Contemporary Centres of Power | CUET UG
After the Cold War ended in the early 1990s, several new political and economic powers began to emerge globally. Key among them were the European Union (EU), ASEAN, and China, which started playing major roles in shaping the international order.
1. The European Union (EU)
After the Second World War, European countries faced the twin challenges of economic devastation and political instability. In response, the idea of regional cooperation gained traction as a means to rebuild Europe and prevent future conflicts. This vision culminated in the formation of what is now known as the European Union (EU).
Key Milestones:
● 1948 (Marshall Plan): Initially, the United States played a crucial role in this reconstruction through the Marshall Plan of 1948, which extended substantial financial aid to European nations. To channel this aid effectively and promote economic cooperation, the Organisation for European Economic Cooperation (OEEC) was established.
● 1949 (Council of Europe): Political integration began with the formation of the Council of Europe in 1949, which laid the groundwork for unity beyond just economics..
● 1957 (EEC): A more concrete step toward economic integration came in 1957, with the signing of the Treaty of Rome, which led to the creation of the European Economic Community (EEC). This institution aimed to create a common market among the capitalist countries of Europe.
● 1992 (Treaty of Maastricht): Over time, these early arrangements matured into a more comprehensive political and economic union. The process reached a major milestone with the signing of the Maastricht Treaty in 1992, which formally established the European Union (EU). This treaty not only expanded the scope of cooperation to include foreign policy and internal security but also laid the foundation for a common currency—the Euro, which was officially introduced in 2002 and adopted by twelve member states initially.
“Timeline of European integration
● 1951 April: Six west European countries, France, West Germany, Italy, Belgium, the Netherlands and Luxembourg sign the Treaty of Paris establishing the European Coal and Steel Community (ECSC).
● 1957 March 25: These six countries sign the Treaties of Rome establishing the European Economic Community (EEC) and the European Atomic Energy Community (Euratom).
● 1973 January: Denmark, Ireland and the United Kingdom join the European Economic Community (EEC).
● 1979 June: First direct elections to the European Parliament
● 1981 January: Greece joins the EEC.
● 1985 June: The Schengen Agreement abolishes border controls among the EEC members.
● 1986 January: Spain and Portugal join the EEC.
● 1990 October: Unification of Germany.
● 1992 February 7: The Treaty of Maastricht was signed establishing the European Union (EU).
● 1993 January: European Economic Community (EEC) was renamed the European Community (EC).
● 1995 January: Austria, Finland and Sweden join the EU.
● 2002 January: Euro, the new currency, was introduced in the 12 EU members.
● 2004 May: Ten new members: Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia join the EU.
● 2007 January: Bulgaria and Romania join the EU. Slovenia adopts the Euro.
● 2009 December: The Lisbon Treaty came into force.
● 2012 : The EU is awarded the Nobel Peace Prize.
● 2013: Croatia becomes the 28th member of the EU.
● 2016: Referendum in Britain, 51.9 percent of voters decide that Britain exist ( Brexit) from EU.”
Key Features & Influence:
● The European Union evolved rapidly and began to exhibit features that made it function almost like a sovereign state. It established its own parliament, currency, flag, anthem, and passport system. The EU flag, which features a circle of twelve golden stars on a blue background, is symbolic rather than numerical. The twelve stars do not represent member countries but instead stand for unity, perfection, and completeness—values the EU strives to uphold among the diverse nations of Europe.
● Economic Power: the EU represents one of the largest integrated markets in the world. It plays a dominant role in global trade and holds considerable influence in international economic institutions such as the World Trade Organization (WTO). Collectively, its members possess a GDP that rivals that of the United States, and the region is considered a hub of high technology, innovation, and export-led growth. Politically, the EU has tried to present a unified front in dealing with global issues, relying on diplomacy and economic leverage rather than.
● Military Capability: In terms of military capability, although the EU does not possess a unified armed force, it maintains significant strength through the combined military resources of its member states. It is the second largest spender in the military after the US. Notably, France, a founding member, holds nuclear weapons and is a permanent member of the United Nations Security Council. However, military intervention is not the preferred instrument of EU policy. The EU is recognized globally for its reliance on “soft power”—promoting its values and policies through consensus-building, trade, and diplomacy.
● Schengen Agreement (1985): Removed border controls among many EU countries, easing travel and trade.
Limitations:
● Despite this collective structure, individual countries often pursue independent strategies, particularly in areas such as foreign policy and national defense. This divergence sometimes creates visible fractures within the union. A clear example of such disagreement emerged during the Iraq War. While Britain, led by Prime Minister Tony Blair, chose to support the United States and became part of what was termed the “coalition of the willing,” other influential EU members like Germany and France took a firm stand against the American led invasion.
● Euro-skepticism: there exists a strong undercurrent of distrust or hesitation toward deeper EU integration in several parts of Europe—a phenomenon often referred to as Euro-skepticism. This skepticism has manifested in different ways. One of the most prominent critics of EU integration was Margaret Thatcher, Britain’s former prime minister, who consistently opposed the idea of transferring more authority to Brussels. Under her leadership, the United Kingdom opted to remain outside of certain key EU frameworks, particularly the move toward economic unification. Similarly, Denmark and Sweden chose not to adopt the Euro or fully embrace the provisions of the Maastricht Treaty, preferring to retain control over their national currency and fiscal policies.
2. ASEAN (Association of Southeast Asian Nations)
In the years leading up to and during the Second World War, Southeast Asia endured deep economic and political disruption due to repeated colonization—first by European imperial powers and later by Japanese expansion. These external controls left the region economically depleted, politically fragmented, and socially strained. When the war ended, the newly independent nations of Southeast Asia found themselves facing the enormous task of rebuilding their economies and political institutions. They also had to navigate intense pressure to align with one of the two dominant blocs of the Cold War, a scenario that risked drawing them into global power rivalries they were ill-prepared to handle.
This volatile situation demanded regional unity and stable cooperation, but early initiatives to build such solidarity—like the Bandung Conference of 1955 and the Non-Aligned Movement—proved insufficient. Although they were important symbols of post-colonial aspiration and resistance to superpower domination, they failed to establish lasting norms or platforms for regular, informal engagement among Asian and Third World nationsThis paved the way for a more focused and practical effort at regional partnership, which ultimately took shape in the form of ASEAN in 1967.
Members:
Initially founded by Indonesia, Malaysia, the Philippines, Singapore, and Thailand through the Bangkok Treaty. Later joined by Brunei, Vietnam, Laos, Myanmar, and Cambodia .
The ASEAN flag features a blue background symbolizing peace and stability, a red circle for courage and dynamism, and ten golden rice stalks bound together in the center representing the unity and solidarity of the ten Southeast Asian member states
Objectives:
● Their goal was to build regional solidarity, foster economic growth, and ensure political independence free from interference by major global powers.
● Promote peace and stability based on the UN Charter principles.
“ASEAN Way”:
● Its founding principles emphasized non-interference, mutual respect for sovereignty, and informal diplomacy.
Key Developments:
● ASEAN Community (2003): Built on three pillars:
○ Security Community: Solves disputes peacefully and promotes neutrality and cooperation.
○ Economic Community: Seeks regional integration through trade, investment, and market unification.
○ Socio-Cultural Community: Promotes shared identity and inclusive growth.
‘National sovereignty’ is given utmost importance in ASEAN
● ASEAN Regional Forum (ARF) (1994): ASEAN also launched the ASEAN Regional Forum (ARF) in 1994, which brought security and foreign policy dialogue into its framework, enabling coordination with major powers such as the US, China, India, and Japan.
● ASEAN Vision 2020: The vision of ASEAN was further articulated in the ASEAN Vision 2020, which imagined a conflict-free, economically integrated, and cooperative region, marked by shared prosperity and reduced development gaps. ASEAN has successfully resolved various conflict in its area such as “ The Cambodian conflict, The East Timor Crises and also a annual meeting takes place to discuss ‘East asian cooperation’
Economic Role:
Though it does not rival global powers like the United States, European Union, or China, ASEAN has become a significant centre of power through gradual and stable regional integration. Its rapid economic growth, collective voice in international forums, and diplomatic initiatives have given it a respected position in global politics. It was and it continues to function like an economic association. ASEAN emphasizes the creation of Free Trade Agreements (FTAs) aimed at enhancing the flow of investments, facilitating mobility of labour, and promoting liberalization in the service sector across its member nations.
India-ASEAN Relations:
During the Cold War, India’s foreign policy largely overlooked ASEAN and did not actively seek engagement with the region. Recognizing this oversight, India has, in recent decades, taken significant steps to strengthen its ties with ASEAN. It has entered into multiple trade agreements, beginning with countries like Malaysia, Singapore, and Thailand, to improve economic cooperation.
A major development in this direction was:
● Look East Policy (1990s) → India’s Look East Policy (1990s) evolved into Act East Policy (2014), intensifying engagement with ASEAN, China, Japan, and South Korea in trade, security, and diplomacy.
● India-ASEAN FTA (2010): Boosted trade and investment.
However, ASEAN’s strength does not only lie in economic cooperation. What sets it apart is its commitment to open dialogue and mutual consultation—among its own members, with external dialogue partners, and with other regional and international institutions.
ASEAN today stands as Asia’s only regional grouping that offers a consistent political platform where member countries and global powers can come together to discuss pressing political and security issues.
3. Rise of the Chinese Economy
China’s emergence as a global economic power is one of the most remarkable developments in modern international politics.China’s economic rise began in the late 1970s and has since made it a key global power. After the People’s Republic of China was established in 1949, the country adopted a centrally planned economic model under communist leadership
Early Model (Post-1949):
Based on the Soviet model after the communist revolution under Mao, focusing on state-owned heavy industries with capital accumulated from agriculture. China severed links with the capitalist world and adopted import substitution due to foreign exchange shortages. This model laid industrial foundations, ensured employment and social welfare, and improved education and health. However, high population growth outpaced economic growth, leading to insufficient agricultural production, minimal international trade, and low per capita income by the 1970s.
Major Reforms:
● 1972: China’s period of international isolation came to an end when it initiated diplomatic and economic ties with the United States, marking a turning point in its global engagement.
● 1973: Zhou Enlai introduced the Four Modernizations – agriculture, industry, science/tech, and military.
● 1978 (Deng Xiaoping): A significant shift began in 1978, under the leadership of Deng Xiaoping, who launched a set of gradual and controlled economic reforms known as the “Open Door Policy.”
● Market Economy Approach: Unlike the rapid and often chaotic “shock therapy” model used in post-Soviet states, China’s approach was measured and pragmatic.
○ 1982: Privatization of agriculture. Introducing private ownership in agriculture significantly boosted both farm output and the earnings of rural households.
○ 1998: Privatization of industry.
● Special Economic Zones (SEZs): Established where trade barriers were eliminated to attract foreign investors, with the state maintaining a central role in guiding the market economy
Impact:
● Boost in agriculture, rural income, and trade.
● As reforms deepened, China became one of the world’s leading destinations for foreign direct investment (FDI). Its entry into the World Trade Organization (WTO) in 2001 further accelerated its integration into the global economy. By the early 2000s, China had accumulated massive foreign exchange reserves and established itself as a manufacturing and export powerhouse. Its products began to dominate global markets, and its economy experienced double-digit growth for several years.China became a top destination for FDI, joined the WTO in 2001, and built massive foreign reserves.
Challenges:
● However, this remarkable transformation also brought challenges. China began to face rising unemployment, particularly in state-owned industries that were restructured or shut down. Corruption, urban–rural disparities, and environmental pollution became serious concerns..
Global Role:
● Despite these issues, China’s influence on global economic and strategic affairs continued to grow. As a result, China’s unresolved disputes with countries like Japan, the United States, Russia, and ASEAN have been moderated to some extent by the growing importance of economic interests. Similarly, China aims to settle its tensions with Taiwan—whom it views as a breakaway province—by strengthening economic integration and fostering deeper financial interdependence.
● During the 1997 Asian financial crisis, China played a stabilizing role, demonstrating its commitment to regional stability. It also began investing heavily in developing regions such as Africa and Latin America, using trade and infrastructure development as tools of influence.
India-China Relations
Historically, India and China existed within distinct spheres of influence and had limited political or cultural exchanges. This lack of deep interaction led to a degree of unfamiliarity between the two civilizations, despite being ancient neighbours.
Early Post-Independence Developments
After gaining independence, India was optimistic about fostering friendly ties with China, reflected in the popular slogan “Hindi-Chini Bhai-Bhai” (Indians and Chinese are brothers). However, this hope was soon overshadowed by emerging tensions:
● In 1950, China annexed “Tibet”, which caused discomfort in India, especially as it shared a long Himalayan border with Tibet.
● These tensions worsened into the “Sino-Indian border dispute”, particularly regarding claims over “Aksai Chin”(controlled by China but claimed by India) and “Arunachal Pradesh”(controlled by India but claimed by China).
● In 1962, this dispute escalated into a war, in which India suffered military setbacks.
● As a result, diplomatic relations deteriorated, and both countries downgraded official ties, with very little progress made until 1976.
Gradual Improvement of Relations
● Starting in the mid-1970s, China began adopting a more pragmatic foreign policy, which was less ideologically rigid and more open to cooperation.
● The Chinese government became willing to set aside contentious issues temporarily to improve overall relations.
● A significant moment came in December 1988, when Indian Prime Minister Rajiv Gandhi visited China. This landmark visit laid the foundation for a more stable and cooperative bilateral relationship.
Post–Cold War Relations: Strategic and Economic Dimensions
As global politics changed after the Cold War, both India and China began to “see themselves as rising powers”on the world stage. This perception influenced their bilateral engagement:
● Both countries took “confidence-building measures” to avoid conflict and maintain peace along the “Line of Actual Control (LAC)”.
● A number of ‘bilateral agreements’ were signed, promoting cooperation in areas such as “cultural exchange”, “science and technology”, and “border trade”.
● “Trade ties expanded rapidly, growing from $338 million in 1992 to more than $84 billion in 2017”.
● Since 1999, bilateral trade has grown at an average rate of 30% per year, reflecting strong economic interdependence.
● The two countries also work together at the international level, particularly within economic forums like the World Trade Organization (WTO).
Major Areas of Tension and Disagreement
Despite improvements, several unresolved issues continue to strain the relationship:
● Border disputes remain a critical concern. China’s claim over Arunachal Pradesh and its control over Aksai Chin are ongoing sources of tension.
● The construction of the “China–Pakistan Economic Corridor (CPEC)” through “Pakistan-occupied Kashmir (PoK)” is seen by India as a violation of its sovereignty.
● China’s consistent support for Pakistan in the ‘United Nations’, especially when India seeks action against terrorism, has been a point of friction.
● India’s 1998 nuclear tests were partly justified by Indian officials as a response to the perceived nuclear threat from China.
● China’s close military relationships with Bangladesh and Myanmar are are also viewed by India as strategically hostile moves.
Ongoing Engagement and Co-operation
● Despite these challenges, both countries have taken steps to manage tensions and continue dialogue:
● Boundary negotiations remain ongoing to resolve the territorial issues peacefully.
● Military-to-military cooperation has grown, with regular high-level meetings and visits between defence officials and political leaders.
● India and China continue to explore areas of cooperation in multilateral forums and maintain diplomatic communication to manage disputes constructively.
Other Emerging Powers in East Asia
Although not featured as primary power centers like the European Union, ASEAN, or China, certain East Asian nations hold significant relevance in India’s foreign relations and the international economy.
Japan: A Technological and Economic Power
● Japan is globally recognized for its advanced technology and globally renowned brands such as Sony, Toyota, Honda, Canon, Mazda, and Panasonic. Despite having limited access to natural resources, Japan has excelled in manufacturing and innovation. After World War II, the country experienced remarkable economic growth, even while importing most of its raw materials. Japan became a member of the Organisation for Economic Co-operation and Development (OECD) in 1964, marking its integration into the global economic system.
● By 2017, Japan held the position of the third-largest economy in the world and stood as the only Asian country included in the G-7 group. It also ranked as the eleventh most populous nation globally.
● Japan remains the only country in history to have suffered a nuclear attack, which left lasting effects on its national outlook. In response, Article 9 of the Japanese Constitution declares that Japan will never engage in war or use military force to resolve international disputes. Even though Japan maintains only a modest defense budget—about 1% of its GDP—it still ranks seventh in terms of military capacity. It has also been a strong advocate for global peace, contributing nearly 10% to the United Nations’ regular budget and maintaining a security alliance with the United States since 1951.
● Japan’s ability to achieve rapid growth and technological excellence despite post-war devastation places it among the most influential economic powers in the world today.
South Korea: From War to Economic Miracle
● Following World War II, the Korean Peninsula was divided into two separate countries: South Korea (Republic of Korea) and North Korea (Democratic People’s Republic of Korea). The boundary between them was set at the 38th Parallel. Tensions escalated into the Korean War (1950–1953), and the rivalry between the two countries remained strong throughout the Cold War. Eventually, both Koreas became members of the United Nations on 17 September 1991.
● In the decades following the war, South Korea underwent a dramatic transformation. Between the 1960s and 1980s, it experienced rapid industrial and economic growth, earning the nickname “Miracle on the Han River.” This period marked South Korea’s rise as a major Asian economy, characterized by high-tech development, export-oriented industries, and growing global influence. It joined the OECD in 1996, and by 2017, it had become the eleventh-largest economy globally, with one of the world’s top ten military budgets.
● According to the 2016 Human Development Report, South Korea ranked 18th globally in human development. This impressive position is attributed to several factors: an emphasis on education, skilled human resources, strong institutional frameworks, inclusive economic policies, and modern infrastructure.
● South Korean companies such as Samsung, LG, and Hyundai have gained international recognition and are widely popular in India. These corporations symbolize South Korea’s commercial strength and cultural reach in the contemporary world.