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Title: The Impact of Political Governance Structures and Institutions on Business
Development
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The Focus of the Project:
Introduction
Government systems have either negatively or positively impacted economic development of
their nations. Socialism is a economic system that many governments adopt, this is where many
enterprises are commonly owned. This gives the people the right to participate in decisions on
how global resources were to be used as an example. India had adopted a social political system
during the 20th century as part of the movement against the colonial system of the British Raj,
this become popular as it helped farmers to become more prominent. However as time went on it
has evolved into a Democracy political system which has impacted business decisions specially
in terms of trading with other nations. Communism is however, a government system whereby
wealth and education is given by the state to all citizens regardless of race, age, and elite
standards and all property is owned and distributed by the government when it wills to do so, and
that the government has a full mandate of providing health and or medical services to people
(Chen 2010). Autocratic rulers do provide their citizens with sufficient treatment as this allows
people to pay more taxes; democracy allows better treatment of citizens to help increase growth.
(Olson 2000)
The reason why this topic is being investigated is because it affects whole economy and business
either positively or negatively having an effect on everyone and has a profound effect in the
long-term therefore is of great interest to look further into, to provide greater understanding.
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Aims
To investigate and evaluate the effects of government structures on growth, sustainability, and
development of nations with regard to the most recent development techniques. It is possible that
the present state of nations is a result of long term impact of their government structures and
global economic change (Ihmctan N.D).
Objectives
Data will be extracted through various statistical sources and then evaluated using tables and
graphs using appropriate software to establish correlations between businesses and government
structures.
Research will be undertaken to shed light to the advantages and disadvantages of the effects of
those structures to the business worldwide and trade.
Analysis of Communist and Democratic nations and compare them amongst each other to see
affects it has on the business.
Using theorist to help the analyses of political structures effect such as Communism, Socialism
and Democratic .
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China
Trading Economics, 2013
Chinese governance has combined both capitalistic and communism practices because the State
still has an upper hand in controlling major economic operations and still, it has allowed private
investors and individuals to own their businesses and manage industrial processes (Clark 2013).
Russia and China
Comparing the Chinese governance structure and Russian governance reveals that China has
managed to rocket from a socialist republic to a greater level of governance that has allowed
market-based economic growth (Chen 2010). After the fall of the Soviet Union, Russian
governance did not arguably and innovatively decide on what was to be chosen as the best
political structure. The options were either to choose communism or to make radical changes
according to the definitions that were given at that time by western economists. At the end, the
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Russian government chose radical reforms but whose benefits were not realized because of the
political constraints that were present after the soviet fall (Chen 2010).
Trading Economics
Scope and Constraints
As my research is a very specific topic it may limit the detail of information to aid my discussion
and due to time constraints will make it challenging. Furthermore primary research will be of
greater challenge to find particular individuals who posses expertise within the field of my topic
and to set up appointments for interview maybe even more challenging. Firsthand information
about those countries is difficult to obtain, therefore primary research to be conducted will not be
the optimum representation of the countries concerned and answers may not be taken seriously
as intended, known to be non-responsive error or biased answers.
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Sources
In order to aid my analysis I will be using credited published journal articles, reports, and books
as well as statistical websites that will generated the relevant data that reflects aims of the
analysis.
Data Collection
Data will be collected through both secondary and primary research methods which consist of
both quantitative and qualitative. Primary data will include sending survey questionnaires using
both closed and opened questions. The use of stratified sampling will be used to individuals who
will have experience or information in relation to the political structures. I will form an overview
using statistical software in the shape of graphs and table using the results to form a sound
correlation. Oral interview will also be applied to collect ideas, views and suggestions from
targeted respondents. This reason for mixed methods is because either one is not sufficient
enough to spot the detail of the situation.
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Bibliography
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Clark, N. 2013, Ruled by hardcore capitalism, UK looks longingly at China. Viewed 4
Tuesday, 2014 Available at:.http://rt.com/op-edge/chinese-investment-uk-hardcorecapitalism-257/
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Chantrill, C 2014, US gross domestic product GDP history. Viewed 3 Monday, 2014.
Available at: http://www.usgovernmentspending.com/us_gdp_history
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Chen, E 2010, The lessons of economic transition: Soviet Russia and Communist China.
Viewed 3 Monday, 2014. Available at:
http://www.science20.com/alchemist/lessons_economic_transition_soviet_russia_
and_c ommunist_china
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Hart-Landsberg, M. 2010, The U.S Economy and China: Capitalism, class, and crisis.
Monthly
Review, vol 61 no. 9. Viewed 4 Tuesday, 2014 Available
at:http://monthlyreview.org/2010/02/01/the-u-s-economy-and-china-capitalism-classand•
crisis
Ihmctan. (N.D). Research methodology. Viewed 5th February 2014 Available at:
http://www.ihmctan.edu/PDF/notes/Research_Methodology.pdf
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Olson, M. 2000. Power and prosperity. New York: Basic Books.
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Johnson, J 2014, The advantages of capitalism in business. Viewed 3 Monday, 2014
Available at: http://smallbusiness.chron.com/advantages-capitalism-business-21121.html
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Trading Economics 2013, Trading Economics. Viewed 4 Tuesday, 2014. Available at:
http://www.tradingeconomics.com
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