The word democracy comes from ancient Greek words meaning ‘people’ and ‘rule of government’. It is a system of government of a country whose leaders have been elected by the people. When the elected representatives meet in parliament to make laws, the form of government is a parliamentary democracy. Monarchy
A monarchy is a form of government led by an individual who holds the position for life, having inherited the position, and who passes it on to a relative, usually a son or daughter. In the past, all monarchs held great power and made the all decisions and laws of the country. This is known as absolute monarchy. Today most monarchs act as Head of State, filling a ceremonial role with little or no power regarding the actual governing of the country. A constitutional monarchy is a country which has a written Constitution that sets out the rules for how the country will be governed and the rights and responsibilities of its people, and has a monarch as Head of State. Republicanism
A republic is a country whose head of government is an elected or chosen president. Sometimes the president is also the head of state, for example the President of the United States. Presidents are usually elected for a specific length of time, called a term of office. In some countries a president may only serve a particular number of terms. A republic may or may not be democratic. In a democratic republic, the people choose their leaders through elections, although in countries where president is a ceremonial role, it may be by government appointment rather than by election. In some undemocratic republics the leaders are chosen by a small number of people and may stay in office for a long time, sometimes without ever being elected or re-elected. In some cases there may be elections, but these may be conducted in corrupt ways, or electors are not given a free choice of who to vote for. Communism
Communism is an economic system in which there is little or no private ownership - property is held by the community rather than by individuals. All economic activity is controlled by the government, including things like what crops are grown, what goods are manufactured, and to whom they are sold and at what prices. The decisions made by communist governments are those that are normally made by private individuals in non-communist countries. Karl Marx, whose beliefs formed a foundation of communism
Communist governments are usually a form of totalitarianism, and traditionally allow only approved candidates to stand for election and there is usually little or no choice of candidate at an election. Economic System
1. Capitalist Economic System
A Capitalist economic system is one characterised by free markets and the absence of government intervention in the economy.
In practice a capitalist economy will need some government intervention, primarily to protect private property. (This is important to distinguish capitalism from anarchism, where there is absolutely no government present)
In the real world, many economies which are viewed to have a capitalist economic system may have government spending taking up 35% of GDP. This is because the government pays for welfare, health, education and national defence. However, the economy is still viewed as capitalist because in the area of private enterprise firms are free to decide what to produce and for whom.
Capitalist economic systems invariably lead to inequalities of wealth and income. However, it is argued that this inequality provides an incentive for wealth generation and economic growth.
A Capitalist economic system is often contrasted to a Socialist or Communist economic system where economic decisions are made centrally by government agencies.
Different Types of Capitalism
o Turbo capitalism - free market capitalism with little government regulation
o Responsible capitalism- Free markets but also social welfare net.