POLITICAL ENVIRONMENT

PGDIB - I

POLITICAL ENVIRONMENT

What is Political Environment? Types of Economic Environment.

POLITICAL SYSTEM

Political System is nothing but the system of Government prevailing in a Country.

There are different types of political system prevailing in different countries.

Types of Economic Environment

There are generally two forms of Political System prevailing in an Economy. These forms are:- Democracy Totalitarianism

Secular or Communist Totalitarianism Theocratic Totalitarianism Tribal Totalitarianism

DEMOCRACY Democracy is a Political System in

which Government is elected by the people, for the people, and of the people.

A Democratic political system involves citizens directly or indirectly, in the policy formulation of a country.

In Democratic system, there is direct involvement of citizens in decision making.

DEMOCRACY In this system, people elect their

representative who govern on behalf of people and take decisions for the people.

People enjoys fundamental rights of various kinds of freedom.

Ex: freedom of expression & opinion, regular elections, fair & independent court system, etc.

TOTALITARIANISM

Totalitarianism is a political system where political power lies in few hands with virtually no opposition.

Policy is the dictates of the rulers. Constitutional guarantee is denied

to the citizens.

TOTALITARIANISM

Different forms of Totalitarianism exists in different economies are: Secular or Communist Totalitarianism

Theocratic Totalitarianism Tribal Totalitarianism

Secular or Communist Totalitarianism

This type of Totalitarianism advocates that socialism can be achieved through Totalitarian Dictatorship.

This form of Totalitarianism does not differentiate between the economic and the political bases of the Government.

Ex: Vietnam, North Korea, Cuba, etc.

Theocratic Totalitarianism This type of Totalitarianism

advocates that the power is monopolized by a group of individuals that governs according to religious principles.

Freedom of religious practice is not under this type of Totalitarianism and governance is according to the teaching of a particular religion.

Ex: Iran, Iraq, Saudi Arabia, etc.

Tribal Totalitarianism

This type of Totalitarianism advocates that power is monopolization by political party that represents the interest of a particular tribe.

Ex: Zimbabwe, Tanzania, Uganda, Kenya, etc.

References

International Business By Vyuptakesh Sharan