1. Governments and Economies of the World

2. Levels of Government = Where does the power reside?
Unitary System – all power resides with a national or central government
England (under a Monarch)
Federal System – power shared between national and state governments
United States (Present Day)

3. Types of Government = Who governs?
Autocracy – rule by one person (auto means one)
Monarchy (King in Saudi Arabia)
Less developed
Oligarchy – rule by a few people (oligos means few)
China with the Communist Party
Democracy – rule by many people (demos means people)
Representative (elected officials participate for others)
Direct (all citizens participate)
More developed

5. Economic Systems Three Decisions:
What goods & services should be produced?
How should they be produced?
Who gets the goods & services when they are produced?
Traditional Economy – economic decisions based on traditions
Pro: People can provide for themselves
Con: Low standard of living
Less developed

6. Economic Systems Continued…
Market Economy (Capitalism) – economic decisions based on the market (supply and demand)
Pro: Lots of goods & services available
Con: Unstable (Growth and then recession)
More developed
Command Economy – government makes all economic decisions (Socialism and Communism)
Pro: Ensures full employment
Little incentive to work
GDP = Gross Domestic Product – monetary valued of all a country’s goods and services produced in a year
GDP Per Capita ($ per Person)

7. Color each country based on their level of development
Color each country based on their level of development. Then, in each country, place a “C” for communist, “D” for Democratic or republic and

8. The UN’s Human Development Index
(HDI) is an index that provides a # to rate how developed a country is.
Some of the measures included in this index are life expectancy, knowledge (adult literacy and education), amount of freedom (type of govt.), and standard of living (GDP per capita).
Example: Vietnam has a higher literacy rate and life expectancy than Pakistan, so it has much higher HDI value (#) even though it has a similar per capita GDP.
HDI is measured between 0 and 1. The USA has an HDI of whereas Kenya has an HDI of

9. HDI Examples
Countries
Development Indicators
Saudi Arabia and Croatia
Saudi Arabia has a per capita GDP comparable to that of Croatia. However, in Saudi Arabia there is greater inequality between men and women when considering access to education and political power.
So, although they are equal on an economic development index - Saudi Arabia is less developed on a human development index than Croatia.

10. Country Development Index (Similar to how the UN does their Index)
Life Expectancy
GDP Per Capita
Literacy Rate
Total =
United States
(pg. 126)
78 – 4
China
(pg. 656)
72 – 2
Saudi Arabia (pg. 420)
Ethiopia
(pg. 504)
48 – 1

11. Country Development Index
Life Expectancy
GDP Per Capita
Literacy Rate
Total = (Higher value = More developed)
United States
(pg. 126)
78 – 4
$40,100 – 4
97% - 4 12
China
(pg. 656)
72 – 2
$5,600 – 2
91% - 3 7
Saudi Arabia (pg. 420)
$12,000 – 3
79% - 2
Ethiopia
(pg. 504)
48 – 1
$800 – 1
43% - 1 3

12. Questions? Write a brief summary of your notes!
Remember to write your summary as if the person reading it was not in the our notes and has never heard of economic and political systems or the human development index.

13. Who rules? Country Case Studies
Use pages RA 12 & RA 13 to determine GDP Per Capita for each country.**
Use pages RA 14 & RA 15 to determine Growth Rate (%)**
Identify the type or types of government each country has (use your notes). ***
Dictatorship/Autocracy/Monarchy (Rule by one)
Oligarchy (Rule a few people)
Democracy (Rule by lots of people)
Representative
Direct
Rank the Development of the 6 countries – 2 MDC’s, 2 LDC’s, & 2 LEDC’s (Be able to defend your ranking based on the data/evidence provided) ***
**1 & 2 = Need Book ***3 & 4 = HW/Can be done at Home

14. Economic Development
Read 108 and respond to the question in your notes section:
What is industrialization and how do developing countries differ from developed countries?