Name
Date
Period
Types of Governments and Economies
Overview: Governments can be described in three ways: by their form of economy, by their political
organization, or by their method of choosing their leaders. Nations can be described by one of these categories,
or by all three at the same time. For example, look at the description of the United States below:
• Economy: Capitalist — People can own their own property and businesses and must buy government
services such as healthcare.
• Politics: Republic The government is made up of representatives chosen by the voters for a certain
term.
• Authority: Democracy — The government is elected by the people through a voting process.
Economy — Who provides the goods and services that are bought, sold, and used?
Communism
Capitalism
Socialism
(USA, modern Russia, Japan)
In a capitalist, or free market economy,
pe
ople own their own businesses and
lefty. They must buy their own
services for private use such as health care
and savings for retirement accounts,
(Norway, Sweden, Canada)
Socialist governments won many of the
larger industries and provide education,
health and welfare services while allowing
citizens some economic choices.
(Cuba, North Korea, North Vietnam)
In communist countries, the government
owns all businesses and farms and
provides its people with healthcare,
education, and welfare. It is supposed to
divide these resources equally among the
people.
Politics — How is the government run?
Dictatorship Totalitarian Theocracy
( Iraq under
(China)
(Iran)
Sadaam Hussein,
North Korea)
Rule by a single
leader who has
not been elected
and may use force
to keep control.
In a military
dictatorship, the
army is in control.
Usually there is
little or no
attention to public
attention or
individual rights,
Rule by a single
political party.
People are forced
to do what the
government tells
them and also
may he
prevented from
leaving the
country.
A form of
government
where the
rulers claim to
be ruling on
behalf of a set
of religious
laws, or as
direct agents of
a deity (god or
gods).
Republic
Anarchy
(Jordan)
(Israel)
(USA)
(Afghanistan?)
A government
run by a king
or queen, who
sometimes has
absolute
power. Power
may also be
shared with a
law making
body such as a
parliament,
Power is
passed along
through the
family,
A system led by
representatives of
the people. Each is
chosen as a member
of a political party
and remains in
power as long as
his/her party does.
Executives in
parliamentary
systems are
sometimes chosen
from within the
Parliament rather
than directly elected
by the people.
System led by
representatives
of the voters,
Each is
individually
chosen for a
set period of
time,
Executives in
republican
systems are
often directly
elected by the
people in
separate
elections.
Anarchy is a
situation in
which there is
no real
government.
This can
happen after a
civil war when
countries have
been destroyed
and rival
groups are
fighting to take
its place.
Monarch y Parliamentary
Authority: Who picks the government?
Revolutionary
Totalitarian
Oligarchy/Plutocracy
Democracy
(USA, France)
The existing structure is
overthrown and replaced by a
completely new one. The new
group can be very small — such
as the military — or very large —
as in a popular uprising of the
people. After a period of time,
this becomes one of the other
type of governments (unless
there is another uprising or
coup).
(North Korea)
Rule by a single political party.
Votes for alternative
candidates or parties are not
allowed. Citizens are allowed,
"encouraged," or required to
vote, but only for the
bgovernment's chosen
candidate(s).
(Pakistan)
A form of government which
consists of rule by an elite
group who rule in their own
interests, especially the
accumulation of wealth and
privilege. Only certain
members of society have a
valid voice in the government.
This can reflect (but is not
limited to) economic interests,
a particular religious tradition,
or family rule.
(India, USA)
In a democracy, the people
elect the government.
Everyone who is eligible to
vote — which is a majority of
the adult population — has a
chance to have their say in who
runs the country.
Things to Note
Remember, no country in the world fits perfectly in to any one category. For example, the United States is not a
pure capitalist society because the government provides some services for its citizens. Additionally, one
person's opinion of the type of government found in a country may differ from another's (many argue that the
USA is actually a plutocracy rather than a democracy.
Questions to Consider
2.
3.
4.
5.
Choose one of the types of economies on the first chart and describe some positive things about living
under that type of economic system and some negative things. Try to think, of at least 2 positives and 2
negatives.
Under the socialist system _. in Sweden, citizens pay about 50% of their income to the government to pay
for its programs. Citizens then enjoy free health care and free college educations. Do you think this
system would be worth living under? Why or why not?
Why do you think countries with communist economies almost always have dictators or totalitarian
leadership? What is it about communism that lends itself to dictatorship? Explain your answer.
What problems do you think exist in countries run by theocracy? Explain your answer.
Some people argue that the United States does not have a democracy or revolutionary form of
government, but that it has a plutocracy. Why do you think people say this, and what is your opinion
about this statement? Explain your answer.