NCERT Solutions for Chapter 2 Contemporary Centres of Power Class 12 Political Science

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(b) Establishment of the EEC – 1957
(c) Establishment of the EU – 1992
(d) Birth of ARF – 1994
(a) China’s accession to WTO

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(b) A form of interaction among ASEAN members that is informal and cooperative

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(a) China

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(a) Arunachal Pradesh, Aksai Chin.
(b) 1994
(c) the United States of America
(d) Marshall Plan
(e) The ASEAN Security Committee

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The main aims of establishing regional organisations are:
• The main aim of regional organisation is the development of regional cooperation amongst the member countries of a region.
• Regional organisations boost the economic development of their members.
• Regional organisations aim to create a balance of power in international politics, so that super powers do not play their ‘dadagiri’.
• To promote regional peace and stability based on the rule of law and the principles of United Nations Charter.

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Geographical proximity plays a very important role in the formation of regional organisations:
• Countries that are geographically close to each other generally have somewhat similar interests and needs. Therefore, their identification becomes easier.
• The member countries collectively deal with each other and the rest of the world as well in a collective fashion and have synchronised growth and development.
• Geographical unity encourages economic cooperation and interstate trade. Thus geographical unity is very helpful in the establishment of regional organisation.

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The ASEAN Vision 2020 came out in 1997. Its components are:
• An outward looking role of the ASEAN in the international community.
• Negotiation over conflicts in the region. It mediated the end of the Cambodian conflict and the East Timor Crisis.
• Discussion of cooperation among East Asian Nations.

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In the Summit of 2003, ASEAN decided to establish an ASEAN Community on the line of European Union. ASEAN Community consists of three pillars, namely:
• The ASEAN Security Community
• The ASEAN Economic Community
• The ASEAN Socio-Cultural Community.
Objectives of the ASEAN Community. Main objectives of the ASEAN Community are:
• The main objective is to accelerate economic growth.
• Development of Culture and Social progress.
• To create a common market and production base for ASEAN countries.
• To safeguard the economic interests of the member states.
• To promote regional peace and stability.
• To promote mutual cooperation and assistance in providing training and research facilities to their people.

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The present Chinese economy differs from the command economy in the following ways:
The command economy was based on the Soviet order while the present Chinese economy is open to capitalism.
In Command Economy agriculture and industry were completely under the control of the state, but at present there is privatisation of agriculture and industry.
In the State Controlled Economy there was no room for private enterprise and private property. But in the present economic system private enterprise and private property are integral part of Chinese economic system.
The command Chinese economy wasn’t open to foreign trade while presently, China has an open economy and has created Special Economic Zones and is one of the hotspots of Foreign Direct Investment.
Unlike the command economy, the present Chinese economy adopted the ‘Open Door Policy’ wherein it generated high productivity by investments of capital and technology from abroad.

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After the second world war, the European economy was aided by the cold war. Under the Marshall Plan, US extended massive financial support to the European economy.
• Under the ‘Marshall Plan’ the organisation for European Economic Cooperation was established in 1948 to extend cooperation on trade and economic issues among the Western European States.
• European Union was founded in 1992 for a common foreign and security policy, cooperation on justice and home affairs and creation of a single currency. It evolved from an economic union to political one over time.

The following attempts led to the formation of European Union:
• The Council of Europe was established in 1949 for political cooperation.
• In 1973, Denmark, Ireland and the United Kingdom joined the European Committee.
• In 1981, Greece joined EC. The Schengen agreement abolishing border controls among the EC members was signed in 1985.
• In 1986, Spain and Portugal join EC and in 1990 Germany is unified.
• The Treaty of Maastricht was signed in 1992 establishing the European Union and a single market was created.

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The EU has political and diplomatic influence, with one member, France holding a permanent seat on the UN Security Council and several non-permanent members.
The EU’s combined armed forces are the second largest in the world. Its total spending on defence is second after the US. One EU member state, France, also has nuclear arsenals of approximately 335 nuclear warheads.
The EU has three times larger share of world trade, larger than that of the US and gives it influence over its neighbors and in Asia and Africa. Its currency, Euro, can pose a threat to the dollar.
It is also the world’s second most important source of space and communications technology.

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India and China are both emerging strong economies of the world and have broken their economy from stagnancy.
Both the countries are popular and preferred centers for foreign direct investment from all over the world.
India and China have adopted similar policies in World Trade Organisation to deepen integration with the world economy to challenge unipolar world.
The creation of special economic zones led to a phenomenal rise in foreign trade.

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The statement that the peace and prosperity of countries lay in establishment and strengthening of the regional economic organisation is true because:
By forming regional economic organisation the nations become integrated and unify in an economic, political, cultural, social and military sense and therefore turn out to be much stronger and prosperous.
The nations develop cohesiveness over their shared culture, a geographical proximity which results in persistent peace within the region. For example, the ASEAN is rapidly growing as a regional organisation with the Vision 2020 including an outward looking role in international community and to encourage negotiations over conflicts in the region.
Because the nations unite together to form a common economic platform, their economy grows better and bigger and at par with the other large economies of the world and the region prospers. For example, the European Union quickly became a very strong economic and political regional body. The new European Union has its own government, emblem, and money. On the foundation of its economic power, the European Union has achieved in delivering peace and wealth to Europe.

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The relations with China experience friendly gestures from India as India signed popular ‘Panchsheel’ to develop Indo-China relations in 1954 and advocated China’s membership to the United Nations.
In 1962, military conflict over a border dispute of MacMohan Line resulted on unwarranted claim by China which now lie in Arunachal Pradesh and Aksai Chin region of Ladakh.
There were differences between the two countries when China took over Tibet in 1950 and India was against it.
China entered into military alliances with Pakistan, Bangladesh and Myanmar. These agreements pose a great threat to the security of India.
However, the talks to resolve the boundary question have continued without interruption and military-to-military cooperation is increasing. Indian and Chinese leaders and officials visit Beijing and New Delhi with greater frequency, and both sides are now becoming more familiar with each other. Increasing transportation and communication links, common economic interests and global concerns should help establish a more positive and sound relationship between the two most populous countries of the world.