Big picture
After the Cold War, the USA was the sole superpower, but other centres of power grew in influence. Some are regional organisations that pool the strength of many countries, like the European Union (EU) and the Association of Southeast Asian Nations (ASEAN). Others are rising countries, like China, along with economically powerful Japan and South Korea.
These centres can limit American dominance and shape a more multipolar world. This chapter explains how they emerged, what makes them powerful, and their relationship with India.
Learning goals
Explain the evolution, features and influence of the European Union.
Explain the evolution of ASEAN, the ASEAN Way and the ASEAN Community.
Explain China's economic reforms, achievements and problems.
Describe India–China relations.
Explain the rise of Japan and South Korea.
Core ideas
1. The European Union
Evolution:
Year | Event |
|---|---|
1948 | Organisation for European Economic Cooperation (OEEC) set up to channel the US Marshall Plan aid for European reconstruction after World War II |
1949 | Council of Europe established for political cooperation |
1951 | European Coal and Steel Community set up |
1957 | European Economic Community (EEC) created by the Treaty of Rome, establishing a common market |
1979 | First direct elections to the European Parliament |
1992 | Treaty of Maastricht established the European Union |
2002 | Euro notes and coins introduced as the common currency in many member states |
2020 | The United Kingdom left the EU (Brexit) |
Features: the EU has evolved from an economic union into an increasingly political one, with its own flag, anthem, founding date and currency, a common foreign and security policy, and cooperation on justice and home affairs. It has institutions such as the European Parliament and European Commission.
Why the EU is influential:
Economic: it is among the world's largest economies; the euro is a major currency; it is a huge trading partner and has a strong voice in the WTO.
Political and diplomatic: France is a permanent member of the UN Security Council; several EU members are non-permanent members; the EU uses diplomacy, economic investments and negotiations effectively (for example, with China on human rights and environmental issues).
Military: EU members together have one of the world's largest armed forces, and France has nuclear weapons.
Supranational organisation: it can intervene in economic, political and social areas.
Limitations: member states have their own foreign and defence policies and sometimes disagree (for example, over the Iraq war in 2003). There is "Euro-scepticism" in some countries; Denmark and Sweden resisted adopting the euro, and the UK left the EU.
2. ASEAN
The Association of Southeast Asian Nations (ASEAN) was established in 1967 by five countries, Indonesia, Malaysia, the Philippines, Singapore and Thailand, through the Bangkok Declaration.
It now has ten members, after Brunei, Vietnam, Laos, Myanmar and Cambodia joined.
Objectives: to accelerate economic growth, promote social progress and cultural development, and promote regional peace and stability based on the rule of law and UN principles.
The ASEAN Way: a form of interaction that is informal, non-confrontational and cooperative, respecting national sovereignty and decision-making by consensus.
ASEAN Community (2003) rests on three pillars: the ASEAN Security Community, the ASEAN Economic Community and the ASEAN Socio-Cultural Community.
The ASEAN Regional Forum (ARF), set up in 1994, coordinates security and foreign policy, and includes major powers.
Economic integration: ASEAN created a Free Trade Area and aims for a common market and production base; it is one of the fastest-growing regions.
India and ASEAN: India's Look East Policy (1991), later upgraded to the Act East Policy (2014), strengthened trade, connectivity and strategic ties. India has free trade agreements with ASEAN and some member countries.
3. The rise of China
Economic reforms:
After the 1949 Communist revolution, China followed a Soviet-style planned economy, with state ownership and limited contact with the world. Growth was slow, and it faced shortages.
In 1978, under Deng Xiaoping, China announced economic reforms and the "open door" policy, aimed at generating higher productivity through investment of capital and technology from abroad.
China followed its own path: it privatised agriculture (1982) and industry (1998) gradually, removed trade barriers in Special Economic Zones (SEZs), and became a major destination for foreign direct investment.
It joined the WTO in 2001.
Achievements: rapid economic growth, huge foreign exchange reserves, massive foreign investment, a large reduction in poverty, and emergence as the "factory of the world" and a major economic and military power, expected to compete with the USA.
Problems: not everyone benefited; unemployment, inequality between urban and rural and coastal and inland areas, environmental degradation and corruption have increased.
India–China relations:
Initially friendly, with the slogan "Hindi-Chini bhai-bhai" and the Panchsheel agreement (1954) based on peaceful coexistence.
The 1962 war over border disputes in Arunachal Pradesh and Aksai Chin damaged relations.
Relations improved from the late 1970s, especially after Rajiv Gandhi's visit in 1988; both sides agreed to maintain peace on the border and expand cooperation.
Trade has grown enormously, and both cooperate in forums like BRICS and the Shanghai Cooperation Organisation. However, border disputes (such as the 2020 Galwan clash), China's ties with Pakistan, and concerns over trade imbalances continue to cause tension.
4. Japan and South Korea
Japan:
Despite limited natural resources, Japan became a major economic power through technology and manufacturing (brands in electronics and automobiles).
It is a member of the G7 and one of the largest contributors to the UN budget.
Under its post-war constitution, Article 9 renounces war as a means of settling international disputes; its military expenditure is relatively limited.
South Korea:
After the Korean War, South Korea achieved rapid economic growth, called the "Miracle on the Han River", through industrialisation, exports, education and technology.
It became a member of the OECD in 1996 and is known for brands in electronics, shipbuilding and automobiles. It also has strong cultural influence ("Korean wave").
A reliable approach to questions
For the EU, give its evolution with dates, its features, sources of influence and limitations.
For ASEAN, give founding year, founders, the ASEAN Way, the three pillars and India's Act East policy.
For China, explain the 1978 reforms, achievements, problems and relations with India.
For Japan and South Korea, explain the basis of their economic power.
Connections that matter
The end of bipolarity explains the post-Cold War world in which these centres emerged.
Globalisation explains the economic integration that helped them grow.
India's external relations discusses India's ties with neighbours and major powers.
Common mistakes
Dating the EU to the Treaty of Rome. The Treaty of Rome (1957) created the EEC; Maastricht (1992) established the EU.
Listing ten ASEAN founders. There were five founders; there are ten members now.
Dating China's reforms to 1949. The reforms began in 1978 under Deng Xiaoping.
Calling the ASEAN Way confrontational. It is informal and consensus-based.
Revision checklist
I can trace the EU's evolution and explain its influence and limits.
I can explain ASEAN's origins, the ASEAN Way, the three pillars and India's policies.
I can explain China's reforms, achievements and problems.
I can describe India–China relations.
I can explain Japan's and South Korea's rise.