1 Why Did Alternative Centres of Power Emerge?
After the end of the bipolar world, the question arose: what could be an alternative to American dominance? One answer was regional organisations. In Europe the European Union and in Asia ASEAN emerged as such alternatives, while China carved out this position through the strength of its economy.
2 The European Union
Europe lay devastated after the Second World War. The US gave assistance under the Marshall Plan, and the Council of Europe was set up in 1949. Economic cooperation grew gradually, and this process sped up after the collapse of the Soviet bloc.
The European Union was established by the Maastricht Treaty of 7 February 1992. It extended economic cooperation to a common foreign and security policy and common citizenship.
The Union has its own flag, anthem, founding day, and a common currency: the euro. In this sense it is not merely an economic organisation but has come to resemble a nation-state.
| Area of Influence | Strength of the European Union |
|---|---|
| Economic | Among the largest economies in the world; its currency, the euro, challenges the dollar; a large share of world trade |
| Political–diplomatic | France is a permanent member of the Security Council; several members are non-permanent members, giving it capacity to shape American policies |
| Military | The second-largest defence spender after the US; France and Britain hold nuclear weapons |
The European Union has its own weaknesses. Member states are not willing to give up their sovereignty; some have not adopted the euro; and the attempt in 2003 to create a common constitution failed. So members often take different positions on foreign and defence policy.
3 ASEAN
ASEAN was established in 1967 by the Bangkok Declaration, by five countries: Indonesia, Malaysia, the Philippines, Singapore and Thailand. Its aims were economic growth, social progress, cultural development, and peace in the region.
ASEAN’s way of working is called the “ASEAN Way”: informal, non-confrontational, and based on cooperative dialogue.
ASEAN Security Community
Ensures regional disputes do not escalate to armed conflict: emphasis on peaceful resolution.
ASEAN Economic Community
A common market and production base; easier movement of investment, labour and capital.
ASEAN Socio-Cultural Community
Building cooperation and a shared identity among the region’s people.
The ASEAN Regional Forum (ARF) was set up in 1994 as a platform for dialogue on security and foreign-policy issues. ASEAN’s real strength lies in dialogue and cooperation, not military power. India too has signed free-trade agreements with ASEAN countries such as Singapore and Thailand.
4 China’s Economic Rise
China opened up its economy gradually and deliberately, not in one sudden move, unlike what Russia did after the Soviet collapse.
Special Economic Zones (SEZs) were created to bring in foreign capital and technology, offering special concessions to foreign investors. This is why China became the fastest-growing economy in the world.
Do not write that China adopted “shock therapy”. China opened its markets in a gradual and controlled manner and kept political control firmly with the Communist Party: the exact opposite of Russia’s sudden leap.
But this rise has also come at a cost: unemployment, growing inequality between rural–urban and coastal–inland regions, environmental damage, and corruption.
5 India–China Relations
| Period | What Happened |
|---|---|
| 1962 | War over the border dispute: created lasting distrust in relations |
| After 1976 | Diplomatic relations restored; dialogue begins |
| Since 1988 | High-level visits improve relations; the border dispute is set aside to allow cooperation in other areas |
| Today | Trade has grown rapidly; but the border dispute and trade imbalance remain major challenges |
- The European Union was established by the Maastricht Treaty of 7 February 1992; common currency is the euro
- The EU’s influence is threefold: economic, political–diplomatic and military
- Its limits: member states are unwilling to give up sovereignty; the 2003 common constitution failed
- ASEAN was formed in 1967 by the Bangkok Declaration; five founding countries
- The three pillars of the ASEAN Community: security, economic and socio-cultural
- The ARF was set up in 1994; ASEAN’s strength is dialogue, not military power
- China: 1978 Open Door Policy, gradual privatisation, SEZs, WTO in 2001
- China’s path was gradual, not a sudden leap like Russia’s shock therapy
- 1 MarkWhen was the Maastricht Treaty signed?
- 1 MarkWhat is the European Union’s common currency?
- 1 MarkWhen was ASEAN established, and by which declaration?
- 1 MarkWho were the five founding members of ASEAN?
- 1 MarkIn which year was the ARF established?
- 1 MarkWho announced the “Open Door” policy, and when?
- 1 MarkWhen did China become a member of the WTO?
- 1 MarkWhat are Special Economic Zones (SEZs)?
- 2 MarksWhat is meant by the “ASEAN Way”?
- 2 MarksWhat were the Four Modernisations?
- 2 MarksWhy is the European Union described as resembling a “nation-state”?
- 4 MarksDescribe the economic, political and military influence of the European Union.
- 4 MarksExplain the three pillars of the ASEAN Community.
- 4 MarksGive reasons for China’s economic success.
- 4 MarksWrite four problems arising from China’s economic rise.
- 6 MarksHow did the European Union become an influential regional organisation? Also mention its limitations.
- 6 MarksIn what sequence did China open up its economy? Compare it with Russia’s shock therapy.
- 6 MarksDescribe the development of India–China relations.
- 1 MarkWhich treaty established the European Union?
(a) Treaty of Rome(b) Maastricht Treaty(c) Warsaw Pact(d) Treaty of Paris - 1 MarkIn which year was ASEAN established?
(a) 1957(b) 1967(c) 1978(d) 1992 - 1 MarkThe “Open Door” policy is associated with:
(a) Zhou Enlai(b) Mao(c) Deng Xiaoping(d) Gorbachev - 1 MarkThe ARF is associated with:
(a) European Union(b) ASEAN(c) SAARC(d) NATO - 1 MarkChina joined the WTO in:
(a) 1991(b) 1995(c) 2001(d) 2005
Options: (a) Both true, R correctly explains A · (b) Both true, R does not explain A · (c) A true, R false · (d) A false, R true.
- 1 Mark
Assertion (A): ASEAN’s strength lies in its military power.
Reason (R): ASEAN functions on the “ASEAN Way” of dialogue and cooperation. - 1 Mark
Assertion (A): The European Union’s foreign policy is not always unanimous.
Reason (R): Member states are unwilling to give up their sovereignty.