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The Basics of
GeographyPart 10
Government and
Economics
According to an American group known as Freedom House, countries in green have the
most freedoms, those in yellow are partly free, and those in purple are not free.
Types of GovernmentAll countries must choose a type of government, or else there would be
anarchy. ANARCHY is the total absence of government rule, law, and any type of authority. It can lead to complete chaos
and mob rule. Whatever type of government a country has, it must deal
with issues that have to do with the territory and people of the state.
In the early days of mankind, it truly was the survival of the fittest.
Over time, people began to live in CLANS or groups of families where they hunted together for survival, and stayed together for protection.
Some clans became bigger, and later tribes were developed.
Leaders may have been chosen for their leadership skills, or toughness and bravery.
Eventually kingdoms, or monarchies developed.
Countries shaded in blue use some type of DEMOCRACY in their governments. Democracy
means rule by the people.
In Democracies, an Important Question to Ask, is “Who Has the Power?”
Unitary Systems – Massive national power, with only limited power given to the states or local governments.
Federal Systems – The national government has a lot of power, but so do the individual states. (*The U. S.*)
Confederate Systems – The national government is very weak, and individual states hold most of the power.
Some Democracies are Republics
Citizens hold political power either directly or through elected representatives. Today, in the United States, we use voting to elect men and women to be our representatives and speak out for us. If we were a true democracy, all the people would have to make the decisions all of the time.
Countries in blue are those that have “Presidential Republics”, where the
people elect their leader.
In the U. S., the people elect the 535 members who serve in the House of Representatives and
in the Senate. They also choose their president every 4 years. The third branch of government,
the judiciary, is appointed by the President and approved by Congress.
Some Democracies Use a Parliamentary System
This type of government usually has one or two legislative bodies that meets and make(s) the rules and laws for a country. There is not a separation between the legislative and executive branches. The leader of the ruling political party (in most situations) is known as the Prime Minister. They maintain their power unless given a “vote of no confidence”, whereby new elections are held. Sometimes parliamentary countries may recognize a king or queen as a symbolic head of state.
Countries that use some type of Parliamentary form of Government
Australia’s Parliament in the Capital of Canberra
The Parliament of India…
Germany’s Parliament…The Bundestag
MonarchyA ruling family headed by a king or queen holds the political power. They may or may not share
that power with citizen groups such as Parliaments like Great Britain has.
On the left is King Abdullah, the absolute ruler of Saudi Arabia. Other ruling families, such as the family of Queen Elizabeth II of
England are more of a symbolic set of rulers with very little real power. Most
power lies with Parliament.
Oligarchy – Rule by a small
number of people
These people could be
distinguished by royalty, wealth,
family ties, corporate, or
military control. Such states are often controlled
by a few prominent
families who pass their
influence from one generation
to the next.
Plutocracy – Only the wealthy class of
people rule
Theocracy – Rule by the religious elite
Meritocracy – Rule by people chosen because of their ability. For instance,
someone very well educated.
*Personal observation – I have seen some really dumb “smart” people, and some really smart “dumb” people…
Authoritarian and Totalitarian Systems of Government
These types of government are all about CONTROL. A single
person or small group of people are in charge. They do not tolerate
dissent, and people who do against them or dare to speak out, are often
jailed, “re-educated” at work camps, or are killed.
DictatorshipAn individual holds complete political
power over the people.
Fidel Castro of Cuba
Benito Mussolini
of Italy
Adolf Hitler of Germany
Joseph Stalin of the Soviet Union andMao Zedong of China
Communism
In this authoritarian type of government, nearly all political power held by the government in the name of the people. Other political parties are
non-existent. You are promised great things and to be taken care of, but your individual
freedoms and liberties are limited. 6 countries still officially practice this type of government. Although during the Cold War years between
1945-1990, there were many more.
Karl Marx
1818-1883
He was a 19th century German
philosopher, political economist, and revolutionary.
He wrote “The Communist
Manifesto” in 1848.
10 Main Goals of Communism“Workers of the world, unite!”
End all private ownership of land
A heavy progressive, or graduated income tax
Abolish all inheritance rights
Property confiscation of all rebels
All economic credit will be controlled by a national bank
Control of communication and transportation systems
Control of factories and all means of production
Creation of industrial and economic worker armies
Equal distribution of population
Free public education, no child labor, combine school with industrial production
Some Famous Communists
The countries in red still practice Communism, while those in orange tried it,
and realized it did not work.
SocialismSOCIALISM, is when a government takes resources from private citizens in the form of taxes, to give services to
those who do not work. Socialist countries are also known as WELFARE STATES.
People who have lived under Communism were also living under a type of socialism. The term “socialist” was even in the official name of the old Soviet Union that existed between 1922 to 1991. It’s name was the U.S.S.R. or
Union of Soviet Socialist Republics.
It is interesting to see how socialism can be a huge part of the communist belief system, yet countries with
democracy have also been turning to socialism as well. Several European countries have become welfare states, and some think the U. S. is going down the same path.
The question becomes, how much people think a government should be involved in their lives.
Economic Systems
An ECONOMY consists of the production and exchange of goods and
services among a group of people. Economies operate on a local,
regional, national, and international level. The way people produce and
exchange goods and services is called an ECONOMIC SYSTEM. In the world today, here are some of the most common economic systems
practiced.
Traditional Economy
orBartering
In a TRADITIONAL ECONOMY, goods and services are traded without exchanging money. This is also known as “bartering”.
A man in the 1800s bartering for his newspaper subscription.
In a COMMAND ECONOMY production of goods and services is determined by a central government, which usually own the means of production. Production does not necessarily reflect what the consumers want. They will
make what the government tells them to. The old Soviet Union had this kind of economy.
Countries still practicing a
command economy include: Cuba,
Libya, Saudi Arabia, and North Korea.
In a MARKET ECONOMY
production of goods and services is
determined by demand from
consumers. This is also called a
demand economy or
CAPITALISM.
In a pure market economy, the government stays out of the business community.
It is highly competitive, with people who are willing to invest their money, also known as CAPITAL in other peoples’ ideas, or their own.
Sometimes great profits can be made, or at times, investments may be lost.
The key is, the market (people or consumers) are the ones who decide what will be produced.
In a MIXED ECONOMY, there is a combination of command and
market economies which provides goods and services so that all people will benefit. One of the reasons China has been rising
economically is that allowing more economic freedom has been
beneficial to many people, but they still have a long way to go.
Countries with the largest economies:Total value of goods and services produced.
The U. S. - $15.06
trillion
China - $6.99 trillion
Japan - $5.86 trillion
Germany - $3.63
trillion
France - $2.80 trillion
Brazil - $2.51 trillion
The U. K. - $2.48
trillion
Italy - $2.25 trillion
Russia - $1.89 trillion
India - $1.84 trillion
Countries of the world have all developed economically at different rates. On this map, the darker blue a country is, the higher STANDARD OF LIVING they have which also includes
things like education and health care access.
Percentage of people in each country that live on under $1.25 a day
For an economy to survive, it needs
NATURAL RESOURCES. Renewable – Can be replaced through natural processes such as trees or seafood.
Non-renewable – Cannot be replaced once they have been removed from the ground. Includes fossil fuels, coal, gemstones, and some metals.
Oil, Coal, Aluminum
Inexhaustible – These are resources used for producing power that include sunlight, geothermal heat, winds, and tides.
Wind, Solar, Geothermal
Infrastructure Along with needing
natural resources, an economy needs INFRASTRUCTURE, or basic support systems in order to be successful.
These basic support systems include: power, communications, transportation, water, sanitation, and educational systems.
Transportation
Communication
Energy
Water, Education, and Sanitation
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