Government & Politics

Government and politics
Name
Institution
Government and politics
Communism, social democracy, capitalism/liberalism, mercantilism
* Communism is a social organization where ownership is bestowed on the community and not on an individual.
* Social democracy is a form of politics where people believe in steady change in the government.
* Capitalism is a form of government where individual ownership is promoted.
* Mercantilism is a trade system where the government conducts unbalanced trade with a view to amassing wealth. These four types of governance differ greatly and have also got similarities. Under communism and mercantilism, the government influences trade while under social democracy and capitalism the power is on the individual.
Conditions of economic development
¯ Geography- Geography affects the economic development of any nation in many ways. If a country is in an area where there are mineral deposits, there is usually more exports and fewer imports. The terrain might also prevent the development of transport systems, hence affecting development.
¯ Institutions- the development of the economy depends much on its social, political and legal institutions. Strong institutions enhance the economic development of any nation while weak institutions suppress economic growth.
¯ Government involvement- governmental policies can affect the economic development of any nation in a positive or negative way. If the government increases taxes, the economy is affected negatively while a reduction in taxes might attract investors thus spurring economic growth.
<...