This essaywill talk about the main political systems and what political system wouldbusinesses prefer in order to grow, and function efficiently and effectively; whetherbe it a Democracy, a Monarchy, a Republic, Communism, or a Dictatorship.
Politicsare simply competing views about the type of society we want to live in, or thecompeting views on which what we view or what ideology will create what wethink will be able achieve our dream of having a “Good Society”. This will alsomajorly affect which deciding factor or rules we might have when it comes toliving together as a people, or as a society as a whole. Although, people willhave different ideas when it comes to what they think a “Good Society” will be,and this often leads to differences and disagreements that have plagued mankindfor years. Wars have been fought over which political systems, or ideology bestsuits society or humanity; it is very subjective depending on how people think,and why they think what they think. The natureof politics is basically about what choices we should make for society as awhole through passing laws, and public policies we enact; what really is the”Good Society” and how we can achieve it. This also includes the rules anddecisions made by the current government that governs the country, the people,and even the businesses within through the politics and governance levels ofsub-national, national, and even beyond through supra-national levels.
Despite thecommon idea, politics and businesses goes hand in hand with each other.Politics and Businesses have a direct, and mutual relationship with each other;politics affects businesses, and businesses affects politics. If the governmentpasses the law such as providing a pension plan for every worker for example,businesses must adhere to it; businesses have the responsibility to provideadministration for setting up employee pensions which will cost the businesstime and money to set up for each employee. Whereas on the other side of thecoin, businesses such as the pharmaceutical companies directly affects thegovernment’s health systems such as the NHS, because the government is the maincustomer of such companies; if the pharmaceutical companies increase theirmedication prices that means the government will need to provide furtherfunding to the NHS in order to maintain their health system infrastructure asthe NHS are supplied by these pharmaceutical companies or businesses. Main Political Systems There are various political systems around the world,political systems that each country are governed under. The most commonpolitical system there is, is a democracy. A democracy in a traditional sense,is a political system that allows each individual person to participate; this iswhere each citizen of a country can participate voting system where people has theright to choose their leaders, and to hold their leaders accountable for theirpolicies and their conduct in office.
It is the people who decide who will representthem in parliament, and it is the people that decides who will head thegovernment at the national and local levels. They do this by choosing and votingbetween competing parties, through regular free and fair elections; thegovernment is based on the consent of the governed. In a democracy, the peopleare the sovereign and they are the highest form of political authority; it isthe people that holds the power to the leaders of government, who only holdpower temporarily as every term there are elections and a new head gets elected.It is in a democracy that laws and policies require majority support inparliament before being made and enacted; this means that once a law is putforward for consideration it cannot be enacted if not enough people agree withit. It is only when a new law or policy has undergone through a voting systemin the parliament, would that law be passed, and so will be judged if it’s ajust and fair.
Based on the Democracy Index, almost one half of all thecountries in the world are considered as a democracy a democracy, with some ofthe having a hybrid or flawed version of democracy but a democracy nonetheless(The Economist, 2016). Another type of political system is a Monarchy and it isthe most common form of governance starting from the ancient times, to earlyparts of the 20th century; where the country is ruled over by ahereditary king or hereditary queen. When people hear the word monarchy, mostpeople will think of the political systems of medieval European nations. Monarchiesare where rulers are not usually chosen by the voice of the public or people,or by their representatives. A monarch is often the head of the state until sheor he abdicates their throne, or until their eventual death.
In a surmountableof cases, a monarch is and always is the final word in the government; the kingor the queen of that nation’s monarch always has the final say when it comes togovernance of the nation, and can enact laws or policies given by them. Theremight also be functionaries in order to make decisions and be able to run thepolitical system, but the monarch will always have the discretion when it comeswith the laws, and how they are enforced. There are different types ofmonarchies, same as with other political systems. The most common type ofmonarchy that a lot of people know is the absolute monarchy, where the monarchhas the ultimate say when it comes to the matters of the government; the kingor queen that is currently on the throne has all the power, and has all thecapability under their fingers. However, most monarchies in the modernpolitical systems does not follow this method of system anymore. Constitutionalmonarchies are now the most common of monarchies where in this type of monarchythe ruler is the head of state, but there is a constitution that limits thepower, and it is others and not the monarch that creates the laws; examples ofthis is the UK, Denmark, Spain, and Sweden where the monarchs are nearly alljust symbolic rather than actual rulers of their countries, and governing poweris now in the hands of the national parliaments.
There are currently around 40monarchies in the world right now such as Spain, Sweden, the United ArabEmirates, Malaysia, the United Kingdom, and Japan. Although the monarchs inthese countries are just figureheads and just largely symbolic, these countriesare still considered current monarchies (RoyaltyMonarchy, 2018).Another common political system is a Republic and theoreticallyspeaking, a republic is a political system where the government remains mostlysubject to those who are being governed. Most people define any politicalsystems where the citizens legitimize the government, such as the US, a countrywhich people would consider a republic. A lot of people believe that any formof governance where the ruler of a country is not based on heritage, orauthoritarian governance is a republic. Sometimes, a representative democracymight be considered or thought off as a republic. The main or basiccharacteristic of a republic is that the government is subject to the people itgoverns, and where the leaders can be recalled; the state is ruled byrepresentatives of the citizen body. The idea that the sovereignty lies andrests with the people, though who is included and excluded from the category ofthe people has varied across history.
A republic is then very similar to ademocracy, where no one person has all the power under their fingers, but is asort of collective; the government head is elected through a voting system andwould only be in power for a couple of years, 10 years in office, and would bereplaced by a newly elected head. Most of the countries in the world are consideredrepublics, examples of sovereign states are Colombia, Mozambique, andPhilippines, and the United States of America (Ranker, 2018).On the other side of the coin of a republic is apolitical system that is wholly opposite and it Communism. This is a politicalsystem where the all the property is public, and the government owns andcontrols practically everything; the government owns and controls themanufacturing, production, rates of exchange, transportation, means ofdistribution of property, and various industries of the country. A societywhere all property is held in common and which in theory is classless. The wordcan also refer to the policies of various states controlled by communistpolitical parties, although they may differ greatly from the hypothetical modelposited by philosophers such as Marx. This is a system where people shareequally from the benefits of their labour, and they receive resources they needfrom the government.
Communism is supposed to make everyone under communistcontrol equal, having no difference between the rich and the poor. Communiststates are often dominated by a group of people or by a single party. A plannedeconomy is often part of the governing class, and in many cases resources aretaken and then redistributed to others, at the top of the system. Sometimes,communists call themselves as workers’ states, or socialists, but there arevery real differences in their operation.
In most cases, citizens are requiredto do certain jobs, or have some of their life decisions; concerning where theycan live, or what jobs they can do dictated by the state itself. Currently, thereare only 5 communist countries that remains in the world; China (People’sRepublic of China, Cuba (Republic of Cuba), Laos (Lao People’s DemocraticRepublic), North Korea (Democratic People’s Republic of Korea), and Vietnam(Socialist Republic of Vietnam) (ThoughtCo, 2017). Similarly, another political system where the peopledoes not have any power of say is a political system called a dictatorship.This political system is an authoritarian form of government, and the dictatoris the main individual ruler of the country. There might be other associates,and those who work under the dictator, but it is solely the dictator himself orherself that can make most of the decisions, and usually also has people toenforce decisions such as laws or policies that he or she chooses. Sometimes,the dictatorship political system is run by a small group of people, anddictators are not restricted by constitutions or parliaments. The people thatare under dictatorships are usually not consented in any way or form. Whenthere is an election, it is usually affairs in which the dictator is the onlycandidate.
As of today, according to the PlanetRulers website, there are 49dictatorships currently in the world; 21 in Africa, 18 in Asia, 7 in the MiddleEast, 1 in Europe, and 2 in the Americas (PlanetRulers, 2017). ThePerfect System for a Perfect BusinessOut of all the political systems that businesses wouldprefer, one political system stands out of the rest, and that is the Democracypolitical system. Democracy has a lot of advantages revolving around itsability such as in improving the certainty and predictability of institutionsthat establish the framework for the business environment. Political Systemssuch as a democracy is accountable to the public rather than the few elite, anda democracy produce public goods, maintain the rule of law, protect privateproperty, and invest in human capital. Often, democracies typically delaygrowth through their tendency toward the compulsory redistribution of wealth.It is in the long term that they tend to be able to produce stable environment,positive investment, innovation, and growth.
The effects become increasingly important as a countryreaches higher levels of development. It is a democracy where economic growthis possible, as it is based on huge numbers of mutually independent decisionsmade by vast numbers of entrepreneurs on how to invest capital and labour invarious business projects. Whereas in a communist or dictatorship, there is nofreedom of choice at all on what a business can do; communism means thatbusinesses are owned by the state so the business itself will not have the sayto make decisions. More economic freedom produces more opportunities forexchange and greater competition; greater exchange creates opportunity forspecialization, and that creates greater economic efficiency contributing togrowth. Civil liberties enable the consideration of all the preferences andinterests; politically and economically, in the policymaking process. Whereasautocracies have huge barriers to entry in the policy process; democracies havesmall barriers to entry, which leads to more intense competition of interests.
Ina democracy, the government is accountable to the public, and not a specific groupof people. The public, does not have an interest in supporting barriers to entry;no barriers to entry means greater competition, which results in better supply,lower barriers to entry, clearing the way of competition, and creating incentivesfor innovation and efficiency. Democracies also have greater certainty for economicinstitutions that establish the framework for the business environment throughregular elections, whose results are accepted by all parties with peacefultransitions which reduce uncertainty for political actors and public policiesthat they pursue. Accountability to the public help establishconstraints on government actions, builds credibility, and thus reducinguncertainty which is beneficial to businesses meaning they will not facescenarios that might make their business go under. Democracy providesbusinesses political stability, and increases predictability.
Although, executive and legislative power are limitedby general elections, the timeframe of the political process is well-specified,whereas in autocracies it is not.