Centres Of Powers

1) Write the full forms of EU, ASEAN, OEEC, and UNSC.

(A) European Union ( EU )
Association of Southeast Asian Nations (ASEAN)
Organisation for European Economic Co-operation (OEEC)
United Nations Security Council (UNSC)

2) When were the following founded: OEEC, The Council of Europe, the European
Economic Community, European Union?
(A) The Organisation for European Economic Co-operation (OEEC) was created in 1948.
The Council of Europe founded 5 May 1949
the European Economic Community founded 25 March 1957
European Union founded 1992

3) What are the aims of the European Union?

(A) The aims of the European Union within its borders are: promote peace, its values and
the well-being of its citizens. offer freedom, security and justice without internal
borders, while also taking appropriate measures at its external borders to regulate
asylum and immigration and prevent and combat crime.

4) What are the features of the European Union?

(A) Features of the EU are as follows:
1. The EU's share of world trade is three times larger than that of the US allowing
it to be more assertive in trade disputes with the US and China.
2. It has evolved from an economic union to a political one. It has its own flag,
anthem, founding date and currency.
3. Its economic power gives it influence over its closest neighbours and on Asia
and Africa. It also functions as an important bloc in an international economic
organisation such as WTO.
4. The EU has political, economic, diplomatic and military influence. The GDP of
the EU is slightly larger than that of the US.

5) Which factors brought about the formation of the European Union?

(A) To consolidate the process of reviving the shattered economies of European countries
and to get massive US financial help under the Marshall Plan.

6) How does the EU exercise economic, political, diplomatic, and military influence?
 (A) ‘The European Union has economic, political and diplomatic and military influence’.

i. The EU is the world’s biggest economy with a GDP of Its currency the euro can pose a
threat to the dominance of the US dollar.

ii. Its share of world trade is three times larger than that of the United States allowing it to be
more assertive in trade disputes with the US and China.

iii. Its economic power gives it influence over its closest neighbours as well as in Asia and
Africa. It also functions as an important bloc in international France and holds permanent
seats on the UN Security Council.

iv. The EU includes several non-permanent members of the UNSC. This has enabled the EU
to influence some US policies such as the current US position on Iran’s nuclear programme.

v. 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.

vi. Militarily the EU’s combined armed forces are the second largest in the world. Its total
spending on defence is second after the US.

vii. It is also the world’s second most important source of space and communications
technology

7) Name the currency of the EU.

(A) Euro

8) Why was ASEAN formed?

(A) To promote economic growth, peace, security, social progress and cultural
development in the Southeast Asian region.
9) When was ASEAN formed?

(A) 8 August 1967

10)Name the five founding member countries of ASEAN.

(A) Indonesia, Malaysia, Philippines, Singapore and Thailand.

11)What do you know about the Bangkok Declaration?

(A) The Association of Southeast Asian Nations, or ASEAN, was established on 8 August
1967 in Bangkok, Thailand, with the signing of the ASEAN Declaration (Bangkok
Declaration) by the Founding Fathers of ASEAN: Indonesia, Malaysia, Philippines,
Singapore and Thailand.

12)What were the objectives of ASEAN?

(A) The purpose of ASEAN is to encourage economic and cultural interchange among its
member nations, to maintain peace and stability in Southeast Asia, and to form
alliances with international powers that share similar goals.

13)What is the present membership of ASEAN?

(A) The organisation now has ten member countries. “One Vision, One Identity, One
Community” is ASEAN's motto.

14)Name the five new members of ASEAN.

(A) Brunei Darussalam

Viet Nam

Lao PDR and Myanmar

Cambodia
15)What is the term ‘ASEAN way’ used for?

(A) (i) To accelerate economic growth and through that ‘social progress and cultural
development.’

(ii) To promote regional peace and stability based on the rule of law and the principles of the
UN charter.

16)How is ASEAN different from the EU?

(A) The European Union-

(a) After the Second World War, the Organization for European Economic
Cooperation (OECC) was established by America, under the Marshall Plan. (b) The
process of economic integration of European capitalist countries proceeded
systematically and the Council of Europe was established in 1949. (c) This led to the
formation of the European Economic Community in 1957. After the collapse of the
Soviet bloc, EuropeanUnion was established in 1992. (d) It has its own flag, anthem,
founding date and currency. The European Union was the world’s largest economy in
2005. It had a GDP of more than US $ 12 trillion in 2005.

ASEAN-

(a) Association of SouthEast Asian Nations (ASEAN) was established in 1967 by

five countries of this region –Indonesia, Malaysia, the Philippines, Singapore and
Thailand by signing the Bangkok Declaration.

(b) ASEAN countries have adopted the “ASEAN Way” as a form of interaction that is
informal, non-confrontationist and cooperative.

(c) In 2003, ASEAN moved along the path of establishing an ASEAN Community
comprising three pillars, namely, the ASEAN Security Community, the ASEAN
Economic Community and the ASEAN Socio-Cultural Community. (d) ASEAN had
several agreements in place by which member states promised to uphold peace,
neutrality, cooperation, noninterference and respect for national differences and
sovereign rights. The ASEAN economy is growing much faster than other countries.

(e) ASEAN has focused on creating a Free Trade Area (FTA) for investment, labour
and services. ASEAN Vision 2020 has defined an outward- looking role for ASEAN
in the international community. ASEAN policy has been to encourage negotiation
over conflicts in the region
17)How has it broadened its objectives in 2003?

18)Name the three communities established by ASEAN.

(A) In 2003, ASEAN moved along the path of the EU by agreeing to establish an ASEAN
Community comprising three pillars namely, ASEAN Security Community, ASEAN
Economic Community and. ASEAN Socio-Cultural Community.

19)What is the full form of ARF?

(A) ASEAN Regional Forum (ARF)

20)When was ARF formed? What work does it carry out?

(A) Established in 1994, the ASEAN Regional Forum (ARF) is an important platform for
security dialogue in the Indo-Pacific. It provides a setting in which members can
discuss current security issues and develop cooperative measures to enhance peace
and security in the region.

21)What is FTA?

(A) A Free Trade Agreement (FTA) is an arrangement or a treaty between two or more
countries to remove trade barriers and facilitate trade between them.

22)What is the ASEAN Vision 2020?

(A) That vision is of ASEAN as a concert of Southeast Asian nations, outward looking,
living in peace, stability and prosperity, bonded together in partnership in dynamic
development and in a community of caring societies.

23)Explain India’s relationship with ASEAN countries.

(A) The India-ASEAN relations aim to facilitate economic, cultural, and social
development and maintain peace and security among the nations. India was one of the
founding members of the ASEAN-India Centre for Cooperation (AICC), established
in 1995 under an agreement signed between India and ASEAN.

24)With which two ASEAN countries has India signed FTAs?

 (A) India signed Free Trade Areas (FTAs) with two ASEAN members, Singapore and
Thailand.

25)Why is ASEAN primarily considered an economic association?

(A) ASEAN, the only regional economic division of its kind outside Europe and North
America, aims to promote cooperation and cooperation among member states, as well
as to progress the interests of the region as a whole, for example economic and trade
growth.

26)What work has been done by the ASEAN Security Community?

(A) 1. The ASEAN security community is based on the conviction that territorial disputes
should not escalate into armed confrontation.

2. By 2003, ASEAN had several agreements among member states to uphold peace,
neutrality, cooperation, non-interference, respect for national differences and sovereign rights.

3. ASEAN Regional Forum was established in 1994 to coordinate security and foreign policy.

27)What factors make China a strong economic power?

(A) China accepted the Soviet model and depended on its resources. China decided to
substitute imports via domestic goods and form state-owned heavy industries from
capital that was produced by agriculture.

28)Which model of the economy was adopted by China in 1949?

(A) Soviet economic model

29)What were the benefits and shortcomings of the model?

Even though the Chinese economy has improved dramatically, there have been negative
consequences affecting the people of China. The four drawbacks in the changed Chinese
Economic System were:

1. Unemployment has risen in China with nearly 100 million people looking for jobs.
2. Female employment and conditions of work are as bad as in Europe of the 18th
and 19th centuries.
 3. Corruption and environmental degradation have increased besides a rise in
economic inequality between rural and urban residents and coastal and inland
provinces.
Benefits

China accepted the Soviet model and depended on its resources. China decided to substitute
imports via domestic goods and form state-owned heavy industries from capital that was
produced by agriculture. (ii) Development of Industrial Economy: China employed all its
resources for developing an industrial economy.

30)Which major policy decisions were taken by the Chinese leadership in the 1970s?

Major decisions taken by China in 1970:

(i) China ended its political and economic isolation with the establishment relations with
the USA in 1972.

(ii) Premier Zhou Enlai proposed the four Modernizations - Agriculture, Industry, Science
and Technology and Military in 1973.

(iii) Den Xiaoping announced the "open door" policy and rapid economic reforms in
China.

31)What were the new economic policies adopted by China in the 70’s, 80’s, and 90’s?

The CCP carried out the market reforms in two stages. The first stage, in the late 1970s
and early 1980s, involved the de-collectivization of agriculture, the opening up of the
country to foreign investment, and permission for entrepreneurs to start businesses.

32)What has been the effect of the new economic policies adopted by China?
• The new economic policies helped the Chinese economy to break from stagnation. The

privatisation of agriculture resulted in a rise in agricultural production and rural incomes.

This, in turn, contributed to the unfettered growth of the rural industry.

• With the reduction in trade barriers and the creation of SEZs, foreign trade depicted a

rising trend. This led to higher inflows of foreign exchange to the economy that could be

used to finance its imports.

• China became the hot-spot for Foreign Direct Investment (FDI) and Foreign Institutional

Investment (FII). This increased the capital and investment base of the country and made it

more globalised with the foreign capital market.

• The large foreign exchange reserves from the increased foreign trade enabled China to

make a big and heavy investment in other countries.

33) In what areas have Chinese economic reforms failed?

It is true that the New Economic Policy did not give importance to the agricultural sector as
compared to industry, trade, and services.
a) Public investment in agriculture was largely reduced in the reform period.
b) Removal of the fertiliser subsidy increased the cost of production, which adversely
affected many small farmers.
c) After the establishment of the WTO, a number of changes in policy were brought about:
i) reduction in import duties on agricultural products
ii) removal of minimum support price, and
iii) lifting of quantitative restrictions on agricultural products
These above policies adversely affected farmers owing to the greater international
competition they faced.
d) Due to the export-oriented policy strategies in agriculture, the production shifted from
food grains to cash crops for the export market. It led to a rise in the prices of food grains.
34)Why is it said that “Regionally and Globally, China has become an economic power to
reckon with”?

1. Regionally and globally China has become an economic power to reckon

believe with as :
1. Adjustments through economic considerations have been made with
Japan, US, ASEAN, and Russia. Its investments and help in
American, African and Latin states have helped it to project itself as
a major global player for developing states.
2. The integration of China’s economy has considerable influence on
trade partners.

35)Identify the two issues of conflict between China and India.

The contentious issues between China and India are as given below:

1. Soon after the independence, both States were involved in differences arising from
the Chinese takeover of Tibet in 1950 and the final settlement of the Sino-Indian
border.
2. China and India were involved in a border conflict of 1962 over competing for
territorial claims principally in Arunachal Pradesh and in the Aksai Chin region in
Ladakh.

36) Explain the role of emerging alternative power centres in transforming different countries
into prosperous economies.
After the end of the bipolar structure of world politics in the early 1990s, it interpreted
that all alternative centres of economic and political power could limit the dominance
by the US. Two forces were established to compete with this factor. They were: In
Europe, the European Union and In Asia, the Association of SouthEast Asian Nations
(ASEAN). While evolving regional solutions to their historical enmities and
weaknesses, both the EU and the ASEAN have developed alternative institutions and
conventions that build a more peaceful and cooperative regional order and have
transformed the countries in the region into prosperous economies. The economic
emergence of China has made a substantial impact on world politics.

37) Why do India and China both view themselves as rising powers in global politics
in spite of the tension between them?
India and China – i. both had signed panchsheel agreement, since the late 1980s, ii.
both countries have successfully attempted to reignite diplomatic and economic ties.
iii. China emerged as India's largest trading partner iv. the two countries have also
attempted to extend their strategic and military relations. v. Both the countries have
cooperated on regional issues like regional economic integration, the Afghanistan
issue and crackdown on terrorism. vi. China is India's largest trading partner, and
their economic collaboration will inject vigorous impetus to the Indian economy.

38) Explain the positive developments in Indo-Chinese relations after 1976.

The Indo-China war of 1962 had complicated their relations. After 1976 the relations
began to improve slowly because:

(i) Chian.s policy became more pragmatic and less ideological due to change in
China.s political leadership in the late 1970s when China got ready to settle the
contentious issues.

(ii) A series of talks to resolve the border isues were also initiated to develop
harmonious relations.