Chapter 2 — Contemporary Centres of Power

The chapter examines how the European Union, ASEAN, and China emerged as alternative centres of political and economic power after the end of the Cold War's bipolar structure in the early 1990s. It analyses their institutions, economic strengths, and diplomatic roles, and also covers India–China relations. Japan and South Korea are briefly discussed as additional centres of power in Asia.

The European Union was established by the Treaty of Maastricht, signed on 7 February 1992. Integration developed step by step: the Organisation for European Economic Cooperation (OEEC) was set up in 1948 under the Marshall Plan, the Council of Europe was formed in 1949, the European Economic Community was created by the Treaty of Rome in 1957, and the first direct elections to the European Parliament were held in 1979. The collapse of the Soviet bloc put the process on a fast track and led to the formation of the EU.

The 'ASEAN Way' refers to a form of interaction among ASEAN members that is informal, non-confrontationist, and cooperative. Respect for national sovereignty is critical to its functioning. Unlike the EU, ASEAN has little desire for supranational structures, making the ASEAN Way a distinctive alternative model for regional cooperation.

ASEAN was established in 1967 by five countries — Indonesia, Malaysia, the Philippines, Singapore, and Thailand — through the Bangkok Declaration. Over the years, Brunei Darussalam, Vietnam, Lao PDR, Myanmar, and Cambodia also joined, bringing total membership to ten countries.

In 2003, ASEAN agreed to establish an ASEAN Community comprising three pillars: the ASEAN Security Community, the ASEAN Economic Community, and the ASEAN Socio-Cultural Community. The Security Community was based on the conviction that outstanding territorial disputes should not escalate into armed confrontation, while the Economic Community aimed to create a common market and production base.

China's 'open door' policy was announced by Deng Xiaoping in 1978 and aimed to generate higher productivity through investments of capital and technology from abroad. China took a gradual approach rather than 'shock therapy': agriculture was privatised in 1982 and industry in 1998. Special Economic Zones (SEZs) were created where foreign investors could set up enterprises. This led to a phenomenal rise in foreign trade and made China the most important destination for FDI anywhere in the world.

Premier Zhou Enlai proposed the 'four modernisations' in 1973, covering agriculture, industry, science and technology, and the military. These became the foundation for China's shift away from its earlier Soviet-model economy and set the direction for the economic reforms that Deng Xiaoping later formalised in 1978.

The 1962 border conflict arose from competing territorial claims, principally in Arunachal Pradesh and the Aksai Chin region of Ladakh. Differences also emerged from the Chinese takeover of Tibet in 1950 and disagreements over the final settlement of the Sino-Indian border. The conflict resulted in military reverses for India and led to a downgrading of diplomatic relations between the two countries until 1976.

Diplomatic relations, downgraded after 1962, began to improve slowly after 1976. Rajiv Gandhi's visit to China in December 1988 provided important impetus. Since then both governments have taken measures to maintain peace on the border, signed agreements on cultural exchanges and science cooperation, and opened four border posts for trade. Bilateral trade grew from $338 million in 1992 to more than $84 billion in 2017. However, recent relations have been affected by border disputes, the China–Pakistan Economic Corridor, and China's support to Pakistan in the UN.

The EU faces limitations because member states often have divergent foreign relations and defence policies. For example, Britain supported the US in the Iraq invasion while Germany and France opposed it. There is also deep-seated 'Euroskepticism' in parts of Europe: Margaret Thatcher kept the UK out of the European Market, Denmark and Sweden resisted the Maastricht Treaty, and a 2016 referendum saw 51.9 per cent of British voters decide to exit the EU. The failure to adopt a common EU Constitution further limits its ability to act with a single voice.

Despite dramatic economic improvements, the benefits have not been equally shared. Unemployment has risen, with nearly 100 million people looking for jobs. Female employment and working conditions are described as comparable to Europe in the eighteenth and nineteenth centuries. Environmental degradation and corruption have increased, and economic inequality has grown between rural and urban residents and between coastal and inland provinces.

The ASEAN Regional Forum (ARF) was established in 1994. It is the organisation that carries out coordination of security and foreign policy among ASEAN members. It is described as the only regional association in Asia that provides a political forum where Asian countries and major powers can discuss political and security concerns.

The Schengen Agreement was signed in June 1985 and abolished border controls among EEC member states. Under this agreement, a visa from one EU country allows entry into most other European Union countries, making movement across EU borders significantly easier.

Yes, the NCERT PDF for 'Contemporary Centres of Power' is completely free to download on cbseprepmaster.com. No sign-up or account is required.

During the Cold War years, India's foreign policy did not pay adequate attention to ASEAN. Since the early 1990s, India adopted a 'Look East' policy to increase economic interaction with East Asian nations. Since 2014, this was rebranded as the 'Act East' policy. India signed trade agreements with three ASEAN members — Malaysia, Singapore, and Thailand — and the ASEAN-India Free Trade Agreement (FTA) came into effect in 2010.