Political economy is one of the issues that can impact the growth and development of a country. In most cases, leaders ensure that a nation engages in different activities such as international trades to guarantee that more revenues are acquired and used to enhance various sectors. Typically, political economy involves:
- Production and marketing and their relations with the law.
- Custom and government.
- National income and wealth distribution.
Different states have implemented various policies to ensure that the development of communities is experienced. A political economy of a country determines how a government can engage in international trade. Therefore, one can analyze national differences in the political economy of various countries such as China, Russia, and the United States to examine how they vary and their impacts on financial growth.
The United States is one of the countries whose political economy has impacted its growth. However, the US faces some challenges when engaging in international business operations and activities due to various factors. For instance, countries have different policies and political structures that can impact their performance. Nations grow their economy at different rates, gaining varying economic growth and development. Thus, America has ensured that its political systems and legal structures are enhanced to contribute to the country’s healthy economy (Ravenhill, 2017). For instance, the US has created a good relationship with different countries to guarantee that international trades are successfully conducted.
Business stability and performance are vital aspects that governments should focus on by implementing strategies that can increase production. Collective systems of governance have been exercised in the United States as they emphasize the national goals rather than state aims. Socialism has also been encouraged in the United States since it largely contributes to economic growth. Additionally, it enables individuals and organizations to exercise their rights to engage in international trade activities. Corruption in government businesses has also been experienced in many countries, leading to their poor performance. Therefore, the US has guaranteed that misuse of resources in industries is curbed, and those found guilty of the illegal practices face hefty charges.
The US political systems have also focused on abuse of power as it can impact different sectors’ performance. Furthermore, leaders have been encouraged to focus on approaches that can lead to economic growth and not misuse government resources. The US political economy has ensured that a totalitarian political system is avoided and democratic society is encouraged, which focuses on economic interests and demands (Ravenhill, 2017). The totalitarian political system was exercised in some countries, such as Russia. Nonetheless, the approach has its disadvantages since the decision-making processes involve some individuals. Thus, bias may be experienced, which can lead to poor performance of organizations. The strategy minimized economic development since it prevented people from engaging in various activities contributing to financial growth. Moreover, the system can lead to human rights violations since irregular rules and regulations can be implemented. Therefore, the United States has focused on an excellent political economy to guarantee corporations and the economy’s development.
The legal system is also another factor involved in the political economy since it focuses on parties’ agreements in various business transactions. Consequently, companies apply policies to ensure that advanced economic activities and relations are exercised legally (Amable et al., 2019). For instance, the United States has policies such as contract law that focus on the obligations established by an agreement. The United States political system has enacted regulations that protect individual properties and prevent small firms from being oppressed by big companies. Personal and national benefits are also analyzed in the system to guarantee that theft of resources is prevented. However, this aspect is different in various countries to varied political structures and constitutions.
China is another country that has primarily impacted the global economy. The government engages in different trades with various states. Moreover, China and the US engage in many businesses that improve the two nations’ growth (Ravenhill, 2017). The Chinese government has used intellectual rights to protect an individual’s work and other innovations (Jia & Winseck, 2018). Trademarks and copyrights are involved, whereby people are encouraged to avoid illegal acts using other individuals and corporate brands. The increased rate of counterfeit goods has led to the Chinese government implementing ways to ensure that counterfeit products are curbed. Technology has advanced in China, and many citizens are using it for manufacturing forgery products. Thus, the Chinese government has implemented rules to protect personal ideas. Economic growth and development are motivated by innovations and entrepreneurial actions that promote trade. However, the manufacture of fake goods can limit the economic growth of a country. Therefore, China uses these policies to improve economic environments to ensure its local and international businesses’ success.
National legal systems are different in their functioning and usefulness in various countries. Therefore, governments have focused on education as one of the factors that can impact the political economy. Thus, China has increased its investment level in learning to ensure that many people acquire different skills and utilize them to manufacture and produce goods. For instance, the country has primarily invested in modern technology. Many people are learning several ways of advancing their skills to create new machines and increase production in various sectors (Jia & Winseck, 2018). Thus, the education system has also been used by China to develop its political-economic system and increase production.
Many governments face challenges when developing appropriate measures that can be used to enhance economic growth. For instance, plans may involve national concerns that can affect international cooperation. In this case, the Chinese government focuses on strategies that can include economic considerations to improve companies’ performance. (Jia & Winseck, 2018). Capitalism is one of the world’s most-used economic systems as it allows individuals to own industries that produce and distribute the goods and services that the population requires (Ravenhill, 2017). However, China has ensured that it transforms into a socialist market economy that increases its production and international trade engagement. The system is also vital since it enables people to have a good relationship with the government and public policy by removing different trade barriers.
Any policy that is good for society has been encouraged in the political economy. In this case, China has ensured that it designs strategies that help people improve their living standards by engaging in various businesses (Jia & Winseck, 2018). The approaches have also focused on taxation, whereby revenues collected are used to develop the country. China encourages its economists to create strategies that are essential to the community and that can lead to fiscal development and growth. Special-interest groups are also considered in the political economy as they largely contribute to budgetary growth. For instance, China has used wealthy individuals, powerful industries, and large corporations such as Huawei and China Railway Construction Company to develop the country. Moreover, these groups engage in international trades, leading to economic growth.
Political economists in China have also ensured that they understand different behaviors in societies and why people act in a particular way. In this case, various business trends are observed to ensure that the government can introduce strategies that improve different groups’ performance. Chinese economists also study consumer behavior to guarantee that all goods and services’ production meets the user demands. The Chinese government has also achieved international trade since it analyzes different opportunities in various countries and encourages companies to produce goods to seize these chances (Jia & Winseck, 2018). For instance, many people in the contemporary world are attracted by modern technology. Therefore, China has focused on multiple products such as electronics to ensure that it appeals to consumers globally (Jia & Winseck, 2018). Chinese companies such as Huawei produce tablets and smartphones that attract many users and improve their economies.
China has also focused on the powerful interests that impact international trade activities. The world’s multinational corporations have largely benefited from open business transactions, whereby goods are transported to different regions with ease. Many of the globe’s most significant companies depend on their supply chain’s effectiveness in the modern world. In this case, many Chinese corporations produce parts and components, assemble them, and sell the final products universally (Jia & Winseck, 2018). However, trade barriers interfere with these supply chains, impacting the performance of many organizations. Therefore, the Chinese political economy has been of great significance since it ensured that corporations focus on their supply chain management, which has led to China’s rapid economic growth.
Russia is another country that many people have analyzed when focusing on the political system. The country has also introduced various policies to ensure that companies and individuals can engage in different businesses and contribute to economic growth. Russian patrimonialism in the 1990s largely impacted the Russian economy (Becker & Vasileva, 2017). Although the Russian government ensured that it improved international trade, some obstacles are still being experienced and affect its economic growth.
In Russia, corruption and organized crimes have been significant obstacles in business growth and economic growth. Despite having started the 21st century on a higher note, Russia has not developed as expected (Becker & Vasileva, 2017). Russia had a booming oil and gas export business that largely contributed to its development. The company acquired revenues from different countries. Moreover, the trade allowed Russia to create a good relationship with other countries. However, poor management and corruption involved in the business activities led to a minimized number of exports, and Russia found it hard to live up to the expected results (Becker & Vasileva, 2017). Moreover, the decrease in oil prices in mid-2014 affected Russia’s economic growth.
Another threat to business growth in Russia has been the presence of the Soviet system. The approach has led to increased corruption cases and government funds misuse (Becker & Vasileva, 2017). This has also led to many foreign investors avoiding capitalizing in Russia. Typically, stockholders are attracted by countries with a stable economy and policies that can help businesses develop. Therefore, the system has led many international companies to seek alternative countries to start their companies and avoid losses that the Russian political system might steer.
Another problem facing Russia in business growth is political favoritism which only helps a selected number of businesses that support the government or various officials. President Putin also changed the country’s system to look more like an autocracy than a democracy (Ravenhill, 2017). The plan has primarily affected the business economy of the country as a whole. Additionally, by putting much power on the president, Putin invited Western countries’ sanctions. This was also incited by the fact that he led Russia to annex the Crimea region of Ukraine. The act was highly condemned by the international countries, which eventually led to Russia’s heavy economic sanctions.
Although Putin has had a large impact on Russia’s political systems, many people have argued that he has introduced some policies that have limited the country’s economic growth. His power might soon be limited since the decline of the Russian economic growth may cause him to lose many vital allies and influential figures within and outside the country. The political climate in the country is worrying for western investors (Becker & Vasileva, 2017). However, the government can ensure that changes are exercised, limiting corruption and ensuring fair taxation is observed. The country can guarantee that a system that encourages people to engage in different businesses can also be introduced. For example, Russia can emulate the Chinese political economy system that limits trade barriers and has potential for companies’ growth and profits.
Russia has also invested in education to guarantee that citizens can contribute to the country’s growth and development. The government has various learning institutions that offer business management courses and other programs that can be used in business transactions. For instance, many individuals in the country have learned about economics, enabling them to work in various organizations. Technology is also embraced in Russia, and the government has guaranteed that individuals can access higher learning and gain skills to design advanced machines. Therefore, education is one of the factors used by the Russian political economy system to ensure that individuals learn various ways to contribute to their economic growth.
To conclude, the political economy is essential in every county as it involves various aspects such as policies and trades that can determine a country’s development. The relationship between companies, individuals, and the government is also involved in the political economy. Thus. Nations should ensure that these aspects do not limit the economic growth of the state. For instance, the United States has assured that different policies are introduced that focus on economic growth. Businesses in the country have largely contributed to the country’s development since the state, and federal governments have ensured that trade barriers are curbed.
China is also another country that has primarily developed due to its engagement in various international trades. The use of technology is one of the approaches that the socialist market system has utilized in China to improve organizations’ performance. The country has also focused on opportunities in various nations and produced goods to attract consumers from multiple states. Therefore, China has an essential political-economic system that focuses on increased business transactions and investment. Russia is also another country that has been analyzed when focusing on political economy. The county has been impacted by corruption, whereby many people avoid investing in the county. Therefore, there are various national differences in political economy that people can analyze when focusing on different countries such as the United States, China, and Russia.
Reference
Amable, B., Regan, A., Avdagic, S., Baccaro, L., Pontusson, J., Van der Zwan, N., & Van der Zwan, N. (2019). New approaches to political economy. Socio-economic Review, 17(2), 433-459. Web.
Becker, U., & Vasileva, A. (2017). Russia’s political economy re-conceptualized: A changing hybrid of liberalism, statism, and patrimonialism. Journal of Eurasian Studies, 8(1), 83-96. Web.
Jia, L., & Winseck, D. (2018). The political economy of Chinese internet companies: Financialization, concentration, and capitalization. International Communication Gazette, 80(1), 30-59. Web.
Ravenhill, J. (2017). Global political economy. Oxford University Press.