Types of Government and Economic Systems

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Types of Government and

Economic Systems

EQ: What is government?

• Government is a system of social control under which the right to make laws, and the right to enforce them, is given to a particular group in society.

• Government power can be held by one individual, a select few, or a majority.

• Modern government have many jobs, such as:

• Providing national security

• Keeping order

• Establishing a justice system

• Welfare services for those in need

• Regulating the economy

• Educational systems

What makes governments different from one another?

• We distinguish between forms of government on the basis of organizational structure and degree of control exercised over the society.

• Forms of government:

• Democracy

• Monarchy

• Theocracy

• Dictatorship

DEMOCRACY

• Power is given to the people and exercised by them directly or indirectly through a system of representation

• Democratic countries have free elections where all citizens have a vote.

• Examples:

• USA

• Phillippines

MONARCHY

• Rule by a single person (king/queen), who is the permanent head of state. Usually hereditary rulers, meaning rule is passed down from parent to child.

• Constitutional Monarchy – Powers of the King/Queen are restricted to those granted in their constitution.

• Parliamentary System – King/Queen have ceremonial duties, while Prime

Minister is the head of government.

• Examples:

• Great Britain (CM)

• Saudi Arabia

• Qatar

• Australia (CM)

THEOCRACY

• Government leaders are members of the clergy (church officials), and the legal system is based on religious law.

• Rulers are “divinely guided” (Chosen and lead by supreme being)

• Examples:

• The Vatican (Pope)

• Iran

DICTATORSHIP

• A single leader or party exercises absolute control over all citizens and most aspects of their lives.

• Often exercised through cruel means or intimidation

• Also known as, autocracy, Military Junta, Authoritarianism,

Totalitarianism, or Fascism.

• Examples:

• North Korea

• Sudan

• Nazi Germany (WWII)

Economic Systems

• What are economics?

• Production , distribution , and consumption of goods and services

• Economic Systems are often closely connected to governments

• Examples:

• Capitalism

• Socialism

• Communism

CAPITALISM

• Individuals and corporations are free to invest in and own all aspects of a business

• People own their own companies and can manage them to earn a profit (or mismanage them and lose money!)

SOCIALISM

• Political and Economic System in which businesses are controlled by the government rather than individuals

• People have equal rights to various benefits (health care, education, etc.), and there is an effort to limit the inequalities of wealth and power.

• Taxes are often high to provide these benefits

• People can hold private property

COMMUNISM

• Government controls all business

• Individuals cannot own property or industries.

• Communist countries have totalitarian governments

• All communists are socialists, but not all socialists are communists.

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