COMMERCE 4SA3 Chapter 2: Chapter 2; political economy difference
24 Jan 2019
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Document Summary
Ghana"s growing gdp can be attributed to strong demand for its gold, cocoa and start of oil production (2010). From 1957-early 90"s ghana was not a democracy and ran on socialist principles and corruption which impeded economic development. Political economy: political, economic and legal systems of a country; work together. Political systems; assessed on 2 dimensions: collectivism & individualism. Collectivism: needs of society as a whole are more important than individual freedom; plato. Socialism: traced back to karl marx who advocated for state ownership of basic means of production. Communism; socialism achieved by violent revolution and dictation (i. e. cuba, china. Social democrats; achieve it by democratic means (i. e. australia, germany, france, Individualism; traced back to aristotle who says individual interests are more important than those of the state. Idea is that property owned by individual will be taken care of better, welfare of society is best served by letting people pursue their own economic self-interest.
