Political & Economic Political & Economic SystemsSystems

Chapter 4 Lessons 3-4

Jobs of any Govn’tJobs of any Govn’t1. Maintain social orderorder

2. Provide national securitysecurity

3. Provide servicesservices to the people

4. Support economic stabilitystability & growth

**How each country does these makes them unique/different from the other**

Levels of Govn’tLevels of Govn’t• Most will have national, regional, and Most will have national, regional, and

locallocal–U.S., Texas, Sugar LandU.S., Texas, Sugar Land

• Two diff. ways of organizing them-Two diff. ways of organizing them-–Unitary systemUnitary system

–Federal systemFederal system

Unitary SystemUnitary System

• AllAll key powerspowers held by national govn’t(uniunifiedfied)

–National govn’t then creates the lower levels and gives them limited sovereignty• SovereigntySovereignty = independence or self-rule

• Ex’s: United Kingdom & France

Federal SystemFederal System• PowersPowers are divideddivided b/w national and

state govn’ts.–Supreme power is given to national

(federal) level

–States have powers fed. govn’t cannot touch (sovereignty in certain areas)

• Ex’s: USA, Mexico, Canada, Brazil, India

Types of Govn’tTypes of Govn’t

• How do they exercise authority?• Who runs the govn’t?

• 3 diff. categories:–Autocracy–Oligarchy–Democracy

AutocracyAutocracy• SingleSingle person has all the power

–Oldest

–Get power from inheritance or force (military, police)

• Two types:–Totalitarian Dictatorship

–Monarchy

AutocracyAutocracy• TotalTotalitarianitarian

Dictatorship– Controls all aspects Controls all aspects

of society & economy

– People have no say, no power to limit ruler’s axns

Ex’s: Hitler, Stalin, Mussolini, Kim

Jong Un

AutocracyAutocracy• Monarchy

– AbsoluteAbsolute monarch (king/queen) has all all powerpower

– Typically inherited

• Ex’s: Saudi Arabia

– ConstitutionalConstitutional monarch shares power shares power with legislative branch• Ex’s: UK, Japan

OligarchyOligarchy

• Small groupgroup of people who hold power–Gets power by wealth, military, social

position, religion

–Mostly in communist countries• Leaders of communist partycommunist party

• MilitaryMilitary Juntas

–Most opposition is suppressed

TheocracyTheocracy• ReligionReligion is a source

of power– Citizens believe the

leader(s) were divinely chosen, or rule thru divine inspiration

– Institute religious laws– Can blend with other

govn’t forms

Ex: Vatican City- Pope Francis

Ex: Iran- Ayatollah Khamenei

DemocracyDemocracy• Leaders rule with consentconsent of the

peoplepeople (popular sovereignty)• Comes from Greek words ‘demos’=people,

and ‘kratia’=rule

• Two types:–Direct

–Representative

DemocracyDemocracy• Direct-Direct- citizens vote and decide on all

issues directly–No country has direct

–Can only occur in small groups

• Representative-Representative- citizens elect reps elect reps to make decisions based on their needs–Ex’s: France, UK

• UK is a democracy with a constitutional monarch

From Freedom House

Green= free; Yellow= partly free; Grey= not free

From Economist Intelligence Unit

Light Blue= Most Democratic (Norway) Black= Least Democratic (N. Korea)

From Freedom House

Free Democratic Elections

BoundariesBoundaries• Any type of “border” that separates

two areas of space–Could be naturalnatural (exists before

humans)

–Could be result of human impact• Cultural, geometricCultural, geometric

–Exist as long as both sides agree…not always permanent…

Natural BoundariesNatural Boundaries

Cultural BoundariesCultural Boundaries

Geometric BoundariesGeometric Boundaries

NationalismNationalism

• NationNation: group of ppl with shared customs, ethnicity, etc. often tied to an area, common political identity– NationalismNationalism is pride/loyalty for your nation of

people (want what is best for group)

• PatriotismPatriotism is pride/loyalty for your country

• There is obvious overlap…but these can also cause division within one state/country

TerrorismTerrorism• Intimidation tactic instill fear in

govn’t by attacking common person, not political leaders/military

• Typically not a govn’t axn

AlliancesAlliances

• UUnited NNations– 10/24/45 = post WWII– Key areas of focus?– Not a police force, can only request/suggest

• NNorth AAtlantic TTreaty OOrganization– Created to counter Warsaw Pact (Soviet allies)– Military based (US #1, Turkey #2 in forces)

• WWorld TTrade OOrganization– Later in 4.4

NATONATONATO & Warsaw Pact

NATO now

Voting DistrictsVoting Districts• ReapportionmentReapportionment:

allocating seats to a geog. area (after every census)

• In Europe and some US States, a bipartisan/ independent commission redraws boundaries…

• Most, though, redraw for the benefiting a particular party gerrymanderinggerrymandering

Economic SystemsEconomic Systems

Economic SystemsEconomic Systems

There are 3 basic questions to ask:1. What and how many G&S are

produced?

2. How should the above be produced?

3. Who gets the G&S that are produced?

Each country answers differently…

Traditional EconomyTraditional Economy• Rules & customscustoms determined by

habit, what the ancestorsancestors did–Roles passed down thru generations

–Not a lot of individual choice

• People grow what they need to live

• Only in limited places–Ex: Inuit society in Canada

Market EconomyMarket Economy• Decisions made by individuals &

privateprivate grps–Supply & demandSupply & demand ppl choose what to

buy so businesses make what ppl want

–People choose what jobs they want & who they’ll work for

–No govn’t interference

–NO one has a PURE market economy

CapitalismCapitalism• aka: Mixed Economy or freefree enterpriseenterprise supported and regulatedregulated by govn’t–Govn’t keeps competition fairfair, trade

free, supports public’s best interest

–Ex: USA, Japan, Singapore

Command EconomyCommand Economy

• Govn’tGovn’t ownsowns and directsdirects the economy–Decisions about production &

distribution of G&S• Controls ‘means of productionmeans of production’ (land, labor,

capital)

–Goal is to distribute G&S equally

–Taxes support social services to all citizens

SocialismSocialism• Ex: France, Canada

–Equally distribute wealth is goal–Public & govn’t ownership of means of

production• Typically found in democratic nations

–Ppl elect reps who make economic decisions on their behalf

–Can be under range of free enterprise (no pure) incentivesincentives

»If you make a surplus, you can keep the extra instead of “sharing” it

CommunismCommunism–Equally distribute wealth, goods, get rid

of social classes –Govn’t makes all economic decisions

• Typically by force/coercion, no voice of ppl Communist Party

–Most decline w/o free decision makingdecline w/o free decision making/ incentives (USSR)

–Ex’s: China & Vietnam now allow some free enterprise to promote growth; North Korea does not

Economic DevelopmentEconomic Development• Countries specialize in activities

that fit their resources• 4 types of econ. activities

1. Primary2. Secondary3. Tertiary4. Quaternary

Economic DevelopmentEconomic Development

• Primary-Primary- taking natural resources directly from earth–Farming, fishing, mining

• Secondary-Secondary- use raw materials to make goods (combine/change)–Manufacturing, pottery, metal working

Economic DevelopmentEconomic Development• Tertiary-Tertiary- Provide basic services

–Clerical, retail, business/financial, education, lawyers

• Quaternary-Quaternary- Management of information, research, processing –Computers; science; upper

management

DevelopmentDevelopment

• Spectrum of development–MDCsMDCs: mostly serviceservice (3&4);

commercial ag, high-tech goods

–NewlyNewly IndInd: mostly manufacturingmanufacturing, service (2&3), more commercial than subsistence, impt goods

–LDCsLDCs: mostly subsistence agric.agric., light industry

Development & HDIDevelopment & HDI

World TradeWorld Trade

• Countries exportexport goods they produce

• Countries importimport goods they need

Trading partners are created

World TradeWorld Trade• Trade barriers (see handout) Guess the trade restriction…

1. US State Dept. officials confirm that the current Administration has decided to continue the prohibition of all US trade with Cuba.

2. US farmers are allowed to obtain irrigation water from federal dam projects at very low prices to grow rice in CA desert, if they promise to sell 90% of the rice to buyers in Asia

3. If Congress and the President agree that the Chinese govn’t is guilty of human rights abuses, all Chinese imports wil experience a sharp increase in taxes.

4. Japanese auto firms agree to limits set in Washington D.C. on the number of Japanese automobiles that may be sold in the US.

5. Congress passes a law requiring that all foreign-grown vegetables sold in the US must be organically grown (no use of chemical fertilizers and herbicides).

World TradeWorld Trade• FreeFree tradetrade Removal of trade

barriers–WTO-WTO- World Trade Org. (1995- biggest)

• GATT- Gen. Agreement on Tariffs & Trade (1st one)

• Some join regional grps.–NAFTA-NAFTA- North American Free Trade

Agreement–EU-EU- European Union

• Have regional currency (euro)

World TradeWorld Trade• MultinationalMultinational companiescompanies:

–Does business in many places–Headquartered in developed countries

–Build factories & have workers in developing countries (low labor cost)

World TradeWorld Trade• Outsourcing/ OffshoringOutsourcing/ Offshoring:

–Move production to foreign companies = massive layoffs in U.S. (home country)

–Middle class is depleting as they move down to lower paying jobs

(larger economic gap)–Profits are higher and cost of goods is

lower–Ppl in other countries make higher

wages

Emerging EconomiesEmerging Economies

• NICs whose economic growth is rapidly approaching that of the MDCs

• BRICSBRICS (Brazil, Russia, India, China, South Africa)

• MINTMINT (Mexico, Indonesia, Nigeria, Turkey

World TradeWorld Trade

• Globalization-Globalization- the growing integration of economies and societies around the world