The Emergence of Different Political

Structures
 It became crystal clear that America's dominance over the world would be threatened
by the alternative centers of political and economic power that emerged after the end
of the world's bipolar structure in early 1990s.

 This led to the emergence of the European Union (EU) and the Association of
Southeast Asian Nations (ASEAN) in Europe and Asia respectively.

 Objectives of established Regional Organization’s :

1. To limit America’s Dominance

2. To evolve regional solutions to historical enmities & weaknesses
3. To build a more peaceful & cooperative regional order
4. To bring in economic prosperity

How did the Second World War Affect Europe?

 Many Assumptions and structures on which the European states

Had based their relations got shattered after the Second World War.

 European leaders grappled with the ‘Question of Europe’ post-World War II.

 Dilemma: Revert to old rivalries or reconstructing based on principles of fostering

positive international relations.

A) Condition of Europe After 2WW

The 2WW led to the ruin of European economies and destruction of the assumptions
& structures on which Europe had been founded. Europe’s leaders grappled with the
‘Question of Europe’. Was Europe to revert to its old rivalries or be constructed on
principles & institutions that would contribute to positive conception of International
Relations.
B) European Integration after 1945
European integration after 1945 was aided by Cold War. US extended financial help
for reviving Europe’s economy under Marshall Plan.
What was the Marshall Plan?
 The Marshall Plan was proposed by a former US secretary of state named George
Marshall in 1947. The plan was completely focused on providing economic help to all
the European countries by allocating $13 Billion in foreign aid. After the Second World
War, all the states were severely affected.

 The plan played a crucial role in the development of all the European states and all of
the countries that received aid were doing a lot better when the plan came to an end
in 1951.

More about Marshall Plan

 As a part of the Marshall Plan, a security framework was also established named
NATO (North Atlantic Treaty Organization).

 The OEEC (Organization for European Economic Cooperation) was founded in 1948 to
help Western European countries receive aid.

 In 1949, the Council of Europe was established, marking yet another step forward in
political cooperation. Following the fall of the Soviet Union in 1992, the European
Union was formed.
 European Union
Headquarters: Brussels, Belgium

What is the European Union?

 The European Union is a political and economic union that comprises 27 member
states located primarily in Europe which are subjected to the obligations and the
privileges of the membership.

 Every member state is part of the founding treaties of the union and is subjected to
binding laws within the common legislative and judicial institutions

 There were several key foundations on which the structure of the European Union
was laid; the creation of a single currency, common security and foreign policy and
cooperation on justice and home affairs.
  The union evolved from an economic union to an increasingly political one and started
to act more like a nation state, as of now the union has its own flag, Anthem, founding
date and a common currency.

 The European Union has tried to expand its relations by making an alliance with new
members from the erstwhile Soviet bloc but that was very difficult as many countries
were not willing to give a part of their autonomy.

 Recently on June 23, 2022, Amid the Russia- Ukraine war the European Council
granted Ukraine the status of a candidate for accession to the European Union. As
Ukraine was seeking immediate accession of Ukraine to the European Union.

Attempts Leading to Formation of EU

A) Contribution of Marshall Plan

US helped Europe revive its economy through Marshall Plan & created a new
collective security structure under NATO. Under Marshall Plan, the OEEC was
established in 1948 to channel aid to western European states. It became a forum
where the Western European states began to cooperate on trade & economic issues.
(Write the points which I made you write in the classroom regarding to formation of
Europe)

B) Council Of Europe
The Council of Europe established in 1949 , was another step forward in political
cooperation.
C) European Economic Community
The process of economic integration of European capitalist countries proceeded step
by step leading to formation of European Economic Community in1957.
 Six west European countries France, West Germany, Italy, Belgium, The
Netherlands and Luxembourg signed the Treaties of Rome on 25th March
1957 establishing the European Economic Community (EEC) and the European
Atomic Community.
D) European Parliament
The process acquired a political dimension with the creation of the European
Parliament.

E) Formation Of EU
 The collapse of Soviet Bloc put Europe on a fast track.
  On February 7 , 1992 The Treaty of Maastricht was signed leading to the
formation of the European Union ( EU ) in 1992 , came into force in 1993.

Note: – The European Union tried to make its own constitution in 2003 but
failed in it.

The members of European Union : –

🔹 The total number of countries has been expanded 28 after the involvement of Bulgaria and
Romania on 1st January.

🔹 Following are the names of member countries included in European Union: – 1. Sweden, 2.
Finland , 3. Denmark , 4. Estonia , 5. Latvia , 6. Lithuania , 7. Netherlands , 8. Ireland , 9.
United Kingdom , 10 . Poland , 11. Belgium , 12. Germany , 13. Luxembourg , 14. Czech
Republic , 15. Slovakia , 16. France , 17. Austria , 18. Hungary , 19. Slovenia , 20. Italy , 21.
Spain , 22. Portugal , 23. Malta , 24. Greece , 25. Cyprus , 26. Bulgaria, 27. Croatia, 28.
Romania.

🔸 Older members :- Austria , Belgium , Denmark , Finland , France , Germany . Greece,

Ireland , Italy , Luxembourg , Malta , Netherlands , Portugal , Spain Sweden.

🔸 New members :- Estonia , Latvia , Lithuania , Poland , Czech , Romania , Slovakia , Hungry ,
Croatia , Slovenia , Bulgaria , Cyprus .

🔹 United kingdom, which had been a founding member of the European Union, left the
organization in 2020.

The European Union Flag: –

🔹 The circle of gold stars stands for the solidarity and harmony between the people of
Europe. It has 12 stars , the number 12 is traditionally the symbol of perfection ,
completeness and unity.
Features of European Union:-

1.) EU has evolved over time from an Economic Union to a Political one. It has stated to
act more as a nation state. While the attempts to have a constitution for EU have
failed, it has its own flag, Anthem , founding date and currency.

2.) The circle of gold stars on EU flag stands for solidarity & harmony between people of
Europe. It has 12 stars as number 12 is traditionally the symbol of protection ,
completeness and unity.

3.) EU also has some form of common foreign & security policy and its dealings with
other nations.

4.) The EU has tried to expand area of Cooperation while acquiring new members ,
especially from erstwhile Soviet Bloc. The process has proved easy , for people in
many countries are not very enthusiastic in giving EU powers that were exercised
by government of their countries.

5.) There are also reservations about including some new countries in EU .

6.) Under the Schengen agreement, one has to get a visa from just one of the EU
countries which allows him entry in most other EU Countries.

Aim of European Union:-

 Rapid economic growth

 Mutual support for economic, social and political development.
 Good foreign policy.
 To create a Common foreign and security policy.

 Cooperation on Justice and Home Affairs.

 Creation of a single currency.

 Visa free travel.

EU’s Economic Influence

1. GDP: - EU is world’s biggest economy with a GDP slightly larger than that of US. In
2005, the EU had the largest economy in the world, with a GDP of more than $12
trillion, slightly more than the US, but the US overtook the EU in 2016. The Euro is also
seen as a major economic power and threat to the dominance of the US Dollar.

2. Currency: - Its, currency EURO can pose threat to a dominance of US dollar.

3. Share in World Trade: - Its share in world trade is 3 times larger than that of US
& China. Its economic power gives it influence over its closest neighbors as well as
in Asia & Africa.

4. Role in WTO: - EU also functions as an important bloc in International

Economic organizations such as WTO.

EU’s Political and Diplomatic Influence

1. Participation in UN: - 2 members of EU – Britain & France hold permanent seats in

UNSC. EU includes several non-permanent members of UNSC
2. Influences US Policies: - E U ’ s Political sphere has enabled it to influence some
US policies such as the current US position on Iran’s nuclear programme.
3. Dialogue with China: - Its use of diplomacy, economic investments, and negotiations
rather than coercion and military force has been effective as in the case of its dialogue
with China on Human Rights and Environmental degradation.

EU’s Military Influence

1.) Armed forces: - The EU's combined armed forces are the world's second largest. After
the United States, it spends the second most on defence. Both the United Kingdom
and France have nuclear arsenals of around 550 nuclear warheads
2.) Defence Expenditure :- 2nd highest after US
3.) Nuclear Arsenals: - 2 EU member states – Britain & France have nuclear arsenals
of almost 550 nuclear warheads.
4.) Space & Communication Tech.: EU is world’s 2nd most important source of space &
communications technology.
5.) The EU also faces internal divisions among its member states, as each has its own
foreign and defence policies.
Factors that limit EU’s ability to act in matters of Foreign Relations and
Defence

1) Conflicting Policies of member states

In many areas, EU’s member states have their own foreign relations & defence policies
that are often at odds with each other. Thus, Britain’s
Prime Minister Tony Blair was America’s partner in Iraq Invasions and many of EU’s
newer members made up US-led ‘coalition of the willing’ whereas Germany and
France opposed American Policy.

2) Euro- Skepticism
There is also a ‘Euro-Skepticism’ in some parts of Europe about the EU’s integrationist
agenda. Thus, for eg , Britain’s former PM Margaret
Thatcher, kept the UK out of European market. Denmark and Sweden have resisted
Maastricht Treaty & adoption of Euro.

What is Euro-Skepticism?

The term refers to a political situation involving the European Union and integration. In some
parts of Europe, there is 'Euro skepticism' about the EU's integrationist agenda. Denmark and
Sweden opposed the Maastricht Treaty and the adoption of the euro as the common European
currency.

 This is what limits the EU's ability to act in matters of foreign policy and defence.

EU & INDIA :
 1. India was among the first developing countries to have established diplomatic
relations with the European Union. The Delegation of the EU Commission in New
Delhi enjoys the status of an Embassy.

2. In the field of Commerce , the EU in India is largest trading partner. India’s two-way
trade with the EU had risen to over 12 billion Ecu by 1993.

3. After Liberalistaion of India’s economy, with an outward looking market , cooperation

between India and the European Union has become a dynamic element.

4. The EU has been cooperating with India in several developmental projects. These
include alleviation of poverty in rural areas, environmental rehabilitation, agro-
industry , primary education and healthcare , 24projects were being funded by EU.

5. The first ever India-European Union Summit was held at Lisbon in June 2000. India
was represented by Prime Minister Atal Behari Vajpayee who initiated the process
for faster inflow of FDI into India.

EU Expanded

1. After several years of efforts and prolonged negotiations, it was decided by the
European Union at its Summit in Copenhagen in December 2002 to admit ten new
members in the Union. These were :-

 Latvia, Cyprus , Estonia, Poland, Hungary, the Czech Republic, Slovakia,

Slovenia, Lithuania .They were admitted as full members on May 1, 2004.

2. Meanwhile, India-EU cooperation continued to grow, but at a very slow pace. At

Copenhagen in October 2002 another India-EU Summit was held during Vajpayee’s
visit to Denmark.
The EU Flag:-
 Association Of SouthEast Asian Nation
(ASEAN)
ESTD: 8 Aug, 1967
Headquarters: Jakarta, Indonesia

 ASEAN is a regional intergovernmental organization in Southeast Asia that

promotes intergovernmental cooperation and facilitates economic, political,
security, military, educational, and sociocultural integration among its
members and other Asian countries.

 This region of Asia suffered the economic and political consequences of

repeated colonialisms, both European and Japanese, prior to and during World
War II.

Reasons for Establishment of ASEAN

1. Before and during the 2WW, S-E Asia suffered the economic, political
consequences of repeated Colonialism, both European & Korean.

2. At the end of War, it confronted problems of nation-building, ravages of Poverty &

Economic backwardness &pressure to align with either superpower during Cold
War.

3. Efforts at Asian & 3rd World unity, such as Bandung Conference & NAM were
ineffective in establishing the conventions for informal cooperation & interactions.

4. Hence, Five S-E Asian Nations (Indonesia, Malaysia, Philippines, Singapore, and
Thailand) sought an alternative by estb. The Association for South East Asian Nations
in 1967 after three unsuccessful attempts to create it before 1967. And also by signing
the Bangkok Declaration. Over the years, Brunei Darussalam, Vietnam, Lao PDR,
Myanmar & Cambodia have joined ASEAN taking its strength to ten.
What were the primary goals of ASEAN?

 The Bandung Conference and the Non-Aligned Movement were ineffective in

establishing conventions for informal cooperation in Asia and the Third World. In
1967, Indonesia, Malaysia, the Philippines, Singapore, and Thailand signed the
Bangkok Declaration to become members of ASEAN.

(I) ASEAN's primary goals were to accelerate economic growth and, as a result, "social
progress and cultural development."
(II) A secondary goal was to promote regional peace and stability based on the rule of law and
the United Nations Charter's principles.

 Later, Brunei Darussalam, Vietnam, Lao People's Democratic Republic, Myanmar

(Burma), and Cambodia joined ASEAN, bringing its total membership to ten.

 ASEAN aspires to establish supranational structures and institutions. The ‘ASEAN Way'
is a form of informal, non-confrontational, and cooperative interaction that its
member states value.

(ASEAN Way is the official Anthem of the Association of SouthEast Asian Nations)

 The respect for national sovereignty is critical to the functioning of ASEAN. It is also
one of the fastest growing economies in the world.

Association of SouthEast Asian Nations ( ASEAN )

🔸 Name of ASEAN (in English):- Association of Southeast Asian Nations
🔸 Name of ASEAN (in Hindi):- दक्षिण पूर्वी एशियाई राष्ट्रों का संगठन
🔸 Establishment: - In 1967, five countries signed the Bangkok Declaration to establish ASEAN.
🔸 Founding country: - These countries were Indonesia, Malaysia, Philippines, Singapore and
Thailand.
🔸 Countries included later :- Over the years , Brunei , Darussalam , Vietnam , Lao PDR ,
Myanmar and Cambodia joined ASEAN taking it strength to ten.
🔸 ASEAN flag: – The ten stalks of paddy rice represent the 10 South East Asian countries bound
together in friendship, and solidarity the circle symbolizes.

Objectives Of ASEAN

Economic Objectives

 ASEAN still remain primarily an economic association & its principal

objective is acceleration of economic growth,
 The objectives of ASEAN Economic Community are to : a) create a common
market & production base within ASEAN state b) aid social and economic
development in the region c) Improve the existing ASEAN Dispute Settlement
Mechanism to resolve economic disputes
d) to create a Free Trade Area (FTAs) for investment , labour & services. The US
& China have already moved fast to negotiate FTAs with ASEAN.

Socio-Cultural Objectives

 Promotion of social progress & Cultural development, ASEAN Socio-

Economic Community has been estb for this purpose.
Promotion of Regional Peace

 Another objective is to promote regional peace and stability based on the rule of
law & principles of UNs Charter.

Security related Objectives

 ASEAN has broadened its objectives beyond the economic & social spheres.

 ASEAN security community was based on the conviction that outstanding territorial
disputes should not escalate into armed confrontation.

 By 2003 , ASEAN had several agreements in place by which member states promised
to uphold peace , neutrality , cooperation, non-interference& respect for national
differences & sovereign rights

 ASEAN Regional Forum which was estb in 1994 , is the organization that carries
out coordination of security & Foreign Policy.

ASEAN ‘s objectives

 Promote social and cultural

development
 Accelerate economic growth

 Improve law and order

 Promote peace

Three Pillars of ASEAN:-

ASEAN Security Community
  resolving disputes between member
states
 Promote peace and cooperation.
ASEAN Economic Community

 promote common trade.

 Increase free trade.
 Settling economic disputes.

 ASEAN social and cultural Community:-

 Raising the level of social and cultural development.

What are the three pillars of ASEAN?

3 Pillars of ASEAN Community (established in 2003) :-

1. ASEAN Security Community
2. ASEAN Economic Community
3. ASEAN Socio-Cultural Community.

ASEAN Security Community

 It was based on the conviction that outstanding territorial disputes should not
escalate into armed confrontation.
 ASEAN had several agreements in place 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) in 1994 is the organization that carries out
coordination of security and foreign policy.

ASEAN Economic Community

 ASEAN is primarily a commercial organization having a much smaller economy than
the other economies, but it has a significant growth influence in the region and
beyond.
  The ASEAN Economic Community's objectives are to establish a common market and
production base among ASEAN member states and to promote the region's social and
economic development.

 Additionally, the Economic Community wishes to enhance the existing ASEAN Dispute
Settlement Mechanism for the resolution of economic disputes.

 A Free Trade Area (FTA) was established for investment, labor, and services. The US
and China have already accelerated their efforts to negotiate free trade agreements
with ASEAN.
ASEAN Socio-Cultural Community
 ASEAN is rapidly establishing itself as a major regional organization.
 In the international community, ASEAN's Vision 2020 has defined an outward-looking
role for the organization.

ASEAN WAY:- Unlike EU, there is a little desire in ASEAN for supranational structures &
institutions. ASEAN countries have celebrated ASEAN way , a form of interaction that is
informal , non-confrontationist & cooperative. The respect for national sovereignty is critical
to the functioning of ASEAN.

 The ‘ASEAN Way' “is a form of informal, non-confrontational, and cooperative

interaction that its member states value”.

ASEAN 2020
ASEAN Vision 2020 has defined an outward looking role for ASEAN in the international
Community. The ASEAN Vision 2020 was adopted by the member nations in 1997 in Kuala
Lumpur with the following important components: -

 All member governments vowed to make the region more peaceful and supported
conflict resolution through diplomacy. The ASEAN also served as a mediator in the
resolution of the Cambodian conflict.

 As a further commitment to peace and stability, the organization vowed to make the
South Asian region a nuclear-free zone.
  The Association of Southeast Asian Nations (ASEAN) aims to enhance economic
cooperation through a variety of development techniques and to emphasise
sustainable and equitable growth.

 In addition, to achieve global competitiveness, multilateral trade agreements should

be utilised to expand commerce. Vision 2020 seeks to establish a successful, stable,
and competitive economic zone where commodities, services, and capital flow freely.

 Vision 2020 also seeks to ensure that the people of South Asia have equal access to
opportunities for their own growth, regardless of their gender, race, religion,
language, or cultural heritage. The principal objective of the ASEAN Vision 2020 is to
promote environmental stewardship among South Asian nations.

 This builds on the existing ASEAN policy to encourage negotiations over conflicts in
the region. Thus, ASEAN has mediated the end of Cambodian conflict, E. Timor
Crisis & meets annually to discuss E. Asian cooperation.
So, Vision 2020 envisions an outward-looking ASEAN that plays a significant role on
the international stage.

 Supranational and Intergovernmentalism :-

 Supranationalism is the existence of an authority that is ‘higher’ than that of the

nation-state and capable of imposing its will on it. It can therefore be found in
international federations, where sovereignty is shared between central and
peripheral bodies. The European Union thus encompasses a mixture of both
governmental and supranational elements.

 Intergovernmentalism is any form of interaction between states that takes place on

the basis of sovereign independence. This includes treaties and alliances as well as
leagues and confederations such as League of Nations and EEC.

ASEAN’s Role in International Relations

Conflict Mediation and Cooperation:-

 Mediation in Cambodian conflict, East Timor crisis, and annual meetings for East Asian
cooperation.
 A political forum for Asian countries and major powers to discuss political and security
concerns.
Global Engagement

 Growing economic strength makes ASEAN attractive to countries like India and China.
 ASEAN-India Free Trade Agreement (FTA) effective since 2010.

Political Forum

 Unique regional association provides a platform for political dialogue among Asian
countries and major powers.

In conclusion, ASEAN’s journey from economic cooperation to a multifaceted regional

organization reflects its commitment to regional peace, economic development, and political
dialogue. The ‘ASEAN Way’ distinguishes its approach from other regional entities,
contributing to its influence in the international community.

India’s Relation with ASEAN

 The current economic strength of ASEAN, especially its economic relevance as a

trading & investment partner to growing Asian economies such as India & China
makes it an attractive proposition.

 During Cold War years, Indian Foreign Policy didn’t pay adequate attention to
ASEAN but in recent years, it has tried to make amends.

 It signed FTA’s with 2 ASEAN members – Singapore& Thailand. It’s trying to sign
an FTA with ASEAN itself.
South Asian Free Trade Area (SAFTA): –

The spirit behind the idea of SAFTA is that all countries in this region allow free
trade across the borders. The agreement was signed in 2004 and come into effect
on 1st January 2006.

 In late 1991, India had become a ‘sectoral dialogue partner’ of ASEAN , the sectoral
dialogue partnership meant that India was allowed limited cooperation in areas
that ASEAN permitted. These areas were culture , tourism , certain categories of
trade. In 1994 , science and technology was added to the above three fields.
 The Fifth ASEAN Summit in 1995 confirmed with India status of full dialogue
partnership. This had enabled India to have multi-dimensional and
comprehensive cooperation with ASEAN.

 ASEAN is a regional grouping for economic cooperation and development and

better coordination between the regional economies . But it is fully aware of the
security concerns of the region, which are addressed quite effectively by the
ARF.

 India initiated the “Look East Policy” in the 21st century, which took PM ABV , to
two important South-Asian countries , Vietnam and Indonesia. Both of them are
members of ASEAN And there was need to find ways and means to expand India-
ASEAN trade.
 The Rise Of Chinese Economy

 China has one of the strongest economies in the world. As it is the fastest growing
economy since 1978. According to the projections and experts, it is said that the
Chinese economy will surpass and will be the world's largest economy by 2040.

 China also possesses enormous regional power as a result of its economic integration
into East Asia.

History & Background

 In 1949, after Mao Zedong's communist revolution in 1949, China chose to develop its
economy based on the Soviet Model and to cut ties with capitalism.

 The idea was to create a state-owned heavy industry sector using agricultural savings.

 Later, due to a lack of foreign exchange China chose to import domestic goods. Also,
was able to use its resources to build a massive industrial economy.

 China had better education and health care than most developing countries, and all
citizens had jobs and social security. The economy grew at a respectable pace, but not
fast enough. Also, the agricultural output was insufficient to generate an industrial
surplus.

 Its industrial output was stagnant, and its per capita income was low.
Way Forward
 The Chinese leadership ended China's political and economic isolation
by establishing diplomatic relations with the US in 1972. On the other
hand, China established a market in an unusual way and exported
capital and technology to boost productivity.

 The Chinese chose gradual economic opening over "shock therapy."

After privatising agriculture in 1982, the country went towards the
industry in 1998. In this sense, it established SEZs (Special Economic
Zones) where foreign investors could set up shop, and were exempt
from trade barriers.

 The state played an important role in the development of a market

economy.

 New economic policies helped China's economy break out of

stagnation. Privatisation of agriculture increased agricultural output and
rural income.

 Rural personal savings increased the Chinese economy's growth rate,

resulting in a rapid increase in rural industry.

 The creation of SEZs and new trade laws resulted in massive increases
in international trade. It surpassed the US as the most important FDI
destination (FDI).

 It has large foreign exchange reserves, allowing it to heavily invest

abroad. Also, China's WTO membership in 2001 marked a turning point
in its globalization.
Steps taken by China that led to the rise of its economy:
 🔹 China ended its political and economic isolation with the establishment of relation
with the United States in 1972.

 🔹 Four modernization in the field of agriculture, industry, Science and Technology and
military in 1973.

 🔹 ‘Open door policy ‘to generate higher productivity by investments of capital and
Technology from abroad and economic reforms in 1978.

 🔹 The privatization of agriculture in 1982 who was followed by the privatization of

industry in 1998.

 🔹 Special Economic Zones where foreign investors could set up Enterprises.

New Economic Policy of China : –

🔹 Major policy decisions were taken in the 1970’s by the Chinese leadership. China ended its
political and economic isolation with US in 1972.

🔹 Premier Zhou Enlai proposed Four modernization i.e. agriculture, industry, science and
technology and military in 1973. Later in 1978, Deng Xiaoping announced the Open Door
Policy and economic reforms in China.

🔹 Open door policy was to generate higher productivity by investments of capital and
technology from abroad. Market economy was adopted and their economy was opened step
by step.

🔹 Agriculture sector was privatized in 1982 followed by privatization of industry in 1998.

Trade barriers were eliminated in Special Economic Zones ( SEZ’s ) where enterprises were set
by the foreign investors.
Impact of New Economic Policy : –

 🔹 Privatization of agriculture resulted in rise of agricultural production and

rural incomes which helped the rural economy growth at a faster pace.

 🔹 The new trading laws and creation of Special Economic Zones attracted
foreign players and foreign trade.

 🔹 China has become an important place for Foreign Direct Investment

( FDI ) in the world. Now, China has large foreign exchange reserves which
allow it to make big investments in other countries.

 🔹 China’s accession to the WTO in 2001 also helped its opening to the
outside world.
Condition of Chinese economy before 1970s

1) After the inception of PRC in 1949 in China , following communist

Resolution under Mao’s leadership, its economy was based on the Soviet Model.
2) The economically backward communist China chose to sever its links with the
capitalist world. It had to fall back on its own resources & for a brief period, on
Soviet aid and advice.
3) The model was to create a state owned heavy industries sector from the capital
accumulated from agriculture.
4) As it was short of foreign exchange that it needed to buy tech. & goods from the
world market, china decided to substitute imports by domestic goods.
5) This model allowed china to use its resources to estb. The foundations of an industrial
economy. Employment, social welfare, education and healthcare was ensured to all
citizens. The economy also grew up at the rate of 5-6%. But an annual growth of 2-3%
in population meant eco. Growth was insufficient to meet the needs of growing
population.
6) Agricultural production insufficient to generate a surplus for industries. China faced
a crisis –industrial production was growing slow, international trade was minimal &
per capita income was very low.

Rise of Chinese Economy after 1970s

1. Chinese leadership took a major policy decisions in 1970s , China ended its political &
economic isolation with the establishment of relations with US in 1972.
2. Premier Zhou Enlai proposed 4 modernization – Agriculture , Industry , Science
& technology . and military in 1973.
3. By 1978, the then leader Deng Xiaoping announced the open door policy and
economic reforms in China. The policy was to generate higher productivity by
investments of capital and tech from abroad.
4. Chinese opened their economy step by step and didn’t go for shock therapy . The
privatization of agriculture in 1982 was followed by privatization of industry in 1998.
Trade barriers were eliminated only in SEZs. In China, state played & continues to play
a central role in setting up a market economy
How has this development affected China Internally?

 The reforms have not benefited everyone in China. China's

unemployment rate has risen to nearly 100%. Female employment and
working conditions are as bad as in 18th and 19th century Europe.

 A rise in environmental degradation and corruption has accompanied a

rise in economic disparity between rural, urban, and inland provinces.

 China is a regional and global economic power. China's economic

integration and interdependencies have given it considerable influence
over its trading partners.

 Economic concerns have tempered its outstanding issues with Japan, the
US, ASEAN, and Russia. After the 1997 financial crisis, China's
contributions to the ASEAN economies helped ease concerns about its
rise.

 Global player on behalf of developing economies, its more outward-

looking investment and aid policies in Latin America and Africa project it.
Positive Effects of Reforms In China

New economic policies helped the chinese economy break from stagnation.
Privatisation of agriculture led to remarkable rise in agricultural production & rural
incomes. High personal savings in the rural industry .
The new trading laws & creation of SEZs led to rise in foreign trade . China became
the most important destination for FDI. It got large foreign exchange reserves that
allowed it to make big investment in other countries.
China’s accession to WTO in 2001 further opened it to the outside world.

Negatives Effects Of Reforms In China

Unemployment has risen in China with nearly 100 million people Jobless.
Female employment and condition of work are as bad as in Europe of 18th and 19th
centuries.
Environmental degradation and corruption have increased.
The economic inequality between rural and urban , residents & coastal and inland
provinces has increased.
Sino-Indo Relations

India and China were great powers in Asia before the advent of Western imperialism.
China had considerable influence and control on the periphery of its borders based on
its unique tributary system.
Various kingdoms and empires in India also extended their influence beyond their
borders; this influence was political, economic and cultural.
There were some confrontations with each other regarding the foreign policy of both
the nations to deal with each other.
After India regained its independence from Britain, and China expelled the foreign
powers, there was hope that both would come together to shape the future of the
developing world and of Asia particularly.

India and China:-

Panchsheel Agreement
Panchsheel Agreement was signed between India and China in 1954.
There were 5 principles in this agreement
Respect for each other’s integrity and
sovereignty
mutual non-aggression
not to interfere in each other’s internal
affairs
equitable and mutually beneficial
relationship
peaceful coexistence

Tibet’s Problem:-
 Tibet is a small country located between India and China. China has been asserting its
authority over Tibet from the beginning, but India’s belief was just the opposite.
 On 24 April 1954, India accepted China’s right over Tibet with some conditions and China
promised that Tibet would be given more autonomy but it did not happen.
 An armed rebellion started in Tibet against the Chinese rule. This rebellion was
Suppressed by the Chinese forces.
 Seeing the situation deteriorating, Tibetan religious leader Dalai Lama sought asylum
From India in 1959 and India gave asylum to the Dalai Lama.
 China called this move interference in its internal affairs and strongly opposed this move.
India and China border dispute:-

 The border dispute between India and China was over Aksai Chin in Jammu
and Kashmir and NEFA area of Arunachal Pradesh.
 China expressed its right over these parts of India and India said that this matter has
been resolved at the time of British but China denied this.
 Between 1957 and 1959, China occupied parts of Aksai’s China and started building
roads there.
 A lot of discussions took place between the leaders of both the countries but the
 Problem could not be resolved. Many times there were skirmishes between the
armies of both the countries but no solution was found.
 Due to Panchsheel agreement and trust in China, Nehru never felt that China could
 Attack India, but this time Nehru was proved wrong and in 1962 China attacked India.
 China attacked India in 1962. Due to this sudden attack, India did not get any chance
to prepare and the Chinese army came deep into India. In the end, a sudden
ceasefire was declared by China and India had to face defeat in this war.

When India lost the war with China in 1962, it had long-term repercussions for India-
China relations. Until 1976, diplomatic ties between the two countries were at an all-
time low.

Results of War:-

 India lost
 Indian foreign policy criticized
 Many senior military commanders resigned
 Defense Minister VK Krishna Menon quits the cabinet
 For the first time a no-confidence letter was brought against the
government
 The Communist Party of India was divided
 Nehru’s image was damaged.
Cordial Aspects

When China's political leadership shifted in the 1970s, it became more pragmatic and
less political, which aided the country's relations with India.

A popular slogan was 'Hindi-Chini bhai bhai.' A series of talks to resolve the border
dispute began in 1981.

Indo-China relations have taken on a variety of economic and political dimensions since
the Cold War's end. Both countries see themselves as rising powers in global politics,
and they both want to play an important role in Asian politics and economics.

Rajiv Gandhi's visit to China in December 1988 signaled an improvement in India-China

relations. Since then, both governments have taken steps to contain the conflict and
maintain "peace and tranquility" along the border.

They've also signed agreements on cultural exchanges, science and technology

collaboration, and the opening of four trade border posts. Bilateral trade between
India and China has increased.

India and China have agreed to work together in areas where they might otherwise
clash, such as bidding for energy deals outside of India.

India and China have adopted similar policies in international economic institutions
such as the World Trade Organization.

The nuclear tests conducted by India in 1998, which were justified in part by a
perceived threat from China, did not prevent further interaction.

China's military ties with Bangladesh and Myanmar were viewed as hostile to Indian
interests in South Asia. Leaders and officials from India and China are visiting each
other more frequently, and both sides are getting to know each other better.

Increased transportation and communication links, as well as shared economic

interests and global concerns, should help to make the relationship more positive and
stable.
Challenges in the Relationship

Nuclear Tests (1998)

 India’s nuclear tests in 1998 did not halt greater interaction.

 China’s contributions to Pakistan’s nuclear program raised concerns but did not lead
to conflict.

Recent Downslide (Current Scenario)

 Border disputes, the China-Pakistan economic corridor, and China’s support for
Pakistan in the UN against India’s counter-terrorism move have strained relations.
 Ongoing talks to resolve the boundary question and increasing military-to-military
cooperation demonstrate efforts to maintain engagement.

Outlook for the Future

 Increased Interaction and Cooperation

 Frequent visits by leaders and officials from both countries.
 Growing transportation and communication links, shared economic interests, and
global concerns provide a foundation for a positive relationship.

Current Challenges

 Recent tensions highlight existing challenges, but the historical context of overcoming
difficulties in India-China relations provides hope for future cooperation.

In conclusion, India-China relations have experienced historical challenges but also witnessed
periods of improvement and cooperation. While recent issues have strained the relationship,
ongoing talks and growing economic ties suggest a potential for positive engagement
between the two populous nations.
Can China Challenge The Unipolar World?

Regionally & globally , China has become a great power due to

factors as economic growth , population , landmass , resources ,
regional location & political influence.

China is projected to overtake US as world’s largest economy by

2040.

The integration of China’s economy & the interdependence that

this has created has enabled China to have considerable
influence with its trade partners. Hence, its outstanding issues
with Japan, US, ASEAN & Russia have been tempered by
economic considerations. China hopes to resolve its difference
with Taiwan by integrating it closely into its economy.

Its more outward looking investment & aid policies in Latin

America & Africa are increasingly projecting it as a global player
on the side of developing economies.
Japan : –
🔹 Japan is a small country. Its area is 377,975 square kilometers and its population in 2021
estimate stood at 125,927,902. During the Second World War it had to suffer much
devastation and a humiliating defeat. But today Japan is a leading economic power.

🔹 It is one of the most industrially advanced countries of the world and has made great
advances in technology and science. Japan principal industries are automobiles ( Suzuki ,
Toyota , Honda , Mazda , and others ) , ceramics , shipbuilding and precision instruments.

 Japan became a member of the Organization for Economic Cooperation and

Development (OECD) in 1964.
 The economy of Japan is the third largest economy in the world in 2017.
 Japan alone is included in the countries of Group – 7 (G – 7) among the countries of
Asia.
 Japan ranks eleventh in the world in terms of population.
 Japan is the only country to have suffered the brunt of an atomic bomb.
 Japan contributes 10 percent to the United Nations budget.
 Japan is the second largest country in terms of contribution to the United Nations
budget.
 Japan has a security alliance with the US since 1951.
 Although Japan’s military expenditure is only 1 % of its GDP.
 2nd largest economy in the world. Only Asian members of G-8 . 10th most populous
nation in the world.
 2nd Largest contributor to regular budget of UN (20%)
 Has a security alliance with US since 1951. As per Article 9 of Japanese
Constitution, “the Japanese forever denounce war as a sovereign right of nation &
threat / force as a means of settling international disputes.
 Though, Japan’s military expenditure is 1%of its GDP, it is 4th largest in the world.
Economic Progress and Global Standing

Post-World War II Resilience

 Renowned Japanese brands (Sony, Panasonic, Canon, etc.) symbolize high-tech

innovation.
 Japan’s rapid progress despite its scarce natural resources.

Global Economic Presence

 Joined the OECD in 1964; it was the third-largest economy globally in 2017.
 Only Asian member of the G-7, demonstrating significant economic influence.
 Eleventh most populous nation globally.

Unique Historical Context

Post-Nuclear Bombing Resilience

 only nation to experience nuclear bomb devastation.

 Symbolizes resilience and rebuilding efforts after World War II

International Contributions

 Second-largest contributor (almost 10%) to the regular UN budget.

 Security alliance with the US since 1951, reflecting its global diplomatic role.

Pacifist Constitution and Military Expenditure

Article 9 of the Japanese Constitution

 Renunciation of war as a sovereign right and the use of force for settling international
disputes.
 Military expenditure, though only 1% of GDP, ranks seventh globally.

Alternative Centers of Power Potential

Challenges and Opportunities

 Economic strength, technological prowess, and international contributions give Japan

significant influence.
 Constitutional pacifism, security alliances, and unique historical contexts pose
challenges.
Effective Functioning as an Alternative Center

 Japan’s economic prowess and technological innovation contribute to its role as an

alternative center of power.
 Political constraints, such as Article 9, may limit its military assertiveness.
 Contributions to global organizations and economic diplomacy enhance its
international standing.

Recent Bilateral Agreements

Japan and the United States

 Bilateral Agreements Overview: Summary of Agreements and Initiatives.

 High-Level Bilateral Visits
 Shinzo Abe (Japan) and Donald Trump (US)
 Joint Statement (2017): Focus on Economic and Security Cooperation.
 Trade Agreement (2019): Addressing trade imbalances and market access.

Key Areas of Cooperation

 Economic trade, defense, technology, and regional security.

 Ongoing discussions to enhance collaboration and address mutual concerns.

In conclusion, Japan’s unique blend of economic strength, technological innovation, and

diplomatic contributions positions it as an alternative center of power. While constitutional
constraints limit military assertiveness, Japan plays a crucial role in global affairs through
economic influence and international cooperation. Recent high-level visits and agreements
with the United States underscore Japan’s commitment to bilateral cooperation and
addressing shared challenges.
Geographical Features of Japan:-

 Japan is a country in East Asia

 Japan ranks 63rd in the world in terms of
area
 It is ranked 11th in the world by
population
 Most of Japan is surrounded by hills and forests
 Japan is affected by most of the natural disasters in the world such as earthquake,
tsunami etc.

Political Features of Japan:-

 There is a constitutional monarchy in Japan, that is, there is a king and also a
democracy.
 The current king of Japan is Naruhito
 The political head of Japan is the Prime Minister
here.
 The current Prime Minister of Japan is Shinzo Abe
 The national language here is Japanese

Economic characteristics of Japan:-

 Japan is the country with the most cutting-edge technology in the

world.

 It is ranked third in the world by GDP.

 All kinds of products are exported by Japan.
 Despite being surrounded by so many disasters, Japan is far ahead of other countries
in the field of development.
Military Features of japan:-

 Japan’s army is the fourth most powerful army in the world Japan ranks
fourth in the world in terms of military expenditure.
 High quality technology is the main feature of the Japanese military.
 Japan is one of the largest countries in the world in terms of military strength.
 Like every region, Japan is also situated among the world’s big countries in military
power.
Russia : –

Russia’s early:-

 After the Bolshevik Revolution in 1917, the Soviet Union was formed by merging 15
republican states.
 Russia was also one of these 15 republic states.
 Russia was the largest republic among these 15
republics.
 Russia was part of the USSR from 1917 to 1991
 After the dissolution of the Soviet Union in 1991, Russia became a country and it
was made the successor of the Soviet Union, that is, all the rights that were with the
Soviet Union were given to Russia.
 Such as nuclear weapons.
 Permanent Membership in the Security Council of the UNO.
 Russia had to abide by all the treaties that were made between the Soviet Union and
America.

Geographical Feature of Russia

 Russia is a country in North Asia.

 Russia is the largest country in the world
 Some part of it comes inside the continent of Asia and some of it comes inside
Eastern Europe.
 In terms of size, it has grown almost 5 times more than
India.
 Russia ranks seventh in the world by population.

Political Features of Russia:-

 Russia is a democratic country

 The capital of Russia is Moscow and its national language is
Russian.
 The president here is Vladimir Putin
 The prime minister here is Mikhail Mishustin.
 Here too, like other countries, elections are held normally and leaders are elected .
Economic Features of Russia:-

 Even though Russia is a big country in terms of size, Russia is not advanced in terms of
economic development.
 Russia ranks 11th by GDP
 Russia has abundant mineral resources, natural resources and gas reserves.
 It is because of these resources that Russia is established as a strong country in
the world, but if compared with America economically, Russia lags far behind.

Russian Military Features:-

 Russia is one of the most powerful countries in the world in terms

of arms

 nuclear weapon
 Permanent Membership of the Security Council of the UNO
 Russia ranks second in the world in terms of military
capability
 Russia gives equal competition to America in military
field

Russia and India Relations:-

 Relations between India and communist countries have been good since the
beginning.

 Russia has been helping India from the very beginning.

 Both dream of a multipolar world Both countries believe in
democracy
 80 bilateral agreements between India and Russia in 2001
 India Russian arms buyer
 Import of oil from Russia into India
 Russia’s help in scientific plans
 Russia’s support to India on Kashmir issue
 South Korea: A Rising Economic Power

Historical Background

Post-World War II Division

 The Korean peninsula is divided into South Korea (the Republic of Korea) and North Korea
(the Democratic People’s Republic of Korea) along the 38th Parallel.
 Intensification of rivalries during the Korean War (1950–53) and the Cold War era.

United Nations Membership

 Both Koreas became UN members on September 17, 1991, marking a significant diplomatic
development.
 Economic Transformation: “Miracle on the Han River”

1960s–1980s Economic Boom

 Rapid economic development, termed the “Miracle on the Han River,”

 Emergence as an economic power in Asia.

OECD Membership (1996)

 South Korea joined the OECD in 1996, indicating its global economic integration.

Global Economic Presence

 In 2017, it had the eleventh-largest economy globally.

 Tenth-largest military expenditure globally.
Human Development Achievements
Human Development Index (HDI)
 HDI rank of 18 (as per the Human Development Report 2016).
 Factors contributing to high human development include land reforms, rural development,
human resources development, and equitable economic growth.
Additional Factors for High HDI
 Export orientation, strong redistribution policies, public infrastructure development, effective
institutions, and governance.
Cultural and Economic Ties with India
Renowned Brands and Agreements with India
 Brands like Samsung, LG, and Hyundai are gaining prominence in India.
 Growing commercial and cultural ties between India and South Korea.
Recent Major Agreements

 Comprehensive Economic Partnership Agreement (CEPA) (2010):

 Promoting trade and investment.
 Reducing or eliminating tariffs on various goods.
 Strategic Partnership (2015):
 Enhancing economic, political, and strategic cooperation.
 Strengthening cultural and people-to-people ties.
 Double Taxation Avoidance Agreement (DTAA) (2016):
 Preventing double taxation and facilitating economic cooperation.
 Outlook and Continued Cooperation
 Future Prospects
 South Korea’s economic prowess and global standing continue to grow.
 Ongoing agreements and partnerships with India reflect the strengthening of
diplomatic and economic relations.
 Collaboration and Mutual Growth
 Further cooperation is expected in various sectors, including technology, trade, and
culture.

In conclusion, South Korea’s journey from post-war division to economic powerhouse

demonstrates its resilience and transformation. With a robust economy, technological
advancements, and international collaborations, South Korea is well-positioned in the global
arena. The growing ties with India, marked by significant agreements, showcase the mutual
benefits of diplomatic and economic cooperation
Israel : –
🔹 Israel has also emerged as one of the most powerful nations in the 21st century in terms of
science and technology , defence and intelligence.

🔹 Israel being a small Jewish – Zionist nation is placed in the contemporary global politics in
general and the Arab – dominated West Asian politics in particular.

🔹 Israel’s economy is a well – developed free – market economy that is technologically

advanced. After the United States, it has the world’s second – largest number of start – up
enterprises.

Creation of Israel:-

 Israel became a separate country on 14 May 1948 after separating from

Palestine.

 It is the only Jewish country in the world

 After independence, the biggest problem for it was the Muslim countries
around it.
 Egypt, Syria , Iraq , and Jordan attacked it soon after its independence .
 This was the beginning of the Arab Israel War which lasted from 1948 to 1949.
 In this Israel won and captured a large area

June 1967 (Six Day War)

 In 1967, the countries around Israel, Jordan , and other Arab countries attacked it
together.
 Like the previous war, in this war also Israel defeated all of them very easily within
just
 6 days, that is why it is also called Six Day War.
 In this war Israel also captured the Gaza Strip and increased its area by almost 3 times.
Geographical Features of Israel:-
 Around it, there are Muslim countries like Lebanon, Syria, Jordan, and Egypt.
 Total Area 22145 Sq. Kilometers
 Population approx. 85 lakh.
 located in southwest Asia.
 A Jewish person born anywhere in the world is a citizen of Israel.

Political Features of Israel:-

 The national language here is Hebrew.

 The capital of Israel is Jerusalem.

 The president is Raven Rivlin.
 Prime Minister is Benjamin Netanyahu.
 Here too there is a system of parliamentary democracy like in India.

Military Features:-

 Israel is the eighth largest country in the world based on military strength
 Its army has about 35 lakh soldiers and women are also included in the army in
Israel.
 Army training is given to all school students.
 Israel is far ahead in military technology compared to other countries
 In Israel, it is mandatory for boys to serve in the army for at least 3 years and for
girls for 2 years.
 It is not capable of all military weapons but also exports them on a large scale.

Economic Features:-

 Israel ranks 21st in the world on the basis of GDP

 Israel is ahead of developed countries in the field of science and
technology
 Israel is ahead of its size in terms of trade
 Israel’s main task is to develop innovative technologies and export them to the
world.
South Asian Association for Regional Coorpperation ( SAARC ) : –

 Name of SAARC ( in English ) :- South Asian Association for Regional Cooperation

Name of SAARC (in Hindi ) :- दक्षिण एशियाई क्षेत्रीय सहयोग संगठन

 Establishment: - SAARC was established on December 8, 1985 with the signing of the
SAARC Charter in Dhaka, Bangladesh.

 Headquarter and Secretariat of SAARC :- Kathmandu Nepal.

 Members Country: – India, Bangladesh , Bhutan , Maldives , Nepal , Pakistan , Sri

Lanka and Afghanistan. Afghanistan become a member of SAARC at the 13th annual
Summit in 2005.

 observers Country’s :- There are currently nine observers to SAARC namely :-

Australia, China, Iran, The European Union, Japan, Mauritius, The United States of
America, The Republic of Korea, Myanmar.

Objectives of SAARC: –

🔹 to promote the welfare of the people of South Asia and to improve their quality of life.

🔹 to accelerate economic growth, social progress and cultural development in the region and
to provide all individuals the opportunity to live in dignity and to realize their full potential.

🔹 to contribute to mutual trust, understanding and appreciation of one another’s problem.

🔹 to strengthen cooperation with other developing countries.

SAARC and its Importance : –
🔹 SAARC comprises 3 % of the world’s area , 21 % of the world’s population and 5.21 % of the
global economy.

🔹 Creating Synergies SAARC countries have common tradition , dress , food and culture and
political aspects there by synergising their actions. SAARC has initiated SAFTA to free trade
zones for whole South Asia.

🔹 Common Solutions All SAARC countries have common problems and issues like poverty ,
illiteracy , malnutrition , natural disasters , internal conflicts , industrial and technological
backwardness , low GDP and poor socio – economic condition.

Significance of SAARC for India : –

🔸 Economic Integration : – India’s Look East Policy links South Asian economies with South –
East Asia will bring further economic integration and prosperity to India mainly in the Service
sector.

🔸 Geostrategic Significance: – It can counter China through engaging Nepal, Bhutan, the
Maldives and Sri Lanka in development process and economic cooperation.

🔸 Regional Stability: – SAARC can help in creation of mutual trust and peace within the region.

🔸 Global Leadership: – Role It offers India a platform to showcase its leadership in the region
by taking up extra responsibilities.

Limitations of SAARC : –

🔹 SAARC is growing at a slow pace due to the political differences among its member states.

🔹 Conflicts between India and Pakistan led t bilateral issues like Kashmir issue.

🔹 India’s neighbours feared that India intends to dominate them by influencing at the political
and societal level.

🔹 SAARC members in majority belong to developing or least developing countries which

creates insufficiency of funds.
BRICS : –

 The term BRICS refers to Brazil , Russia , India , China and South Africa respectively.
 BRICS is an organization to enhance business, politics and cultural cooperation among
these countries.
 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.

Reasons for the creation of BRICS:-

 At present, almost all the major organizations present in the world, such as the World
Bank or the IMF, are influenced by the US and other western countries.
 For this reason, an organization was created through which the emerging economies
of
 The world could be brought together and cooperation could be established between
them.
 This was done because in future all these economies can compete with the
developed countries and that is why it is very important for them to come
together.

Formation of BRICS

 At the time of formation, the name of this organization was BRIC, which was formed
from the initials of the names of its member countries, after joining the organization
of South Africa in 2010, it became BRICS.
 BRIC was launched in Russia in 2006
 The creation of BRIC was suggested by Jim O Neil, a UK
economist. Discussions about it began in Russia in 2006.
 It was formed in 2009
 At the time of formation it consisted of 4 countries and was called
BRIC.
 In 2010 South Africa also joined BRIC and it became BRICS.
Conference of BRICS : –

 Its first conference took place on 16 June 2009 in Yakitin (Russia).

 4 countries participated in this conference because South Africa was not a member
of BRICS at that time
 The second conference was held in Brazil on 15 April 2010 and during the same
 Conference South Africa was also included in BRICS.
 The third BRICS summit was held in China on 14 April 2011 in which its name was
changed from BRIC to BRICS.
 Now its conference is proposed in Russia in 2020

🔹 The 12th conference of BRICS was concluded in Russia in 2020. It was chaired by Russian
President Vladimir Putin.

🔹 The 13th Conference of BRICS was held in India in June 2021 under the Chairmanship of
India’s Prime Minister Shri Narendra Modi.

Objectives of BRICS : –
 To co – operate and distribute mutual economic benefits among its members besides
non – Interference in the Internal policies of each Nation and mutual equality.

 Promote demand for reforms in United Nation Security council.

 Cooperate on Trade and Climate change issues.

 Simplifying Import and Exports.

 Accelerating the pace of development through mutual cooperation.

 Establish Mutual political cooperation.

 Ensure each other’s safety.

 Work together to share common challenges or problems.

 NDB (New Development Bank) New Development Bank
All the countries of BRICS together formed a bank in 2014 which was named NDB Bank.

Formation of NDB Bank: –

 India suggested making BRICS countries a bank
 Which was formed by these countries in 2014 and named as NDB i.e. New
Development Bank?
 Its headquarter is in Shanghai
 The regional office is in South Africa
 Presently its chairman is KV Kamath and it is an Indian
 The total capital of this bank is $100 billion, of which $41 billion is from China, $18
billion is from India, Brazil and Russia and $5 billion is from South Africa.

Functions of NDB Bank

 This bank gives loan to member countries on easy
installments Provides economic suggestions to
member countries
 Helps member countries acquire technology

Importance of BRICS for India : –

🔹 India can benefit from collective strength of BRICS by way of consultation and cooperation
as well as topical global issues , such as international terrorism , climate change , food and
energy security , reforms of global governance institutions etc.

🔹 India remains engaged with the other BRICS countries on its NSG membership.

🔹 The New Development Bank ( NDB ) will help India to raise and avail resources for their
infrastructure and sustainable development projects.
Features of BRICS:-
 About 40% of the world’s population lives in the BRICS countries
 The main two countries with the largest population in the world, India and China
are included in BRICS.
 Russia is the largest country in the world by area and is a member of BRICS.
 All countries except Russia are developing.
 India as China emerging as Emerging players.
 It is estimated that by 2030 this group will take over the US.
 Its GDP is about 23% of the whole world.
 It also covers 27% land for the total landmass.

Current status of BRICS

If we see in the present situation, BRICS could not be completely successful in carrying
out its tasks, it is because there are some mutual differences between the countries
of BRICS such as
 Pakistan:-

1947 (Kashmir dispute)

 War started between India and Pakistan soon after
independence

 The main reason for this war was Kashmir.

 India won this war
 In this war, some part of Jammu and Kashmir was occupied by Pakistan , which India
calls POK (Pakistan Occupied Kashmir) and Pakistan is called Azad Kashmir

1965 (river water sharing)

 India’s problems did not end after the 1962 China War
 In 1965, a war broke out between India and Pakistan over the problem of water
division.
 In the end, India defeated Pakistan very comfortably.

1971 (Bangladesh)
 1971 East Pakistan problem caused war between India and Pakistan
 The war ended with the victory of India , the independence of East Pakistan and the
creation of a new country, Bangladesh.

1999 (Kargil War)

 In 1999, it was due to infiltration and deployment of army in the Kargil area by
Pakistan. Operation Vijay was launched by India to drive out the intruders and in
this 60-day long war, India completely destroyed Pakistan’s army.
India : –
🔹 the 21” 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 center of
power in the 21 ” 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.
All these changes are making India an important center of power in the present world.

Reason Why India view themselves as new centers of powers in global politics:

 Large population of more than 135 crores.

 India has a fast developing economy.
 India has adopted free trade policy and privatization.
 India has attained nuclear capability in the military sector.
 India is the world’s largest democracy.
Geographical Features of India

 Second largest country in the world by population

 Surrounded by the Indian Ocean in the south, the Arabian Sea in the east and the
Bay of Bengal in the west
 Largest cultural and religious diversity in the world

Political Features of India

 world’s largest democratic country

 parliamentary system of
government
 Federal government system
 Current Prime Minister –
Narendra Modi
 Current President – Ram Nath
Kovind
Economic Features of India
 After independence, India adopted the model of mixed development in which equal
importance was given to the public and private sector.
 India’s growth rate was normal from 1947 to 1991.
 In 1991, India adopted LPG by making major economic changes.
 This is where India’s development got a boost.
 The pace of India’s development accelerated since 1991.
 India is currently the fifth largest economy in the world
 The world’s largest software exporting country is India.

Military Features of India

 India comes in the first five countries of the world according to military
capability.

 India ranks second in the world according to the number of soldiers

 nuclear weapon country
 Contribution to the UNO Peacekeeping Force
 High quality weapons and trained soldiers are the main features of the Indian
Army
WORDS THAT MATTER

1. European Union: A group of European Capitalist countries established in 1992

founded for common goals of foreign and security policy, cooperation and home
affairs.
2. OEEC: Organisation for European Economic Cooperation established in 1948 to
channel aid to West European states to cooperate on trade and economic issues.
3. Marshall Plan: It was introduced by America to provide financial help for revival of
European economy.
4. ASEAN: Association of South East Asian Nations to accelerate economic growth
through social progress and cultural development.
5. ASEAN WAY: An interaction that is informal, non-confrontationists and
cooperative to promote supernational structures.
6. ASEAN Regional Forum (ARF): An organisation established in 1994 to promote
coordination of security and foreign policy.
7. Special Economic Zones (SEZs): Foreign investors could set up their own
enterprises in these zones.
8. Open Door Policy: To invite investment of capital and technology from abroad.
9. Three Pillars of ASEAN Community: ASEAN Security Community, ASEAN
Economic Community, ASEAN Socio-Cultural Community.

TIMELINE

1. April 1951: 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).
2. March 25, 1957: These six countries sign the treaties of Rome establishing the
European Economic Community (EEC) and the European Atomic Energy
Community (EURATOM).
3. January 1973: Denmark, Ireland and United Kingdom join the European
Community.
4. June 1979: First direct elections to the European Parliament.
5. January 1981: Greece joins the EC.
6. June 1985: The Schengen Agreement abolishes border controls among the EC
numbers.
7. January 1986: Spain and Portugal join the EC.
8. October 1990: Unification of Germany.
9. February 7, 1992: Treaty of Maastricht was signed establishing the European
Union.
10. January 1993: The single market was created.
11. January 1995: Austria, Finland and Sweden join the EU.
12. January 2002: Euro, the new currency, was introduced in the 12 EU members.
13. May 2004: Ten new members Cyprus, the Czech Republic, Estonia, Hungary,
Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia join the EU.
14. January 2007: Bulgaria and Romania join the EU. Slovenia adopts the EURO.