ALTERNATIVE CENTERS OF POWER

Alternative Centres of Power

Post-1990s: End of bipolar world order

Rise of alternative powers to counter US dominance

Europe: Emergence of EU

Asia: Growth of ASEAN

Aim: Regional peace, cooperation, economic prosperity

Built institutions & conventions for stability

China: Rapid economic rise reshaping world politics

Chapter focus: Role of these powers in future world order

European Union (EU)

Post-WWII: Europe in ruins; needed unity

Cold War aid: Marshall Plan (US aid), OEEC (1948), NATO, Council of Europe (1949)

Integration path

• Economic → European Economic Community (1957)
• Political → European Parliament
• Soviet collapse → EU formed in 1992

Features:

• Common currency (euro), flag, anthem, founding date
• Common foreign & security policy (limited)

Challenges:

• Failed Constitution
• Skepticism over power-sharing, new members
• Unequal support for integration

Influence:

• Economic: $19.35T GDP (2024), strong trade power, euro challenges US dollar
• Diplomatic: UN Security Council (France), global negotiations (e.g., Iran, China)
• Military: 2nd largest forces & defence spending, France has nukes (335), strong in tech

Limits:

• Member states differ on foreign policy (e.g., Iraq War, euro rejection by UK, Denmark, Sweden)
• ‘Euro-skepticism’ affects unity & global action

ASEAN

Overview

• Region: Southeast Asia
• Colonial History: European & Japanese colonization
• Post-WWII Issues: Nation-building, poverty, Cold War pressure
• Initial Unity Attempts Failed: Bandung Conference, NAM

Formation of ASEAN

• Year: 1967
• Founding Members: Indonesia, Malaysia, Philippines, Singapore, Thailand
• Treaty: Bangkok Declaration
• Later Members: Brunei, Vietnam, Laos, Myanmar, Cambodia (Total: 10)

Objectives

• Primary: Economic growth, social & cultural development
• Secondary: Peace, stability (UN Charter-based)
• Approach: ‘ASEAN Way’ – informal, cooperative, respects sovereignty

Key Developments

• 2003: ASEAN Community established
• ASEAN Security Community
• ASEAN Economic Community
• ASEAN Socio-Cultural Community

Security Community

• Focus: Peace, neutrality, cooperation
• 1994: ASEAN Regional Forum (ARF) for security coordination
• Policy: Non-interference, sovereign respect

Economic Community

• Aim: Common market, production base
• Tools: FTA (investment, labour, services)
• Focus: Dispute Settlement Mechanism improvement
• Partners: US, China (FTAs), India (ASEAN-India FTA, 2010)

International Role & Vision 2020

• Outlook: Outward-looking
• Role: Conflict mediator (Cambodia, East Timor)
• Meetings: Annual, East Asian cooperation
• Strength: Dialogue-based political & security forum

The Rise of the Chinese Economy 

1. Post-1949 Economy (Mao Era)

• Based on Soviet model; self-reliant.
• State-owned industries; agri. surplus to fund industry.
• Limited foreign trade; relied briefly on Soviet aid.
• Achievements: Basic industrial base, health, education.
• Issues: Low per capita income, population growth (2-3%) outpaced economic growth (5-6%).

2. Economic Reforms (Post-1978)

• 1972: Relations with USA.
• 1973: Zhou Enlai – Four Modernisations (Agri, Industry, S&T, Military).
• 1978: Deng Xiaoping – Open Door Policy, gradual reforms.
• 1982: Agri. privatised; 1998: Industry privatised.
• SEZs set up; foreign capital & tech welcomed.
• WTO member in 2001.

3. Results of Reforms

• Rapid growth in agri, rural incomes, rural industry.
• High savings → investment-led growth.
• Surge in foreign trade, FDI; large forex reserves.
• Global economic integration.

4. Problems

• High unemployment (~100 million).
• Gender inequality in work.
• Corruption, inequality (rural-urban, coastal-inland), environmental degradation.

5. Global Impact

• Economic ties with US, Japan, ASEAN, Russia affect diplomacy.
• Aims peaceful Taiwan integration via economy.
• Helped ASEAN in 1997 crisis.
• Investing in Latin America, Africa – image as dev. world ally.

India–China Relations

Historical Background

• Both ancient Asian powers, limited overlap/influence.
• China: Tributary system (Mongolia, Korea, Tibet).
• India: Political, economic, cultural spread, minimal China contact.
• Result: Poor mutual familiarity.

Post-Independence (1947–50s)

• Initial hope: ‘Hindi-Chini Bhai-Bhai’.
• Conflict over Tibet (1950), border issues (Aksai Chin, Arunachal).

1962 War

• India faced defeat.
• Relations downgraded till 1976.

1976 Onwards

• China turned pragmatic, talks began (1981).
• Focus: Border resolution, improved ties.
• Post-Cold War (1990s–Present):
• Strategic & economic dimension added.
• Both: Aspiring global powers.

Rajiv Gandhi’s Visit (1988)

• Restarted cooperation.
• Agreements: Culture, S&T, border trade.

Trade Growth

• $338M (1992) → $84B (2017), 30% yearly growth since 1999.

Key Cooperation Areas

• Energy bidding, WTO stance, military talks.
• Despite tensions, dialogue continued.

Challenges

• 1998 nuke test (China threat cited).
• China–Pakistan ties (nukes, military, CPEC).
• Border disputes & China’s UN stance on terrorism.

Current Trend

• Relations strained but stable dialogue continues.
• Growing people-to-people, trade, and diplomatic links.

JAPAN

• Brands: Sony, Panasonic, Canon, Suzuki, Honda, Toyota, Mazda.
• High-tech, low natural resources, imports raw materials.
• Rapid post-WWII growth; OECD member (1964).
• 3rd largest economy (2017); only Asian G-7 member.
• 11th most populous.
• Only nation bombed with nuclear weapons.
• 2nd largest UN budget contributor (~10%).
• US-Japan Security Alliance (since 1951).
• Article 9: Renounces war, no force use.
• Military spend: 1% GDP, 7th largest globally.
• Potential alternative power center.
• Task: Find recent India-Japan agreements.

SOUTH KOREA

• Korea split post-WWII (38th Parallel).
• Korean War (1950–53), Cold War intensified divide.
• UN members since 1991.
• Rapid growth (1960s–80s): "Miracle on the Han River".
• OECD member (1996).
• 11th largest economy (2017), 10th in military spend.
• HDI rank: 18 (2016).
• Growth factors: Land reforms, rural & human resource dev., equitable growth, exports, redistribution, infrastructure, governance.
• Brands: Samsung, LG, Hyundai.
• India-South Korea ties growing (trade & culture).
• Task: Find recent India–South Korea agreements.