Systems of Government

• Unitary system- gives all key powers to the national or central government.– Ex. United Kingdom and France

• Federal system- divides the powers of government between the national government and the state or provincial governments.– Ex. United States

Autocracy• Any system of government in

which the power and authority to rule belong to a single individual.– Forms: Dictatorship,

Monarchy (absolute and constitutional)

– Ex. Hitler & Nazi Germany, Stalin & USSR, Castro & Cuba, Saudi Arabia, United Kingdom, Japan

Oligarchy• Any system of

government in which a small group holds power.– Gets its power from

military, wealth, or religion

– Ex. China, Russia, Afrikaaners during Apartheid

Democracy• System of government

in which leaders rule with the consent of the citizens– Types: Direct,

Representative, or Republic

– Ex. United States, Canada, & United Kingdom

Socialism• System allows for equal

distribution of wealth, society’s control of major decisions, and public ownership of land, factories and businesses.

• Ex: some aspects of Western European Countries…Venezuela?

Communism

• Communism- requires strict governmental control of both society and economy–Ex: China, Cuba,

North Korea

Traditional Economy

• Habit and custom determine the rules for all economic activity–Behavior is defined

by the customs of their elders and ancestors

Market Economy• Individuals and private groups make

decisions about what to produce and buy– “Supply and Demand”– Sometimes called “Capitalism”– Free Enterprise- idea that private

individuals or groups have the right to own property or businesses and make a profit with only limited gov. interference

Mixed Economy

• Government supports and regulates free enterprise through decisions that affect the marketplace

Command Economy

• The government owns or directs the means of production (land, labor, machinery, factories, etc.) and business managers and controls the distribution of goods.

LEVELS OF ECONOMIC DEVELOPMENT

PRIMARY LEVEL: using the Earth’s natural resources (ex. Farming, timber, fishing, mining)

Secondary Industries

Developing countries begin to manufacture products from primary industries.

Secondary industries mark an advancing economy in developing countries. Most developed countries have a well established industrial base.

Tertiary Industries

Economies have reached a stage where selling a product or a service is a major part of the economy. These are generally found in developed economies.

Quaternary IndustriesEconomies have reached the technological level. People are involved in mass consumption of goods and services.

Found in countries with the highest level of economic development