Class 12 Political Science Chapter 2 — Contemporary Centres of Power
Welcome to HSLC Guru. This page presents complete NCERT-based question-answer notes for ASSEB Class 12 Political Science (Contemporary World Politics) Chapter 2 — Contemporary Centres of Power. The chapter studies how alternative centres of political and economic power — the European Union, ASEAN, China, Japan, South Korea and India — have emerged in the post-Cold War world to limit US dominance.
About the Chapter
After the collapse of the Soviet Union in 1991, the world became unipolar with the United States as the sole superpower. However, several regional organisations and rising economies began to emerge as alternative centres of power. This chapter examines the European Union (EU) and the Association of South East Asian Nations (ASEAN) as supranational and regional models, the meteoric economic rise of China, and the role of Japan, South Korea and India as significant powers in Asia.
Summary
The end of the Cold War and the disintegration of the Soviet Union left the United States as the sole superpower. To balance US hegemony, alternative centres of political and economic power emerged across Europe and Asia. The European Union (EU) evolved from earlier post-war reconstruction efforts (the Marshall Plan of 1948 and the OEEC, the Council of Europe in 1949, and the European Economic Community in 1957) and was formally established by the Maastricht Treaty signed in 1992, which came into force in 1993. The EU has its own flag, anthem, founding date and a common currency — the euro. It is the world’s largest economy in many measures, with significant political, economic, diplomatic and military influence; two of its members (Britain and France) are permanent members of the UN Security Council.
The Association of South East Asian Nations (ASEAN) was established in 1967 by the Bangkok Declaration with five founding members — Indonesia, Malaysia, Philippines, Singapore and Thailand. Today ASEAN has ten members. ASEAN’s objectives include accelerating economic growth, promoting regional peace and stability, and fostering social and cultural development. The ASEAN Vision 2020 envisions an outward-looking role in the international community. The organisation works through the ASEAN Way, an informal, non-confrontational and cooperative style of interaction. The ASEAN Community has three pillars — Security Community, Economic Community and Socio-Cultural Community. The ASEAN Regional Forum (ARF), set up in 1994, deals with security and foreign policy coordination.
China’s economic rise has been the most dramatic development of the contemporary era. After the 1949 communist revolution under Mao Zedong, China followed a Soviet-style command economy. Economic reforms were launched in 1978 by Deng Xiaoping with the slogans “Four Modernisations” (agriculture, industry, science and technology, and military). In 1982 agriculture was privatised, in 1998 industry was privatised, trade barriers were removed, Special Economic Zones (SEZs) were created, and foreign investment was welcomed. The new economic policies have made China the second largest economy in the world and projected to overtake the US. China joined the World Trade Organization (WTO) in 2001 and now plays a dominant role in regional and global affairs.
India-China relations have moved from cordial 1950s (“Hindi-Chini Bhai-Bhai” and the Panchsheel Agreement of 1954) to the war of 1962 over boundary disputes (Aksai Chin and Arunachal Pradesh) and a long freeze in relations. Rajiv Gandhi’s visit to China in 1988 began the process of normalisation. Today both countries cooperate in trade, climate change negotiations, BRICS, SCO and G-20, although boundary issues, the Tibet question and the strategic competition in Asia remain points of friction. Japan is the world’s third largest economy with limited military spending (around 1 per cent of GDP) and is the only country to have suffered atomic bombings (Hiroshima and Nagasaki, 1945). Its post-war reconstruction made it a global economic power. South Korea (Republic of Korea) achieved its “Miracle on the Han River” — rapid industrialisation since the 1960s — and is today a leading high-tech and manufacturing economy. Both Japan and South Korea play significant roles as US allies and as economic powers in Asia.
সাৰাংশ (Assamese Summary)
চমু সমাজবাদৰ পতন আৰু চোভিয়েট সংঘৰ বিচ্ছিন্নতাৰ পিছত আমেৰিকা যুক্তৰাষ্ট্ৰ একমাত্ৰ অতিশক্তিধৰ ৰাষ্ট্ৰ হৈ পৰিছিল। তাৰ আধিপত্যক প্ৰতিদ্বন্দ্বিতা কৰিবলৈ ইউৰোপ আৰু এছিয়াত নতুন বৈকল্পিক শক্তিকেন্দ্ৰৰ উদ্ভৱ হ’ল। ইউৰোপীয় সংঘ (EU) ১৯৯২ চনৰ মাষ্ট্ৰিচ সন্ধিৰ যোগেদি গঠন কৰা হৈছিল আৰু ই বিশ্বৰ অন্যতম বৃহৎ অৰ্থনৈতিক, ৰাজনৈতিক আৰু কূটনৈতিক শক্তিকেন্দ্ৰ। ইয়াৰ নিজস্ব পতাকা, সংগীত আৰু সাধাৰণ মুদ্ৰা ইউৰো আছে। ASEAN (দক্ষিণ-পূব এছিয়াৰ ৰাষ্ট্ৰৰ সংস্থা) ১৯৬৭ চনত বেংকক ঘোষণাপত্ৰৰ যোগেদি স্থাপন কৰা হৈছিল আৰু আজি ইয়াৰ দহখন সদস্য ৰাষ্ট্ৰ আছে। চীনৰ অৰ্থনৈতিক উত্থান ১৯৭৮ চনত দেং জিয়াওপিঙৰ অৰ্থনৈতিক সংস্কাৰৰ পৰা আৰম্ভ হৈছিল আৰু বৰ্তমানে চীন বিশ্বৰ দ্বিতীয় বৃহৎ অৰ্থনীতি। ভাৰত-চীন সম্পৰ্ক ১৯৬২ চনৰ যুদ্ধৰ পিছত শীতল আছিল যদিও ১৯৮৮ চনত ৰাজীৱ গান্ধীৰ চীন ভ্ৰমণৰ পৰা স্বাভাৱিক হৈ আহিছে। জাপান তৃতীয় বৃহৎ অৰ্থনীতি আৰু দক্ষিণ কোৰিয়াৰ “হান নদীৰ অলৌকিক” উন্নয়ন এছিয়াৰ গুৰুত্বপূৰ্ণ শক্তি হিচাপে ধৰা দিছে।
NCERT Textbook Questions and Answers
Q1. Arrange the following in chronological order:
(a) India’s membership of NAM
(b) Establishment of ASEAN
(c) Establishment of EU
(d) Deng Xiaoping’s economic reforms in China
Answer: The chronological order is:
(a) India’s membership of NAM — 1961
(b) Establishment of ASEAN — 1967
(d) Deng Xiaoping’s economic reforms in China — 1978
(c) Establishment of EU — 1992 (Maastricht Treaty)
Q2. Which among the following statements about the EU is wrong?
(a) The EU has its own flag, anthem, founding date and currency.
(b) The EU has some form of common foreign and security policy.
(c) The EU’s member states have a single foreign and defence policy.
(d) Some of the EU’s member states do not accept the Euro as their currency.
Answer: Statement (c) is wrong. The EU does not have a single, unified foreign and defence policy — its member states retain their independent foreign and defence policies, although they coordinate on common positions.
Q3. Identify which of the following statements regarding the Chinese economy is wrong:
(a) Privatisation of agriculture in 1982 was followed by the privatisation of industry in 1998.
(b) Special Economic Zones were set up to attract foreign investors.
(c) The new economic policies enabled China to break the economic stagnation.
(d) The state-owned enterprises continued to be the only economic force in China.
Answer: Statement (d) is wrong. After the 1978 reforms, the private sector and foreign-invested enterprises grew rapidly, and state-owned enterprises were no longer the only economic force in China.
Q4. Fill in the blanks:
(a) The border dispute between India and China centres around the ………. region in the West and the territory of ………. in the East.
(b) Pancha Sheel referred to the ………. agreement signed between India and China in ……….
(c) ASEAN was established in ………. by the ………. declaration.
(d) Mao led the Communist Revolution in China in ……….
Answer:
(a) Aksai Chin; Arunachal Pradesh
(b) Five Principles of Peaceful Coexistence; 1954
(c) 1967; Bangkok
(d) 1949
Q5. The European Union has been moving towards establishing a common foreign and security policy, but its member states do not always have a common stand on all issues. Comment.
Answer: The EU has tried to develop a Common Foreign and Security Policy (CFSP) since the Maastricht Treaty of 1992, and it speaks with one voice on many global issues such as climate change, trade, human rights and development assistance. However, the member states are sovereign nations with their own national interests, alliances and historical ties. For example, on the 2003 Iraq War, Britain supported the US-led invasion while France and Germany opposed it. Similarly, member states differ on policies towards Russia, China, the Middle East, NATO and defence spending. Two members (Britain — until Brexit — and France) are permanent UNSC members. Therefore, while the EU has a coordinated stance on many issues, it does not always have a single common foreign and defence policy on every matter.
Q6. The emergence of regional organisations is a recent phenomenon in international politics. In light of this statement, examine the role of the European Union and ASEAN in this regard.
Answer: Regional organisations have emerged in recent decades as states realised that economic, political and security challenges cannot be tackled in isolation.
European Union (EU): Originating in post-WWII reconstruction (Marshall Plan, OEEC, Council of Europe), the European Economic Community of 1957 evolved into the EU through the 1992 Maastricht Treaty. The EU has its own flag, anthem, founding date and currency (the euro). It functions as an economic, political, diplomatic and military influence — its combined GDP exceeds that of the United States, two members (Britain, France) are permanent UNSC members, and its diplomatic and developmental aid roles are major in international politics.
ASEAN: Founded in 1967 by the Bangkok Declaration with five founding members, today’s ASEAN has ten members and works through the informal, cooperative “ASEAN Way”. The ASEAN Vision 2020 makes it outward-looking. Its three pillars (Security, Economic and Socio-Cultural Communities) and the ASEAN Regional Forum (1994) make it Asia’s most important regional organisation, with influence beyond its borders through ASEAN+3 (China, Japan, South Korea) and dialogue with India, the EU and the US.
Q7. What are the objectives of establishing regional organisations?
Answer: The main objectives of regional organisations are:
(i) To accelerate economic growth and development through regional cooperation.
(ii) To promote regional peace, security and stability.
(iii) To strengthen common foreign, defence and political positions.
(iv) To promote socio-cultural cooperation and people-to-people contacts.
(v) To address common environmental and developmental challenges.
(vi) To create a collective bargaining position in international forums.
Q8. How does geographical proximity influence the formation of regional organisations?
Answer: Geographical proximity is the foundation of regional organisations. Neighbouring countries share borders, climate, ecology, river systems and trade routes; they face common security threats and migration patterns; their economies complement each other through trade in raw materials, labour and capital; and their peoples share cultural, linguistic and historical bonds. Geographical closeness reduces transportation costs and makes regional integration easier. Examples — the EU benefits from continental Europe’s connected geography; ASEAN benefits from South-East Asian maritime connections; SAARC reflects shared South Asian history and geography.
Q9. The post-1991 normalisation of relations between India and China has led to a significant downplay of their political differences. However, several issues still need to be resolved between the two countries. What are these issues?
Answer: Despite normalisation, several issues remain unresolved between India and China:
(i) Boundary disputes: Aksai Chin in the western sector and Arunachal Pradesh in the eastern sector.
(ii) Tibet question: India hosts the Dalai Lama and the Tibetan government-in-exile in Dharamshala, which China resents.
(iii) China-Pakistan strategic ties: China’s military and nuclear cooperation with Pakistan, including the China-Pakistan Economic Corridor (CPEC) passing through Pakistan-Occupied Kashmir.
(iv) Trade imbalance: India’s trade deficit with China is significant.
(v) Strategic competition: Chinese influence in India’s neighbourhood (Sri Lanka, Nepal, Bangladesh, Myanmar) and the “String of Pearls” perception.
(vi) NSG and UNSC reform: China has blocked India’s entry into the Nuclear Suppliers Group and slowed UNSC reform.
Q10. Briefly describe the post-Soviet political and economic crisis in Russia.
Answer: (Note: this question relates to Chapter 1 but is sometimes asked in the context of contemporary power.) After the Soviet Union disintegrated in 1991, Russia faced a severe political and economic crisis. The “shock therapy” model of rapid privatisation and market reforms collapsed industries, devalued the rouble, raised inflation, increased unemployment, and created a class of oligarchs. Politically, the Chechen war and weakening of state institutions added to instability. Russia recovered partially under Putin in the 2000s using oil and gas exports, but economic and political problems persist.
Short Answer Type Questions
Q1. When was the European Union established?
Answer: The European Union (EU) was established on 7 February 1992 with the signing of the Treaty of Maastricht (Maastricht Treaty), which came into force on 1 November 1993.
Q2. What is the Euro?
Answer: The euro is the common currency adopted by most member states of the European Union. It was introduced on 1 January 1999 and came into physical circulation on 1 January 2002. It is the second most-traded currency in the world after the US dollar.
Q3. Mention the founding members of ASEAN.
Answer: ASEAN was founded in 1967 by five countries — Indonesia, Malaysia, Philippines, Singapore and Thailand. Brunei, Vietnam, Laos, Myanmar and Cambodia joined later, making it a ten-member organisation.
Q4. What is the “ASEAN Way”?
Answer: The ASEAN Way is the informal, non-confrontational and cooperative style of decision-making used by ASEAN. It emphasises consultation, consensus, non-interference in internal affairs, and respect for sovereignty.
Q5. Mention the three pillars of the ASEAN Community.
Answer: The three pillars of the ASEAN Community are: (i) ASEAN Security Community, (ii) ASEAN Economic Community, and (iii) ASEAN Socio-Cultural Community.
Q6. What is the ASEAN Regional Forum (ARF)?
Answer: The ASEAN Regional Forum (ARF), set up in 1994, is the body that carries out coordination of security and foreign policy among ASEAN states and other Asia-Pacific powers including India, China, the US, Russia and Japan.
Q7. Who initiated economic reforms in China and when?
Answer: Economic reforms in China were initiated by Deng Xiaoping in 1978 with the slogans “Four Modernisations” (agriculture, industry, science and technology, and military).
Q8. What are SEZs?
Answer: Special Economic Zones (SEZs) are designated areas with liberal economic and tax laws to attract foreign investment, encourage exports and accelerate industrialisation. China created SEZs as part of its 1978 reforms (Shenzhen, Zhuhai, Shantou, Xiamen, Hainan).
Q9. What was Panchsheel?
Answer: Panchsheel — the Five Principles of Peaceful Coexistence — was an agreement signed between India and China in 1954. The five principles are: mutual respect for territorial integrity and sovereignty, mutual non-aggression, non-interference in internal affairs, equality and mutual benefit, and peaceful coexistence.
Q10. When and why did India and China go to war?
Answer: India and China went to war in October-November 1962 over disputed border areas — Aksai Chin in the western sector (Ladakh) and the McMahon Line / NEFA (now Arunachal Pradesh) in the eastern sector. The war ended with a Chinese ceasefire and seriously damaged Sino-Indian relations for decades.
Q11. Why is Japan called an economic giant despite low military spending?
Answer: Japan spends only about 1 per cent of its GDP on the military (because of the post-WWII pacifist constitution), yet it is the world’s third largest economy. Its strength comes from advanced technology, manufacturing (automobiles, electronics), high productivity and global trade — making it an economic superpower without being a military one.
Q12. What is the “Miracle on the Han River”?
Answer: “Miracle on the Han River” refers to the rapid industrialisation and economic transformation of South Korea from the 1960s onwards. The country moved from being one of the poorest in the world to a leading high-tech industrial economy in only a few decades.
Q13. Mention any two factors that limit the EU’s influence in world politics.
Answer: (i) Member states retain independent foreign and defence policies and often disagree (e.g. on the Iraq War 2003). (ii) Internal divisions over the euro, immigration, Brexit and economic reform have weakened EU cohesion.
Q14. Mention any two areas in which India and China cooperate today.
Answer: (i) Bilateral trade — China is one of India’s largest trading partners. (ii) Multilateral fora — both cooperate in BRICS, the Shanghai Cooperation Organisation (SCO), G-20 and climate change negotiations.
Q15. What is the significance of Rajiv Gandhi’s 1988 visit to China?
Answer: Rajiv Gandhi’s December 1988 visit to China marked the beginning of normalisation of Sino-Indian relations after the 1962 war. It opened dialogue on the boundary issue and led to a series of confidence-building measures and trade agreements through the 1990s.
Long Answer Type Questions
Q1. Trace the evolution of the European Union from a post-war economic project to a regional power.
Answer: The European Union evolved through several stages:
(i) Post-WWII reconstruction (1945-1949): The Marshall Plan of 1948 (US economic aid) and the Organisation for European Economic Cooperation (OEEC) helped rebuild war-shattered Western Europe. The Council of Europe was set up in 1949.
(ii) Economic integration (1950s-1980s): The European Coal and Steel Community (1951) and the Treaty of Rome (1957) created the European Economic Community (EEC) and Euratom — uniting France, West Germany, Italy and the Benelux countries.
(iii) Political integration (1992): The Maastricht Treaty of 7 February 1992 transformed the EEC into the European Union, adding common foreign and security policy, justice and home affairs, and a single currency project.
(iv) Single currency (1999-2002): The euro was introduced electronically in 1999 and physically in 2002.
(v) Eastward expansion (2004 onwards): Many former Eastern Bloc states joined, expanding the EU to 27 members (28 before Brexit).
The EU has its own flag, anthem (Beethoven’s “Ode to Joy”), motto and founding date. With its enormous economy, common currency, two UNSC permanent members, large military forces in member states, second-largest space programme, and major share in world trade, it is one of the most influential centres of contemporary power.
Q2. Explain the rise of China as an economic power after 1978.
Answer: Before 1978, China followed a Soviet-style command economy under Mao. The economy stagnated, foreign trade was limited, and per-capita income was very low. In 1978 Deng Xiaoping launched economic reforms with the “Four Modernisations”:
(i) Open-door policy (1978): Foreign investment and trade were welcomed.
(ii) Privatisation of agriculture (1982): Communes were dismantled and land was leased to households, raising agricultural productivity dramatically.
(iii) Special Economic Zones (1980s): Coastal SEZs (Shenzhen, Zhuhai, Shantou, Xiamen, Hainan) attracted foreign capital, technology and management practices.
(iv) Privatisation of industry (1998): State-owned enterprises were restructured and the private sector grew rapidly.
(v) WTO membership (2001): China joined the WTO, accelerating its integration into the world economy.
As a result, China’s GDP grew at nearly 10 per cent annually for three decades. It became the world’s largest exporter, the largest holder of foreign currency reserves, and the second largest economy in the world. Today, China is a leading force in trade, technology, infrastructure (Belt and Road Initiative), and security in Asia.
Q3. Discuss India-China relations from 1950 to the present.
Answer: India-China relations have passed through four broad phases:
(i) Friendship phase (1950-1959): India was one of the first countries to recognise the People’s Republic of China in 1950. The two countries signed the Panchsheel Agreement in 1954 with the slogan “Hindi-Chini Bhai-Bhai”. India also supported China’s entry into the UN.
(ii) Conflict phase (1959-1976): The Tibetan uprising of 1959 and the Dalai Lama’s flight to India strained ties. Boundary disputes in Aksai Chin (west) and NEFA/Arunachal Pradesh (east) led to the 1962 war, which India lost. Relations were largely frozen.
(iii) Normalisation phase (1976-present): Diplomatic relations were restored in 1976 and Rajiv Gandhi’s 1988 visit reopened talks. Confidence-building agreements were signed in 1993 and 1996.
(iv) Cooperation-with-competition phase (1990s-present): Bilateral trade grew rapidly (China is among India’s top trading partners). Both cooperate in BRICS, SCO, G-20 and climate change. However, boundary issues remain unresolved (Doklam 2017, Galwan 2020), and concerns continue over China-Pakistan ties (CPEC), Chinese influence in South Asia, NSG entry, UNSC reform, and the Tibet question.
The relationship is therefore a complex mix of cooperation in trade and global governance and competition over strategic and territorial issues.
Q4. Examine the role and structure of ASEAN in international politics.
Answer: ASEAN was established by the Bangkok Declaration of 1967 with five founding members and has since expanded to ten. Its role and structure include:
(i) Objectives: Accelerating economic growth, promoting peace and stability, and fostering social and cultural cooperation in South-East Asia.
(ii) ASEAN Way: Informal, non-confrontational, consensus-based decision-making with respect for sovereignty and non-interference.
(iii) Three Pillars / ASEAN Community: ASEAN Security Community, ASEAN Economic Community, and ASEAN Socio-Cultural Community.
(iv) ASEAN Regional Forum (1994): The main security and foreign-policy coordination platform involving 27 states including the US, EU, Russia, China, Japan, India and others.
(v) ASEAN Vision 2020: Outward-looking role; commitment to a peaceful, prosperous and integrated South-East Asia.
(vi) Free Trade Area (AFTA): ASEAN has free-trade agreements with India, China, Japan, South Korea, Australia and New Zealand.
ASEAN is therefore the most successful regional organisation in Asia and an important pillar of contemporary world politics.
Q5. Compare the rise of China with the rise of India and explain why both are emerging as major centres of power.
Answer: Both China and India are large, populous, ancient civilisations that have emerged as major centres of power in the 21st century, but their rise has differed in pace and pattern:
(i) Political systems: China is a one-party communist state; India is the world’s largest democracy.
(ii) Economic reform timing: China liberalised in 1978 under Deng Xiaoping; India liberalised in 1991 under P.V. Narasimha Rao and Manmohan Singh.
(iii) Growth pattern: China grew through manufacturing, exports and infrastructure-led growth; India grew through services, IT and skilled labour.
(iv) Foreign policy: China seeks regional dominance and a multipolar world; India follows strategic autonomy and balanced relations with all major powers.
(v) Common features: Both have huge domestic markets, large young populations, growing middle classes, strong technology sectors, and significant influence in BRICS, G-20, SCO and climate negotiations.
Together, both countries house over one-third of humanity. Their rise is shifting the centre of gravity of world economy and politics from the West to Asia, contributing to a more multipolar world.
Multiple Choice Questions (MCQs)
1. The European Union was established by which treaty?
(a) Treaty of Rome
(b) Treaty of Maastricht
(c) Treaty of Lisbon
(d) Treaty of Paris
Answer: (b) Treaty of Maastricht (1992)
2. The Maastricht Treaty was signed in:
(a) 1957
(b) 1991
(c) 1992
(d) 1999
Answer: (c) 1992
3. The common currency of the European Union is:
(a) Pound
(b) Mark
(c) Euro
(d) Franc
Answer: (c) Euro
4. ASEAN was established in:
(a) 1949
(b) 1961
(c) 1967
(d) 1971
Answer: (c) 1967
5. ASEAN was established by the:
(a) Manila Declaration
(b) Bangkok Declaration
(c) Jakarta Declaration
(d) Singapore Declaration
Answer: (b) Bangkok Declaration
6. How many founding members did ASEAN have?
(a) Three
(b) Four
(c) Five
(d) Six
Answer: (c) Five
7. Which of the following is NOT a founding member of ASEAN?
(a) Indonesia
(b) Vietnam
(c) Malaysia
(d) Thailand
Answer: (b) Vietnam
8. The current number of ASEAN members is:
(a) 7
(b) 8
(c) 9
(d) 10
Answer: (d) 10
9. The ASEAN Regional Forum was established in:
(a) 1990
(b) 1992
(c) 1994
(d) 1997
Answer: (c) 1994
10. Communist revolution in China was led by:
(a) Deng Xiaoping
(b) Mao Zedong
(c) Zhou Enlai
(d) Xi Jinping
Answer: (b) Mao Zedong
11. The communist revolution in China took place in:
(a) 1947
(b) 1949
(c) 1950
(d) 1952
Answer: (b) 1949
12. Economic reforms in China were initiated by:
(a) Mao Zedong
(b) Hua Guofeng
(c) Deng Xiaoping
(d) Jiang Zemin
Answer: (c) Deng Xiaoping
13. China launched economic reforms in:
(a) 1976
(b) 1978
(c) 1980
(d) 1985
Answer: (b) 1978
14. The “Four Modernisations” did NOT include:
(a) Agriculture
(b) Industry
(c) Religion
(d) Science and Technology
Answer: (c) Religion
15. China joined the WTO in:
(a) 1995
(b) 1999
(c) 2001
(d) 2005
Answer: (c) 2001
16. The Panchsheel Agreement was signed between India and China in:
(a) 1950
(b) 1954
(c) 1962
(d) 1971
Answer: (b) 1954
17. The India-China war took place in:
(a) 1959
(b) 1962
(c) 1965
(d) 1971
Answer: (b) 1962
18. The disputed area in the western sector of the India-China border is:
(a) Arunachal Pradesh
(b) Sikkim
(c) Aksai Chin
(d) Ladakh
Answer: (c) Aksai Chin
19. Rajiv Gandhi’s visit to China that began the normalisation process took place in:
(a) 1985
(b) 1988
(c) 1991
(d) 1993
Answer: (b) 1988
20. Japan’s military spending is approximately what percentage of GDP?
(a) 1 per cent
(b) 3 per cent
(c) 5 per cent
(d) 10 per cent
Answer: (a) 1 per cent
21. The “Miracle on the Han River” refers to the rapid rise of:
(a) Japan
(b) North Korea
(c) South Korea
(d) China
Answer: (c) South Korea
22. Which two atomic bombings affected Japan in 1945?
(a) Tokyo and Osaka
(b) Hiroshima and Nagasaki
(c) Kyoto and Yokohama
(d) Hiroshima and Tokyo
Answer: (b) Hiroshima and Nagasaki
23. Which is NOT a pillar of the ASEAN Community?
(a) Security Community
(b) Economic Community
(c) Religious Community
(d) Socio-Cultural Community
Answer: (c) Religious Community
24. The European Economic Community was created by which treaty?
(a) Treaty of Rome (1957)
(b) Treaty of Lisbon
(c) Treaty of Maastricht
(d) Treaty of Paris
Answer: (a) Treaty of Rome (1957)
25. Two members of the EU who are permanent members of the UN Security Council are:
(a) Germany and France
(b) Britain and France
(c) Italy and Germany
(d) Spain and France
Answer: (b) Britain and France
Comparison of Contemporary Centres of Power
| Centre of Power | Year of Origin | Type | Key Strengths | Key Limitations |
|---|---|---|---|---|
| European Union (EU) | 1992 (Maastricht Treaty) | Supranational organisation | Common currency (euro), large GDP, two UNSC permanent members, soft power, advanced technology | Lack of unified foreign/defence policy, internal divisions, Brexit |
| ASEAN | 1967 (Bangkok Declaration) | Regional organisation | ASEAN Way, ARF, free trade agreements, dialogue partner of major powers | Slow consensus-based decision-making, internal disparities |
| China | 1978 (Deng’s reforms) | Rising single-state power | Second largest economy, massive manufacturing, BRI, military modernisation | Authoritarian politics, demographic challenges, regional disputes |
| Japan | Post-WWII recovery | Economic power | Third largest economy, advanced technology, high productivity | Low military spending, ageing population, deflation |
| South Korea | 1960s onwards | Economic power | Miracle on the Han River, leading high-tech and manufacturing economy | North Korea threat, regional security challenges |
| India | 1991 (LPG reforms) | Rising democratic power | Largest democracy, IT and services, large market, strategic autonomy | Poverty, infrastructure gaps, neighbourhood tensions |
Key Terms
| Term | Meaning |
|---|---|
| European Union (EU) | Political and economic union of European states formed by the Maastricht Treaty (1992). |
| Maastricht Treaty | 1992 treaty that founded the European Union and laid the basis for the euro and common foreign policy. |
| Euro | Common currency of the EU, introduced in 1999 (electronic) and 2002 (physical). |
| ASEAN | Association of South East Asian Nations, founded by the Bangkok Declaration of 1967. |
| Bangkok Declaration | Document signed in 1967 establishing ASEAN with five founding members. |
| ASEAN Way | Informal, non-confrontational, consensus-based style of ASEAN decision-making. |
| ASEAN Regional Forum (ARF) | Security-policy coordination forum set up in 1994. |
| Four Modernisations | Deng Xiaoping’s 1978 reform programme covering agriculture, industry, science and technology, and military. |
| Special Economic Zone (SEZ) | Designated zone with liberal tax and trade laws to attract foreign investment. |
| Open-door Policy | China’s 1978 policy of welcoming foreign investment and trade. |
| Panchsheel | Five Principles of Peaceful Coexistence, signed by India and China in 1954. |
| Aksai Chin | Disputed area in the western sector of the India-China border, controlled by China. |
| Arunachal Pradesh | Indian state in the eastern sector of the India-China border, claimed by China. |
| Hindi-Chini Bhai-Bhai | Slogan reflecting the friendly India-China relations of the 1950s. |
| Miracle on the Han River | Rapid industrialisation of South Korea from the 1960s. |
| BRICS | Grouping of Brazil, Russia, India, China and South Africa — major emerging economies. |
| SCO | Shanghai Cooperation Organisation — Eurasian political-economic-security alliance. |
| WTO | World Trade Organization, which China joined in 2001. |