The "ASEAN Way" refers to:

A binding supranational law that overrides national courts

A common army under a single ASEAN command

A single currency shared by all members

Assertion (A): China’s transition to a market economy did not follow the "shock therapy" model. Reason (R): China opened its economy step by step, beginning with agriculture and Special Economic Zones, while the state kept a central role.

Both A and R are true, and R is the correct explanation of A

Both A and R are true, but R is not the correct explanation of A

New Centres of Power — the European Union, ASEAN, China, Japan and South Korea

When the bipolar world ended, power did not simply pass to the United States. Regional groupings and fast-growing economies emerged as alternative centres — able to influence world politics through trade, investment, technology and diplomacy rather than military force alone. This chapter takes the two great regional organisations, the European Union and the Association of Southeast Asian Nations (ASEAN), and then the three East Asian economies the book studies — China, Japan and South Korea. The paper asks the founding treaty and its year, the meaning of terms such as the ASEAN Way, and the turning points of China’s economy, so this chapter keeps each in a table you can revise from.

The European Union

European integration began as a way of rebuilding a continent ruined by the Second World War and of making another war between its states unthinkable. The United States helped through the Marshall Plan (1948), which led to the Organisation for European Economic Cooperation; the Council of Europe followed in 1949, and the European Economic Community (EEC) was created by the Treaty of Rome in 1957. The Maastricht Treaty, signed in February 1992, established the European Union — moving from an economic union towards a political one, with a common foreign and security policy, cooperation on justice and home affairs, and a single currency. The euro was introduced in 1999 and its notes and coins came into circulation in 2002, though not every member adopted it.

The EU has many of the symbols of a state — its own flag, anthem, founding date and currency — and it acts as a single negotiator in trade. It has economic influence through its large market and its trade and aid; political and diplomatic influence, with one of its members, France, a permanent member of the UN Security Council; and military strength through its members’ armed forces. Its limits are real too: members keep their own foreign and defence policies, and national feeling has resisted deeper union. The clearest example is the United Kingdom, which voted in a 2016 referendum to leave and left the EU in 2020.

Milestones of European integration

1948
Marshall Plan; Organisation for European Economic Cooperation
1949
Council of Europe
1957
Treaty of Rome creates the European Economic Community
1992
Maastricht Treaty establishes the European Union
2002
Euro notes and coins in circulation
2020
The United Kingdom leaves the EU

ASEAN and the ASEAN Way

ASEAN was established in 1967 by five countries — Indonesia, Malaysia, the Philippines, Singapore and Thailand — through the Bangkok Declaration. Its aims were to accelerate economic growth, social progress and cultural development, and to promote regional peace and stability based on the rule of law and the principles of the UN Charter. It grew until, by 1999, it took in Brunei, Vietnam, Laos, Myanmar and Cambodia as well. ASEAN works by the ASEAN Way — informal, non-confrontational and cooperative interaction, with respect for each member’s national sovereignty, rather than binding rules imposed from above.

In 2003 ASEAN decided to build an ASEAN Community resting on three pillars — the ASEAN Security Community, the ASEAN Economic Community and the ASEAN Socio-Cultural Community. The security pillar builds on the ASEAN Regional Forum (ARF), set up in 1994 for dialogue on security with countries beyond the region; the economic pillar aims at a common market and production base, and the ASEAN Free Trade Area (AFTA) reduces barriers to trade within it. India’s Look East Policy, begun in the early 1990s and later renamed the Act East Policy, made ASEAN a priority partner, and India has signed free trade agreements with it.

⚠️ Five founders — and India is not one of them

Options for "founding members of ASEAN" often slip in Vietnam, Brunei or India. The five founders of 1967 are Indonesia, Malaysia, the Philippines, Singapore and Thailand — remember them as "MIST P". India is a dialogue partner, not a member.

China, Japan and South Korea

After the Communist revolution of 1949 under Mao Zedong, China followed the Soviet model: state-owned heavy industry, collective farms and a closed economy. Growth was limited, and in 1978 Deng Xiaoping announced the open door policy and economic reforms. China did not use shock therapy; it opened step by step — agriculture was privatised in 1982 and industry in 1998, trade barriers were lowered only in Special Economic Zones (SEZs) at first, and foreign investment was drawn in. The state kept a central role, and China joined the World Trade Organization in 2001. The result was the fastest sustained growth of any major economy, along with problems the book lists: unemployment, inequality between regions and between urban and rural people, and environmental damage.

India and China were both ancient civilisations that became independent nations within two years of each other. Relations began warmly — the Panchsheel principles were agreed in 1954 — but soured over Tibet and the boundary, leading to the war of 1962. Contacts were slowly rebuilt, and Prime Minister Rajiv Gandhi’s visit to China in December 1988 began a period of improved relations; trade has since grown greatly, even as the boundary question remains unresolved. The book presents the relationship as one of both cooperation and competition.

Japan and South Korea at a glance
Point	Japan	South Korea
Rise	Rebuilt rapidly after defeat in 1945; the only country to have suffered atomic bombings (Hiroshima and Nagasaki)	Korea divided along the 38th parallel after 1945; the Korean War of 1950–53; rapid growth since the 1960s, called the "Miracle on the Han River"
Economic standing	Technology and brands known worldwide; the only Asian member of the G-7	Major exporter of electronics, ships and cars; joined the OECD in 1996
Distinctive feature	Article 9 of its constitution renounces war as a sovereign right; a large contributor to the UN budget	Both Koreas became UN members in 1991

Key takeaways

EU path: Marshall Plan 1948 → Council of Europe 1949 → EEC by the Treaty of Rome 1957 → EU by the Maastricht Treaty 1992 → euro notes 2002; the UK left in 2020.
The EU has a flag, anthem and currency, a permanent Security Council member in France, and acts as one negotiator in trade — but members keep their own foreign and defence policies.
ASEAN: Bangkok Declaration 1967; founders Indonesia, Malaysia, the Philippines, Singapore and Thailand; the ASEAN Way is informal, non-confrontational and cooperative.
The ASEAN Community has three pillars — security, economic and socio-cultural; the ASEAN Regional Forum dates from 1994.
China: revolution 1949; open door policy 1978 under Deng Xiaoping; gradual reform through SEZs, not shock therapy; WTO 2001.
India–China: Panchsheel 1954, war 1962, Rajiv Gandhi’s visit December 1988 — cooperation and competition together.
Japan is the only Asian G-7 member and its Article 9 renounces war; South Korea’s rise is the "Miracle on the Han River".

Practice questions (8)

Attempt each one before opening the answer. Every explanation names the tempting wrong option as well as the right one, because that is where marks are lost.

The European Union was established by which treaty?
1. The Treaty of Rome, 1957
2. The Treaty of Versailles, 1919
3. The Maastricht Treaty, 1992
4. The Treaty of Paris, 1951
Show answer
Answer: C — The Maastricht Treaty, 1992
The Maastricht Treaty of February 1992 created the European Union, adding a political dimension to economic integration. The Treaty of Rome is the commonest wrong answer: it created the European Economic Community in 1957, the EU’s forerunner, not the Union itself.
Which of the following was NOT one of the five founding members of ASEAN in 1967?
1. Singapore
2. Vietnam
3. Thailand
4. The Philippines
Show answer
Answer: B — Vietnam
The founders were Indonesia, Malaysia, the Philippines, Singapore and Thailand. Vietnam joined only in 1995, after the end of its long wars — it is a member now, which is exactly why it is planted among the founders.
The "ASEAN Way" refers to:
1. A binding supranational law that overrides national courts
2. A common army under a single ASEAN command
3. Informal, non-confrontational and cooperative interaction
4. A single currency shared by all members
Show answer
Answer: C — Informal, non-confrontational and cooperative interaction
The ASEAN Way is a style of working — informal, non-confrontational and cooperative, with respect for national sovereignty. The supranational law and single currency describe the European Union, which is the contrast this question is built on.
China’s "open door policy" and economic reforms were announced in 1978 under the leadership of:
1. Deng Xiaoping
2. Mao Zedong
3. Zhou Enlai
4. Chiang Kai-shek
Show answer
Answer: A — Deng Xiaoping
Deng Xiaoping launched the reforms and the open door policy in 1978. Mao led the revolution of 1949 and the Soviet-style economy the reforms replaced; Zhou Enlai was the premier who agreed Panchsheel with Nehru in 1954.
Assertion (A): China’s transition to a market economy did not follow the "shock therapy" model.
Reason (R): China opened its economy step by step, beginning with agriculture and Special Economic Zones, while the state kept a central role.
1. Both A and R are true, and R is the correct explanation of A
2. Both A and R are true, but R is not the correct explanation of A
3. A is true, but R is false
4. A is false, but R is true
Show answer
Answer: A — Both A and R are true, and R is the correct explanation of A
Shock therapy is a sudden, wholesale switch to private ownership; China instead reformed in stages — agriculture in 1982, industry in 1998, trade first in SEZs — with the state in control. R describes exactly what made China’s path different, so it explains A.
Which of the following is NOT one of the three pillars of the ASEAN Community?
1. ASEAN Security Community
2. ASEAN Economic Community
3. ASEAN Socio-Cultural Community
4. ASEAN Monetary Union
Show answer
Answer: D — ASEAN Monetary Union
The three pillars agreed in 2003 are the Security, Economic and Socio-Cultural Communities. ASEAN has no monetary union and no common currency — that is a feature of the euro area, and its presence here tests whether you have mixed the two groupings.
Which Asian country is a member of the G-7 and has a constitutional article renouncing war as a sovereign right?
1. China
2. South Korea
3. India
4. Japan
Show answer
Answer: D — Japan
Japan is the only Asian member of the G-7, and Article 9 of its post-war constitution renounces war. South Korea is a major economy and an OECD member but not in the G-7, and China and India are larger economies that are not G-7 members either.
Arrange the following in chronological order:
A. China joins the World Trade Organization
B. Treaty of Rome creates the European Economic Community
C. Bangkok Declaration establishes ASEAN
D. Maastricht Treaty establishes the European Union
1. C, B, D, A
2. B, C, D, A
3. B, D, C, A
4. B, C, A, D
Show answer
Answer: B — B, C, D, A
The Treaty of Rome is 1957, the Bangkok Declaration 1967, Maastricht 1992 and China’s WTO entry 2001. Putting ASEAN before the EEC is the usual error — European integration began a decade earlier.