Join Telegram Channel: https://t.me/hsslive Downloaded from www.Hsslive.

in ®

Chapter – 13
Alternative Centres of Power

• European integration after the second world war was assisted by the Cold War.
• America extended massive financial aid for reconstructing Europe’s economy. It was called
‘Marshall Plan’.
• The U S also created a new collective security structure Under NATO.
Time line of European Integration
1. Organization for European Economic Cooperation was formed in 1948.
2. In 1949 the Council of Europe was established.
3. European Economic Community was formed in 1957.
4. Fall of the Soviet bloc led to the establishment of the European Union on 7th February
1992.
European Union
• Its head quarter – Brussels.
• There are 28 member countries in the EU.
• Euro, the new currency, was introduced in January 2002.
• It has its own flag, anthem and currency.
• It has a common foreign and security policy
• It has economic, political, diplomatic, and military influence.
• The EU is the world’s biggest economy.
• The Euro poses a threat to the US dollar.
• Its share of world trade is three times that of the US.
• It is an important bloc in international economic organisations like the WTO.
• Britain and France (members of EU) are permanent members of the UN security council.
• Combined EU military is the 2nd largest in the world.
• Britain and France have great stocks of nuclear weapons.
• It occupies the second position in the field of space and communication technology.
ASEAN (Association of South-East Asian Nations)
• Myanmar, Thailand, Lavos, Combodia, Vietnam, Malaysia, Indonesia and Philippines lie to
the South East of Asia.
• They were the victims of repeated colonialism.
• Moreover, they were confronted with problems of poverty and economic backwardness.

1
Join Telegram Channel: https://t.me/hsslive Downloaded from www.Hsslive.in ®

• Above all, there was an immense pressure from power blocs to join either of them.
• The NAM was failure in establishing cooperation among the South-East Asian countries.
• This unfavourable circumstances forced the South-East Asian countries to form the ASEAN
in 1967.
• The five countries of the region (Indonesia, Malaysia, Philippians, Singapore and Thailand)
signed the Bangkok Declaration on 8th August 1967.
• There are 10 member countries in the ASEAN.
Objectives of ASEAN
1. To enhance economic growth, social progress and cultural development.
2. To promote regional peace and stability based on the rule of law and the principles of the
UN Charter.
3. Creating a common market and production base within ASEAN states.
Three Pillars of ASEAN Community
1. The ASEAN Security Community
• The boundary disputes of the member states should not turn in to armed confrontation.
• It had several agreements to uphold peace, neutrality, cooperation, non-interference, respect
for national differences and sovereign rights.
2. The ASEAN Economic Community
• It creates a common market and production centre with in ASEAN member states.
• To aid social and economic development in the region.
3. The ASEAN Socio-Cultural Community
• To work for social and cultural development in the region.
The Rise of Chinese Economy
• It is a third alternative centre of power.
• The rise of Chinese economy is a notable feature of the present world.
• She is the fastest economic developing country in the world.
• The Communist Republic of China was formed in 1949 after the Chinese Revolution under
the leadership of Mao-Tse-Tung.
• Soviet Model of Economy was adopted.
• Isolation from the Capitalist bloc.
• Adopted Unitary form of government.
• She may overtake the American economy by near future.
Strength of China as an alternative centre of power

2
Join Telegram Channel: https://t.me/hsslive Downloaded from www.Hsslive.in ®

1. Chinese regional location in the Asia.

2. Stability of Economy.
3. Excess natural resources.
4. Political influence among the world countries.
5. Rapid population growth.
Revolutionary changes in Foreign & Economic Policy
• Made a cordial relation with China in 1972.
• Established political and economic relation with the Western World.
1. Four Modernisations
• In 1973, Chinese Premier Zhou Enlai proposed modernisation in:
1. Agriculture
2. Industry
3. Science
4. Technology
2. Open Door Policy
• In 1978, Chinese Premier Deng Xiaoping announced ‘ Open Door’ policy.
• It focused on:
1. Liberalisation of Economy.
2. Excess production.
3. Market System.
4. Private ownership
• Agriculture was privatised in 1982.
• In 2001, China got membership in WTO.
Limitations in Chinese Economy
1. Economic disparities varied from villages to towns.
2. Gender inequality projected in the job field.
3. Manipulation
4. Unemployment.
India- China Relations
• They had limited political, economical and cultural relations in the ancient period.
• After the independence, it was hoped that the two countries would join hands.
• For a while the slogan, “Hindi-Chini bhai-bhai” was popular in both countries.
• The border issues made the two countries hostile to each other.

3
Join Telegram Channel: https://t.me/hsslive Downloaded from www.Hsslive.in ®

• Relation seemed to improve with a series of talks and the border issue was settled in 1981.
The factors that made the relation between India – China more solid are:
1. Indian Prime minister Rajiv Gandhi’s visit to China in 1988.
2. They signed agreement on cultural exchanges.
3. Mutual cooperation in Science and Technology.
4. They mutually opened border posts for trade.

JOBY JOHN, SJHSS Palavayal, KDD