Political and Economic Systems

FIGURE 1.3 Political and Economic Systems LESS GOVERNMENT CONTROL Procedural Guarantees Communist democracy Advanced industrial democracy Marx’s hope for a system embracing Personal freedom within a free-market personal freedom and a collectively economy owned economy (although usually with some government GovggglElENT Examples: Has never existed regulations) GOVIEERilsMENT CONTROL Examples: Great Britain, Japan, CONTROL United States (see Figure 1.5) ECONOMY Procedural Guarantees Substantive Guarantees Totalitarian system Authoritarian capitalism Government controls all economic and individual behavior Government allows market economy, but highly regulates individual behavior Examp/es: former Soviet Union, North Korea Examples: Singapore, China MORE GOVERNMENT CONTROL Substantive Guarantees Political systems work in conjunction with economic systems, but government control over the economy does not necessarily translate into tight control over the social order. We have identified fourpossible combinations of these systems, signified by the labeled points in each quadrant. These points are approximate, however, and some nations cannot be classified so easily. Sweden is an advanced industrial democracy by most measures, for instance, but because of its commitment to substantive economic values, it would be located much closer to the vertical axis.