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