← Unit 2: The changing world order (1945 to 2010)
What challenges defined the world order in the early 21st century, between 2001 and 2010?
Challenges to the world order in the 21st century, including the September 11 attacks (2001), the War on Terror (Afghanistan 2001, Iraq 2003), the Global Financial Crisis (2007-2008), the rise of China, and the emergence of climate change as an international issue
A focused answer to the VCE Modern History Unit 2 key knowledge point on the early 21st century. The September 11 attacks (2001), the War on Terror (Afghanistan, Iraq), the Global Financial Crisis (2007-2008), the rise of China as a global economic power, and the emergence of climate change as a major international issue.
Have a quick question? Jump to the Q&A page
What this dot point is asking
VCAA wants you to explain the challenges that emerged to the international order in the early 21st century: terrorism and the War on Terror, the Global Financial Crisis, the rise of China, and climate change.
September 11 attacks (2001)
On 11 September 2001, four hijacked aircraft (al-Qaeda):
- Two struck the World Trade Center, New York. North Tower hit at 8:46 am; South Tower at 9:03 am. Both towers collapsed.
- One struck the Pentagon (9:37 am).
- One (United Flight 93) crashed in Pennsylvania (10:03 am) after passenger resistance prevented it from reaching its target.
Approximately 2,977 people killed.
The War on Terror
The US response, supported by allies including Australia, transformed international relations.
Afghanistan (October 2001). US-led coalition invaded Afghanistan to overthrow the Taliban regime (which had harboured Osama bin Laden) and destroy al-Qaeda. Taliban government overthrown within weeks. Bin Laden escaped (killed in Pakistan, 2011). The war continued for 20 years; the Taliban returned to power after US withdrawal in 2021.
Iraq (March 2003). US-led "coalition of the willing" (including Britain, Australia, Poland and others) invaded Iraq. Justifications: alleged weapons of mass destruction (WMDs) and alleged links to al-Qaeda. Neither claim was supported by the evidence; WMDs were not found. Saddam Hussein overthrown (April 2003); captured (December 2003); executed (2006). Iraq descended into civil war and insurgency; ISIS emerged in the aftermath.
Domestic implications.
- USA PATRIOT Act (2001): expanded government surveillance and detention powers.
- Guantanamo Bay detention facility (from 2002): controversial detention of suspected combatants.
- Enhanced interrogation programs revealed (2007-2014): waterboarding and other practices condemned as torture.
- Mass surveillance revealed by Snowden disclosures (2013).
Long-term impact. The War on Terror remained the dominant US foreign policy frame for two decades. Cost: trillions of dollars; approximately 7,000 US military deaths; estimated 1 million+ Iraqi and Afghan civilian deaths. The 9/11 attacks ended the 1990s optimism.
Global Financial Crisis (2007-2008)
The Global Financial Crisis was the worst financial crisis since the 1930s.
Origins. US housing bubble (2003-2006) and subprime mortgage lending. When housing prices fell from 2007, mortgage-backed securities lost value.
Crisis. Lehman Brothers collapsed (15 September 2008). Global credit markets froze. Major financial institutions in the US, UK, Iceland and elsewhere required government bailouts.
Recession. Global recession 2008-2009. Unemployment soared. Sovereign debt crisis in Europe (Greece, Ireland, Portugal, Spain, Italy) followed.
Response. G20 emerged as the major international economic forum. Major fiscal and monetary stimulus. Tighter banking regulations (Dodd-Frank Act 2010, Basel III).
Political impact. The GFC fuelled populism. Tea Party movement in USA (2009); rise of far-right and far-left parties in Europe. Occupy movement (2011). Brexit (2016) and Trump (2016) drew on post-crisis discontent.
Rise of China
China's continued economic rise transformed the global order.
Economic growth. Average growth of 9 to 10 percent per year through the 1990s and 2000s. By 2010, China was the world's second-largest economy (overtaking Japan).
Trade. Joined the WTO (2001). Became the world's leading manufacturer and exporter.
Political model. One-party state combined with state-managed capitalism. Different from the Western model; some Chinese commentators argued for a "Beijing Consensus" alternative to the "Washington Consensus".
Foreign relations. Increased influence in Africa, Latin America, Asia. Belt and Road Initiative (from 2013, after 2010 but relevant context).
Concerns. Trade imbalances, intellectual property practices, treatment of minorities (Tibet, Uighurs), Hong Kong, Taiwan. By the 2010s, US-China rivalry was the central great-power dynamic.
Climate change
By 2010 climate change had emerged as a major international issue.
Scientific consensus. Intergovernmental Panel on Climate Change (IPCC) established 1988. Successive assessment reports (1990, 1995, 2001, 2007, 2014) increased confidence in anthropogenic climate change.
International negotiations.
- UN Framework Convention on Climate Change (1992, Rio).
- Kyoto Protocol (1997, in force 2005). Required developed-country emissions reductions. USA never ratified; major emitters (China, India) not covered.
- Copenhagen Conference (2009): failed to produce a binding successor agreement.
Domestic responses. Variable: some countries (EU, UK) adopted ambitious targets; others (Australia under Howard, USA under Bush) resisted.
Australia. Stern Review (UK, 2006), Garnaut Review (Australia, 2008). Carbon Pollution Reduction Scheme (Rudd, 2009-2010) failed legislatively. Climate change became a politically polarised issue.
The issue intensified through the 2010s with the Paris Agreement (2015) and continuing political conflict.
Other 21st century challenges (briefly)
- Pandemics. SARS (2003), H1N1 swine flu (2009), foreshadowing COVID-19 (2019-2022, post-Unit 2 timeframe).
- Arab Spring (2010-2012). Pro-democracy movements across the Middle East and North Africa. Mixed outcomes: democracy in Tunisia; civil war in Syria, Libya, Yemen.
- Refugee crises. European refugee crisis intensified from 2015 with the Syrian war.
In one sentence
The early 21st century saw the unipolar 1990s order challenged by major shocks: the September 11 attacks (2001) and the War on Terror in Afghanistan and Iraq; the Global Financial Crisis (2007-2008), the most severe financial crisis since the 1930s; the continued rise of China as a global economic power; and the emergence of climate change as a defining international issue.
Past exam questions, worked
Real questions from past VCAA papers on this dot point, with our answer explainer.
Year 11 SAC10 marksExplain the significance of the September 11 attacks (2001) for the international order.Show worked answer →
A Year 11 SAC.
Thesis. The September 11 attacks (2001) ended the unipolar optimism of the 1990s, triggered the War on Terror (Afghanistan from October 2001, Iraq from March 2003), and reshaped American foreign policy, international relations and domestic civil liberties for the following two decades.
Events of 11 September 2001. Four hijacked aircraft: two struck the World Trade Center in New York, one struck the Pentagon, one (United 93) crashed in Pennsylvania after passenger resistance. Approximately 2,977 people killed. al-Qaeda under Osama bin Laden claimed responsibility.
Immediate response.
- NATO invoked Article 5 (collective defence) for the first time in its history.
- International coalition formed.
- Invasion of Afghanistan (October 2001) overthrew the Taliban regime (which had harboured al-Qaeda). Bin Laden escaped; the war continued for 20 years.
War on Terror.
- Invasion of Iraq (March 2003) on grounds of (claimed) weapons of mass destruction and links to al-Qaeda. Both claims later found to be unfounded. Saddam Hussein overthrown; Iraq descended into civil war.
- Australia joined the coalition in both wars.
- Domestic measures: USA PATRIOT Act, Guantanamo Bay, expanded surveillance, controversial interrogation practices.
Long-term impact.
- End of unipolar optimism. The 1990s "end of history" thesis seemed wrong.
- Rise of non-state actors. al-Qaeda, later ISIS, became major international concerns.
- Civil liberties debates. Domestic surveillance and detention practices challenged constitutional norms.
- Refugees and instability. Iraq War contributed to the refugee crisis of the 2010s.
Markers reward the immediate-response and long-term-impact structure, specific dates and events, and a recognition that the attacks reshaped the international order substantially.
Related dot points
- The shaping of the postwar world, including the formation of the United Nations (1945), the Bretton Woods institutions, the start of the atomic age (Hiroshima and Nagasaki, August 1945), the beginning of the Cold War, and the start of decolonisation
A focused answer to the VCE Modern History Unit 2 key knowledge point on the shaping of the postwar world. The United Nations (June 1945), Bretton Woods (1944), the atomic age and Hiroshima / Nagasaki (August 1945), the emergence of the Cold War from the wartime alliance, and the start of European decolonisation (India 1947).
- Challenges to existing orders in the 1950s, 1960s and 1970s, including the civil rights movement, second-wave feminism, decolonisation in Africa and Asia, the counterculture, and economic crises (oil shocks 1973 and 1979)
A focused answer to the VCE Modern History Unit 2 key knowledge point on challenges to existing orders in the 1950s through 1970s. Civil rights movement, second-wave feminism, decolonisation completing across Africa and Asia, counterculture, and the economic crises (oil shocks) that ended the postwar boom.
- The end of the Cold War (1985 to 1991), the collapse of the Soviet Union (December 1991), the emergence of a unipolar US-led world order in the 1990s, and the acceleration of globalisation
A focused answer to the VCE Modern History Unit 2 key knowledge point on the end of the Cold War and the emergence of globalisation. Gorbachev's reforms (1985 onwards), the revolutions of 1989, German reunification (October 1990), the dissolution of the USSR (December 1991), the unipolar 1990s, and the growth of globalisation (NAFTA 1994, WTO 1995, EU expansion).