2. EUROPEAN UNION
After the end of the Second World War, there was a dilemma among many European leaders over the
status of Europe. The Second World War shattered the structure on which the European states had based
their relations.
The Cold War aided the integration of Europe after 1945. The European economy was revived by the
extensive financial support by USA under the ‘Marshall Plan’.
The Organization for European Economic Cooperation (OEEC) was established in 1948 to channel aid to
the West European states. It became a forum to co-operate on Trade and economic issues.
Another step forward in political cooperation was the establishment of the council of Europe in 1949.
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- Formation of European Economic Community to strengthen economic integration among
European Countries.
1992 February 7: The Treaty of Maastricht was signed establishing the European Union (EU).
3.
4. European Union- 1
November 1993
European Union- 27
Member Countries
EU Currency- 19
countries follow Euro as
currency
EU has it’s own
Constitution
European Parliament:
Currently 705 Members
Map: EU Members
as of 2020
5.
6.
7. “to recreate the European family, or as much of
it as we can, and to provide it with a structure
under which it can dwell in peace, in safety
and in freedom. We must build a kind of
United States of Europe.”
-Winston Churchill on United Europe after Second World
War
8. The disintegration of USSR led to the formation of European Union in 1992 which laid the foundation for
a common foreign and security policy, cooperation on justice and creation of a single currency.
EU has 27 Member countries, with it’s own, flag, anthem, Parliament, Bank, and Currency.
The European Union has evolved over time from an economic union to an increasingly political one.
The European Union has economic, political, diplomatic and military influence.
Several countries joined EU after 1991 and especially from previous Soviet bloc.
Economically, the European Union is the world’s second biggest economy. It had a GDP of more than $17
trillion in 2016. It had a GDP of $15 trillion in 2020. Its currency Euro, can pose a threat to the dominance
of the US Dollar.
EU could play more assertively in trade disputes with US and China. It’s economic power gives it influence
over it’s neighbors, Asian and African Nations.
On the political and diplomatic ground, France is a permanent member of the UN Security Council, and
had several non-permanent members over the time.
9. EU has asserted influence via UN bodies in situations like US position on Iran Nuclear program, dialogues with
China, Environmental regulations etc.
EU combined armed forces is second largest in the world and it’s defence spending second after USA.
France is one of 9 nuclear states in the world with 290 Nuclear Warheads in 2020, as per SIPRI (Stockholm
International Peace Research Institute) Yearbook 2020.
EU member states are leaders in Space and communication technology with achievements undertaken by
European Space Agency.
EU as supranational organisation intervene in Economic, Political and Social areas.
Member countries also have their own foreign relations and defence policies which often comes at odds with
other nations.
This has been the scenario for UK PM Tony Blair and their action in Iraq, and another PM Margaret Thatcher’s
decision to keep UK out of EU Market and now they are out of EU.
Denmark and Sweden have resisted the Maastricht Treaty and the adoption of the euro, the common European
currency.
10. ASEAN
SE Asia consist of 11 countries.
Repeated colonialism in the region by European and Japanese
Adverse impact on Economy and politics
Post-Independence and 2nd World War faced problem of Nation Building, Poverty, Economic backwardness, cold
war alliance.
Efforts at Asian and Third World Unity - Bandung Conference, NAM
Proved ineffective for establishing conventions for informal cooperation and interaction.
South East Asia formed ASEAN.
ASEAN formed by signing of Bangkok Declaration by 5 countries namely, — Indonesia, Malaysia, Philippines,
Singapore and Thailand.
Primary objective of Economic Growth, which was envisioned to promote Social Progress and Cultural
development
Secondary objective: Regional Peace and stability by adhering to Principles of UN charter.
14. o Other states joining ASEAN and current Members Brunei Darussalam, Vietnam, Lao PDR, Myanmar (Burma) and
Cambodia taking its present strength to ten.
o Unlike EU, ASEAN is not a supranational structure and Institution
o ASEAN way that is upholding national Sovereignty. Interaction of Member Countries in Informal Corporation
o Fastest Growing Economies in ASEAN
o From 2003 onwards shift in ASEAN beyond social and economic spheres.
o Establishing ASEAN community comprising three pillars:
1. ASEAN Security Community,
2. ASEAN Economic Community
3. ASEAN Socio-Cultural Community
o ASEAN security Community
Avoiding territorial disputes from escalation into armed confrontations.
Agreements to uphold Peace, neutrality, cooperation, non-interference, and respect for national differences
and sovereign rights.
ARF established in 1994 is responsible for coordination of security and foreign policy.
15. ASEAN ECONOMIC GROWTH
o AEC among member states aims at creating common market and production base to aid social and economic development in the
region
o ASEAN is improving dispute settlement Mechanism and has come up with Free Trade Area (FTA) for investment, labour and
services.
o US, China are negotiating FTA with ASEAN
o Vision 2020 of ASEAN looks itself to be important regional organization looking a role in International Community.
o To further this ASEAN is encouraging negotiations over conflict in the region.
o ASEAN annual meet to discuss East Asian Cooperation and mediation in Cambodian Conflict, East Timor Crisis.
o ASEAN Economic Strength makes it important, specially to trading and investment partner to growing Asian economies such as
China and India
o Indian Foreign Policy didn’t pay much attention to ASEAN during cold war but has seen a shift in recent times.
o India has signed Trade agreements with 3 ASEAN members namely Malaysia, Singapore and Thailand.
o ASEAN-India FTA came into effect in 2010.
o ASEAN is a major Asian forum to discuss Political and Security concerns of Asian countries and major powers
16. RISE OF CHINESE ECONOMY
o China as an alternative Centre of Power
o China’s economic success since 1978 is attributed to economic reforms.
o China is fastest growing economy since then and is projected to be worlds’ largest economy by 2040.
o China’s economic growth, makes it as a great influence in the regional affairs and in growth of East Asia.
o China’s economy along with other factors such as population, land mass, resources, regional location and
political influence makes it powerful in the region.
o Following communist Revolution , Rise of People’s Republic of China in 1949, under leadership of Mao.
o Economically backward China severed tis link with capitalist world and followed Soviet Economic Model.
o It relied on their resource and soviet aid and advice.
o State owned heavy industries sector was created from the capital accumulated from agriculture.
o China lacked foreign exchange to buy technology and goods from world market. China substituted imports
by domestic goods.
o China used it’s resources to set up Industrial Economy
o China ensured Employment Better Health, Social Welfare Education to all which was ahead of many
developing countries at the time.
17. o Economic Growth at rate of 5-6% but proved insufficient to growing population at 2-3 %
o Agricultural Production was not sufficient to generate a surplus for Industry.
o Crisis in China marked by Low Industrial Production, Minimal International Trade and low per capital income.
o 1970s saw shift in Chinese Policy.
o 1972 China established relation with USA ending Political and Economic Isolation.
o 1973 Four Modernization (agriculture, industry, science and technology and military) proposed by Zhou Enlai.
o 1978 – Deng Xiaoping’s ‘Open Door Policy’ followed by Economic Reforms.
o It aimed at increased productivity by foreign investments of capital and technology
o China opened up economy step by step.
o 1982 Privatization of Agriculture
o 1998 Privatization of Industry
o Eliminated trade barriers in SEZ (Special Economic Zones) for foreign investors.
o Central role of State in setting up Market Economy.
o The new economic policies helped the Chinese economy to break from stagnation.
o Private Agriculture led increased production and rural income.
18. o High personal savings in rural economy led exponential growth in rural industry
o Chinese economy, including agriculture and Industry grew at a faster rate.
o SEZ led to phenomenal rise in foreign trade and a popular destination for Foreign Direct Investment (FDI).
o China’s large foreign exchange reserve now allows it for big investment in other countries.
o China inclusion in WTO (World Trade Organization) in 2001 provided China an opportunity for integration to world
economy and shape future world economic order.
o Benefits of Chinese economy not evenly distributed marked by rising unemployment, Environmental degradation,
Corruption, rising economic inequality between rural, urban, coastal and Inland provinces
o Female Employment and conditions of workers like Europe of 18th and 19th Centuries
o Regional and global rise of China as power to reckon with
o China’s outstanding issues with US, ASEAN, and Russia have tempered by economic considerations
o China’s difference with Taiwan, Hong Kong undermined by closely integrating them into its economy
o Fear of China’s rise have been mitigated by its contribution to stability of ASEAN economies after 1997.
o Investment and Aid policies of China in Latin America and Africa
o China projected a global player on side of developing countries
19. INDIA- CHINA RELATION
oIndia and China great powers historically before the advent of imperialism.
oChina has a long history of dynastic rules having influence over the areas of
Mongolia, Korea, parts of Indo-China, and Tibet.
oVarious kingdoms in India also had influence beyond present day borders.
oInfluence in both cases was in economic, political and cultural but with limited
interaction between these two countries.
o20th Century – both nations confronted difficulty evolving foreign policy to deal with
each other.
o1950- India China diplomatic relations with popular slogan of “Hindi-Chini Bhai-
Bhai”
oChinese take over of Tibet in1950, led to differences in India and China over this.
oThe relation was overshadowed by military confrontation on Sino-India border
issues, resulting in 1962 Conflict over competing territorial claims in Arunachal
20. oIndia Suffered Military reverse in 1962 and led to Severed diplomatic relations till 1976.
oChanged political leadership in China in 1970s, and move of China to being more pragmatic than
ideological. This saw slow improvement in India-China relation.
oChina showed willingness resolve border issues and talks initiated between India-China in 1981.
oRelations are strategic and economic knowing their position as rising power in Asian and global politics
and economy.
oChina visit of Rajiv Gandhi in 1988, both government taken measures to contain conflict and promote
‘peace and tranquility at border’.
oSigned agreements on cultural exchanges and cooperation in science & technology, opened four border
post for trade.
oWith India-China’s trade growing at 30% per year since 1999. Bilateral trade has increased from $338
Million in 1992 to $84 Billion in 2017 and $92 Billion in 2019.
oAlikeness of India-China in bidding for energy deals, similar polices in International economic institutions
21. oChina’s growing ties with Pakistan and their contribution in Pakistani’s Nuclear Program
oIndia’s Nuclear Test in 1998 sometimes justified on grounds of threat from China.
oChina was seen as contributing to the build up of Pakistan’s nuclear programme.
oChina’s Military relation with Bangladesh, Myanmar seen as hostile to India’s position in South
Asia.
oIndo-China cooperation seen in border talks, bilateral visit, increased transportation and
communication link, common economic interest and global concerns.
22. BRICS
The term BRICS refers to Brazil, Russia, India,
China, and South Africa respectively.
BRIC was founded in 2006 in Russia.
BRIC turned into BRICS after the inclusion of
South Africa in its first meeting in the year
2009.
The key objectives of BRICS are primarily to
cooperate and distribute mutual economic
benefits among its members besides non-
interference in the internal policies of each
nation and mutual equality.
The 11th conference of the BRICS concluded
in Brazil in 2019, chaired by Brazilian
President Jair Bolsonaro.
23. RUSSIA
Russia has been the largest part of the former Soviet Union even
before its disintegration.
After the dissolution of the Soviet Union in late 1980s and early
1990s, Russia emerged as the strong successor of USSR [Union of
Soviet Socialist Republics].
Russia's GDP is currently 11th in the world. Russia has reserves of
minerals, natural resources and gases that make it a powerful country
in the global world.
In addition, Russia is a nuclear state with a huge stock of
sophisticated weapons. Russia is also a permanent member of the UN
Security Council, called P-5
24. INDIA
The 21st century India is being seen as an important emerging global
power.
The world is experiencing the power and rise of India in a multidimensional
way.
The economic, cultural, strategic position of the country with a population
of more than 135 crores is very strong.
From an economic perspective, targeting the goal of a $5 trillion economy, a
competitive huge market, an ancient inclusive culture with 200 million people
of Indian Diaspora spreading across the globe impart distinct meaning and
salience to India as a new centre of power in the 21st century.
From a strategic perspective, the military of India is self-sufficient with
indigenous nuclear technology making it another nuclear power. ‘Make in
India’ scheme in technology and science is another milestone of Indian
economy.
25. ISRAEL
Shown on the world map with a pointer, Israel has emerged as one
of the most powerful nations in the 21st century world in terms of
science and technology, defence, intelligence besides economy.
Situated in the middle of the burning politics of West Asian
countries, Israel has reached to the new heights of global political
standing by virtue of its indomitable defence prowess, technological
innovations, industrialization and agricultural development.
Sustaining against adversity is the principle with which a small
Jewish-Zionist nation, i.e., Israel is placed in the contemporary global
politics in general and the Arab-dominated West Asian politics in
particular.
