CHAPTER-3

ALTERNATIVE CENTERS
OF
POWER
 EUROPEAN UNION
• As the Second World War came to an end, many of Europe’s leaders
grappled with the ‘Question of Europe’.
• In1945, the European states confronted the ruin of their economies
and the destruction of the assumptions and structures on which
Europe had been founded.
• Under the Marshall Plan, the Organisation for European Economic
Cooperation was established in 1948to channel aid to the west
European Trade.
• The US also created a new collective security structure under NATO.
• The collapse of the Soviet block put Europe on a fast track and
resulted in the establishment of European Union in 1992.
• The EU has economic, political, and diplomatic and military
influence.
• The EU is world’s biggest economy with a GDP of more than $12
trillion in 2005, slightly larger than that of the United States.
• Its currency, the euro, can pose a threat to the dominance of the US
dollar.France, holds permanent seats on the UN Security Council.
• The EU includes several non-permanent members of the
UNSC.Military, the EU’s combined armed forces are the second
largest in the world.
• Its total spending on defence is second after the US. Two EU
member states, Britain and France, also have nuclear arsenals of
approximately 550 nuclear warheads.
• It is also the worlds second most important source of space and
communicational technology.
EUROPEAN UNION
HOW CAN EU CHALLENGE US HEGEMONY ?

EUROPEAN
UNION
ALTERNATIVE
CENTER OF
POWER

POLITICAL AND
ECONOMIC MILITARY
DIPLOMATIC
 ECONOMIC STATUS OF EU

◦ It follows a common currency, EURO, which is a potential

threat to Dollar
◦ Its economy is the biggest in the world
◦ As per 2005 data, its GDP is more than 12 trillion dollars
◦ Its contribution of International trade is three times larger
than US
◦ It has one of the most developed nations of world
community, an important bloc in Economic organizations
such as WTO
 POLITICAL AND DIPLOMATIC
◦France has permanent seat in UNSC with
Veto power
◦Many non-permanent members of UNSC
◦It strongly believes in Diplomatic and
Economic investments to resolve disputes
rather than the use of Force
 MILITARY
◦Its Armed Forces are Second Largest in the
world
◦Its total spending is Second Largest in the world
◦France has Nuclear weapons, 550 warheads
◦Second Largest in the world in the sphere of
Space and communications technology
 CONSTRAINTS OR LIMITATIONS

◦ In many cases its members have and their own Foreign and
Defense Policy, conflicting with each other. It affects the
unity of EU as a regional organization.
◦ For e.g. in case of Operation Iraqi Freedom, UK (PM Tony
Blair) supported US led action whereas Germany and
France opposed it
◦ Deep-seated Euro Skepticism
1. UK (PM Margaret Thatcher) first kept themselves out of
European market, followed by BREXIT
2. Denmark and Sweden resisted the Maastricht Treaty

(IN ACCORDANCE TO OLD SYLLABUS)
ASSOCIATION OF SOUTH EAST ASIAN
NATIONS
(ASEANS)
◦ ASEAN as established in 1967 by five countries of
this region- Indonesia, Malaysia, the phillipians,
Singapore and Thailand- by signing the Bangkok
declaration.
◦ A secondary objective was to promote regional
peace and stability based on the rule of law and the
principles of the United Nations Charter.
◦ ASEAN countries have celebrated what has
become known as the ‘ASEAN WAY’’ a form of
interaction that is informal, non-confrontationalist
and cooperative.
◦ Its Vision 2020 has defined an outward role for
ASEAN in the International Community.
◦ The current economic strength of ASEAN
especially its economic relevance as a trading and
investment partner to the growing Asian economies
such as India and China, makes this as attractive
proposition.
◦ In 2003, ASEAN moved along the path of the EU by
agreeing to the establish an ASEAN Community
comprising three pillars, namely, the ASEAN
Security Community, the ASEAN Economic
Community and the ASEAN Socio-Cultural
Community.
ASEAN SOCIO-CULTURAL COMMUNITY
 (IN ACCORDANCE TO OLD SYLLABUS)
THE RISE OF CHINESE ECONOMY
 THE RISE OF THE CHINESE
ECONOMY
◦ China has been the fastest growing economy since
◦ the reforms first began there. It is projected to overtake the US as
the world’s largest economy by 2040.
◦ The Chinese leadership took major policy decisions in the 1970s.
China ended its political and economic isolation with the
establishment of relations with the United States in 1972.
◦ By 1978, the leader Deng Xiaoping announced the ‘open door’
policy and economic reforms in China.
◦ The policy of ‘open door’ was to generate higher productivity by
investments of capital and technology from abroad.
◦ After the inception of the People’s Republic of China in
1949, following the communist revolution under the
leadership of Mao, its economy was based on the Soviet
Model.
◦ China has large foreign exchange reserves that now allow it
to make big investment in other countries.
◦ Chinese did not go for ‘shock therapy’ but opened their
economy step by step. The privatisation of agriculture in
1982 was followed by the privatisation of industry in 1998.
 (IN ACCORDANCE TO NEW SYLLABUS)

HISTORICAL BACKGROUND
◦ Since 1949, China opted to be a communist country and economy was
controlled by the state
◦ The model was to create a state-owned heavy industries sector
◦ Employment and social welfare was assured to all citizens, and China
moved ahead of most developing countries in educating its citizens
and ensuring better health for them.
◦ Economy also grew at a respectable rate of 5-6 per cent
◦ The Chinese leadership took major policy decisions in the 1970s.
China ended its political and economic isolation with the
establishment of relations with the United States in 1972
INDIA - CHINA RELATIONS
 (IN ACCORDANCE TO OLD SYLLABUS)
INDIA - CHINA RELATIONS
Great Powers: Before the advent of western imperialism both
were great powers. However, there was limited interaction
between the two neither country was very familiar with the
other
Chinese takeover the Tibet(1950) and border conflict(1962)
had negative impact on relationship. Diplomatic relations
between the two countries were downgraded until 1976.
Globally, both China and India adopted similar policies in the
International Institution
 (IN ACCORDANCE TO NEW SYLLABUS)

ECONOMIC LIBERALISATION IN
CHINA
◦ The Chinese leadership took major policy decisions in the 1970s. China ended its
political and economic isolation with the establishment of relations with the United
States in 1972
◦ Premier Zhou Enlai proposed the ‘four modernisations’(agriculture, industry, science
and technology and military) in 1973
◦ 1978, the then leader Deng Xiaoping announced the ‘open door’ policy and economic
reforms in China
◦ 1982 - The privatisation of agriculture
◦ 1998 - privatisation of industry
◦ Trade barriers were eliminated only in Special Economic Zones (SEZs) where foreign
investors could set up enterprises.
 BRICS
• The term BRICS refers to Brazil, Russia, India, China, and South
Africa respectively.
• BRIC was founded in 2006 in Russia.
• BRIC turned into BRICS after the inclusion of South Africa in its
first meeting in the year 2009.
• The key objectives of BRICS are primarily to cooperate and
distribute mutual economic benefits among its members
besides non-interference in the internal policies of each nation
and mutual equality.
• The 11th conference of the BRICS concluded in Brazil in 2019,
chaired by Brazilian President Jair Bolsonaro.
◦ The 11th conference of the BRICS concluded in Brazil in 2019,
chaired by Brazilian President Jair Bolsonaro.
◦ Since 2009, the BRICS nations have met annually at formal
summits. China hosted the 9th BRICS summit in Xiamen on
September 2017,[3] while Brazil hosted the most recent 11th BRICS
summit on 13-14 November 2019.
◦ In 2015, the five BRICS countries represented over 3.1 billion
people, or about 41% of the world population; four out of five
members (excluding South Africa at #24) were in the top 10 of the
world by population.
 EMBLEMS

Officially there is no symbol of BRICS grouping. But at every

BRICS summit there is a logo created by the host member
country.
 RUSSIA
• Russia has been the largest part of the former Soviet Union even before its
disintegration.
• After the dissolution of the Soviet Union in late 1980s and early 1990s,
Russia emerged as the strong successor of USSR [Union of Soviet Socialist
Republics].
• Russia's GDP is currently 11th in the world. Russia has reserves of minerals,
natural resources and gases that make it a powerful country in the global
world.
• In addition, Russia is a nuclear state with a huge stock of sophisticated
weapons. Russia is also a permanent member of the UN Security Council,
called P-5.
 INDIA
• The 21st century India is being seen as an important emerging global power.
• The world is experiencing the power and rise of India in a multidimensional way. The
economic, cultural, strategic position of the country with a population of 130 crore is very
strong.
• From an economic perspective, targeting the goal of a $5 trillion economy, a competitive
huge market, an ancient inclusive culture with 200 million people of Indian Diaspora
(MIGRANTS) spreading across the globe impart distinct meaning and salience to India as
a new centre of power in the 21st century.
• From a strategic perspective, the military of India is self-sufficient with indigenous
nuclear technology making it another nuclear power. ‘Make in India’ scheme in technology
and science is another milestone of Indian economy.
• All these changes are making India an important centre of power in the present world.
 ISRAL
• Shown on the world map with a pointer, Israel has emerged as one of
the most powerful nations in the 21st century world in terms of science
and technology, defence, intelligence besides economy.
• Situated in the middle of the burning politics of West Asian countries,
Israel has reached to the new heights of global political standing by
virtue of its indomitable defence prowess, technological innovations,
industrialization and agricultural development.
• Sustaining against adversity is the principle with which a small
Jewish-Zionist nation, i.e., Israel is placed in the contemporary global
politics in general and the Arab-dominated West Asian politics in
particular.
 INTRODUCTION TO SAARC
◦ South Asian Association for Regional Cooperation has the
acronym SAARC.
◦ SAARC was founded in Dhaka on 8 December 1985.
◦ Its secretariat is based in Kathmandu, Nepal.
◦ Esala Ruwan Weerakoon, a Sri Lankan diplomat, who is the
current SAARC Secretary General, in office since March 2020.
◦ The organization promotes development of economic
and regional integration.
◦ The main motive of its existence is to promote development of
Economic and regional unity.
 SAARC

South Asian Association for Regional Cooperation

 FORMATION OF SAARC
◦ In the ending years of the 1970s, the seven inner South Asian nations that
included Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka agreed upon the
creation of a trade bloc and to provide a platform for the people of South Asia to work together in
a spirit of friendship, trust, and understanding.
◦ President Ziaur Rahman of Bangladesh and King Birendra of Nepal gave a call for close regional
cooperation among South Asian countries
◦ after a series of diplomatic consultations headed by Bangladesh
◦ In 1983, the international conference held in Dhaka by its Ministry of Foreign Affairs, the foreign
ministers of the inner seven countries adopted the Declaration on South Asian Association
Regional Cooperation (SAARC)
◦ Officially, the union was established in Dhaka with Kathmandu being union's secretariat-general.
◦ The first SAARC summit was held in Dhaka on 7–8 December 1985 and hosted by the President of
Bangladesh Hussain Ershad.
◦ The declaration was signed by King of Bhutan Jigme Singye Wangchuk, President of Pakistan Zia-
ul-Haq, Prime Minister of India Rajiv Gandhi, King of Nepal Birendra Shah, President of Sri Lanka
JR Jayewardene, and President of Maldives Maumoon Gayoom.
SAARC was founded by seven states in 1985.
In 2005, Afghanistan began negotiating their
accession to SAARC and formally applied
for membership on the same year. The issue
of Afghanistan joining SAARC generated a
great deal of debate in each member state,
including concerns about the definition of
South Asian identity because Afghanistan is
a Central Asian country.
Despite initial reluctance and internal
debates, Afghanistan joined SAARC as its
eighth member state in April 2007.
SAARC EMBLEM

Two eyes of Buddha, who is the

symbol of peace. Two thumbs
symbolize – member countries of
the SAARC vow (Sankalpa) to unite
and support one another in the time
of need. Two hands together
symbolize friendship and goodwill that
all seven countries in the region, which
are all dedicated to helping one
another.
 OBJECTIVES OF SAARC
◦ To quicken the economic growth, social progress, and cultural
development.
◦ For the welfare of the people of South Asia and to promote their quality
of life.
◦ To promote mutual trust, understanding and appreciation of the
problems of one another.
◦ To promote self-reliance among the countries of South Asia.
◦ To contribute to an international and regional organization with similar
aims and purposes.
◦ To develop active participation and mutual assistance in the economic,
social, cultural, technical and scientific fields.
◦ To make strong cooperation among themselves in international forums
in matters of common interest.
 SAARC SUMMITS
◦ The first SAARC summit was held in Dhaka on 7–8 December 1985 and hosted by the President of
Bangladesh Hussain Ershad.

◦ Since then SAARC has had 18 Summits.

◦ The 18th summit held in Kathmandu, the capital of Nepal during 26–27 November 2014. The theme of the
summit was Deeper Integration for Peace and Prosperity, focused on enhancing connectivity between the
member states for easier transit-transport across the region. Sushil Koirala, the then Nepalese Prime Minister,
was the main host of the event.

◦ The 19th SAARC summit was a scheduled diplomatic conference, which was originally planned to be held
in Islamabad, Pakistan on 15–19 November 2016 but got cancelled after an attack on Indian army camp in
Kashmir. Following the rising diplomatic tensions after the Uri terrorist attack, India announced its boycott of
the summit, alleging Pakistan's involvement in the attack. Later, Bangladesh, Afghanistan, Bhutan, Sri
Lanka and Maldives also pulled out of the summit culminating in an indefinite postponement of the summit.

◦ Since then no new SAARC summit has been held.

SAARC SUMMITS
 LIMITATIONS OF SAARC
Unfortunately, due to persisting political differences, SAARC has not had much
success.Though SAARC had good aims and principles it has become weak in
few years after it was formed because of the following reasons
◦ Mistrust among its member due to its past History like :-relation between India
Pakistan
◦ Fear of Indian hegemony in the region.
◦ External influence in the region ex ;-China
◦ Less means of finance to pull together for the development of the region.
◦ India constitutes almost 70% of SAARC’s area and population. So it has to
modify its role in SAARC and should work and invest more than the other
countries to strengthen SAARC like Germany did for European Union.
• To establish framework for further regional cooperation.
• SAFTA aims at lowering trade tariffs by 20% by 2007. In the final
five-year phase ending in 2012, the 20 percent duty was reduced to
zero in a series of annual cuts.
• But some of our neighbours fear that SAFTA is a way for India to
‘invade’ their markets and to influence their societies and politics
through commercial ventures and a commercial presence in their
countries.
• India thinks that there are real economic benefits for all from SAFTA
and that a region that trades more freely will be able to cooperate
better on political issues.
• Some in India think that SAFTA is not worth the trouble since India
already has bilateral agreements with Bhutan, Nepal and Sri Lanka.
 SAFTA
• SAARC members signed the South Asian Free Trade (SAFTA) agreement which promised
the formation of a free trade zone for the whole of South Asia.
• A new chapter of peace and cooperation might evolve in South Asia if all the countries in
the region allow free trade across the borders. This is the spirit behind the idea of SAFTA.
• The Agreement was signed in 2004 and came into effect on 1 Jan 2006 during Twelfth
SAARC Summit held in Islamabad, Pakistan.
• The main objective of the agreement is to promote competition in the area and to provide
equitable benefits to the countries involved.
• It aims to benefit the people of the countries by bringing transparency and integrity
among the nations.
• SAFTA was also formed in order to increase the level of trade and economic cooperation
among the SAARC nations by reducing the tariff and barriers and also to provide special
preference to the Least Developed Countries (LDCs)among the SAARC nations.
 SAPTA
◦ The Agreement on SAARC Preferential Trading Arrangement (SAPTA)
which envisages the creation of a Preferential Trading Area among the seven
member states of the SAARC, namely Bangladesh, Butan, India, Maldives,
Nepal, Pakistan and Sri Lanka was signed in Dhaka in April 1993.
◦ The idea of liberalizing trade among SAARC countries was first mooted by Sri
Lanka at the sixth Summit of the South Asian Association for Regional Co-
operation (SAARC) held in Colombo in December 1991. It was agreed that
SAPTA is a stepping stone to higher levels of trade liberalization and economic
co-operation among the SAARC member countries.
◦ The objective of the SAPTA is to promote and sustain mutual trade and the
economic co-operation among the member states through exchange of trade
concessions. SAPTA therefore is the first step towards higher levels of trade
and economic co-operation in the region.