The end of the Cold War did not simply leave the USA alone at the top of the world. It also created conditions for the rise of alternative centres of power across the globe. The European Union, China, Japan, Russia and India are among the powers that have grown in economic and political strength since 1991. The rise of these powers means that the international system is moving towards multipolarity, in which no single country can dominate and several centres of power shape world affairs. This chapter examines the nature, strength and aspirations of these alternative centres of power.
The emergence of alternative centres of power is one of the most important developments in contemporary world politics. It affects the distribution of power, the reform of international institutions, and the foreign policy choices of countries like India. For a country to be considered a major power, it must have significant economic resources, military capabilities and the willingness to influence world affairs. The European Union, China, Japan and other powers have acquired these attributes to varying degrees, and their rise is reshaping the global order.
The European Union (EU) is an economic and political union of European states. It began as the European Coal and Steel Community in 1951, which brought together six countries to pool their coal and steel production so that war between them would become impossible. This grew into the European Economic Community in 1957 and finally into the European Union under the Treaty of Maastricht in 1992. The EU has gradually expanded to include most countries of Europe.
The EU was created to promote peace, prosperity and the economic and political integration of Europe. It established a common market, removed trade barriers among members, created a common currency called the euro, and formed the European Parliament and the European Commission. The EU also developed a common foreign and security policy and a Schengen area allowing free movement of people. With a combined GDP larger than that of the USA, the EU is one of the largest economic blocs in the world.
The EU is the world's largest economic bloc, and it is a major centre of soft power. It has used its economic weight to influence policies on trade, climate change, human rights and development across the world. However, the EU is not a traditional military power, since member states retain control over their armed forces and foreign policy. The EU also faces challenges such as the debt crisis, Brexit, and internal differences among members, which limit its ability to act as a single political power.
Apart from the EU, Europe has other institutions such as the Council of Europe, which promotes human rights, and the Organization for Security and Cooperation in Europe (OSCE). The Council of Europe has 47 member states, including Turkey and Russia, and its most famous instrument is the European Convention on Human Rights, which established the European Court of Human Rights.
China is the fastest growing economy in the world and has emerged as the principal challenger to American power. Its economic growth has been extraordinary. Since the reforms of Deng Xiaoping in 1978, China has moved from a closed, agrarian economy to the world's second largest economy. Its GDP now rivals that of the USA, and it has lifted hundreds of millions of people out of poverty. China's rise has been based on a combination of state direction and market reforms.
China has the second largest defence budget in the world after the USA. It has modernised its armed forces, developed advanced missiles and aircraft, and built up its naval power in the South China Sea. In technology, China has become a leader in artificial intelligence, telecommunications and high-speed rail, and its companies compete globally. China's economic and technological strength has made it a major power in Asia and the world.
China seeks to play a major role in world affairs. It is a permanent member of the UN Security Council and a nuclear weapon state. It has used its economic power to expand its influence through initiatives like the Belt and Road Initiative, which aims to build infrastructure and trade links across Asia, Africa and Europe. China's rise, however, is also a source of concern for its neighbours, and it has been involved in territorial disputes in the South China Sea and the border dispute with India.
India and China are neighbours with a long history of interaction, but also with a contested border. The Sino-Indian border dispute led to war in 1962. Relations between the two countries have improved since the 1980s, with the resumption of high-level exchanges, trade and cooperation on climate change and other issues. However, border tensions and strategic rivalry continue to complicate the relationship. India's foreign policy has sought to manage this relationship through dialogue and cooperation while maintaining its independence.
Japan rose from the ruins of the Second World War to become the second largest economy in the world by the 1980s. Its success was based on rapid industrialisation, a highly skilled workforce, and close cooperation between the government and industry. Japan's car and electronics industries became global leaders, and Japanese products became synonymous with quality. Japan is still one of the world's largest economies, though its growth slowed from the 1990s onwards.
Japan has been a major source of economic aid and investment for Asia, and it has contributed significantly to the economic development of the region. Japan is a close ally of the USA and hosts American military bases. In recent years, Japan has sought to play a more active role in regional security and has begun to discuss revising its pacifist constitution, which limits its military to self-defence. Japan aspires to a permanent seat on the UN Security Council.
Japan's ambitions as a global power are limited by its economic stagnation since the 1990s, its ageing population, and the constitutional constraints on its military. Japan also has territorial disputes with China, Russia and South Korea. Nevertheless, Japan remains a major economic power and an important centre in the emerging multipolar order.
Russia is the successor state of the Soviet Union and retains its permanent seat on the UN Security Council and its nuclear arsenal. After the painful economic transition of the 1990s, Russia revived its economy on the back of its oil and gas resources and reasserted its influence in world politics. Russia has intervened militarily in Ukraine, Georgia and Syria, and it has used its energy exports as a tool of influence over Europe. Russia seeks to balance American power and to maintain its influence in its neighbourhood.
Russia's relationship with India is long-standing and close. India and Russia have cooperated on defence, nuclear energy and space research. Russia has supported India's claim for a permanent seat in the UN Security Council. India's continued friendship with Russia shows that the end of the Cold War did not end Indo-Russian cooperation.
India is often described as an emerging power because of its large and growing economy, its large population, and its ambitions for a greater role in world affairs. India has one of the fastest growing economies in the world, a large and modernising military, and a strong tradition of democratic governance. India's foreign policy seeks a multipolar world in which it plays a leading role, and it has strengthened its relations with the USA, Japan, Australia and the countries of Southeast Asia.
India's soft power is significant: its democracy, its culture, its films, its diaspora and its expertise in information technology give it influence across the world. India aspires to a permanent seat in the UN Security Council and to be recognised as a major power. India's rise, however, is constrained by its poverty, inequality and internal challenges. India's partnership with Japan, the USA and Australia in the quadrilateral grouping, known as the Quad, reflects its effort to balance the rise of China and to play a larger role in the Indo-Pacific region.
| Centre | Strength | Challenges |
|---|---|---|
| European Union | Largest economic bloc, euro, soft power | No single foreign policy, Brexit, debt crisis |
| China | Second largest economy, military, technology | Authoritarian model, border disputes, debt dependence |
| Japan | Major economy, aid and investment in Asia | Economic stagnation, ageing population, pacifist constitution |
| Russia | Nuclear power, UNSC seat, energy resources | Economic dependence on oil and gas |
| India | Fastest growing economy, democracy, soft power | Poverty, inequality, internal challenges |
| Year | Institution/Treaty | Significance |
|---|---|---|
| 1951 | European Coal and Steel Community | Pooled coal and steel of six countries |
| 1957 | European Economic Community | Common market |
| 1992 | Treaty of Maastricht | European Union formed, common foreign policy |
| Later | Euro, Schengen, Parliament | Economic and political integration |
The end of the Cold War opened the way for the rise of alternative centres of power. The European Union has grown into the world's largest economic bloc, China has become the principal challenger to American power, Japan remains an economic giant, Russia has revived as a nuclear and energy power, and India has emerged as a fast-growing economy with global ambitions. The rise of these powers is making the international system multipolar, in which no single country can dominate and cooperation among several powers is necessary. This has important implications for the reform of international institutions like the UN Security Council, which still reflects the power structure of 1945. For India, the multipolar world offers both opportunities and responsibilities, as it seeks to play a leading role in shaping the new global order while managing its relations with China, the USA, Japan and Russia.