This document discusses different political and economic systems including liberal political economy, regulated capitalism, mercantilism, Marxism, communism, and socialist democracies. It provides definitions and explanations of key concepts such as how political systems interact with economic systems in the study of political economy, and different views on trade, private ownership, and the role of government in economic planning.
What is Political Economy?
Different types of Economic Systems and its influence on planning process
Capitalism and Capitalist Planning Model
Communism and Communist Planning Model
Socialism and Socialist Planning Model
What is Political Economy?
Different types of Economic Systems and its influence on planning process
Capitalism and Capitalist Planning Model
Communism and Communist Planning Model
Socialism and Socialist Planning Model
Relations among states take place in the absence of a world government. For realists, this means that the international system is anarchical. International relations are best understood by focusing on the distribution of power among states. Despite their formal legal equality, the uneven distribution of power means that the arena of international relations is a form of ‘power politics’. Power is hard to measure; its distribution among states changes over time and there is no consensus among states about how it should be distributed. International relations is therefore a realm of necessity (states must seek power to survive in a competitive environment) and continuity over time. When realists contemplate change in the international system, they focus on changes in the balance of power among states, and tend to discount the possibility of fundamental change in the dynamics of the system itself.
The following key thinkers all subscribe to these basic assumptions in their explorations of the following questions:
(1) What are the main sources of stability and instability in the international system?
(2) What is the actual and preferred balance of power among states?
(3) How should the great powers behave toward one another and toward weaker states?
(4) What are the sources and dynamics of contemporary changes in the balance of power?
Despite some shared assumptions about the nature of international relations, realists are not all of one voice in answering these questions, and it would be wrong to believe that shared assumptions lead to similar conclusions among them. In fact, there is sharp disagreement over the relative merits of particular balances of power (unipolarity, bipolarity and multipolarity). There is also much debate over the causal relationship between states and the international pressures upon them, and the relative importance of different kinds of power in contemporary international relations.
Relations among states take place in the absence of a world government. For realists, this means that the international system is anarchical. International relations are best understood by focusing on the distribution of power among states. Despite their formal legal equality, the uneven distribution of power means that the arena of international relations is a form of ‘power politics’. Power is hard to measure; its distribution among states changes over time and there is no consensus among states about how it should be distributed. International relations is therefore a realm of necessity (states must seek power to survive in a competitive environment) and continuity over time. When realists contemplate change in the international system, they focus on changes in the balance of power among states, and tend to discount the possibility of fundamental change in the dynamics of the system itself.
The following key thinkers all subscribe to these basic assumptions in their explorations of the following questions:
(1) What are the main sources of stability and instability in the international system?
(2) What is the actual and preferred balance of power among states?
(3) How should the great powers behave toward one another and toward weaker states?
(4) What are the sources and dynamics of contemporary changes in the balance of power?
Despite some shared assumptions about the nature of international relations, realists are not all of one voice in answering these questions, and it would be wrong to believe that shared assumptions lead to similar conclusions among them. In fact, there is sharp disagreement over the relative merits of particular balances of power (unipolarity, bipolarity and multipolarity). There is also much debate over the causal relationship between states and the international pressures upon them, and the relative importance of different kinds of power in contemporary international relations.
Political economy embraces the complex political nature of decision making to investigate how power and authority affect economic choices in a society. Political economy analysis offers no quick fixes but leads to smarter engagement.
An introductory document for economic systems viz. Socialism, Capitalism and mixed Economy.
It also talks about various schools of the same economic systems.
The presntation content include;
Capitalism
Characteristics of Capitalism
Advantages of Capitalism
Disadvantages of Capitalism
Examples of capitalist countries
socialism
Advantages of socialism
Disadvantages of socialism
examples
Communism
advantages of communism
Disadvantages of communism
examples
Document #1 History of the Economic Systems and TheoriesCDustiBuckner14
Document #1: History of the Economic Systems and Theories
Capitalism
Capitalism is an economic system that emphasizes private ownership of the factors of
production, freedom of choice, and individual incentives. These freedoms and
incentives apply to workers, investors, consumers, and business owners. In pure
capitalism, the government does not interfere with the economy—the wages of workers,
the prices of goods, what producers can make, the ways that businesses make or sell
their goods and services, or any other regulations. Capitalism assumes that the best
way to serve society is to let people produce, sell, and buy as they wish.
The goal of capitalism is to create what is called a free market. In economic terms, a
market is not literally just a market like a grocery store. A market or marketplace is
wherever all sorts of goods and services can be sold and bought. In a free market or
free enterprise economy like that under capitalism, the government places no limits on
the freedom of buyers and sellers to make their economic decisions.
Origins of Capitalism
The basic theories about capitalism and free trade come from Adam Smith. Smith was a
Scottish philosopher and economist who lived in the 1700s. In his famous book The
Wealth of Nations, Smith suggested the government take a laissez-faire approach to the
economy. Laissez-faire is a French term meaning “to let alone.” Smith thought the
forces of the marketplace would act as an “invisible hand” guiding economic choices for
the best possible results.
Competition plays a key role in a free-enterprise or free-market economy because
sellers compete for resources to produce goods and services at the most reasonable
price. If they are successful, they make more money. At the same time, consumers
compete over limited products to buy what they want and need. Finally, these same
consumers, now in their role as workers, compete to sell their skills and labor for the
best wages or salaries they can get.
Pure capitalism has five characteristics: private ownership and control of property and
economic resources, free enterprise, competition, freedom of choice, and the possibility
of profits.
Free Enterprise in the United States
A true and total capitalist system does not exist in reality. The United States, however, is
a leading example of a capitalist system in which the government plays a role. Our
society is deeply rooted in the value of individual initiative—that each person knows
what is best for himself or herself. We also respect the rights of all persons to own
private property. Finally, our society recognizes individual freedom, including the
freedom to make economic choices. However, because the U.S. government also
regulates many aspects of the economy, it does not have a purely capitalistic economy.
Mixed Economies
Economists describe the economies in the United States and many other nations as
mixed economies. Mixed economies combine elements of capitalism and socialism.
Mexico is ano ...
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
This is a presentation by Dada Robert in a Your Skill Boost masterclass organised by the Excellence Foundation for South Sudan (EFSS) on Saturday, the 25th and Sunday, the 26th of May 2024.
He discussed the concept of quality improvement, emphasizing its applicability to various aspects of life, including personal, project, and program improvements. He defined quality as doing the right thing at the right time in the right way to achieve the best possible results and discussed the concept of the "gap" between what we know and what we do, and how this gap represents the areas we need to improve. He explained the scientific approach to quality improvement, which involves systematic performance analysis, testing and learning, and implementing change ideas. He also highlighted the importance of client focus and a team approach to quality improvement.
How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Students, digital devices and success - Andreas Schleicher - 27 May 2024..pptxEduSkills OECD
Andreas Schleicher presents at the OECD webinar ‘Digital devices in schools: detrimental distraction or secret to success?’ on 27 May 2024. The presentation was based on findings from PISA 2022 results and the webinar helped launch the PISA in Focus ‘Managing screen time: How to protect and equip students against distraction’ https://www.oecd-ilibrary.org/education/managing-screen-time_7c225af4-en and the OECD Education Policy Perspective ‘Students, digital devices and success’ can be found here - https://oe.cd/il/5yV
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
The Indian economy is classified into different sectors to simplify the analysis and understanding of economic activities. For Class 10, it's essential to grasp the sectors of the Indian economy, understand their characteristics, and recognize their importance. This guide will provide detailed notes on the Sectors of the Indian Economy Class 10, using specific long-tail keywords to enhance comprehension.
For more information, visit-www.vavaclasses.com
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Model Attribute Check Company Auto PropertyCeline George
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We all have good and bad thoughts from time to time and situation to situation. We are bombarded daily with spiraling thoughts(both negative and positive) creating all-consuming feel , making us difficult to manage with associated suffering. Good thoughts are like our Mob Signal (Positive thought) amidst noise(negative thought) in the atmosphere. Negative thoughts like noise outweigh positive thoughts. These thoughts often create unwanted confusion, trouble, stress and frustration in our mind as well as chaos in our physical world. Negative thoughts are also known as “distorted thinking”.
2. Political Systems
describe the process by which decisions are
made
determine who chooses the leaders of the country
the process by which laws are made
how much control do people have and checks and
balances in terms of power
3. Economic Systems
describe how goods (services and products)
are produced and distributed.
determine who owns industry
how much of one product is produced
how consumers purchase or receive the product
how are prices determined, how many products are
produced and when
A study of how political systems interact with
economic systems is called political economy.
4. Liberal Political Economy
Believes in the possibility of cooperation for
economic gain.
By building international organizations, institutions,
and norms, states can mutually benefit from
economic exchanges.
Doesn’t matter if some states gains more or less
than others as long as state’s wealth increases.
The most important goal of economic policy is to
create a maximum of total wealth by achieving
optimal efficiency (maximizing output, minimizing
waste)
5. Regulated Capitalism
The general theory behind this system is that
government should not be very involved in
the economic system.
that private individuals or groups of them
(companies/corporations) should own industry and
services
purpose of this system is to generate profit; profit
provides motivation to make better, more efficient
products
system is based on competition and supply and
demand.
6. Regulated Capitalism cont’d
Embraces markets mechanisms with the following
“rules”:
1) consumer protection (e.g. products should be safe
to eat)
2) fair labor practices (e.g. work places should be safe,
kids shouldn’t work)
3) business ethics (e.g. anti-monopoly laws)
4) environmental regulations (e.g. car emissions need
to be lessened)
5) there is wide-spread acceptance of safety nets (e.g.
unemployment, disability, etc) which provide
temporary help to those that cannot work or are in
dire situations.
7. Support Arguments
Human Nature
Humans operate best when they can use their ability to reason
to set priorities for their own lives.
Because of this ability, humans need to be given maximum
choice.
Economically
rewards individual effort the most, and respects the rights of
individuals
no human bias so economy is inherently fair and rewards
individual effort.
Individuals have control over the economy by voting with their
dollar; so they control what’s being produced and what isn’t.
8. Liberalism & Trade
Individual households and firms are the key actors in the economy and views
government’s most useful role as one of noninterference in economics except to
regulate markets in order to help them function efficiently.
Free trade: government removed from markets, the “invisible hand” of supply and
demand can work out the most efficient patterns of production, exchange, and
consumption.
Interdependence: when two or more states are simultaneously dependent on each
other; states that trade become mutually dependent on each other’s political
cooperation in order to realize economic gains through trade.
Trade-based wealth depends on international political cooperation, and violence usually
does not work well in pursuing such wealth.
Balance of Trade: the value of a state’s imports relative to its export.
A state that exports more than it imports has a positive balance of trade, or trade surplus.
(China)
A state that imports more than it exports has a negative balance of trade, or trade deficit.
(U.S.)
9. Comparative Advantage
The gains that different states enjoy in producing
different goods.
States differ in abilities to produce goods because
of: natural resources, labor force characteristics,
technology, etc.
Each state should specialize in producing goods for
which it has a comparative advantage, and trade for
goods that another state produces best.
10. Realist Response: Mercantilism
Like Realism, believes that each state must protect its own
interests at the expense of others – not relying on
international organizations to create framework for mutual
gains.
(Relative Power) – what matters most is each state’s position
relative to other states.
Relative wealth and trade can be translated directly into
military power
Military power is generally not useful in economic negotiation,
but the outcome of economic negotiations matters for military
power.
The most important goal is to create the most favorable
possible distribution of wealth
11. Mercantilism cont’d
States need to maintain their own economies in
whatever way possible
(Trade) - Poorer nations must align themselves
with richer ones in order to achieve some
development
poorer states must offer their protectors some sort
of product or service.
12. Protectionism
protection of domestic industries from
international competition. (seek to distort free
markets to gain advantage for the state )
Governments cater to political demands of
important domestic industries, protect industries
considered vital to national security, and to defend
industry from predatory practices.
Economic nationalism: use of economics to
influence international power and relative standing
in the international system.
13. The Marxist Critique of Capitalism
and the Idea of Pure Communism
problem with liberals and conservatives is that
they both ignore the true causes of problems in
society
(Liberals) – NOT a lack of rights and individual
freedom
(Conservatives) – NOT lack of an enforced moral
framework
It is Capitalism itself!
14. Marxist Critique cont’d
Working is a natural part of existing; by gathering berries or developing
industrial society
economics is the basis of all interaction
How we behave really depends on the environment
behave in the ways we are rewarded, especially how we are rewarded in
the economic system (competition vs cooperation)
Economy is the base, but there are other parts of our society too—like
family, religion, politics, schools, media, etc.— superstructure
What features of human nature does capitalism promote: competitive,
greedy, self-seeking, uncaring, and materialistic beings
In sum, it is a system that turns people into things (commodities), brings
out the worst aspects of human nature, and doesn’t provide benefit for
those 90% that actually create the wealth—the workers.
15. Pure Communism
We need to get rid of wages and money
altogether
We need to get rid of countries and borders
were created by economic empires in the first place
to divide the working class.
Once we do this, governments, police, banks,
and financial institutions become
unnecessary.
16. The Other Communisms: Orthodox,
State Socialism, State Capitalism
Orthodox Communism (with a capital C) refers to states
with a one-party political system and a command
economy.
State socialists argue that workers are not yet educated
enough in communism to be able to take over the country
the Communist Party runs the country until workers are
capable of doing it, including the economy.
This theory argues that only this focused effort by the
Communist Party to organize the state and the economic
life of individuals can bring the world closer to overthrowing
capitalism
17. Command Economy: The Ideal
The term command economy means the
government directly controls the economy.
primary purpose of the economy is not to generate
profit, but to directly provide for citizens needs and
wants, rather than generate profit and provide
goods and services based on consumer demand
and the ability to pay (as in capitalism)
Government owns all businesses and goods and
services and prioritizes production in order to meet
the needs of all of its citizens.
18. Command Economy cont’d
A command economy is not based on
competition, but rather filling quotas of goods and
services deemed useful for citizens.
The quotas are determined by the government’s
estimates of what the people need.
The principle behind such a system is that the
economic system should really focus on providing
at least everyone’s basic needs, if not their basic
wants.
19. Command Economy: Critique
Positives:
This system has a smaller gap between rich and poor.
All people are guaranteed a basic living standard.
Negatives:
It is very difficult to predict people’s needs.
Efficiency is not the goal, rather full employment is.
Corruption can be a large problem since economic power is
so centralized.
20. Command Economy: The Ideal
governments have had trouble earning enough
money to provide for everyone
Most command economies today allow some
private businesses, especially for consumer luxury
products such as jewelry, etc. (The government,
then, owns major industries, not all industries.)
Corruption has been a huge problem.
less individual choice in terms of careers.
Economic security of political opponents is
threatened.
21. Socialist Democracies
Socialists believe the basic necessities of life—
food, shelter, clothing, transportation, medical
care, retirement, child care, and higher
education—should be provided by the
government or at least have costs of these things
controlled by the government.
support capitalist markets for many industries.
22. Mixed Economies
balances government control with the free market
in the hopes of having the best of both worlds.
designed to provide at least basic goods and
services to its people like command economies, but
also try to harness the efficiency, production
capacity, and innovation of capitalist systems
also referred to as “welfare states.”
23. Socialist Democracies cont’d
embrace the notion of economic rights, which means that
all citizens (not just poor ones) receive certain products
and services such as free K-12 education, free higher
education, free medical care and low-cost transportation,
housing, food, and energy.
the government guarantees a living wage in retirement
this philosophy believes that individual success is a
collective responsibility rather than an individual one.
Embrace democracy as a political system, much for the same
reasons as liberals.
24. Socialist Democracies: Critique
Positives
This system provides for the basic needs of the
populace.
This system has the “best” aspects of capitalism
without its worst effects.
Negatives
The system is very expensive; so taxes can be
quite high and sometimes salary caps are in place.
Government management of industry is less
efficient than private management.
25. Socialism Internationally
People must have their basic needs met before they can readily
participate in the primarily capitalist workforce.
advocate that since world wealth is a collective phenomenon
wealthy nations should pay for poorer ones since wealthy nations
benefit most from the current system.
can come from corporations or governments or both.
“up-front” investment; once countries have developed their
economies, monies from external sources become unnecessary.
Such an economic system leads to peace naturally because the
number one cause of conflict is economic disparity.