Why new centres of power?
A centre of power is a country or a group of countries strong enough to shape world events through its economy, military, trade or ideas. After the Cold War, many feared the USA would rule alone. But regional groups and fast-growing economies became alternative centres of power. They help keep a balance in the world.
The European Union (EU)
How it grew
- 1948: the Marshall Plan (US aid) and the Organisation for European Economic Co-operation helped rebuild Europe.
- 1949: the Council of Europe; 1957: the European Economic Community.
- 1992: the Maastricht Treaty set up the European Union.
- 2002: the euro came into use in many member states.
- The UK left the EU in 2020 (Brexit).
Why the EU is strong
- Economic: one of the largest economies in the world; the euro is a strong currency; a big share of world trade.
- Political and diplomatic: France is a permanent member of the UN Security Council; the EU speaks on trade, climate and human rights.
- Military: its members together have large armed forces; France has nuclear weapons.
- Symbols: flag, anthem, founding day, currency, parliament.
Limits
Members keep their own foreign and defence policies. Some people fear losing national identity; some countries did not adopt the euro.
ASEAN
ASEAN (Association of South-East Asian Nations) was formed in 1967 by the Bangkok Declaration with five members: Indonesia, Malaysia, the Philippines, Singapore and Thailand. Five more joined later (Brunei, Vietnam, Laos, Myanmar, Cambodia).
The ASEAN Way
Informal, friendly and co-operative talks; respect for each country's sovereignty; decisions by agreement.
The ASEAN Community (three pillars)
- ASEAN Security Community: settle disputes peacefully; the ASEAN Regional Forum (1994) for security talks.
- ASEAN Economic Community: a common market and production base; the ASEAN Free Trade Area.
- ASEAN Socio-Cultural Community.
ASEAN looks outward: it holds talks with big powers and wants a peaceful, prosperous region. India signed free trade agreements with ASEAN and follows the Act East (earlier Look East) policy.
The rise of China
- After the revolution of 1949, China followed the Soviet model: state-owned industry, collective farms, and little trade with the West. Growth was slow.
- In 1978 Deng Xiaoping announced the open door policy: step-by-step reforms.
- Agriculture was privatised (1982) and then industry (1998). Special Economic Zones (SEZs) drew foreign investment.
- China joined the WTO in 2001 and became the 'factory of the world'.
- It did not use shock therapy; change was gradual.
Problems
Not everyone gained equally: unemployment in some areas, poor conditions for some workers, pollution, corruption and a gap between rural and urban areas.
China and India
Both were colonised or dominated by outside powers and are old civilisations. They fought a border war in 1962 and still have border disputes, but trade between them has grown a lot and they co-operate in groups like BRICS.
Japan and South Korea
Japan
- Rebuilt after the Second World War; became a leading economy with brands like Sony, Toyota, Honda and Nissan.
- Few natural resources; depends on imports of raw materials and on technology.
- Only country to have suffered atomic bombs (1945); its constitution limits its military, yet it spends a lot on defence.
- A major aid donor and a large contributor to the UN budget; member of the G7.
South Korea
- Became a separate state in 1948 after the division of Korea; the Korean War (1950-53) followed.
- Grew very fast from the 1960s to the 1980s: the 'Miracle on the Han River', through education, exports and land reform.
- Became a democracy in 1987; joined the OECD in 1996.
- Brands such as Samsung, LG and Hyundai are known worldwide.
Try it yourself
Look at labels on five things at home (phone, TV, car, toys, clothes). Note where each was made. Count how many come from China, Japan, South Korea, ASEAN countries or the EU. Then move the China slider in the 3D and see why many labels say 'Made in China'.
Key formulas and definitions
- EU: set up 1992 (Maastricht Treaty); euro from 2002
- ASEAN: 1967, Bangkok Declaration, 10 members
- ASEAN Way: informal, non-interference, consensus
- ASEAN Community: security, economic, socio-cultural pillars
- China: open door policy 1978 (Deng Xiaoping); WTO 2001
- South Korea: 'Miracle on the Han River'
Worked examples
1. Why is the EU considered a strong political and economic force?
It has one of the world's largest economies, a strong currency (euro) and a large share of world trade; France holds a UN veto; it acts together on trade and climate; its members have strong armies.
2. What is the 'ASEAN Way'?
A style of informal, friendly and co-operative talks in which members respect each other's sovereignty and decide by agreement.
3. Name two reasons for China's economic rise.
Gradual reforms from 1978 (open door policy) and Special Economic Zones that drew foreign investment; later, joining the WTO in 2001 boosted exports.
4. How did South Korea grow so fast?
Through education, land reform, export-led industry and technology; big firms like Samsung and Hyundai led the growth from the 1960s to the 1980s.
Common mistakes
- Saying all EU members use the euro. Some members kept their own currency.
- Writing that ASEAN has 5 members today. It started with 5; it now has 10.
- Saying China used shock therapy. It reformed gradually.
- Calling the EU a single country. It is a union of sovereign states that keep their own foreign and defence policies.