Q. How did the European countries resolve their Post Second World War problems? Briefly outline the attempts that led to the formation of European Union.
The European Union shattered the economies and structures of the European states. America extended massive financial help to Western European nations under the Marshall Plan. The US also created a new collective security structure under NATO.
- Under the Marshall Plan, the organization for European Economic Cooperation (OEEC)was established in 1948 to channel aid to the West European States and provided a forum where the European states began to cooperate on trade and economic issues.
- The Council of Europe, established in 1949 was another step forward in political cooperation.
- Under the European Economic Community, established in 1957, the process of economic integration of European Capitalist countries proceeded step by step.
- The collapse of the soviet bloc put Europe on a fast track and resulted in the establishment of the European Union in 1992.
Q. “The EU is more a nation state than an economic union.” Justify
The European Union has evolved over time from an economic union to an increasingly political one. The EU has started to act more as a nation state.
- It has its own flag, anthem, founding date and currency.
- It also has some form of common foreign and security policy in its dealings with other nations.
- he European Union has tried to expand areas of cooperation while acquiring new members especially from the erstwhile soviet bloc
Q. Write a short note on European Union flag.
The European Union flag denotes a circle of gold stars which stand for solidarity and harmony between the people of Europe. It has 12 stars, as the number 12 is traditionally the symbol of perfection, completeness and unity.
Q. Name the treaty and the plan which led to the formation of the EU.
EU was formed under the Marshall plan by signing the Treaty of Maastricht on 7th February 1992.
Q. What makes the EU a highly influential regional organization?
The European Union has evolved over time from an economic union to an increasingly political one. The EU has started to act more as a nation state.It has its own flag, anthem, founding date and currency. It also has some form of common foreign and security policy in its dealings with other nations. The EU has economic, political and diplomatic and military influence.
Economic influence:
- The EU is the world’s biggest economy with a GDP of more than $12 trillion in 2005, slightly larger than that of the US
- Its currency the Euro can pose a threat to the dominance of the US dollar.
- Its share of world trade is three times larger than that of the US, allowing it to be more assertive in trade disputes with the US and China.
- Its economic power gives it influence over its closest neighbours as well as in Africa.
- It also functions as an important bloc in international economic organizations such as the WTO
Political influence
- Two members of the EU, Britain and France, hold permanent seats in the UN security council
- This has enabled the EU to influence some US policies.
Military Influence:
- The EUs combined armed forces are the second largest in the world.
- Its total spending on defence is second after the US.
- Two EU
Q. Discuss the odds which limit the power of the EU.
As a supranational organization, the EU is able to intervene in the political, economic and social spheres. But the odds which limit the power of the EU are discussed below:
- In many areas its -member states have their own foreign relations and defence policies that are often at odds with each other.
- There is also a deep-seated ‘Euroskepticism’ in some parts of Europe about the EU’s integrationist agenda.
- For example, Britain’s former prime minister, Margaret Thatcher, kept the UK out of the European Market. Denmark and Sweden have resisted the Maastricht Treaty and the adoption of the euro, the common European currency. This limits the ability of the EU to act in matters of foreign relations and defence.
Q. Name the founder members of ASEAN. State its objectives.
ASEAN was established in 1967 by five countries of this region – Indonesia, Malaysia, the Philippines, Singapore and Thailand – by signing the Bangkok Declaration.
Objectives:
- To accelerate economic growth and through that social progress and cultural development
- To promote regional peace and stability based on the rule of law and the principles of the United Nations Charter
Q. Write a short note on “AS.EAN way”
The ASEAN way is a form of interaction that is informal, non – confrontationist and cooperative. The respect for national sovereignty is critical to the functioning of the ASEAN.
Q. What are the components of the ASEAN vision 2020?
The ASEAN vision 2020 has defined an outward looking role for ASEAN in the international community. This builds on the existing ASEAN policy to encourage negotiations over conflicts in the region.
Q. Name the pillars and the objectives of the ASEAN community.
The pillars of the ASEAN community are the ASEAN security community, the ASEAN economic community and the ASEAN socio- cultural community.
ASEAN SECURITY COMMUNITY:
It was based on the conviction that outstanding territorial disputes should not escalate into armed confrontations.
By 2003, ASEAN had signed several agreements by which member states promised to uphold peace, neutrality, cooperation, non- interference and respect for national differences and sovereign rights.
The ASEAN regional forum (ARF) which was established in 1994 is the organization that carries out coordination of security and foreign policy.
ASEAN ECONOMIC COMMUNITY
The ASEAN economic community is one of the three pillars of the ASEAN community which was established in 2003
The objectives of the ASEAN economic community are to create a common market and production base within the ASEAN states and to aid social and economic development in the region.
It also likes to improve the existing ASEAN dispute settlement mechanism to resolve economic disputes
ASEAN has focused on creating a Free Trade Area for investment, labour and services. The US and China are too negotiating FTAs with ASEAN.
Q. In what ways does the present Chinese economy differs from its command economy?
COMMAND ECONOMY:
After the inception of the People’s Republic of China in 1949, following the Communist Revolution under the leadership of Mao, its economy was based on the Soviet model. China severed its links with the capitalist world.
It used it own resources and depended on Soviet aid and advice
The object was to create state – owned heavy industrial sector from the capital accumulated from agriculture. As a result of this economy, China was able to establish the foundation of an industrial economy. The economy grew at a respectable rate of 5 – 6%. But industrial production did not grow fast, international trade was minimal and per capita income was very low.
PRESENT ECONOMY
China ended it political and economic isolation with the establishment of relations with the United States in 1972. Premier Zhou Enlai proposed four modernizations – agriculture, industry, science and technology and military in 1973.
By 1978, Deng Xiaoping announced the ‘Open door policy’ and economic reforms in China. The Policy was to generate higher productivity by investments of capital and technology from abroad.
Policy of privatization of agriculture in 1982 was followed by the privatization of industry in 1998. Special economic Zones (SEZ)were set up where foreign investors could invest and set up enterprises.
As a result of these developments, the Chinese economy grew at a faster rate. There was a phenomenal rise in foreign trade. China has become the most important destination for foreign direct investment.
Q. Explain the factors responsible for the rise of the Chinese economy?
- China ended it political and economic isolation with the establishment of relations with the United States in 1972.
- Premier Zhou Enlai proposed four modernizations – agriculture, industry, science and technology and military in 1973.
- By 1978, Deng Xiaoping announced the ‘Open door policy’ and economic reforms in China. The Policy was to generate higher productivity by investments of capital and technology from abroad.
- Policy of privatization of agriculture in 1982 was followed by the privatization of industry in 1998. Special economic Zones (SEZ)were set up where foreign investors could invest and set up enterprises.
As a result of these developments, the Chinese economy grew at a faster rate. There was a phenomenal rise in foreign trade. China has become the most important destination for foreign direct investment.
Q. Describe the India – china relations.
The main events in the Indo- China relations are as given below:
- Great powers: before the advent of the western imperialism both were great powers. However, there was limited interaction between the two and neither country was very familiar with the other.
- Hindi – Chini Bhai Bhai: after the independence for a brief period the two countries came closer and the slogan Hindi – Chini Bhai Bhai became popular.
- Tibet and Border conflict : Chinese takeover of Tibet (1950)and border conflit of 1962 had bad effect on relationship. Diplomatic relations between the two countries were downgraded until 1976.
- Change in China’s political leadership: after the change in political leadership there was improvement in relations. A series of talks to resolve the border issue were initiated in 1981.
- Rajiv Gandhi’s visit to China and its effects: Rajiv Gandhi’s visit in December 1988 made improvement in relations. Measures to maintain peace have been taken. Various agreements for cooperation have been signed. India China trade has been growing at 30%per year since 1999. It is hoped that more positive and sound relationship will be established in future.
Q. What are the objectives of establishing regional organization?
The objectives of establishing regional organization are as given below:
- To evolve regional solutions to their historical enmities and weaknesses.
- To develop alternative institutions and conventions to build a more peaceful and cooperative regional order.
- To transform the countries in the region into prosperous economies.
Q. How does geographical promixity influence the formation of regional organization.
Geographical proximity influence the formation of regional organizations because the countries of a region face similar problems. For example before and after the second world war, the south east asian countries suffered the economic and political consequences of repeated colonialisms, both European and Japanese. There were common problems of nation – building, the ravages of poverty, economic backwardness and the pressure to join one bloc or the other during the cold war. There was no informal cooperation and interaction. Thus, ASEAN was established by the South east Asian countries. Similarly the effects of the Second World War brought the West European States closer to each other. Marshall Pan, OEEC, Council of Europe, European Economic Community, European Parliament and ultimately European Union were various steps in this direction. If the European Union has succeeded in creation of the European Parliament or to have a common currency i.e Euro, it is due to their geographical proximity.
Q. The emerging economies of China and India have great potential to challenge the unipolar world. Do you agree with the statement? Substantiate your arguments.
It is a fact that the emerging economies of China and India have great potential to challenge the unipolar world. China’s economic success since 1978 has made it a great power. China has been the fastest growing economy since the reforms first began there. It is projected to overtake the US as the world’s largest economy by 2040. It has enormous influence in regional affairs. The strength of its economy, together with other factors such as population, landmass, resources, regional location and political influence makes it a powerful country.
Similarly India had adopted the policy of liberalization and globalization. It has made tremendous progress. India alongwith China view themselves as rising powers in global politics and can challenge the unipolar world. If india and China are able to lead a coalition of countries, this coalition would more powerful and may succeed in their aim.
Next Chapter — Chapter 5: Contemporary South Asia
