Political & Economic Systems Chapter 4 Lessons 3-4

Jobs of any Govn’t order 1.Maintain social order security 2.Provide national security services 3.Provide services to the people stability 4.Support economic stability & growth **How each country does these makes them unique/different from the other**

Levels of Govn’t Most will have national, regional, and localMost will have national, regional, and local –U.S., Texas, Sugar Land Two diff. ways of organizing them-Two diff. ways of organizing them- –Unitary system –Federal system

Unitary System AllpowersAll key powers held by national govn’t unified (unified) –National govn’t then creates the lower levels and gives them limited sovereignty SovereigntySovereignty = independence or self-rule Ex’s: United Kingdom & France

Federal System PowersdividedPowers are divided 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’t How do they exercise authority? Who runs the govn’t? 3 diff. categories: –Autocracy –Oligarchy –Democracy

Autocracy SingleSingle person has all the power –Oldest –Get power from inheritance or force (military, police) Two types: –Totalitarian Dictatorship –Monarchy

Autocracy TotalitarianTotalitarian 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

Autocracy Monarchy –Absolute all power –Absolute monarch (king/queen) has all power –Typically inherited Ex’s: Saudi Arabia –Constitutional shares power –Constitutional monarch shares power with legislative branch Ex’s: UK, Japan

Oligarchy groupSmall group of people who hold power –Gets power by wealth, military, social position, religion –Mostly in communist countries communist partyLeaders of communist party MilitaryMilitary Juntas –Most opposition is suppressed

Theocracy 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

Democracy consent peopleLeaders rule with consent of the people (popular sovereignty) Comes from Greek words ‘demos’=people, and ‘kratia’=rule Two types: –Direct –Representative

Democracy Direct-Direct- citizens vote and decide on all issues directly –No country has direct –Can only occur in small groups Representative- elect repsRepresentative- citizens 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

Boundaries Any type of “border” that separates two areas of space natural –Could be natural (exists before humans) –Could be result of human impact Cultural, geometricCultural, geometric –Exist as long as both sides agree…not always permanent…

Natural Boundaries

Cultural Boundaries

Geometric Boundaries

Nationalism NationNation: group of ppl with shared customs, ethnicity, etc. often tied to an area, common political identity –Nationalism –Nationalism 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

Terrorism Intimidation tactic  instill fear in govn’t by attacking common person, not political leaders/military Typically not a govn’t axn

Alliances UNUnited Nations –10/24/45 = post WWII –Key areas of focus? –Not a police force, can only request/suggest NATONorth Atlantic Treaty Organization –Created to counter Warsaw Pact (Soviet allies) –Military based (US #1, Turkey #2 in forces) WTOWorld Trade Organization –Later in 4.4

NATO NATO & Warsaw Pact NATO now

Voting Districts ReapportionmentReapportionment: allocating seats to a geog. area (after every census) In Europe and some US States, a bipartisan/ independent commission redraws boundaries… gerrymanderingMost, though, redraw for the benefiting a particular party  gerrymandering

Economic 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 Economy customs ancestorsRules & customs determined by habit, what the ancestors 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 Economy privateDecisions made by individuals & private grps –Supply & demand –Supply & 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

Capitalism free enterpriseregulatedaka: Mixed Economy or free enterprise supported and regulated by govn’t fair –Govn’t keeps competition fair, trade free, supports public’s best interest –Ex: USA, Japan, Singapore

Command Economy Govn’townsdirectsGovn’t owns and directs the economy –Decisions about production & distribution of G&S means of productionControls ‘means of production’ (land, labor, capital) –Goal is to distribute G&S equally –Taxes support social services to all citizens

Socialism 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 incentives –Can be under range of free enterprise (no pure)  incentives »If you make a surplus, you can keep the extra instead of “sharing” it

Communism –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 decline w/o free decision making –Most decline w/o free decision making/ incentives (USSR) –Ex’s: China & Vietnam now allow some free enterprise to promote growth; North Korea does not

Economic Development Countries specialize in activities that fit their resources 4 types of econ. activities 1.Primary 2.Secondary 3.Tertiary 4.Quaternary

Economic 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 Development Tertiary-Tertiary- Provide basic services –Clerical, retail, business/financial, education, lawyers Quaternary-Quaternary- Management of information, research, processing –Computers; science; upper management

Development Spectrum of development –MDCsservice –MDCs: mostly service (3&4); commercial ag, high-tech goods –NewlyIndmanufacturing –Newly Ind: mostly manufacturing, service (2&3), more commercial than subsistence, impt goods –LDCsagric. –LDCs: mostly subsistence agric., light industry

Development & HDI HDI

World Trade exportCountries export goods they produce importCountries import goods they need  Trading partners are created

World 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 Trade FreetradeFree trade  Removal of trade barriers –WTO- –WTO- World Trade Org. (1995- biggest) GATT- Gen. Agreement on Tariffs & Trade (1 st one) Some join regional grps. –NAFTA- –NAFTA- North American Free Trade Agreement –EU- –EU- European Union Have regional currency (euro)

World Trade MultinationalcompaniesMultinational companies: –Does business in many places –Headquartered in developed countries –Build factories & have workers in developing countries (low labor cost)

World 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 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 Trade Globalization-Globalization- the growing integration of economies and societies around the world