The European Union and Integration

Contemporary Centres of Power

The European Union

• After World War II, the European Union (EU) emerged as an alternative centre of power to limit America's dominance.
• The EU developed alternative institutions and conventions, building a more peaceful and cooperative regional order.
• The EU has transformed its member countries into prosperous economies.

European Integration

• The Organisation for European Economic Cooperation (OEEC) was established in 1948 to channel aid to Western European states.
• The Council of Europe was established in 1949, marking a step forward in political cooperation.
• The European Economic Community (EEC) was formed in 1957, leading to the creation of the European Union in 1992.
• The EU has evolved from an economic union to a political one, with a common foreign and security policy.

EU Institutions and Symbols

• The European Union has its own flag, anthem, founding date, and currency (the euro).
• The European Parliament was established, giving the EU a political dimension.
• The EU has a single currency and a common foreign and security policy.

EU Membership and Expansion

• The EU has expanded to include new members, especially from the erstwhile Soviet bloc.
• The process of expansion has not been easy, with some countries hesitant to give up powers to the EU government.
• The EU's GDP is projected to be approximately $19.35 trillion in 2024.

EU Influence and Diplomacy

• The EU's economic power gives it influence over its neighbours and in Asia and Africa.
• The EU functions as an important bloc in international organisations, such as the UN Security Council.
• The EU's use of diplomacy and negotiations has been effective in international relations.

EU Military Power

• The EU's combined armed forces are the second-largest in the world.
• The EU's total defence spending is second only to that of the US.
• France, an EU member, has nuclear arsenals of approximately 335 warheads.

Association of Southeast Asian Nations (ASEAN)

• ASEAN emerged as an alternative centre of power in Asia.

• ASEAN developed alternative institutions and conventions, building a more peaceful and cooperative regional order.

• ASEAN has transformed its member countries into prosperous economies.### Southeast Asia

• ASEAN (Association of Southeast Asian Nations) was established in 1967 by five countries: Indonesia, Malaysia, the Philippines, Singapore, and Thailand.

• ASEAN's objectives are to accelerate economic growth, social progress, and cultural development, and to promote regional peace and stability.

• The organization has a unique approach to interaction, known as the 'ASEAN Way', which is informal, non-confrontational, and cooperative.

• ASEAN has grown to include ten member states: Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.

ASEAN's Structure and Agreements

• ASEAN has three pillars: the ASEAN Security Community, the ASEAN Economic Community, and the ASEAN Socio-Cultural Community.
• The organization has established agreements such as the ASEAN Free Trade Area (AFTA) and the ASEAN Dispute Settlement Mechanism.
• ASEAN has also signed trade agreements with countries like India, China, and the US.

ASEAN's Role in Regional Affairs

• ASEAN has played a crucial role in mediating conflicts in the region, such as the Cambodian conflict and the East Timor crisis.
• The organization has also provided a platform for regional dialogue and cooperation.
• ASEAN's economic growth and influence have made it an attractive partner for countries like India and China.

Comparison with SAARC

• ASEAN has been successful in achieving regional cooperation, whereas SAARC (South Asian Association for Regional Cooperation) has faced challenges in doing so.
• ASEAN's success is attributed to its unique approach to interaction, which emphasizes informality, non-confrontation, and cooperation.

China's Rise as an Economic Power

• China's economic reforms began in 1978, and the country has since become one of the fastest-growing economies in the world.
• China's economic integration into the region has made it a driver of East Asian growth, giving it enormous influence in regional affairs.
• The country's economic success is projected to surpass the US by 2040, making it the world's largest economy.

China's Economic Reforms

• China's economic reforms were introduced by Deng Xiaoping in 1978, with the aim of generating higher productivity through investments of capital and technology from abroad.
• The country's 'open door' policy and economic reforms led to a remarkable rise in agricultural production, rural incomes, and foreign trade.
• China's growth has been driven by its large-scale industrialization, high personal savings, and exponential growth in rural industry.### China's Economic Rise
• China plans to deepen its integration into the world economy and shape the future world economic order.
• Despite economic improvements, not everyone in China has benefited from reforms, with 100 million people unemployed and women facing bad employment conditions and environmental degradation.
• China has become an economic power, with the integration of its economy creating inter-dependencies with trade partners, influencing its relations with Japan, the US, ASEAN, and Russia.
• China hopes to resolve differences with Taiwan by integrating it closely into its economy.

India-China Relations

• India and China were great powers in Asia before Western imperialism, with influence on their periphery through a tributary system.
• India and China rarely interacted politically and culturally due to their non-overlapping spheres of influence.
• After independence, there was hope for collaboration, but conflicts arose, including a border dispute in 1962, which had long-term implications for relations.
• Relations began to improve slowly after 1976, with a pragmatic approach from China's leadership, and the signing of agreements on cultural exchanges and cooperation in science and technology.
• Bilateral trade has grown significantly, with India and China viewing themselves as rising powers in global politics.

India-China Relations (continued)

• Both countries have adopted similar policies in international economic institutions like the WTO.
• India's nuclear tests in 1998 were justified due to a perceived threat from China, but did not stop greater interaction.
• China's military relations with Bangladesh and Myanmar were viewed as hostile to Indian interests in South Asia.
• Talks to resolve the boundary question have continued without interruption, with military-to-military cooperation increasing.
• Leaders and officials from both countries visit each other frequently, with increasing transportation and communication links, common economic interests, and global concerns helping to establish a more positive relationship.

Japan

• Japan has progressed rapidly after World War II, despite having few natural resources and importing most of its raw materials.
• Japan is the third-largest economy in the world, a member of the OECD, and the only Asian member of the G-7.
• It is the eleventh most populous nation in the world and has a security alliance with the US since 1951.
• Japan has a reputation for making high-technology products and is the second-largest contributor to the UN's regular budget.

South Korea

• South Korea emerged as a centre of power in Asia, rapidly developing into an economic power, known as the "Miracle on the Han River".
• It became a member of the OECD in 1996 and has the eleventh-largest economy in the world.
• South Korea's military expenditure is the tenth largest in the world, and its Human Development Index rank is 18.
• The Korean peninsula was divided into South Korea and North Korea at the end of World War II, with the Korean War and Cold War era intensifying rivalries between the two sides.