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..