association of South East Asian Nations (ASEAN)
- Background of Southeast Asia
- Southeast Asia includes countries such as Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam, Myanmar, Cambodia, Laos, and Brunei.
- During colonial rule and World War II, the region suffered due to foreign domination and war-related destruction.
- Post-WWII, Southeast Asian countries faced challenges like:
- Nation-building.
- Poverty and economic backwardness.
- Pressure to align with Cold War superpowers.
- Regional unity efforts like the Bandung Conference and the Non-Aligned Movement failed to create sustained cooperation in the region.
- Formation of ASEAN
- Founded: 1967 through the Bangkok Declaration.
- Founding Members: Indonesia, Malaysia, Philippines, Singapore, and Thailand.
- Later Members: Brunei, Vietnam, Laos (Lao PDR), Myanmar (Burma), and Cambodia.
- Current Total Members: 10.
- Objectives of ASEAN
- Primary Objective: Accelerate economic growth leading to social progress and cultural development.
- Secondary Objective: Promote regional peace and stability by upholding:
- The rule of law.
- Principles of the United Nations Charter.
- The ASEAN Way
- ASEAN emphasizes:
- Informal interaction.
- Non-confrontation and cooperation.
- Strong respect for national sovereignty.
- ASEAN avoids supranational institutions (unlike the EU).
- ASEAN Community (Established in 2003)
Comprises three key pillars:
- ASEAN Security Community
- ASEAN Economic Community
- ASEAN Socio-Cultural Community
- ASEAN Security Community
- Aims to prevent armed conflicts and territorial disputes.
- Encourages peace, neutrality, cooperation, non-interference, and respect for sovereignty.
- ASEAN Regional Forum (ARF): Formed in 1994 to coordinate security and foreign policy.
- ASEAN Economic Community
- Seeks to create:
- A common market and production base.
- A Free Trade Area (FTA) for goods, investment, labour, and services.
- Aims to improve the Dispute Settlement Mechanism for economic conflicts.
- ASEAN’s economy, though smaller than that of the US, EU, or Japan, is growing faster.
- Trade partnerships: The US and China have signed FTAs with ASEAN.
- ASEAN’s Global Role
- ASEAN is emerging as a major regional power.
- Vision 2020:
- Advocates an outward-looking approach.
- Promotes conflict resolution through negotiation.
- Successful mediation examples:
- End of the Cambodian conflict.
- East Timor crisis.
- Holds annual summits on East Asian cooperation.
- India and ASEAN
- India shares cultural and geographical proximity, especially through its north-eastern states.
- Cold War Era: Limited interaction due to India’s non-aligned stance.
- Post-1990s: India adopted the Look East Policy (1990s) and later the Act East Policy (2014).
- Key developments:
- Trade agreements with Malaysia, Singapore, and Thailand.
- ASEAN-India FTA came into effect in 2010.
- Celebrated 25 years of partnership in 2018 with joint events.
- Reasons for ASEAN’s Success
- ASEAN succeeded where SAARC struggled due to:
- No dominant country in the region.
- Emphasis on consensus, consultation, and mutual respect.
- Flexible and pragmatic ASEAN Way of cooperation.
The Rise of the Chinese Economy
- China's Emergence as an Economic Power
- China has emerged as a major global economic power since 1978.
- It has been the fastest growing economy since the economic reforms began.
- Predicted to overtake the US as the world’s largest economy by 2040.
- Its integration with East Asia has made China the driver of regional growth.
- Economic strength combined with population, landmass, resources, and political influence enhances its global stature.
- Early Economic Model (1949–1978)
- After 1949, under Mao Zedong, China adopted a Soviet-style socialist model:
- State-owned heavy industries were created using capital from agriculture.
- Cut off economic ties with the capitalist world.
- Relied briefly on Soviet aid.
- Focused on import substitution due to a lack of foreign exchange.
- Achievements:
- Built the base of an industrial economy.
- Provided employment, education, and healthcare.
- Achieved 5–6% annual growth, but population growth diluted its impact.
- Limitations:
- Low agricultural surplus.
- Minimal international trade.
- Stagnant industrial growth and low per capita income.
- Reforms and Opening Up (1970s–1980s)
- 1972: Diplomatic ties with the United States were established.
- 1973: Premier Zhou Enlai proposed the Four Modernisations:
- Agriculture
- Industry
- Science and Technology
- Military
- 1978: Deng Xiaoping launched the Open Door Policy and economic reforms.
- Aim: Increase productivity via foreign capital and technology.
- Reform Strategy and Implementation
- China adopted a gradual reform strategy, not a sudden shock therapy like in Russia.
- Key steps:
- 1982: Agriculture was privatised.
- 1998: Industry was privatised.
- Special Economic Zones (SEZs) created for foreign investment and trade.
- The state retained a guiding role in the economy while introducing market elements.
- Economic Growth and Impact
- Privatisation of agriculture led to:
- Increased agricultural output and rural income.
- Boosted rural industrialisation due to high savings.
- Foreign Trade & Investment:
- SEZs attracted large volumes of Foreign Direct Investment (FDI).
- China became a global FDI hub with large foreign exchange reserves.
- 2001: Joined the World Trade Organization (WTO).
- Aims to deepen global economic integration and shape the world economic order.
- Social and Economic Challenges
- Rapid growth brought new problems:
- Rising unemployment (nearly 100 million job-seekers).
- Poor working conditions, especially for women.
- Environmental degradation and corruption.
- Growing economic inequality:
- Between urban and rural areas.
- Between coastal and inland provinces.
- China’s Regional and Global Influence
- China has used economic power to influence regional and global politics.
- Trade interdependence has eased tensions with:
- Japan, the US, Russia, and ASEAN.
- Aims to resolve issues with Taiwan through economic integration.
- After the 1997 Asian Financial Crisis, China’s role in ASEAN stability increased.
- Expanding investment and aid to Africa and Latin America has positioned China as a champion of developing countries.
India - China Relations
- Historical Background
- India and China were influential Asian powers before Western imperialism.
- China exerted control over regions like Mongolia, Korea, Indo-China, and Tibet through its tributary system.
- Indian empires also extended political, economic, and cultural influence beyond their borders.
- Their zones of influence rarely overlapped, leading to limited historical interaction and mutual unfamiliarity.
- In the 20th century, this unfamiliarity made it difficult to evolve effective foreign policies toward each other.
- Early Post-Independence Phase
- After India’s independence (1947) and China’s revolution (1949), there was optimism about mutual cooperation.
- The slogan “Hindi-Chini Bhai-Bhai” symbolized early goodwill.
- However, tensions arose over:
- China’s takeover of Tibet (1950)
- Unresolved border issues, particularly in Arunachal Pradesh and Aksai Chin
- These led to the India–China war of 1962, in which India faced military setbacks.
- Post-War Diplomatic Freeze and Recovery
- Diplomatic ties were downgraded post-1962, with little engagement until 1976.
- After leadership changes in China (late 1970s), its foreign policy became pragmatic and less ideological.
- China chose to delay contentious issues like the boundary dispute while improving overall relations.
- Border talks were initiated in 1981, laying groundwork for gradual normalization.
- Post–Cold War Strategic Shift
- Since the end of the Cold War, India and China have pursued both strategic and economic cooperation.
- Both see themselves as rising powers in Asia and globally.
- Rajiv Gandhi’s 1988 visit marked a turning point, leading to:
- Efforts to maintain peace and tranquility on the border
- Agreements on cultural exchange, science and technology, and trade
- Opening of four border trade posts
- Economic Engagement
- India–China trade has grown rapidly since the late 1990s, with an annual growth rate of 30% since 1999.
- Bilateral trade reached $84 billion in 2017.
- Both nations have cooperated in energy deals abroad and adopted similar positions in global economic forums like the WTO.
- Strategic Concerns and Ongoing Cooperation
- India’s 1998 nuclear tests were partly justified by perceived threats from China.
- India remains concerned about:
- China’s support for Pakistan’s nuclear programme
- Military ties with Bangladesh and Myanmar
- Despite concerns, the relationship has remained stable:
- Boundary talks continue uninterrupted
- Military-to-military cooperation is improving
- High-level visits and dialogue are frequent
- Current Challenges
- Recent years have seen strained relations due to:
- Ongoing border disputes
- The China–Pakistan Economic Corridor (CPEC)
- China’s stance in the UN, supporting Pakistan and opposing India’s counter-terrorism efforts
- Nevertheless, shared interests in trade, infrastructure, and global issues can still foster cooperation between the two most populous nations.
Japan
Japan: Economic and Strategic Overview
- Economic Profile
- Global Standing: As of 2025, Japan ranks as the 5th largest economy globally by both nominal GDP and purchasing power parity (PPP), with a nominal GDP of approximately $4.19 trillion and a PPP-adjusted GDP of $6.74 trillion.
- Industrial Strength: Japan is a leader in high-technology industries, notably in automobiles, electronics, and machine tools.
- Trade Dynamics: Despite limited natural resources, Japan maintains a robust trade network, importing raw materials and exporting high-value goods.
- International Engagements
- UN Contributions: Japan remains a significant contributor to the United Nations, reflecting its commitment to global peace and development.
- Regional Cooperation: Japan actively participates in regional security dialogues, including the Quadrilateral Security Dialogue (Quad) with the U.S., India, and Australia.
India-Japan Bilateral Relations
- Strategic Partnerships
- Vision 2025: Both nations are working towards the "India-Japan Vision 2025" to strengthen their Special Strategic and Global Partnership, focusing on economic growth, infrastructure development, and regional stability.
- Defense Collaboration: India and Japan have conducted joint military exercises and signed agreements for the co-development of defense equipment, such as the Unified Complex Radio Antenna (UNICORN) mast.
- Economic and Technological Cooperation
- Investment Initiatives: Japan has pledged significant investments in India, including a ¥5 trillion ($42 billion) commitment over five years to support various sectors.
- Semiconductor Collaboration: Both countries signed a memorandum in 2023 to develop the semiconductor industry, aiming to strengthen supply chains and technological capabilities.
- Cultural and Educational Exchanges
- Year of Science and Technology: 2025 has been designated as the "India-Japan Year of Science, Technology, and Innovation," marking 40 years since their initial cooperation agreement in this field.
- People-to-People Ties: Efforts are ongoing to enhance collaboration in education, skill development, and cultural exchanges, with a growing Indian diaspora in Japan contributing to stronger bilateral relations.
South Korea
Human Development in South Korea
- HDI Ranking (2016):
- According to the Human Development Report 2016, South Korea ranks 18th on the Human Development Index (HDI).
- Key Factors Contributing to High Human Development:
The following major factors have contributed to South Korea's impressive human development:
- Successful Land Reforms:
Redistribution of land helped reduce inequality and improve agricultural productivity. - Rural Development:
Investment in rural infrastructure and services improved the quality of life in the countryside. - Extensive Human Resources Development:
Heavy focus on education and skill development enhanced the capabilities of the workforce. - Rapid and Equitable Economic Growth:
Economic progress has been accompanied by efforts to ensure fair distribution of income and opportunities.
- Other Supporting Factors:
Additional contributors to South Korea’s development include:
- Export Orientation:
Emphasis on exports helped integrate the economy with global markets, fueling growth. - Strong Redistribution Policies:
Social welfare programs and tax policies helped reduce income inequality. - Public Infrastructure Development:
Investment in roads, transportation, and communication supported industrialization and connectivity. - Effective Institutions and Governance:
Transparent, efficient, and stable governance systems facilitated sustained development.
India–South Korea Relations
- Prominent South Korean Brands in India:
- Brands such as Samsung, LG, and Hyundai are widely recognized and popular among Indian consumers, indicating strong economic and brand presence.
- Bilateral Agreements:
- Several agreements have been signed between India and South Korea in recent years, reflecting deepening commercial and cultural relations.
- These agreements cover various sectors such as trade, defense, technology, culture, and education.
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