1. Political and Economic Systems

2. Political and Economic Systems
Characteristics of a Country
four characteristics that define a country:
Clearly defined territory
Population
Sovereignty – Freedom from outside control.
A Government

3. Political and Economic Systems
Territory:
Example: Qatar 
The land and water within a country’s boundaries, and all of its natural resources.
A country’s resources may be more important than its size.
Small in size but possesses huge oil reserves.
Throughout history, disputes over territory – land and resources – have been a common cause for wars and disputes.

4. Political and Economic Systems
Population
Example: Kurdistan
The size of population does not determine the existence of a country.
30 million people without a country.
Density
Diversity
As citizens of a nation, people are usually assured protection by the government and in return they pay taxes, serve in the military, or perform other obligations.

5. Political and Economic Systems
Sovereignty
A country can rule itself.
Allows a country to act independently and deal with other sovereign nations, and protect its territory and citizens.

6. Regions and territories: South Ossetia
Mountainous South Ossetia, which is in Georgia, is separated from North Ossetia, which is in Russia, by the border between the two countries running high in the Caucasus. Much of the region lies more than 1000 metres above sea level.
The region has declared independence from Georgia, although so far, it is recognized only by Russia. Long a source of tension in the region, South Ossetia became the focus of a full-blown war between Russia and Georgia in 2008.
South Ossetia is inhabited mostly by ethnic Ossetians who speak a language remotely related to Farsi. Georgians account for less than one-third of the population.
What territory (country) is South Ossetia in?
2. What separates North and South Ossetia?
3. Does South Ossetia have Sovereignty? Why or why not? Who recognizes it as a country?
4. What is its population?
5. Is South Ossetia a country? Why or why not?

7. What is Government? Keeping order within society
Government: The institution through which a society makes and enforces its public policies and provides for its common needs.
Keeping order within society
Protecting society from outside threats
Providing some services to its people

8. Government Types
Unitary
Federal
Confederation

9. Unitary Unitary: One central government runs the nation.
The central government makes laws for the entire nation.
Local governments have only powers that the central government gives to them.
Example: Great Britain and Japan

10. Federal and Confederation
Federal: The national government shares power with state governments.
Example: United States
Confederation: Smaller political units keep their sovereignty and give the central government only very limited powers.
Example: Commonwealth of Independent States

11. Government Authority Example: North Korea under Kim Jong Il
Authoritarian Governments: Leaders hold all political power.
Dictatorship: Power is held by a small group or a single person.
Most common form today.
Most dictators use military force or political terror to gain and exercise power.
People are not free to express their opinions.
Example: North Korea under Kim Jong Il

12. Totalitarianism
Totalitarianism: Government tries to centralize every part of society – politics, economy, and people’s personal lives.
Most extreme form of dictatorship
Example: Adolph Hitler, Nazi Party in Germany

13. Monarchy
Monarchy: Government headed by a king or queen who inherited the position.
Most common form of authoritarian government throughout history but now serve mainly as symbols for national unity.
Example: Great Britain, Constitutional Monarchy

14. Democracy
Democracy: Government in which the people choose their leaders and have the power to set government policy.
Two types:
Pure
Representative

15. What kind of Democracy do you think we have in the USA
What kind of Democracy do you think we have in the USA? Pure or Representative? Why?
Presidential Elections:

The President of the United States is elected by the Electoral College and not directly by the population. Each state is assigned electoral votes based on the number of senators and representatives that state has in Congress. Each state has two Senators. The number of representatives is determined by the states population but is never less then 1. Thus small states with a small population are overly represented in the Electoral College. One candidate wins all of the electoral votes in all states except Maine and Nebraska. Their two electors are chosen by statewide popular vote and a single elector is chosen in each Congressional district.

16. Economic Systems Economic Systems must answer three basic questions?
What (and how many) goods and services will be produced?
How will these products be produced?
How will the products and the wealth gained from their sale be distributed?

17. Capitalism - “Market Economy”
Capitalism: People (consumers) help determine what will be produced by buying or not buying certain products.
Producers respond to the consumers.
Limited role of government
Example: United States

18. Communism - “Centralized Economy”
Communism: The state makes all the economic decisions.
Determines production
Operates ALL major businesses
Example: Former Soviet Union

19. Socialism - “Mixed Economy”
Socialism: The state and private enterprise work together for the benefit of the society.
State owns and operates basic industries.
Private enterprise owns and operates remaining industries.
“Welfare State”  Provide many social services for society, but taxes are very high to pay for this.
Example: Norway

22. Products are either produced within a country or brought in from other countries.
Imports: Products that are produced in another country and are brought into this country for sale.
Exports: Products that are produced in this country and are sent to other countries for sale.