Politics Essay

by admin | Mar 20, 2023 | Uncategorized

Political Development Essay
Introduction
Political Development involves the use of a number of criteria to enhance political experience. Precisely, the criteria are used to improve the living standards of ordinary people in developing countries. The essay focuses on the criteria used in political development and their associated influence to the living standards of people in Third World Countries. A number of case studies demonstrating the significance of the criteria in fostering political development are also analyzed.

Political Development Criteria
Generally, Political Development can be viewed as the constant effective increase in the potential of a system in response to social transitions and other institutions, thus providing an effective communication channel between the population and the government.

The development process can be undertaken in three different criteria. These include structural differentiation, system capabilities and equality tendency. The essay focuses on each of the criteria and their associated significance to the development experience and the lives of people in developing countries.

Structural Differentiation
It entails complicating societal relations with regard to the law concerning the increase in the diversity of peoples’ activities within the society and emergence of new interests among the diverse groups of individuals within the society. The reaction of political systems should be immediate so as to be effective. An effective political system is therefore characterised by highly specialised political institutes functionality and strong differentiation of its structures (Vasilik 2006).

Consequently, the specialisation and functional differentiation level of structures yields the difference between developed and traditional political systems. The idea is based on the similar role played by both complex and simple political systems. Thus structural composition aspect forms the basis of the difference between the political systems since developed systems are more structurally differentiated (Vasilik 2006).

The standardised model for socio-economics is used in measuring the relationship between economic development and structural differentiation aspect of political development. According to the model, political involvement is determined by the availability of distinct social resources in a society that bears economic significance.

Participation of individuals that are highly educated and earning higher levels of income in political development far much exceeds the participation noted from the opposite group of individuals that are deemed poor and earning lower salaries. It has also been observed that rich persons having a higher reputation in the society participate in politics far much more than poor people that occupy low status in the society (Yamada, Kohno & Ikeda 2003).

Consequently, adequacy of such structural resources is dependent on their economic development level. Economic development of a nation consequently transforms the social differentiation structure of its individuals. Therefore, effective political development should be aimed towards ensuring an expansion of opportunities to guarantee mobility of labour, an expansion of training centres to escalate the number of trained labourers and an expansion of the education system that is formal.

A government that implements such initiatives transforms the societal social structure. An increase in the number of learned individuals would in return increase their participation in politics, thus fostering political development. Highly learned individuals consequently form part of informed personnel that can occupy higher employment levels hence earn high salaries.

Furthermore, structural political development can aim at transforming psychological perspective of members of a society to foster economic development. Structural circumstances define political actions. Internal processes and preferences of an actor fuel political actions. Political participation of members of a society is, therefore, dependent on their attitudes and beliefs.

Consequently, Political Development should be aimed at integrating such cultures and attitudes into the political system so as to enhance political participation. Adequate access to education, media and wealth foster political participation, thus enhances political development.

Democracy is also fostered by modernisation. Structural differentiation, therefore, aims at increasing individual involvement in politics. An increase in individual participation in politics fosters political development (D’Souza 1994).

The Role of Politics in Development
The study encompassed a number of societies that is Mainland China, the colonial territory of Hong Kong and Taiwan that exhibited democracy. The type of the regime played a significant role in the modification of individual behaviour of members of the societies. It was observed that the rate of economic development within the entire country was unequal since the development rate in some regions surpassed that of other regions within the same country.

Disparity was noted in the distribution of psychological and socioeconomic resources in the country. The difference was attributed to the variations in economic development levels in the regions. From the study, it was evident that the level of government activities in the regions was determined by the available resources. The difference, therefore, enabled an assessment of the relationship between economic development and political participation.

The study revealed that China’s development declined as one moved from the coastal region to the mainland provinces and finally to the provinces occupying the northwest region. The per capita Gross Domestic Product range of individual counties from 1993 statistics was 1,036-48,035 Yuan. Results indicated a positive correlation between economic development in mainland provinces and the level of involvement in politics among citizens.

89.4% of individuals in developed areas confirmed participation in politics whereas 80.5% of individuals in less developed regions affirmed motive-based participation in politics. However, the results were different in Hong Kong since there was a negative correlation between the level of participation in politics and economic development. This was attributed to Hong Kong’s poorly developed electoral system.

Political Development Capabilities
Political development is enhanced by an increase in the capabilities of the political system. The capabilities include survival acts, innovation and mobilisation. Innovation capability encompasses the ability of a political system to adjust and solve emerging problems and its reaction flexibility to emerging and unpredicted issues.

Mobilisation capability entails resource mobility that is both material and human. Resource mobility assumptions include: transforming unclear weights expectations into policies and solid programs, distribution and development of joint action projects, existence of political insights that can offset or adjust weights to fit into certain situations, accumulation of all the required resources and authority on the part of the leaders (Vasilik 2006).

Survival capability entails the ability of the political system to implement appropriate specialised socialisation structures that will enable offsetting of the actions of revolutionists and counterculture development. System capability should conform to both the social and technological aspects. Social capability entails the abilities of private and public organisations and the support obtained from cultural and social factors.

Significant elements of social capability include expert competence, management and organisation expertise in macro businesses, ability of markets and other financial institutions to mobilise capital, stakeholders trust and honesty in the development process and the government’s effectiveness and stability in rules enforcement and fostering economic growth (Fagerberg & Srholec 2008).

Technological capability entails the organisational, economic and social capability required to finance big company investments in the country in a bid to foster economic development. Countries that intend to undergo positive economic development, therefore, have to possess the abilities (Chandler 1990). However, technological capability can also be achieved through technology exploitation and exploration, like in the case of Japan.

Japan’s success was attributed to its ability to link technological innovations with appropriate organisational requirements. Chandler’s perspective used by countries from the West was changed by Japan from “knowledge and creation” to “scale and scope”. Absorptive capacity is the other paradigm that can be used in enhancing technological capability of a political system.

This refers to the ability of the system to recognise emerging foreign information, integrating it into its system and using the information for productive purposes aimed at fostering economic development (Cohen & Levinthal 1990).

Further study on the applications of the various technological capability paradigms depicts technological advancements of newly industrialising countries. Technological capability in developing nations was linked to the implementation of suitable technological activities in the 1970s and 1980s. For instance, technological capability transformed Korea from being an impoverished nation to a global technological hub within 30 years.

Three elements were considered under technological capability. They include innovation, production and investment capabilities. Absorptive capacity was used by the country in achieving technological capability. The paradigm, therefore, focuses on technology exploitation capability besides research and development (Fagerberg & Godinho 2004).

Resource mobilisation entails the use of a number of means. These include: manipulation of trade terms, inflation tax, forced savings, among others. Tax is a significant factor in state capability and formation. The political dimensions of a political system and state capacity and power parameters are measured by tax as one of the key measuring instruments.

Consequently, developing countries should devise appropriate tax systems that foster growth through incentives, meet demands of distribution and collect adequate revenue. According to Toye (2000), state effectiveness and viability are guaranteed by increased revenue.

Tax revenue can be used by the government in infrastructure development and effective delivery of key services that are paramount to economic development. The political system should, therefore, aim at developing a suitable tax system that will finance its operations, thus improve the living standards of citizens.

Political Involvement Impact to Community Development
This involves individual participation in political activities. The traditional submission culture should be transformed into participation culture. The submission culture aimed at ensuring the realisation of administrative responsibilities. On the contrary, the culture of participation entails active engagement into politics regardless of the associated attitudes from distinct institutions. The transition can be realised democratically. Mandatory mobilisation can also be used to effect the transformation.

Equality tendency can be achieved through enactment of universal laws that are applicable to all members of a society without discrimination and privileges. The recruitment process of various holders of different state positions should be based on the applicant’s competence rather than being hereditary or limited to a specific group of members of a given class only (Vasilik 2006).

However, equality tendency can decrease the capability of a political system. Consequently, in a bid to maintain the capability of the system, the level of political representation and the expression of interests of various groups are limited. The criterion thus focuses on functional differentiation of the institutes of the political system.

Political development is thus enhanced when the system integrates the social interests of different groups through deliberate consolidations, aggregating interests using political parties and enhancing political social relations by permitting the acquisition of political information by the media. There are four groups that makeup performance possibilities of political systems.

They include: development of institutes of the political system that is responsible for logical bureaucracy and unity of the country, global possibility that permits the integration of international standards into the system, involvement possibility that entails the creation of a civil and democratic culture and structure and distribution possibility that provides the network for welfare standards’ circulation and effective coordination among social, economic and political structures.

Economic development should correspond to the following dimensions: growth should be noted in the productive capability of the society, individual living standards should be improved significantly and continuously, income and assets distribution should be broadened, health and safety conditions should also be improved, improvement in resource utility and environmental management and improvement in gender equality (Vasilik 2006).

The tenets of the democratic theory used to achieve equality tendency include the principles of universal citizenship, equality, popular sovereignty, weight and legality. The political system should aim at transforming authoritarian regimes into democratic ones.

This entails extending political rights to individuals of a country, establishing electoral procedures that are limited, permitting self-organisation of independent political parties and extending press freedom to enable the acquisition and transmission of certain sensitive political information.

Democratic regimes are effective in producing a wide range of benefits, thus foster economic development. Furthermore, corruption incidences are not prevalent in democratic regimes. This makes them suitable for economic development (D’Souza, 1994).

After the Second World War, many developing nations have undergone a series of economic and political developments. The study on the correlation between the development processes of these countries and the associated democracy is vital to convey the causal relationship between the two variables. Findings of the study indicate that democratic political institutions significantly fostered the process of economic development in the countries.

As a matter of fact, the poor are numerous in developing nations. Consequently, successful politics in such regions is dependent on the ability of a political party to address economic development issues of such poor people. Therefore, election of such politicians into the parliament and government will guarantee enactment of laws that will enhance economic development of poor people since politicians have the propensity of gaining support and favour (De Haan & Siermann 1996).

Therefore, continuous economic development in developing countries coincides with the rate of democratisation. Poverty eradication programs will be implemented by regimes that rely on poor people for their survival. However, the implementation of such programs in developed nations faces multiple challenges since it involves a lengthy process.

It is also evident that democracy emerges with economic development. It is, therefore, effectively sustained in developed nations rather than developing ones. Basing on another study that was conducted on 135 countries for the study period that is 1950 and 1999, 44 countries remained under dictatorship. 34 countries were observed to have sustained democracy throughout the entire study period. There were transitions in the regimes from dictatorship to democratic and vice versa.

Single regime change was noted in 29 countries with 2 countries changing their political regime from democracy to dictatorship and 27 changing from dictatorship to democracy. Double regime transition was noted in 12 countries. The countries that experienced 3, 4, 5 and 6 regime transitions were 5, 5, 3 and 2 respectively. One country that is Argentina experienced 8 regime transitions within the study period (Brass 1986).

Results indicated that dictatorship regimes faded under a number of circumstances. For instance, some dictatorship regimes collapsed during economic crises, whereas others fall as a result of economic development of a country. International forces were also responsible for the crumbling of some dictatorship regimes.

However, empirical results indicate that democracy survived in countries that exhibited an increase in economic development and failed in the case where a country’s prosperity either stagnated or declined. With regard to income distribution, a decrease in the income ratio of top-to-bottom individuals of a country enhanced survival of democracy. In summary, democracy fosters economic development since it guarantees effective allocation of resources to all parts of a country (Patti & Navarra 2009).

Democracy also exhibits effective utility of the allocated resources. This fosters economic development in the country. Political Development should be centred towards establishing democracy regimes to guarantee appropriate resource allocation, especially to the disadvantaged regions of a country.

Transparency and accountability are also enhanced under democracy regimes rather than dictatorships. Consequently, there is a high chance that a country that adopts democracy as a tool for attaining equality tendency improves the living standards of its citizens (Bardhan 1999; Bardhan 2005).

Reference List
Bardhan, P. 1999, ‘Democracy and Development: A Complex Relationship’, in I Shapiro & C Hacker-Cordon (eds), Democracy’s Value, Cambridge University Press, Cambridge, p. 93-111.

Bardhan, P. 2005, ‘Institutions matter, but which ones?’, Economics of Transition, vol. 13, no.3, pp. 499-532.

Brass, P. R. 1986, ‘The Political Uses of Crisis: The Bihar Famine of 1966-1967’, The Journal of Asian Studies, vol. 45, no. 2, pp. 245-267.

Chandler, A. D. 1990, Scale and Scope: The Dimension of Industrial Capitalism, Harvard University Press, Cambridge (MA).

Cohen, W. M. & Levinthal, D. A. 1990, ‘Absorptive Capacity: A New Perspective on Learning and Innovation’, Learning and Science Quarterly, vol. 35, no.1, pp. 128-152.

De Haan, J. & Siermann, C. 1996, ‘New Evidence on the Relationship between Democracy and Economic Growth’, Public Choice, vol. 86, no. (1-2), pp. 175-198.

D’Souza, F. 1994, ‘Democracy as a cure for famine’, Journal of Peace Research, vol. 31, no.4, pp.369-373.

Fagerberg, J. & Godinho, M. M. 2004, ‘Innovation and Catching Up’, in J Fagerberg, D Mowery & R Nelson (eds), The Oxford Handbook on Innovation, Oxford University Press, Oxford, pp. 514-544.

Fagerberg, J. & Srholec, M. 2008, ‘National innovation systems, capabilities and economic development’, Research policy, vol. 37, no.9, pp. 1417-1435.

Patti, D. M. A. & Navarra, P. 2009, ‘Globalization, democratization and economic growth’, Applied economics letters, vol. 16, no.7, p. 731-734.

Toye, J. 2000, ‘Fiscal Crisis and Reform in Developing Countries’, Cambridge Journal of Economics, vol. 24, no.1, pp. 21-44.

Vasilik, M. A. 2006, ‘Political Development: Concept and Criteria’, Political Science. Web.

Yamada, Y., Kohno, M. & Ikeda, K. 2003, Influence of Social Capital on Political Participation in Asian Cultural Context, Asian Barometer, Taipei.

Economics Essay

by admin | Mar 20, 2023 | Uncategorized

Development Economics Discourse Essay (Article)
It is undisputable that economic progress involves painful adjustments, especially with respect to concepts that are considered to be classical. Most of the classical concepts are replaced by contemporary concepts in a bid to attaining economic progress. For instance, old social institutions are disintegrated to form new ones while persons unable to keep to the pace must adjust to the specific requirements of economic progress.

Economic progress aims at making the contemporary world and environment more favorable hence the need to get rid of the various classical concepts, ideologies, and institutions that never assisted in attaining the objective. However, most nations or economies find it difficult to enjoy the benefits of economic progress since there are many communities unwilling to pay the full price of economic progress.

Notably, the problems experienced after the World War II made many nations to wake up in a bid to carrying out specific developments in line with economic progress. This was as a result of the increased poverty during the period. Many nations after World War II became curious of the causes and possible techniques of alleviating poverty, thus leading to economic progress or development.

Development of a nation to achieve economic progress requires adherence to certain basic rules of statement defining various systems of attaining the same. Such systems should define the categories and relationships existing between various concepts of development in order to aid the economic progress process.

For instance, the systems should be able to define hegemonic view of the world in terms of development consequently arousing various players in the global arena to take part in economic progress. It is noteworthy that all stakeholders taking part in economic progress should have the ability to allow for transformation in economic, social, and cultural aspects of nations or economies.

One main cultural force that has shaped significantly the worldwide economy is the discourse of development economics. Understanding discourse of development economics requires deep analysis of its emergence, building on the existing parameters, as well as the necessary conditions for its formation or occurrence.

Moreover, economic progress benefits significantly from the corpus of rational techniques, which include planning, measuring and assessing techniques, professional knowledge, and institutional practices amongst others. In addition, economic progress may never be complete unless stakeholders focus on regimes of representation that are capable of underlying the construction of various processes and parameters. Examples of the parameters vital in this area include peasants, women, and the environment.

Links and relationships between representative powers at work with various economical institutions also play a significant role in economic progress. From these concepts, there is no doubt that economic progress is a process full of many requirements that must be attained at any given moment. In any case, every stakeholder involved in economic progress must be conscious of various parameters that make the process complete.

Generating Discussion Questions
From the ongoing discussion, the following questions arise:

What was the link between post-World War II poverty and economic development?

Post-World War II poverty led economic development and prosperity amongst different nations in the global perspective. During the post-World War II poverty, many nations engaged in developing better ways of having sufficient food to reduce the serious effects of the same. As a result, economists proposed various development methods in curbing poverty. Hence, post-World War II poverty initiated the process of economic development in the global perspective.

It has been close to three decades since the global economy started economic development or progress. During this period there are economies with developed status and others developing and underdeveloped status. What are the possible reasons as to the discrepancy yet economic progress started almost at the same time?

Even though it has been long since the inception of economic development, there have been serious discrepancies amongst the global nations. One reason contributing significantly to such discrepancies in economic progress is political will.

Whereas there are nations with positive political will that necessitates economic progress, some countries lack the same hence falling in the underdeveloped category. In addition, technological discrepancies have led to discrepancy in economic progress where underdeveloped countries unlike the developed ones have poor technological infrastructure hence the difference in economic progress.

What are some of the factors that have played significant roles in economic progress of the global arena?

Some of the factors contributing to economic progress within the global perspective include technological advancements, infrastructural developments, governance, and the presence of political will amongst stakeholders involved. In addition, increase in knowledge and information has significantly contributed to economic progress within the global arena.

Forecasting into the future, may be five decades from today, is there a possibility that there will be more economic progress or development? If so, how will the institutions then differ with the contemporary institutions, which have so far been considered to be economically developed?

The global perspective keeps on changing despite the belief that it is about to reach the economic stretch. Therefore, there is a possibility that there will be more economic progress in future that it is in the contemporary world. Such economic progress will result into more advanced institutions that employ technology greatly as opposed to the contemporary institutions.

Economics Essay

by admin | Mar 20, 2023 | Uncategorized

Economics and Politics: International World Economy Research Paper
Introduction
Economics broadly concerns the process of accumulation, allocation, and exchange of the limited resources in the domestic and international markets. On the other hand, politics focuses on manipulation of power in human disagreements and agreements in the context of civil governance and public welfare.

Political Economy is broadly referred to as the interconnections between economics, politics, and law with the objective of outlining the relations and government policies within a nation and between different nations. Political economy is important for the governments, institutions, and individuals to understand the trends in the competitive and ever changing global economy.

Political economy is an important aspect that analyses the relationship between individuals and the public with general emphasize on government and market relationship with respect to politics, economics, and the public welfare. Political economy applies a system of governance where productions in a capitalized country are managed in consideration of political and economic aspects.

Evolutions in the global economy have led to the emergence of international political economy characterized by institutions such as world trade organization and the World Bank. The emergence of international world economy came by with issues of concern such as global warming, brain drain and security of energy.

The Upsurge of Economics and Politics
Economics and politics in the society are aspects of human existence and living in accordance with the prevailing laws that governs human activities such as banking, agricultural activities, selling, and buying of merchandise.

The prevailing political laws seeks to control wages, prices of commodities and service and create capital in a way that may be or may not acceptable by human beings. Political laws and regulations are made and manipulated by man but economic laws about economic operations are self-perpetuating like the natural laws, which exist on a self-operating basis.

Economics
An Individual in the society encounters every day challenges of making choices with money and property to be able to fulfill his own wants and needs with the limited resources. The basic needs that humans being seek to satisfy every single day entails processes of making economic decisions with specific demands such as spending on electricity bills, food, entertainment, clothing and shelter through regular payment of rent. In economics, areas of focus are consumer decisions in relation to their preference and price variations of commodities.

Concerns and emphasize of economics are the choices made by individual consumers and nations concerning existing products and resources. The choices made are attributed to consumer behavior and character reaction in relation to economic and political constraints that exist in the local and international environment with prevalence of economic factors of trade. Coe (2010:83) argues that economics is a complex highly interconnected phenomenon that is self organizing and adaptive to the changes in markets.

Economics seeks to unravel the mystery of wealth creation in the natural and man made environment where their allocation and management brings about wealthy nation, individuals while other nations, and individuals languish in poverty.

Economics bases its evaluations on the assumptions that all humans have the sole aim of fulfilling their personal interests and desires through rational behavior that are directed towards satisfaction of unlimited wants and needs of human beings. The general understanding of the human behavior and activities in fulfilling self-interests in the politically influential environment depicts the complexity of economics in an environment with scarce resources.

Scarcity of Resources
The complexity of economics arises as a result of the unlimited wants and needs of human beings that are sought to be satisfied by the limited resources in existence. The limited resources basically entail those of individuals and a nation, which can be utilized to for the purpose of accumulating individual and state wealth.

With respect to states, they accumulate wealth through utilization of natural sources, human workforce, and technology while individuals accumulate wealth through utilization of time, money, and skills.
The success and ability for individuals and nations to accumulate wealth is closely dependent on the decisions and choices made by individuals and nations with respect to the limited resources.

The insatiable human needs and wants are what make economics a critical field in human existence as human beings has to make decisions on which goods and services to fore go and which ones to purchase. Individuals and states need to make choices on how to allocate the limited resources effectively and efficiently for maximum utility and satisfaction. Economics critically observes the issues involved in these allocations and decision in the two categories of macro and microeconomics.

Macroeconomics
Macro and microeconomics are the two broad categories that are used to critically observe economic behaviors of individuals and nations respectively. Macroeconomics analyses the total output of a state and the means by which it distributes the limited resources of the workforce, capital, and land with aim of facilitating economic growth and international trade by maximizing production.

In the long run, Macro economic conditions are proved to affect many people across wide variety of occupations. In the short run, macroeconomic condition may only affect a few individuals in limited occupations (Oyer 2006). However, the economy is proved to be controlled and driven by uncontrollable factors such as market forces that keep changing.

Microeconomics
On the other hand, microeconomics analyses behavior in the same context as macroeconomics but with respect to individuals and companies within a particular state. Analysis of microeconomics is more scientific compared to macroeconomic as it analyses particular aspects of the whole economy.

Microeconomics deals with specific individuals and businesses and the understanding of their reactions to price variations. Macroeconomics and microeconomics go a long way in helping economies and individuals to make right choices when managing the scarce resources that are in existence and available at a particular time. The systems through economies allocate the scarce resources at a particular time depend on the type of economy.

Governments and individuals must make the most appropriate choices and decisions in allocating resources for maximum efficiency and utilization due to the nature of insatiable needs and limited resources. Economies can either be command or market economies depending on the nature of governance with respect to the economy.

Market economies are those where allocation of resources are freely determined by the interactions of demand and supply forces in the competitive markets. On the other hand, command economies depend on government decision on how resources are to be allocated. Politics come in where the government has the responsibility of making decisions with regards to effective allocation of the limited resources.

Politics
The government plays a major role in controlling and making decision with regards to allocation of the scarce resources. However, politics has become a major issue of concern as it has been reported to be the biggest contributor to the slow pace of economic growth in many economies.

Communist economies are worse off as politics tend to take the lead in manipulating the process of allocation of resources. In this case, misallocation and misappropriation of the limited economic resources is rampant as politicians seek to satisfy their own selfish interests. Although politics plays a major role in economics, it can be referred to being pathetic issue of concern in many resulting failed states

Communist economies face major challenges due to political control of economic activities of firms and government owned companies through harsh imposition of tax burdens and unfavorable regulations. Politics of these kinds have affected communist economies negatively and thus the need for many countries to depoliticize their economies (Simon, et al, 1977).

The welfare of human beings as far as the limited resources can be utilized to the maximum by the government is the main aspect of concern for the political economy. The unlimited and insatiable needs of human beings are satisfied by the individual wealth, which he accumulates, and the wealth of the nation and its ability to take care of its citizens. Political economy is what is needed for both the government and the individuals to direct workforce and procure all the available resources for maximum satisfaction.

Political economy is the means through which human beings achieve maximum satisfaction of their needs and wants using the limited resources available. Wealth accumulation is objective of political economy where the individual’s wellbeing and the nation at large can be comfortable and maintain the highest achievable living standards. The government is set up for all the citizens’ wellbeing with benefits of liberty, basic needs, and education in line with states economic growth and stability.

The accumulation of state property and wealth has the sole purpose of ensuring all citizens benefit and equally participate in building the economy and enjoying and equally sharing the so-called national cake. The government ensures it sets its population under control and at the same time ensures that the existing wealth and resources is enough to sustain the existing population with respect to social amenities such as health centers and schools.

The wealth of a nation is not the only indication of the general wellbeing of a nation, but basically applies to whether there equal distribution of wealth among the regions, all classes, and minority and majority groups fairly. The population’s wellbeing is what indicates the government has succeeded in managing the state resources in line with the population to prosperity.

The population gets honest rewards with respect to the workforce although in some nations such as China has minority groups reaping bigger benefits than the entire population regardless of their contribution to the nation. Skilled and unskilled workforce should get rewards equal to specific contribution.

The achievement of political economy to organize the nation for the improvement of lives of the poor as well as the rich is exemplary. Political economy pushes for the development of good and skilled governance to champion economic activities towards eradication of poverty and the general wellbeing of a nation. The happiness of all classes of citizens entails proportional reward of the labor force according to their contribution. The government seeks to reward its workforce and motivate its citizens to work harder and enjoy what life brings.

Political economy seeks to explain and understand the nature of wealth accumulation and the reasons why some nations become wealthy some languish in poverty and underdevelopment. The modern economy has become more complex and hard to manage and control for development with respect to utilization of resources and accumulation of property.

Drehle (2010) argue that the government may fail to control allocation of resources in an effective manner and may adopt modern policies through injection of funds into the economy other than allocating resources effectively from production. Through central banks, governments may undertake to use monetary policies to spearhead the nation towards economic growth.

Human beings were brought together by common interests in satisfying the needs of the public. Public interests satisfaction through utilization of wealth was assigned to the government as its responsibility to the public.

The government levied its citizens to generate revenue for its operations and development plans. On the other hand, individual wealth was accumulation and resource utilization is a more complex phenomenon. Government participation in providing favorable conditions and protection of private property was essential for development of the national economy.

Government officials were reported in many states to use political power to accumulate private property using the resources the nation. The complexity of private property and public wealth transparency has been solved through introduction of property rights and laws for the wellbeing if the nation. Legislations were put in place to ensure the economy is controlled and development in a proper manner.

The Workforce
The potential of the population can be estimated through demand and supply of both skilled and unskilled labor for wealth creation. The workforce demanded by is availed according to rewards and working conditions that the economy is offering. The population of a nation offers workforce that is valued and even export it to other economies that have a shortage of skilled and unskilled workforce to utilize resources and capital that exists in a country.

The same way an economy may import workforce form a state that has excess supply and insufficient rewards to sustain motivation and the skilled services being offered by the economy. The political economy seeks to strike a balance between demand of the workforce, supply, and proportional reward. This is relation to aspect of a suffering and hungry population which does not have the means of meeting their needs and wants.

National wealth is the determinant of the ability if a nation to manage its wealth to support and maintain consumption of its population. The production of the workforce is facilitated by the political economy where the wellbeing of citizens is the main objective. Political economy links all factors of production with consideration of natural order of production and consumption.

Naturally, labor depends on production for existence and reproduction while production depends on labor for development and wealth creation. The government has the responsibility of managing this order in a manner that wealth is created and wellbeing of the citizens is sustained and improved.

Conclusion
Economics and politics can be said to have developed as human beings respond to the nature of political interventions in their economic activities in accordance and manipulation of the law to earn a living and improve standards pf living.

The propensity of human beings to respond to political interventions in their economic ventures can be referred as conditioned reflex actions with regards to challenges of nature, political regulations, and laws. Human beings have accepted economics and politics as part of their livelihood although they fail to realize to that these aspects of the economy and politics may become a barrier to improved living standards if not well managed.

References
Coe, N. M., (2011). Geographies of production I: An evolutionary revolution. Progress in Human Geography, Vol. 35 Issue 1, p81-91, 11p. Web.

Drehle, V. D., (2011). The Man Who Said No to Easy Money. Time, Vol. 177 Issue 6, p42-45, 4p. Web.

Oyer, P., (2006). The macro foundation of microeconomics: Initial Labor market conditions and long-term outcomes for economists. Journal of Economic Perspectives, vol. 20, No. 3, 143-160. Web.

Simon, J. H., et al. (1997). Politics and Entrepreneurship in Transition Economies. Web.

Economics Essay

by admin | Mar 20, 2023 | Uncategorized

Economics: How Markets Work Essay
Introduction
Economics can be defined as the study of how scarce resources are utilized by people either individually or collectively. A specialist in the study of economics is referred to as an economist. A number of reasons have been advanced in the study of economics not necessarily by economists only (Ashby, p. 1).

Importance of understanding economics
The study helps to clear any anxiety that may arise in the day to day life experiences. This anxiety may be prompted by various aspects such as interest rates and fluctuation of prices. This helps in avoiding unnecessary stress that would have been caused by lack of understanding of the economic changes that take place.

It equips one with skills that are helpful in making informed choices even in the choosing of leaders. In this case, an individual can assess the potential leader with a policy that will address social issues like education, health, poverty, and employment among others. Thus, an understanding of economics will improve one’s life and those of the people around in general (Ashby, p. 4).

Basic concepts in economics
For an individual to have a comprehensive understanding of economics, it is important to understand the related concepts. In this case, one should be knowledgeable about economic concepts. Thus, there are various terms and concepts that are used in economics. “Descriptive/positive economics” is a term used in reference to an analysis done by economists. This term explains and tries to predict the choices that individuals are likely to make and the reasons for their choices.

In such a prediction, the economists may give their opinion on what choices the people should make. Such a practice is referred to as “normative economics”. When an economist does a study on the performance of an individual, that is termed as “microeconomics”. On the other hand, if the study is concerned with the performance of a whole entity such as the state, it is called “macroeconomics”.

Though economists cannot predict with a guaranteed accuracy, most often, their results reflect the correct position of a given matter. This can be attributed to the fact that economists deal with large numbers of people, and thus getting the average of how they will respond is not hard.

For example, the economists conduct analyses on how some people will react in a same scenario and then draw a conclusion of a larger group of the population. This has been used over time for the study of suppliers of goods since they will most often want the same result of greater outcomes. The same applies to buyers and sellers. However, the practice of these different players has to be regulated. In this case, the government develops regulation parameters for this purpose.

Troublesome terms
Some terms used in economics are troublesome. This is especially the case to those who have little or no understanding of what these terms mean. For instance, the term economists’ “self interest” is more often taken negatively to imply a negative aim by the economists. However, it connotes the study of an issue so as to get relevant information that a conclusion can be based on by an economist (Ashby, p. 9).

There are other economic terms that are misunderstood by individuals. For instance, “profits” is another term that is often misunderstood to mean undeserved gains. However, the term should be understood to mean a financial return to those investing in a business. It is well known that no one will want to venture into anything that is not gainful. Therefore, business people make business investments with the hope of reaping profits.

Economists also differentiate between “accounting profits” and “economic profits”. In this case, the accounting profits are normally lesser than the economic profits. Accounting profits are further subdivided into “necessary profits,” which include total costs and “economic profits,” which refer to an excess of the expected profits.

Other terms that are most often used by economists include “price”, “market value” and “average revenue”. All these are used in reference to the amount a given product sales. Another differentiation made by economists is that of “demand” and “want”. The former is that which a person is willing, ready, and able to have whereas the latter refers to the things that are just desired.

The term “efficiency” is used in two respects related to production and allocation. Productive efficiency refers to the cost of generating one unit of output. On the other hand, allocative efficiency refers to how well the economy utilizes factors of production. The factors of production include resources, labor, capital and entrepreneurship.

Visualizing possibilities
Opportunity cost emerges in every choice that one makes including a choice not to spend (Ashby, p. 19). This is the basis of the common saying that there is nothing for free. This aspect can be illustrated by the graph of a production possibilities frontier. Under this, it demonstrates that the economy can satisfy demand if factors of production are managed properly.

Market Basics
This refers to the factors that do influence the decision of a buyer when he or she is in the market. The first aspect that comes is that of price. The buyer is bound to assess if the price quoted by the seller of a given product is consistent with the value he or she stands to gain if that commodity is purchased. Factors such as the buyer’s tastes and preferences play a big role too (Ashby, p. 34). The buyer will most often buy a product when its price is low.

There are different factors that affect decisions that are made in the market. All the market players have different situations that face them. The buyer has to assess the price expected to pay and compare it with what he or she stands to gain. Nevertheless, the seller too has in mind how he acquired the said product from the supplier. The seller also thinks of how much he will gain if he sold the product at a given price (Ashby, p. 43). These are self interests that shape the decisions of the market players.

Demand and supply
In most instances, a buyer will buy a given product if its price is low. The buyer will always see that it is in his self interest that he gains from a product by incurring the lowest possible cost (Ashby, p. 38). In addition, buyers find it easy to buy a limited amount of a product per period during a time when the price is higher.

On the other hand, the suppliers face a big challenge in fixing the price since they lack the advantage that the seller will have of assessing the reaction of the buyer on mention of the price. An excess supply situation will arise if the suppliers fix a very high cost of the product (Ashby, p. 43).

Ordinarily, supply and demand affect tangible commodities like agricultural products, which are sold in a number of commodity exchanges across the globe. Bodies like the Chicago Board of trade and Tokyo commodity exchange foresee this process of exchange. The offers of demand and supply apply to these exchanges and the traders fix the prices so as to balance supply and demand.

Tastes, preferences, one’s income, and the product’s price affect the demand level. Shifting of the demand curve illustrates this aspect. Supply is also affected by changes in demand. Factors that move the supply curve to the right include increased number of suppliers while issues like technological breakthroughs will move the curve downward (Ashby, pp. 63-68).

Imperfect markets
Imperfect markets refer to an aspect that emerges in the market. This is when the point of agreement of a product’s price is supposed to be reached at willingly by the seller and buyer in the market. This point is referred to as the equilibrium point (Ashby, p. 60). The price that is agreed by the buyer and the seller often apply to the entire community. However, it is only determined by the buyer and seller. These make the market an imperfect place since it lacks allocative efficiency

Stocks versus Flows
Whereas supply can be taken as a flow of product into the market, demand can be looked at as a flow of products leaving the market. Supply and demand are thus flows of amounts of products supplied and those demanded whose magnitude is affected by buyers, sellers and producers. In a market led economy, price adjustments is used to regulate the flow of demand and supply which are otherwise independent of each other (Ashby, p. 71).

Market Equilibrium
This refers to the point of agreement between buyers and sellers such that, neither feels displeased with what he or she gets. The equilibrium price is that which supply equals demand. This reflects the current market reality of relative scarcity of products. Demand and supply conditions play equal roles in determining the equilibrium price.

Thus, both buyers and sellers are involved in this exercise. Finding the equilibrium price guards against product shortage and surplus of a given product. This helps both the market players since suppliers cannot sell more than what people are demanding (Ashby, p. 71-80).

Resource misallocations
Society depends on resources that are scarce and need to be distributed properly so as to satisfy the demands of society. Therefore, maximization of the net profits gained ought to be practiced by all market stakeholders.

Proper allocation of resources prevents dead-weight loss, which involves losing potential benefits to no one. In order to have a fulfilling market, some factors ought to be left undisturbed by external forces. That is why government intervenes in determining market prices destabilizes either the supply or demand of a given commodity.

For instance, after the Second World War, production shifted to military related materials and it took the intervention of the government to introduce rationing and universal wage control that helped prevent impending inflation. In general, prices do reflect the underlying reality that is present in the market. Thus, policies that are in line with the market realities should be implemented (Ashby, pp. 82-92).

Conclusion
Economics is a critical subject in the society. It is an arena that studies the forces that drive people to make certain choices. It is a helpful in one area to society since it gives people the basis of forming their choices.

In economics, there are other factors that come into play such as demand, supply, and opportunity cost among others. The buyer and seller in the market place develop varied opinions that are inclined to each’s self interest. There is no perfect market since they all lack inclusiveness of the entire community in decision making related to the setting of prices.

Works Cited
Ashby, David B. How markets work. Lake Oswego, Oregon. EconAnalytics, 2011. Print.

Construction Essay

by admin | Mar 20, 2023 | Uncategorized

Construction Law: Review Essay
Key conditions used in construction contracts
The first condition entails the intentions of the parties involved in the contract. The parties are bound to act in a contractual spirit based on mutual trust and cooperation for the contract to be wholly successful (10.1). The terms and conditions used in the contract ought to be helpfully and fully defined to both parties of the contract so as to enhance clear understanding (11). Communication is very essential while entering into the contract to ensure that all the parties are in agreements as they fully have an understanding of the terms. All forms of communication that ensues in the contract are formal and should all be done in writing and incase a period for reply is specified in the contract data, then this should specifically done within that period (12).

The employer has the power and is in lead control of the contract. He may consequently give instructions or directions that alter or change the works information on how the contract will be carried out (13.2). Such are binding and must be followed to the letter to ensure a workable contract. The site that the construction will take place should be accessed by the contractor to enhance early planning of the construction. The contractor must be allowed by the employer to access and use the site and should provide the services well stated in the works information (14). Where the contractor may notice or may require to bring attention to the employer about something in regard to the contract, such early warnings in regard to how the contract should be carried out are a significant requirement (15). This further helps in ensuring that the parties very well understand the terms binding them in the contract.

As regards, the condition of time to the contractor may not start before the set date and completion may be on or before the set completion date (30.1). The contractor must submit a scheduled forecast or programme of activities to be carried out throughout the contract (31). He may not start before, and the completion of the contract may be before, or after the completion date as stated in the contract. The element of time is a major concern in the construction industry as failure to meet the scheduled time may lead to inconveniencing the employer. The employer is entitled to instruct the contactor to stop or restart the work according to how he sees its progress. In cases where there are delays due to certain events occurring, this may constitute compensation (60). Such events may arise from the action or inaction by the employer though also includes some neutral causes such as physical conditions beyond the control of the employer. The procedures for notifying quotations, compensating events are stipulated in the contract forms (62 and 63).

In regard to the condition or element of control, to start with, the early warnings obligation as regards the contract and its practice may constitute a control mechanism which is very vital in the contract (15). The employer has the overall say as pertains the working out of the construction contract. The employer may delegate any actions and may similarly cancel any delegation (13.4). An employee may be removed through his instructions (21.3). Hence the control condition will cover the employer’s requirements and the expected standards of the project. The quality of the project should not be compromised, and any defects noticed should brought to the attention of the employer and a defects certificate produced (41.3). Before a defects certificate is issued, the contractor is liable for replacement of lost plant and materials and any damages to the works (43.1).

The condition concerning the costs involved in the project, price and other forms of payment, that is, money, the contractor is required to make an application for payment by the stipulated assessment day, once a month (50.1). The application entails a detailed account of how the money has been used and assessed (50.2). A certificate is normally issued to certify the amount to be paid in accordance to the work performed, that is, the degree of completion. Ordinarily, the employer is to pay within three weeks after the next assessment day (51). Officers such as the quantity surveyor help in the certification of work completed.

The statutory obligation condition is implied, and arises in instances of breach of the statutory duty by the employer. The contractor in such cases is indemnified against claims or proceedings and costs arising thereby (81.1). Specifically, in regard to the health and safety and CDM stipulated regulations, there is no express reference in that regard. The only instance of such provision could be through the provision of reasons for termination of the contract by the employer for the contractor breaks a regulation (90.3).

Insurance is very vital in the construction contract. There is an insurance table provided in the contract within which the contractor is to provide joint names for insurance purposes (82.1). There are several forms of insurance with basic and a major reason for compensation or replacement cost in respect of loss or damage to plant, materials, individuals and the works. The insurance cover extends from the starting date to the completion date in the case of plants and materials and defects certificate in the case of the works. The other form of insurance is the liability insurance. This insurance insures the owner from possible accruing legal liabilities for another person’s loss. Moreover, insurance is also required to cover the contractor’s liability for damages to property other than works, and injury or death to persons for the minimum cover as stated in the contract. The contract stipulates the extent to which the contractor’s liability for loss or damage to the employer’s property will be covered with the insurance (80.1).

Termination is another basic element of the contract. This clause should be included. Both the employer and the contractor have the right to terminate the contract though this is not expressly stated in the contract. A construction contract can be terminated for a cause purposes or convenience reasons. Other reasons, which may lead to the termination of a contract includes insolvency of the contractor, the parties may also bring the contract to an end by basically modifying the agreed contractual terms and conditions. Owner’s deficiency in fulfilling his obligation may also lead to termination of the contract among other reasons. The employer must issue a termination certificate (90.1) after which the contractor must cease work and leave the construction site (91.1) and may have the work completed by others. The amounts accruing on termination are as stated according to the reasons which dully apply (92).

Additionally, the contract has the condition for miscellaneous or provision for other unforeseen occurrences. It stipulates for instance that use of NEC Engineering and construction short sub-contract would be necessary. With reference to the contract data, payments provisions in regard to Addendum Y (UK) 2 may be considered though not allowed within a short contract. The Addendum Y (UK) 2 on the third parties rights is a state as suitable for use within the short form. Additionally, Clauses 93 to 95 on dispute resolution in the short form should be replaced by clauses93UK to 95UK, for use in the United Kingdom where the Housing Grants, Construction and Regeneration Act 1996 applies.

Where disputes arise between the employer and the contractor, their settlement should be in reference to the adjudication (93) and other forms as specified in the contract. Under the adjudication process, this requires the presence of an appointed adjudicator whose name may be given in the contract. The adjudicator has the power as indicated and based upon the relevant sections of the Housing Grants, Construction and Regeneration Act 1996 and supplemented either by the statutory Scheme for Construction Contracts, or whichever adjudication process has been named in the contract. The adjudicator’s decision is final and binding unless and until referred to a further tribunal. The arbitration process should be well stated in contract data.

Reference list
Clamp,H.,Cox,S. &Lupton,S. (2007) Which contract? RIBA Publishing15.Bonhill Street London.