CLASS XII POLITICAL SCIENCE
Chapter-2
Contemporary Centres of
Power
Objectives of established Regional Organizations :
1. To limit America’s Dominance
2. To evolve regional solutions to historical enmities & weaknesses
3. To build a more peaceful & cooperative regional order
4. To bring in economic prosperity
European Union
Europe’s Ruin After 2WW & Integration
A) Condition of Europe After 2WW
The 2WW led to the ruin of European economies and destruction of the
assumptions & structures on which Europe had been founded. Europe’s leaders
grappled with the ‘Question of Europe’. Was Europe to revert to its old rivalries or
be constructed on principles & institutions that would contribute to positive
conception of International Relations.
B) European Integration after 1945
European integration after 1945 was aided by Cold War. US extended financial
help for reviving Europe’s economy under Marshall Plan.
Attempts Leading to Formation of EU
A) Contribution of Marshall Plan
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US helped Europe revive its economy through Marshall Plan & created a new
collective security structure under NATO. Under Marshall Plan, the OEEC was
established in 1948 to channel aid to western European states. It became a
forum where the European states began to cooperate on trade & economic
issues.
B) Council Of Europe
The Council of Europe established in 1949 , was another step forward in political
cooperation.
C) European Economic Community
The process of economic integration of European capitalist countries proceeded
step by step leading to formation of European Economic Community in1957.
D) European Parliament
The process acquired a political dimension with the creation of the European
Parliament.
E) Formation Of EU
The collapse of Soviet Bloc put Europe on a fast track and resulted in the
establishment of EU in 1992, came into force in 1993 even after creating single
market .. Objectives of EU-foundation of a common foreign and security policy,
cooperation on Justice and home affairs & the creation of a single currency.
Features of EU
1.) EU has evolved over time from an Economic Union to a Political one. It has
stated to act more as a nation state. While the attempts to have a constitution for
EU have failed, it has its own flag, Anthem , founding date and currency.
2.) The circle of gold stars on EU flag stands for solidarity & harmony between
people of Europe. It has 12 stars as number 12 is traditionally the symbol of
protection , completeness and unity.
3.) EU also has some form of common foreign & security policy and its dealings with
other nations.
4.) The EU has tried to expand area of Cooperation while acquiring new members ,
especially from erstwhile Soviet Bloc. The process has proved easy , for people
in many countries are not very enthusiastic in giving EU powers that were
exercised by government of their countries.
5.) There are also reservations about including some new countries in EU .
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6.) Under the Schengen agreement, one has to get a visa from just one of the EU
countries which allows him entry in most other EU Countries.
EU’s Political and Diplomatic Influence
1. Participation in UN : 2 members of EU – Britain & France hold permanent
seats in UNSC. EU includes several non-permanent members of UNSC.
2. Influences US Policies : EU’s Political sphere has enabled it to influence some
US policies such as the current US position on Iran’s nuclear program.
3. Dialogue with China : Its use of diplomacy , economic investments , and
negotiations rather than coercion and military force has been effective as in the
case of its dialogue with China on Human Rights and Environmental degradation.
EU’s Economic Influence
1. GDP : EU is world’s biggest economy with a GDP slightly larger than that of US.
2. Currency : Its, currency EURO can pose threat to a dominance of US dollar.
3. Share in World Trade : Its share in world trade is 3 times larger than that of US
& China. Its economic power gives it influence over its closest neighbors as well
as in Asia & Africa.
4. Role in WTO : EU also functions as an important bloc in International Economic
organizations such as WTO.
EU’s Military Influence
1.) Armed forces : EU’s combined armed forces are 2nd largest in world
2.) Defence Expenditure : 2nd highest after US
3.) Nuclear Arsenals : 2 EU member states – Britain & France have nuclear
arsenals of almost 550 nuclear warheads.
4.) Space & Communication Tech. : EU is world’s 2nd most important source of
space & communications technology.
Factors that limit EU’s ability to act in matters of Foreign Relations and
Defence
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1) Conflicting Policies of member states
In many areas, EU’s member states have their own foreign relations & defense
policies that are often at odds with each other. Thus, Britain’s Prime minister
Tony Blair was America’s partner in Iraq Invasions and many of EU’s newer
members made up US-led ‘coalition of the willing’ whereas Germany and France
opposed American Policy.
2) Euro- Skepticism
There is also a ‘Euro-Skepticism’ in some parts of Europe about the EU’s
integrationist agenda. Thus , for eg , Britain’s former PM Margaret Thatcher, kept
the UK out of European market. Denmark and Sweden have resisted Maastricht
Treaty & adoption of Euro.
EU & INDIA
1. India was among the first developing countries to have established diplomatic
relations with the European Union. The Delegation of the EU Commission in New
Delhi enjoys the status of an Embassy.
2. In the field of Commerce , the EU in India is largest trading partner. India’s two-
way trade with the EU had risen to over 12 billion Ecu by 1993.
3. After Liberalization of India’s economy, with an outward looking market ,
cooperation between India and the European Union has become a dynamic
element.
4. The EU has been cooperating with India in several developmental projects.
These include alleviation of poverty in rural areas, environmental rehabilitation,
agro-industry , primary education and healthcare , 24projects were being funded
by EU.
5. The first ever India-European Union Summit was held at Lisbon in June 2000.
India was represented by Prime Minister Atal Behari Vajpayee who initiated the
process for faster inflow of FDI into India.
EU Expanded
1. After several years of efforts and prolonged negotiations, it was decided by the
European Union at its Summit in Copenhagen in December 2002 to admit ten
new members in the Union. These were: Latvia, Cyprus, Estonia, Poland,
Hungary, the Czech Republic, Slovakia, Slovenia, Lithuania. They were admitted
as full members on May 1, 2004.
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2. Meanwhile, India-EU cooperation continued to grow, but at very slow pace. At
Copenhagen in October 2002 another India-EU Summit was held during
Vajpayee’s visit to Denmark.
Association of South East Asian nations (ASEAN)
1. Before and during the 2WW, S-E Asia suffered the economic, political
consequences of repeated Colonialism, both European & Korean.
2. At the end of War, it confronted problems of nation-building, ravages of Poverty &
Economic backwardness &pressure to align with either superpower during Cold
War.
3. Efforts at Asian & 3rd World unity, such as Bandung Conference & NAM were
ineffective in establishment. The conventions for informal cooperation &
interactions.
4. Hence, Five S-E Asian Nations (Indonesia, Malaysia, Philippines, Singapore,
Thailand) sought an alternative by state. The Association for South East Asian
Nations in 1967 after three unsuccessful attempts to create it before 1967. And
also by signing the Bangkok Declaration. Over the years, Brunei Darussalam,
Vietnam, Lao PDR, Myanmar & Cambodia have joined ASEAN taking its strength
to Ten.
Note: 3 Pillars of ASEAN Community (establish in 2003) : ASEAN Security
Community, ASEAN Economic Community, ASEAN Socio-Cultural Community.
Objectives Of ASEAN
Economic Objectives
• ASEAN still remain primarily an economic association & its principal
objective is acceleration of economic growth,
• The objectives of ASEAN Economic Community are to : a) create a
common market & production base within ASEAN state b) aid social and
economic development in the region c) Improve the existing ASEAN
Dispute Settlement Mechanism to resolve economic disputes d) to create
a Free Trade Area (FTAs) for investment , labor & services. The US &
China have already moved fast to negotiate FTAs with ASEAN.
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Socio-Cultural Objectives
• Promotion of social progress & Cultural development, ASEAN Socio-Economic
Community has been establish for this purpose.
Promotion of Regional Peace
• Another objective is to promote regional peace and stability based on the rule of
law & principles of UNs Charter.
Security related Objectives
• ASEAN has broadened its objectives beyond the Eco & social spheres
• ASEAN security community was based on the conviction that outstanding
territorial disputes should not escalate into armed confrontation.
• By 2003 , ASEAN had several agreements in place by which member states
promised to uphold peace , neutrality , cooperation, non-interference& respect
for national differences & sovereign rights
• ASEAN Regional Forum which was etablish in 1994 , is the organization that
carries out coordination of security & Foreign Policy.
“ASEAN WAY”
Unlike EU, there is a little desire in ASEAN for supranational structures & institutions.
ASEAN countries have celebrated ASEAN way , a form of interaction that is informal ,
non-confrontationist & cooperative. The respect for national sovereignty is critical to the
functioning of ASEAN.
ASEAN 2020
• ASEAN Vision 2020 has defined an outward looking role for ASEAN in the
international Community.
• This builds on the existing ASEAN policy to encourage negotiations over
conflicts in the region. Thus , ASEAN has mediated the end of Cambodian
conflict, E. Timor Crisis & meets annually to discuss E. Asian cooperation.
• Supranational and Intergovernmentalism :
• Supranationalism is the existence of an authority that is ‘higher’ than that of
the nation-state and capable of imposing its will on it . It can therefore be found
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in international federations , where sovereignty is shared between central and
peripheral bodies. The European Union thus encompasses a mixture of both
governmental and supranational elements.
• Intergovernmentalism is any form of interaction between states that takes
place on the basis of sovereign independence. This includes treaties and
alliances as well as leagues and confederations such as League of Nations and
EEC.
India’s Relation with ASEAN
➢ The current economic strength of ASEAN, especially its economic relevance as a
trading & investment partner to growing Asian economies such as India & China
makes it an attractive proposition.
➢ During Cold War years, Indian Foreign Policy didn’t pay adequate attention to
ASEAN but in recent years , it has tried to make amends.
➢ It signed FTA’s with 2 ASEAN members – Singapore& Thailand. Its trying to sign
an FTA with ASEAN itself.
➢ In late 1991, India had become a ‘sectoral dialogue partner’ of ASEAN , the
sectoral dialogue partnership meant that India was allowed limited cooperation in
areas that ASEAN permitted. These areas were culture , tourism , certain
categories of trade. In 1994 , science and technology was added to the
above three fields.
➢ The Fifth ASEAN Summit in 1995 confirmed with India status of full dialogue
partnership. This had enabled India to have multi-dimensional and
comprehensive cooperation with ASEAN.
➢ ASEAN is a regional grouping for economic cooperation and development and
better coordination between the regional economies . But it is fully aware of the
security concerns of the region, which are addressed quite effectively by the
ARF.
➢ India initiated the “Look East Policy” in the 21st century, which took PM ABV ,
to two important South-Asian countries , Vietnam and Indonesia. Both of them
are members of ASEAN And there was need to find ways and means to expand
India-ASEAN trade.
Chinese Economy
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Condition of Chinese economy before 1970s
1) After the inception of PRC in 1949 in China , following communist resolution
under Mao’s leadership, its economy was based on the Soviet Model.
2) The economically backward communist China chose to sever its links with the
capitalist world. It had to fall back on its own resources & for a brief period, on
Soviet aid and advice.
3) The model was to create a state owned heavy industries sector from the capital
accumulated from agriculture.
4) As it was short of foreign exchange that it needed to buy tech. & goods from the
world market , china decided to substitute imports by domestic goods.
5) This model allowed china to use its resources to estb. the foundations of an
industrial economy. Employment , social welfare , education and healthcare was
ensured to all citizens . The economy also grew up at the rate of 5-6%. But an
annual growth of 2-3% in population meant eco. Growth was insufficient to meet
the needs of growing population.
6) Agricultural production insufficient to generate a surplus for industries. China
faced a crisis –industrial production was growing slow, international trade was
minimal & per capita income was very low.
Rise of Chinese Economy after 1970s
1. Chinese leadership took a major policy decisions in 1970s , China ended its
political & economic isolation with the establishment of relations with US in 1972.
2. Premier Zhou Enlai proposed 4 modernization – Agriculture, Industry, Science &
technology. and military in 1973.
3. By 1978 , the then leader Deng Xiaoping announced the open door policy and
economic reforms in China. The policy was to generate higher productivity by
investments of capital and tech from abroad.
4. Chinese opened their economy step by step and didn’t go for shock therapy .
The privatization of agriculture in 1982 was followed by privatization of industry in
1998. Trade barriers were eliminated only in SEZs. In China, state played &
continues to play a central role in setting up a market economy.
Positive Effects of Reforms In China
➢ New economic policies helped the Chinese economy break from stagnation.
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➢ Privatization of agriculture led to remarkable rise in agricultural production & rural
incomes. High personal savings in the rural industry.
➢ The new trading laws & creation of SEZs led to rise in foreign trade. China
became the most important destination for FDI. It got large foreign exchange
reserves that allowed it to make big investment in other countries.
➢ China’s accession to WTO in 2001 further opened it to the outside world.
Negatives Effects Of Reforms In China
➢ Unemployment has risen in China with nearly 100 million people Jobless
➢ Female employment and condition of work are as bad as in Europe of 18th and
19th centuries.
➢ Environmental degradation and corruption have increased.
➢ The economic inequality between rural and urban , residents & coastal and
inland provinces has increased.
Can China Challenge The Unipolar World?
➢ Regionally & globally , China has become a great power due to factors as
economic growth , population , landmass , resources , regional location &
political influence.
➢ China is projected to overtake US as world’s largest economy by 2040.
➢ The integration of China’s economy & the interdependence that this has
created has enabled China to have considerable influence with its trade
partners. Hence, its outstanding issues with Japan, US, ASEAN & Russia
have been tempered by economic considerations. China hopes to resolve its
difference with Taiwan by integrating it closely into its economy.
➢ Its more outward looking investment & aid policies in Latin America & Africa
are increasingly projecting it as a global player on the side of developing
economies.
India-China Relations
• India and China had a cordial relations since time immemorial. Both have
political, economic and cultural relations.
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• After India gained independence, both the countries shared a peaceful relation.
During this period the slogan of ‘Hindi-Chini-Bhai Bhai’ was popular.
• Very soon both the countries involved in border dispute. The difference aroused
from the Chinese takeover of Tibet in 1950.
• India suffered military reverses in the conflict of 1962. Diplomatic relations
between the two countries were downgraded until 1976.
• It was during the visit paid by Indian Prime Minister Rajiv Gandhi to China in
1988 December, the relation between the two countries started improving.
JAPAN AS AN ALTERNATIVE CENTRE OF POWER
➢ Few natural resources but great human resources
➢ 2nd largest economy in the world. Only Asian members of G-8 . 10th most
populous nation in the world.
➢ 2nd Largest contributor to regular budget of UN (20%)
➢ Has a security alliance with US since 1951. As per Article 9 of Japanese
Constitution, “the Japanese forever denounce war as a sovereign right of nation
& threat / force as a means of settling international disputes.
➢ Though, Japan’s military expenditure is 1%of its GDP, it is 4th largest in the
world.
Timeline of European Integration
➢ April 1951: Six west European countries, France, West Germany,
Italy, Belgium, the Netherlands and Luxembourg sign the Treaty of
Paris establishing the European Coal and Steel Community (ECSC).
➢ 25 March 1957: These six countries sign the Treaties of Rome
establishing the European Economic Community (EEC) and the
European Atomic Energy Community (Euratom).
➢ January 1973: Denmark, Ireland and the United Kingdom join the
European Community (EC).
➢ June 1979: First direct elections to the European Parliament
➢ January 1981: Greece joins the EC.
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➢ June 1985: The Schengen Agreement abolishes border controls
among the EC members.
➢ January 1986: Spain and Portugal join the EC.
➢ October 1990: Unification of Germany.
➢ 7 February 1992: The Treaty of Maastricht was signed establishing
the European Union (EU).
➢ January 1993: The single market was created.
➢ January 1995: Austria, Finland and Sweden join the EU.
➢ January 2002: Euro, the new currency, was introduced in the 12 EU
members.
➢ May 2004: Ten new members, Cyprus, the Czech Republic, Estonia,
Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia join
the EU.
➢ January 2007: Bulgaria and Romania join the EU. Slovenia adopts
the Euro.
➢ December 2009: The Lisbon Treaty came into force.
➢ 2012: The EU is awarded the Nobel Peace Prize.
➢ 2013: Croatia becomes the 28th member of the EU.
➢ 2016: Referendum in Britain, 51.9 per cent voters decide that Britain
exit (Brexit) from the EU.
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