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YOUR STUDY SPACE · CBSE

Contemporary Centres of Power — Class 12 Political Science

Contemporary World Politics · Chapter 2

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Chapter summary

After the end of bipolarity, alternative centres of power emerged to limit US dominance. In Europe, the European Union grew out of post-war economic cooperation aided by the Marshall Plan, the OEEC and the Council of Europe, leading to the European Economic Community (1957) and finally the EU (Maastricht Treaty, 1992). The EU has its own flag, anthem, currency (the euro) and a common foreign and security policy; it wields enormous economic, political, diplomatic and military influence, though member states retain their own policies and 'Euro-scepticism' persists. In Asia, ASEAN, founded in 1967 by the Bangkok Declaration, follows the informal, cooperative 'ASEAN Way' that respects national sovereignty; it built three community pillars and a free-trade focus, becoming an important regional forum. China's spectacular economic rise, beginning with Deng Xiaoping's 'open door' reforms of 1978, made it a great power; unlike the USSR it opened step by step, used Special Economic Zones, and joined the WTO in 2001, though inequality and other problems grew. India-China relations, friendly at first, were marred by the 1962 war but have improved through trade and dialogue since the 1980s. Japan and South Korea are also discussed as Asian centres of power.

Key ideas & terms

European Union
A regional organisation that evolved from an economic community into an increasingly political union with its own currency and flag.
Maastricht Treaty
The 1992 treaty that formally established the European Union.
ASEAN Way
A form of informal, non-confrontationist and cooperative interaction among ASEAN members that respects sovereignty.
Open door policy
Deng Xiaoping's 1978 policy of opening China's economy to foreign capital and technology.
Special Economic Zones
Designated regions in China where foreign investors could set up enterprises under relaxed rules.
Supranational organisation
A body, like the EU, that can take decisions binding on member states in certain areas.

Extra questions & answers

How did the European countries resolve their post-Second World War problems?

Through step-by-step economic integration aided by the Marshall Plan, the OEEC, the Council of Europe and the EEC, culminating in the European Union in 1992.

What makes the European Union a highly influential regional organisation?

Its large economy, the euro, a big share of world trade, diplomatic and military strength, a permanent UNSC seat (France) and a common foreign and security policy.

What are the objectives of ASEAN?

To accelerate economic growth and social and cultural development, and to promote regional peace and stability based on the rule of law and the UN Charter.

What is meant by the 'ASEAN Way'?

An informal, non-confrontationist and cooperative style of interaction among member states that places great value on respecting national sovereignty.

Name the three pillars of the ASEAN Community.

The ASEAN Security Community, the ASEAN Economic Community and the ASEAN Socio-Cultural Community.

How does the present Chinese economy differ from its command economy?

It is now market-oriented with privatised agriculture and industry, Special Economic Zones, large foreign trade and FDI, though the state still plays a central role.

Why did China not adopt shock therapy?

China opened its economy gradually and step by step under state guidance, privatising agriculture (1982) before industry (1998), avoiding the sudden ruin caused by shock therapy.

Identify the contentious issues between China and India.

The 1962 border conflict over Aksai Chin and Arunachal Pradesh, China's support to Pakistan, the China-Pakistan economic corridor, and competing strategic interests.

How have India-China relations improved since 1976?

Diplomatic ties were restored, leaders exchanged visits, agreements on the border, trade and cooperation were signed, and bilateral trade grew rapidly.

Why can China and India together potentially challenge a unipolar world?

As fast-growing large economies and rising powers, they pursue similar positions in bodies like the WTO and seek a more multipolar international order.