NCERT Solutions - Contemporary Centres of Power

Q1: Arrange the following in chronological order:
(a) China's accession to WTO
(b) Establishment of the EEC
(c) Establishment of the EU
(d) Birth of ARF
Ans: 
(b) Establishment of the EEC - 1957
(c) Establishment of the EU - 1992
(d) Birth of ARF - 1994
(a) China's accession to WTO - 2001
Explanation: The European Economic Community (EEC) was created by the Treaty of Rome in 1957, marking the start of formal economic integration in Western Europe. The European Union (EU) came into being with the Maastricht Treaty in 1992, transforming the EEC into a broader political and economic union. The ASEAN Regional Forum (ARF) was established in 1994 as a regional security dialogue in Asia. China joined the World Trade Organisation (WTO) in 2001, completing the sequence above.

Q2: The ASEAN WAY:
(a) Reflects the lifestyle of ASEAN members.
(b) A form of interaction among ASEAN members that is informal and cooperative.
(c) The defence policy followed by the ASEAN members.
(d) The road that connects all the ASEAN members.
Ans: (b) A form of interaction among ASEAN members that is informal and cooperative.
Explanation: The phrase ASEAN Way refers to practices of informal consultation, consensus decision-making, mutual respect for national sovereignty and non-interference. It emphasises diplomacy, quiet negotiation and gradual confidence-building rather than formal legal mechanisms or coercive measures.

Q3: Who among the following adopted an 'open door' policy?
(a) China 
(b) EU
(c) Japan 
(d) USA
Ans: (a) China
Explanation: The term here refers to China's post-1978 economic reforms under Deng Xiaoping, commonly described as the "open door" policy. These reforms opened China to foreign trade and investment, introduced market mechanisms and established Special Economic Zones to attract capital and technology.

Q4: Fill in the blanks:
(a) The border conflict between China and India in 1962 was principally over______and______region.
(b) ARF was established in the year______
(c) China entered into bilateral relations with ______(a major country) in 1972.
(d) ______ plan influenced the establishment of the organization for European Economic Cooperation in 1948.
(e) ______ is the organization of ASEAN that deals with security.
Ans: 
(a) Arunachal Pradesh, Aksai Chin
(b) 1994
(c) the US
(d) Marshall
(e) ASEAN Regional Forum

Q5: What are the objectives of establishing regional organizations?
Ans: The regional organizations are established with the following objectives:

• To promote regional development so that members share the benefits of a fast-growing global economy.
• To accelerate economic growth through social progress and cultural development across member states.
• To promote regional peace and stability based on the rule of law and the principles of the United Nations Charter.

Q6: How does geographical proximity influence the formation of regional organizations?
Ans: Geographical proximity influences the formation of regional organisations in these ways:

• Neighbours often share historical ties, rivalries or common security concerns that encourage collective responses.
• Similar economic interests and resource complementarities make cooperation more practical and beneficial.
• Shared geographical advantages, such as trade routes or natural resources, provide a basis for regional economic integration.

Q7: What are the components of the ASEAN Vision 2020?
Ans: The components of ASEAN Vision 2020 can be summed up as follows:

• An outward-looking role for ASEAN in the international community.
• Encouragement of negotiation and peaceful settlement of conflicts within the region.
• Active mediation and dialogue to resolve crises (for example, Cambodia and East Timor) and regular discussion on East Asian cooperation through meetings and fora.

Q8: Name the pillars and objectives of ASEAN community.
Ans: 
The ASEAN community established the following three pillars:

• The ASEAN Security Community
• The ASEAN Economic Community
• The ASEAN Socio-Cultural Community

The objectives of the ASEAN community are as follows:

• To prevent territorial disputes from escalating into armed confrontation.
• To accelerate economic growth through 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.
• To establish dispute-settlement mechanisms to resolve economic and other disputes.
• To create free trade arrangements to facilitate investment, labour mobility and services within the region.

Q9: In what ways does the present Chinese economy differ from its command economy?
Ans: The present Chinese economy adopted an 'open door' policy to raise productivity through foreign investment and technology. It differs from the earlier command economy in these key respects:

• It ended long-running stagnation by introducing market incentives and decentralising economic decision-making.
• Privatisation and reform in agriculture and industry increased output, whereas the command system had low industrial growth and inefficiency.
• China introduced new trade laws and Special Economic Zones to encourage exports and foreign direct investment; previously, international trade was minimal and per capita income was very low.

Q10: How did the European countries resolve their Post Second World War problem? Briefly outline the attempts that led to the formation of the European Union.
Ans: After the Second World War, European states faced widespread economic ruin and institutional collapse. They addressed these problems through cooperation and institutional building as follows:

• Under the Marshall Plan the United States provided financial aid to help revive European economies.
• The US helped create a collective security structure through NATO to enhance stability.
• The Organisation for European Economic Co-operation (OEEC) was established in 1948 to coordinate economic recovery and trade cooperation among Western European states.
• The process of economic integration continued with the Treaty of Rome (1957) creating the European Economic Community (EEC), later evolving into the European Union (EU) under the Maastricht Treaty in 1992 for a common foreign and security policy, deeper cooperation on justice and home affairs, and eventual monetary union.

The following specific attempts led to the EU:

• The Council of Europe (1949) promoted political cooperation and human rights.
• The economic integration of Western European capitalist countries, notably the EEC from 1957, created common markets and institutions.
• The development of supranational institutions, such as the European Parliament and Commission, brought in a political dimension to integration.
• The collapse of the Soviet bloc and changing European security dynamics accelerated integration, culminating in the EU in 1992.

Q11: What makes the European Union a highly influential regional organization?
Ans: As a supranational organisation, the European Union exercises influence across economic, political-diplomatic and military/technological spheres:

1. Economic Influence:

• The EU accounts for a very large share of world trade and forms a major single market.
• The euro is an important international currency and can challenge the dominance of the US dollar in some contexts.
• The EU acts as a powerful bloc within the World Trade Organisation (WTO) and in global economic negotiations.

2. Political and Diplomatic Influence:

• Several EU members, notably the United Kingdom and France, have permanent seats on the UN Security Council and thus influence UN deliberations.
• The EU conducts active diplomacy, development assistance and human-rights dialogue (for example, with China) and plays a major role in international negotiations.

3. Military, Scientific and Technological Influence:

• Collectively, EU members have substantial armed forces and defence expenditures, second only to those of the United States in aggregate.
• Key members maintain nuclear capabilities, and the EU is an important source of space and communications technology.

Q12: The emerging economies of China and India have great potential to challenge the unipolar world. Do you agree with the statement? Substantiate your arguments.
Ans: Yes. China and India have the potential to challenge unipolarity on several grounds:

• Both countries introduced economic reforms that ended long periods of stagnation and opened their economies to global trade and investment.
• Special Economic Zones and liberalisation policies produced rapid growth in exports and foreign investment.
• China has become a major destination for foreign direct investment and built large foreign-exchange reserves that allow it to invest abroad and influence global finance.
• At the global level, India and China have coordinated positions in forums such as the WTO and have sought deeper integration with the world economy, thereby increasing their collective bargaining power.

Q13: The peace and prosperity of countries lay in the establishment and strengthening of regional economic organizations. Justify this statement.
Ans: Regional economic organisations contribute to peace and prosperity in multiple ways, as seen in ASEAN and the EU:

• ASEAN's Vision 2020 and related initiatives promote outward-looking cooperation and encourage negotiation over regional conflicts rather than confrontation.
• The ASEAN Regional Forum (ARF) provides a platform for security dialogue and confidence-building among Asian states.
• The European Union was founded on shared economic and political goals; integration reduced the risk of interstate conflict and fostered prosperity through common markets and institutions.
• Both organisations have expanded cooperation among members and created mechanisms for dispute settlement, economic integration and collective policy responses, which underpin regional stability and growth.

Q14: Identify the contentious issues between China and India. How could these be resolved for greater cooperation? Give your suggestions.
Ans: Key contentious issues and possible remedies are as follows:

• Border disputes: The 1962 conflict centred on disputed border areas, notably Arunachal Pradesh and Aksai Chin. Clearer border management, continued dialogue and confidence-building measures can reduce tensions.
• Tibet issue: China's incorporation of Tibet in 1950 created disagreement with India. Respectful diplomatic engagement and cultural exchanges may ease mutual concerns.
• Historical distrust: The 1962 war created deep political and public distrust. Sustained people-to-people contacts, educational and cultural programmes can help rebuild trust.
• Security relationships with third parties: China's strategic ties with Pakistan and military relations with neighbours have worried India. Transparency, mutual security dialogues and cooperative frameworks can mitigate such suspicions.

Suggested measures for greater cooperation:

• Strengthen diplomatic channels and regular high-level talks to manage disagreements and prevent escalation.
• Expand joint efforts against terrorism, promote non-proliferation and address regional economic inequalities jointly.
• Enhance economic interdependence through trade, investment and connectivity projects that benefit both sides.
• Increase cultural and scientific exchanges to foster mutual understanding; existing agreements on cultural cooperation and science and technology can be deepened.