NCERT Class 12 World Politics Chapter 4 Alternative Centers of Power YouTube Lecture Handouts Part 2

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NCERT Class 12 World Politics Chapter 4: Alternative Centers of Power|CBSE|English (EU, ASEAN)

3 Pillars of ASEAN

ASEAN Security Community

ASEAN Economic Community

ASEAN Socio-Cultural Community

  • ASEAN Flag is 10 stalks of paddy showing 10 nations and their friendship
  • 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, and respect for national differences and sovereign rights.
  • ASEAN Regional Forum (ARF) , which was established in 1994, is the organisation that carries out coordination of security and foreign policy.
  • ASEAN much smaller than EU, Japan & US but still growing faster
  • ASEAN Economic Community are to create a common market and production base within ASEAN states and to aid social and economic development in the region – create free trade area for investment and labor services; also dispute settlement mechanism for resolving economic disputes
  • ASEAN has mediated the end of the Cambodian conflict, the East Timor crisis, and meets annually to discuss East Asian cooperation
  • India signed FTA with Singapore & Thailand. Later, India signed an FTA in goods with ASEAN in 2009, which came into force in 2010. A separate FTA in services was signed in 2014.

Rise of Chinese Economy

Illustration: Rise of Chinese Economy
  • The strength of its economy, together with other factors such as population, land mass, resources, regional location and political influence, adds to its power in significant ways.
  • The model was to create a state-owned heavy industries sector from the capital accumulated from agriculture. As it was short of foreign exchange that it needed in order to buy technology and goods on the world market, China decided to substitute imports by domestic goods.

Reasons & Issues in Chinese Economy

Illustration: Reasons & Issues in Chinese Economy
  • Population growth has high - economic growth was insufficient to meet the needs of a growing population. Agricultural production was not sufficient
  • Same crisis as USSR – China՚s industrial production was not growing fats; international trade was minimal and per capita income was low.
  • The Chinese leadership took major policy decisions in the 1970s. China ended its political and economic isolation with the establishment of relations with the United States in 1972. Premier Zhou Enlai proposed the ‘four modernizations’ (agriculture, industry, science and technology and military) in 1973. 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 technology from abroad

How China Opened the Economy?

Illustration: How China Opened the Economy?
  • In China, the state played and continues to play a central role in setting up a market economy
  • The new economic policies helped the Chinese economy to break from stagnation
  • Privatisation of agriculture led to a remarkable rise in agricultural production and rural incomes. High personal savings in the rural economy lead to an exponential growth in rural industry. The Chinese economy, including both industry and agriculture, grew at a faster rate.
  • The new trading laws and the creation of Special Economic Zones led to a phenomenal rise in foreign trade. China has become the most important destination for FDI anywhere in the world. It has large foreign exchange reserves that now allow it to make big investment in other countries.

Mayank