CHAPTER 2
National Differences in Political Economy
POLITICAL SYSTEM
System of Government in a Nation.
Shapes a Country’s Economic and Legal System.
COLLECTIVISM V/S INDIVIDUALISM
Collectivism
Primacy of Collective Goals
Advocated by “Plato”
“Socialism”:trace roots to ‘Karl Max’
Capitalist Society earn few benefits at expense of many
DEMOCRACY & TOTALITARIANISM
Democracy
• Involvement of citizen in Decision Making• Representative Democracy • Has number of safeguards that are enshrined in constitutional law
Totalitarianism
• All the constitutional guarantees on which representative democracies are built
• Political Repression, lack of free and fair elections, Censored Media etc.
ECONOMIC SYSTEM 3 types of economic system:
Market
•Privatization•Production determined by D & S•Consumers r Sovereign
Command
•Good &Services, Prices , Quantity ; planned by government•Consistent with Collectivism Ideology•Government own resources•State owned Businesses
Mixed• Blend of
Market and Command Economy
• Certain Sectors are left to Private sectors and some to state ownership
• Govt tend to take into state ownership troubled firms
LEGAL SYSTEM
Rules or Laws, that regulate behavior among with the processes by which laws are enforced and through which redress for grievances are obtained.
CONT’D..
