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.

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 United States, the people elect the 535 men and women 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.

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.

Parliament

This type of government usually has one or two legislative bodies that meets and makes the rules and laws for a country. 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.

Countries that use some type of Parliamentary form of Government

Australia’s Parliament in the Capital of Canberra

Communism

In this 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.

The countries in red still practice Communism, while those in orange tried it,

and realized it did not work.

Some Famous Communists

Karl Marx1818-1883He 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 emigrants and 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

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.

DictatorshipAn individual holds complete political

power over the people.

Fidel Castro of CubaBenito

Mussolini of Italy

Adolf Hitler of Germany

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.

Despite being only 20% of the population, between 1948 and

1994, whites had total control

of South Africa’s

government.

Other Terms You Should be Familiar With

PLUTOCRACY – Only the wealthy class rules.

THEOCRACY – Rule by the religious elite. MERITOCRACY – Rule by people chosen

because of their ability. For instance, someone very educated.

TOTALITARIANISM – The government works to control all aspects of your public as well as private life.

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