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Alternative Centres of Powers
Alternative Centres of Powers
The collapse of the Soviet bloc put Europe on a fast track and
resulted in the establishment of the European Union in 1992.
The foundation was thus laid for a common foreign and
security policy, cooperation on justice and home affairs, and
the creation of a single currency.
SAARC comprises of eight Member States:
Afghanistan, Bangladesh, Bhutan, India, Maldives,
Nepal, Pakistan and Sri Lanka.
South Asian Association for Regional Cooperation
(SAARC) was established when its Charter was
formally adopted on 8th December 1985.
The Headquarters of SAARC Secretariat are in
Kathmandu.
Afghanistan became the newest member of
SAARC at the 13th annual summit in 2005.
Objectives of the 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 potentials.
• To promote and strengthen collective self-reliance among the countries of
South Asia.
• To contribute to mutual trust, understanding and appreciation of one
another’s problems..
• To promote active collaboration and mutual assistance in the economic,
social, cultural, technical and scientific fields.
• To strengthen cooperation with other developing countries.
• To strengthen cooperation among themselves in international forums on
matters of common interests; and
• To cooperate with international and regional organizations with similar aims
and purposes.
CHINA
o 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.
o Premier Zhou Enlai proposed the‘four modernisations
(agriculture, industry, science and technology and military) in
1973.
o By 1978, the then leader Deng Xiaoping announced the ‘open
door’ policy and economic reforms in China.
o The policy was to generate higher productivity by
investments of capital and technology from abroad.
The Economic Policies of China
o The new economic policies helped the Chinese economy to break from
stagnation.
o Privatisation of agriculture led to a remarkable rise in agricultural production
and rural incomes.
o High personal savings in the rural economy lead to an exponential growth in
rural industry.
o The Chinese economy, including both industry and agriculture, grew at a faster
rate.
o The new trading laws and the creation of Special Economic Zones led to a
phenomenal rise in foreign trade.
o China has become the most important destination for foreign direct
investment (FDI) anywhere in the world.
o It has large foreign exchange reserves that now allow it to make big
investment in other countries.
New Economic Policy of China
o China followed its own path in introducing a market
economy.
o The Chinese did not go for ‘shock therapy’ but opened
their economy step by step.
o The privatization of agriculture in 1982 was followed by
the privatization of industry in 1998.
o Trade barriers were eliminated only in Special Economic
Zones (SEZs) where foreign investors could set up
enterprises.
o In China, the state played and continues to play a central
role in setting up a market economy.
Commonwealth of Independent States.(CIS)