This document discusses differences in political and economic systems across nations. It contrasts individualism versus collectivism, democracy versus totalitarianism, and describes three main types of economic systems: market, command, and mixed. It also outlines different types of legal systems such as theocratic, civil, and common law systems. National political and economic institutions shape a country's system of government, laws, and priorities around individual freedoms versus collective goals.

1. CHAPTER 2
National Differences in Political
Economy

2. POLITICAL SYSTEM
System of Government in a Nation.
Shapes a Country’s Economic and Legal
System.

3. 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
Individualism
Individual should
have freedom in
his/her political and
economic pursuits
Advocated by
Aristotle
Built on 2 central tenet

4. 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.

5. 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

6. 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.

7. CONT’D..
Theocratic
Based on Religious Teachings. Example: Islamic Law
Civil
Based on a detailed set
of laws organized into
codes.
Less Flexibility
Judge can only
apply the law
Common
Based on Traditions,
Precedent, Custom
Degree of Flexibility
Judge have power to
interpret the Law