This be, and this often leads to

This essay
will talk about the main political systems and what political system would
businesses prefer in order to grow, and function efficiently and effectively; whether
be it a Democracy, a Monarchy, a Republic, Communism, or a Dictatorship.

are simply competing views about the type of society we want to live in, or the
competing views on which what we view or what ideology will create what we
think will be able achieve our dream of having a “Good Society”. This will also
majorly affect which deciding factor or rules we might have when it comes to
living together as a people, or as a society as a whole. Although, people will
have different ideas when it comes to what they think a “Good Society” will be,
and this often leads to differences and disagreements that have plagued mankind
for years. Wars have been fought over which political systems, or ideology best
suits society or humanity; it is very subjective depending on how people think,
and why they think what they think.

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The nature
of politics is basically about what choices we should make for society as a
whole through passing laws, and public policies we enact; what really is the
“Good Society” and how we can achieve it. This also includes the rules and
decisions made by the current government that governs the country, the people,
and even the businesses within through the politics and governance levels of
sub-national, national, and even beyond through supra-national levels.

Despite the
common idea, politics and businesses goes hand in hand with each other.
Politics and Businesses have a direct, and mutual relationship with each other;
politics affects businesses, and businesses affects politics. If the government
passes the law such as providing a pension plan for every worker for example,
businesses must adhere to it; businesses have the responsibility to provide
administration for setting up employee pensions which will cost the business
time and money to set up for each employee. Whereas on the other side of the
coin, businesses such as the pharmaceutical companies directly affects the
government’s health systems such as the NHS, because the government is the main
customer of such companies; if the pharmaceutical companies increase their
medication prices that means the government will need to provide further
funding to the NHS in order to maintain their health system infrastructure as
the NHS are supplied by these pharmaceutical companies or businesses.





Main Political Systems


There are various political systems around the world,
political systems that each country are governed under. The most common
political system there is, is a democracy. A democracy in a traditional sense,
is a political system that allows each individual person to participate. It is
a means for people to choose their leaders, and to hold their leaders
accountable for their policies and their conduct in office. It is the people
who decide who will represent them in parliament, and it is the people that
decides who will head the government at the national and local levels. They do
this by choosing between competing parties, through regular free and fair
elections; the government is based on the consent of the governed. In a
democracy, the people are the sovereign and they are the highest form of
political authority; it is the people that holds the power to the leaders of
government, who only hold power temporarily as every term there are elections
and a new head gets elected. It is in a democracy that laws and policies
require majority support in parliament before being made and enacted; this
means that once a law is put forward for consideration it cannot be enacted if
not enough people agree with it. It is only when a new law or policy has
undergone through a voting system in the parliament, would that law come be
passed, and so will be judged if it’s a just and fair law. Based on the
Democracy Index, almost one half of all the countries in the world are
considered as a democracy a democracy, with some of the having a hybrid or
flawed version of democracy but a democracy nonetheless (The Economist, 2016).

Another type of political system is a Monarchy and it is
the most common form of governance starting from the ancient times, to early
parts of the 20th century; where the country is ruled over by a
hereditary king or hereditary queen. When people hear the word monarchy, most
people will think of the political systems of medieval European nations. Monarchies
are where rulers are not usually chosen by the voice of the public or people,
or by their representatives. A monarch is often the head of the state until she
or he abdicates their throne, or until their eventual death. In a surmountable
of cases, a monarch is and always is the final word in the government; the king
or the queen of that nation’s monarch always has the final say when it comes to
governance of the nation, and can enact laws or policies given by them. There
might also be functionaries in order to make decisions and be able to run the
political system, but the monarch will always have the discretion when it comes
with the laws, and how they are enforced. There are different types of
monarchies, same as with other political systems. The most common type of
monarchy that a lot of people know is the absolute monarchy, where the monarch
has the ultimate say when it comes to the matters of the government; the king
or queen that is currently on the throne has all the power, and has all the
capability under their fingers. However, most monarchies in the modern
political systems does not follow this method of system anymore. Constitutional
monarchies are now the most common of monarchies where in this type of monarchy
the ruler is the head of state, but there is a constitution that limits the
power, and it is others and not the monarch that creates the laws; examples of
this is the UK, Denmark, Spain, and Sweden where the monarchs are nearly all
just symbolic rather than actual rulers of their countries, and governing power
is now in the hands of the national parliaments. There are currently around 40
monarchies in the world right now such as Spain, Sweden, the United Arab
Emirates, Malaysia, the United Kingdom, and Japan. Although the monarchs in
these countries are just figureheads and just largely symbolic, these countries
are still considered current monarchies (RoyaltyMonarchy, 2018).

Another common political system is a Republic and theoretically
speaking, a republic is a political system where the government remains mostly
subject to those who are being governed. Most people define any political
systems where the citizens legitimize the government, such as the US, a country
which people would consider a republic. A lot of people believe that any form
of governance where the ruler of a country is not based on heritage, or
authoritarian governance is a republic. Sometimes, a representative democracy
might be considered or thought off as a republic. The main or basic
characteristic of a republic is that the government is subject to the people it
governs, and where the leaders can be recalled; the state is ruled by
representatives of the citizen body. The idea that the sovereignty lies and
rests with the people, though who is included and excluded from the category of
the people has varied across history. A republic is then very similar to a
democracy, where no one person has all the power under their fingers, but is a
sort of collective; the government head is elected through a voting system and
would only be in power for a couple of years, 10 years in office, and would be
replaced by a newly elected head. Most of the countries in the world are considered
republics, examples of sovereign states are Colombia, Mozambique, and
Philippines, and the United States of America (Ranker, 2018).

On the other side of the coin of a republic is a
political system that is wholly opposite and it Communism. This is a political
system where the all the property is public, and the government owns and
controls practically everything; the government owns and controls the
manufacturing, production, rates of exchange, transportation, means of
distribution of property, and various industries of the country. A society
where all property is held in common and which in theory is classless. The word
can also refer to the policies of various states controlled by communist
political parties, although they may differ greatly from the hypothetical model
posited by philosophers such as Marx. This is a system where people share
equally from the benefits of their labour, and they receive resources they need
from the government. Communism is supposed to make everyone under communist
control equal, having no difference between the rich and the poor. Communist
states are often dominated by a group of people or by a single party. A planned
economy is often part of the governing class, and in many cases resources are
taken and then redistributed to others, at the top of the system. Sometimes,
communists call themselves as workers’ states, or socialists, but there are
very real differences in their operation. In most cases, citizens are required
to do certain jobs, or have some of their life decisions; concerning where they
can live, or what jobs they can do dictated by the state itself. Currently, there
are only 5 communist countries that remains in the world; China (People’s
Republic of China, Cuba (Republic of Cuba), Laos (Lao People’s Democratic
Republic), North Korea (Democratic People’s Republic of Korea), and Vietnam
(Socialist Republic of Vietnam) (ThoughtCo, 2017).

Similarly, another political system where the people
does not have any power of say is a political system called a dictatorship.
This political system is an authoritarian form of government, and the dictator
is the main individual ruler of the country. There might be other associates,
and those who work under the dictator, but it is solely the dictator himself or
herself that can make most of the decisions, and usually also has people to
enforce decisions such as laws or policies that he or she chooses. Sometimes,
the dictatorship political system is run by a small group of people, and
dictators are not restricted by constitutions or parliaments. The people that
are under dictatorships are usually not consented in any way or form. When
there is an election, it is usually affairs in which the dictator is the only
candidate. As of today, according to the PlanetRulers website, there are 49
dictatorships currently in the world; 21 in Africa, 18 in Asia, 7 in the Middle
East, 1 in Europe, and 2 in the Americas (PlanetRulers, 2017).




Perfect System for a Perfect Business

Out of all the political systems that businesses would
prefer, one political system stands out of the rest, and that is the Democracy
political system. Democracy has a lot of advantages revolving around its
ability such as in improving the certainty and predictability of institutions
that establish the framework for the business environment. Political Systems
such as a democracy is accountable to the public rather than the few elite, and
a democracy produce public goods, maintain the rule of law, protect private
property, and invest in human capital. Often, democracies typically delay
growth through their tendency toward the compulsory redistribution of wealth.
It is in the long term that they tend to be able to produce stable environment,
positive investment, innovation, and growth.

The effects become increasingly important as a country
reaches higher levels of development. It is a democracy where economic growth
is possible, as it is based on huge numbers of mutually independent decisions
made by vast numbers of entrepreneurs on how to invest capital and labour in
various business projects. Whereas in a communist or dictatorship, there is no
freedom of choice at all on what a business can do; communism means that
businesses are owned by the state so the business itself will not have the say
to make decisions. More economic freedom produces more opportunities for
exchange and greater competition; greater exchange creates opportunity for
specialization, and that creates greater economic efficiency contributing to
growth. Civil liberties enable the consideration of all the preferences and
interests; politically and economically, in the policymaking process. Whereas
autocracies have huge barriers to entry in the policy process; democracies have
small barriers to entry, which leads to more intense competition of interests. In
a democracy, the government is accountable to the public, and not a specific group
of people. The public, does not have an interest in supporting barriers to entry;
no barriers to entry means greater competition, which results in better supply,
lower barriers to entry, clearing the way of competition, and creating incentives
for innovation and efficiency.


Democracies also have greater certainty for economic
institutions that establish the framework for the business environment through
regular elections, whose results are accepted by all parties with peaceful
transitions which reduce uncertainty for political actors and public policies
that they pursue.

Accountability to the public help establish
constraints on government actions, builds credibility, and thus reducing
uncertainty which is beneficial to businesses meaning they will not face
scenarios that might make their business go under. Democracy provides
businesses political stability, and increases predictability.

Although, executive and legislative power are
limited by general elections, the timeframe of the political process is
well-specified, whereas in autocracies it is not.