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Overview of Contemporary Centres of Power

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Estimated time: 20 minutes
CBSE: Class 12

Key Points: European Union (EU)

  • Origin after World War II: European integration began after 1945 to rebuild economies and prevent future wars.
  • Marshall Plan & early cooperation: The Marshall Plan led to economic cooperation through bodies like OEEC (1948) and Council of Europe (1949).
  • Economic to political integration: Integration moved step-by-step from economic cooperation to political unity, forming the EEC (1957) and later the EU (1992).
  • Key features of the EU: The EU has a common marketsingle currency (euro)European Parliament, and shared policies in many areas.
  • Expansion after Soviet collapse: Many East and Central European countries joined the EU after the fall of the Soviet bloc.
  • Global economic and political power: The EU is a major trading bloc, influential in WTO, diplomacy, and global negotiations.
  • Limits and challenges: National sovereignty concerns, Euroscepticism, uneven integration, and differences in foreign and defence policies limit EU unity. 
CBSE: Class 12

Key Points: Timeline of European Integration

  • 1951 – Six countries form the European Coal and Steel Community (ECSC) (Treaty of Paris).
  • 1957 – Treaties of Rome create the EEC and Euratom.
  • 1973 – Denmark, Ireland, and the UK join the EEC
  • 1979 – First direct elections to the European Parliament.
  • 1985 – Schengen Agreement abolishes internal border controls.
  • 1992–93 – Maastricht Treaty signed; European Union (EU) formally established.
  • 2002 – Euro introduced as common currency in many EU states.
  • 2016 – Brexit referendum: UK votes to leave the EU. 
CBSE: Class 12

Key Points: Association of South East Asian Nations (ASEAN)

  • Formation (1967): ASEAN was established by Indonesia, Malaysia, Philippines, Singapore, and Thailand through the Bangkok Declaration.
  • Main Aim: To promote economic growthsocial progress, and cultural development, and ensure regional peace and stability.
  • Expansion: Membership expanded over time to include Brunei, Vietnam, Laos, Myanmar, and Cambodia (total 10 members).
  • ASEAN Way: ASEAN follows an informal, non-confrontational, consensus-based approach, with strong respect for national sovereignty and non-interference.
  • ASEAN Community (2003): Decision to create an ASEAN Community with three pillars – ASEAN Security Community, ASEAN Economic Community and ASEAN Socio-Cultural Community
  • Security Role: Focuses on peaceful resolution of disputes; ASEAN Regional Forum (ARF) (1994) coordinates security and foreign policy dialogue.
  • Economic Importance: One of the fastest-growing regions; promotes Free Trade Area (FTA), trade, investment, and strong ties with India, China, and the US.
CBSE: Class 12

Key Points: The Rise of the Chinese Economy

  • Post-1949 – China adopted a Soviet-style socialist economy with state control.
  • 1970s Policy Shift – Opened relations (USA, 1972) and adopted Four Modernisations.
  • Deng’s Reforms (1978) – Open Door Policy and gradual market reforms.
  • SEZs & WTO (2001) – Boosted FDI, exports and global integration.
  • Impact – Rapid growth made China a major economic power, but caused inequality and environmental issues.
CBSE: Class 12

Key Points: India–China Relations

  • Background – India and China were ancient powers; modern relations developed mainly in the 20th century.
  • Early Friendship – After independence, “Hindi-Chini Bhai-Bhai” showed friendly ties.
  • 1962 War – Border disputes over Tibet, Aksai Chin and Arunachal Pradesh damaged relations.
  • Recovery – Relations improved after 1976 with border talks starting from 1981.
  • Present Relations – Trade increased, but issues like border tensions, China-Pak ties and rivalry continue.
CBSE: Class 12

Key Points: Japan

  • Japan is known for global brands like Sony, Toyota, Honda, Panasonic.
  • Japan is the 3rd largest economy (2017).
  • After World War II, Japan rebuilt rapidly and joined the OECD in 1964.
  • Japan depends on a security alliance with the USA.
  • Japan is a major contributor to the UN budget.
CBSE: Class 12

Key Points: South Korea

  • Korea was divided into North and South Korea after WWII along the 38th. parallel; the Korean War.
  • South Korea achieved rapid growth known as the “Miracle on the Han River”.
  • Member of OECD (1996); by 2017, it became the 11th largest economy.
  • Ranked 18th in HDI (2016).
  • Home to global brands like Samsung, LG, Hyundai
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