Introduction to Comparative Politics (Polsci 107)

GROUP 1: OVERVIEW OF THE FIELD OF COMPARATIVE POLITICS

I. Key Concepts In Comparative Politics

A. POLITICS
- Politics (from Ancient Greek πολιτικά(politiká) 'affairs of the cities') is the set of activities that are
associated with making decisions in groups, or other forms of power relations among individuals,
such as the distribution of status or resources. Kay Lawson - Politics is ubiquitous (everywhere)

B. POWER
- power is the ability to influence or direct the actions, beliefs, or conduct of actors.

THE LANGUAGE OF POWER

1.) Power - The production of intended effects
2.) Power to - The ability to achieve one's goals
3.) Power over - The ability to overcome opposition
4.) Incentive-shaping - Exerting power through the use of inducements and threats
5.) Preference-shaping - Exerting influence through persuasion and control of the
climate of opinion

C. AUTHORITY
- Authority is the recognized and legitimate right of an individual or institution to make decisions, issue
commands, and enforce obedience, which is accepted by the people without the need for constant
coercion.

TYPES OF AUTHORITY
1.) Traditional Authority
It is emanates from existing past and present customs and traditions and by dominant
religious and social institutions.

2.) Charismatic Authority

It is the legitimized power due to personal charm and emotional appeal to people.

3.) Legal-Rational Authority

It is the legitimized power vested by a bureaucratic organization that defines policies
regarding who shall exercise power, the extent of the power, and how it will be exercised.

D. LEGITIMACY
Legitimacy is the general belief or perception that a ruler, government, or institution has the rightful
authority to govern, and that its power is accepted as proper and just by the people.

II. Approaches To Comparative Politics

A. INSTITUTIONALISM

• Institutionalism is an approach that emphasizes the role of institutions. It focuses on howinstitutions

shape social, political, and economic behavior by establishing norms, rules, and structures that
influence individual and collective actions.
• Peter Hall defines institutions as "the formal and informal rules that govern social behavior"
• According to Douglass North (1990), institutionalism is vital in comparative politics as it explains
how institutions influence economic performance and political stability by providing the necessary
framework for cooperation and reducing uncertainty.

B. BEHAVIORALISM

 It refers to the study of behaviors to understand individuals, groups, and etc.

• "Analytic, not substantive, general rather than particular, and explanatory rather than ethical" David
Easton
• In the early 1900s, thinkers like Graham Wallas argued that politics without understanding the
psychology of individuals is meaningless.
• The Behavioral Revolution (Post-world war II):
Political scientists influenced by sociologists, wanted to solve social problems by studying how
people and groups act in political life—that can help to have an unbiased evaluation.
• Behavioralism approach enhanced comparative politics by using scientific and evidence-based
analysis of real political behavior.

C.RATIONAL CHOICE THEORY

• Is for understanding social and economic behavior by assuming that individuals makedecisions
based on a systematic process of weighing costs and benefits to maximize their utility.
• According to Bates (1997), integrating rational choice theory into the study of comparative politics is
important as it enhances our understanding of political behavior and institutional dynamics.
• Example: Voter Behavior in Elections
Voters are seen as rational actors who choose candidates or parties that they believe will best serve
their interests. They weigh factors such as policies, party platforms, and potential benefits before
making a decision.

NOTE: What do you use when using this kind of approach? [We have to use our REASONS]
Political Institutions

Institutions are the 'rules of the game' in society (North, 1990). Stable and recurring patterns of
behavior (Huntington, 1968). Includes formal organizations (parliament, courts) and norms, rules, and
procedures (March & Olsen, 1989). Example: 1987 Philippine Constitution – creates structures and
sets limits.

Types of Government

Democracy

❖ From Greek 'demos' (people) + 'kratos' (rule).

❖ A form of government ruled by the people and equal participation in decision-making is present.
(Dahl, 1989). Authority within democracies originates from the people (Held, 2006).

❖ According to Former US President Abraham Lincoln, Democracy is

the “Government of the people, by the people, for the people.”

Example: South Africa 1994 elections (end of apartheid)

Direct Democracy

❖ Citizens directly participate in decision-making, referendums,

initiatives, recalls (Kaufmann & Waters, 2004).

❖ Encourages active participation but difficult in large states (Barber,

1984).

Example: Switzerland – frequent referendums.

Indirect Democracy

❖ Citizens elect representatives to make decisions.

 ❖ Most practical for large modern societies (Held, 2006).

❖ Ensures efficiency and protects minority rights (Dahl, 1989).

Example: United States – citizens elect Congress.

Authoritarian

❖ A type of government where power is concentrated in one leader or a

small group.

❖ Citizens have limited political freedoms, but some social or economic freedoms may still exist.
The government controls politics but not every part of daily life.

❖ Leaders usually stay in power by restricting opposition and controlling elections.

Example - The period of Martial Law under Ferdinand Marcos (1972–1981). - Power was
concentrated in the presidency.

Totalitarianism

❖ More extreme than authoritarianism.

❖ State controls all aspects of life – politics, economy, culture, even

beliefs.

❖ Utilizes propaganda, ideology, secret police, and fear.

❖ Citizens expected not just to obey, but to actively support the regime.

Example - Nazi Germany under Hitler - racial ideology that centers on Aryan supremacy and
anti-Semitism, complete state control and militarization.

Institutional Frameworks
Parliamentary

❖ Parliamentary systems is combined form of executive and legislative authority where he

executive is selected by and remains accountable to the legislature through confidence.

❖ Collective leadership is its key strength, generating more deliberation and so resulting in fewer
mistakes than occur under a presidential format.

❖ The government emerges from the assembly and can be brought

 down by a vote of no confidence.

Key Characteristics

❖ The governing parties emerge from the assembly. Government ministers are usually drawn
from, and remain members of, the legislature.

❖ The head of the government and the council of can be dismissed

from office through a vote of no confidence by parliament. The post of prime minister is
normally separate from that of a ceremonial head of state.

❖ The executive is collegial, taking the form of a cabinet in which the prime minister is
traditionally just first among equals. This plural executive contrasts with the focus in
presidential government on a single chief executive.

Majority Government

❖ A majority government occurs when the ruling party controls more than half of the seats in the
legislature’s lower house. This gives the government a stable working majority to pass
legislation and withstand confidence votes.

Minority and Coalition Governments

❖ Most countries using parliamentary government elect their legislature by proportional

representation (PR), resulting in a situation where no one party gains a majority of seats.

❖ Muller & Strom (2000) states that when a government has no majority seats in the parliament,
the government takes one of three forms: majority coalition, minority coalition, and single-party
coalition.

Majority Coalition: Two or more parties with a combined majority of seats join together in
government
Minority Coalition: These are formal coalitions or informal alliances between parties which,
even together, still lack a parliamentary majority.
Single-party Minority Government: formed by the largest party.

Presidential

❖ Presidential systems feature a directly elected chief executive who is

separate from the legislature.

❖ Cabinets are appointed by the president and do not depend on

legislative confidence to stay in office.

❖ This separation of powers is the hallmark of the presidential system

 and is typically reinforced by a separation of personnel.

Key Characteristics

❖ Popular election of the president who directs the government and

makes appointments to it.

❖ Fixed terms of offices for the president and the assembly, neither of
which can bring down the other.

❖ No overlap in membership between the executive and the legislature.

❖ Members of the Executive cannot hold legislative positions.

Hybrid

❖ A hybrid system of government, also known as semi-presidentialism,

combines elements of both parliamentary and presidential systems.

❖ It features a directly elected president with significant power, alongside a prime minister and
cabinet who are responsible to the legislature.

❖ This creates a dual executive structure, where the president and

prime minister share executive power.

Key Characteristics
1. Dual Executive
Unlike parliamentary systems where the head of government (prime minister) is chosen by the
legislature, and presidential systems where the president is both head of state and head of
government, hybrid systems have both an elected president and a prime minister.

2. President's Role
The president is directly elected by the people and often holds significant powers, such as the
ability to appoint the prime minister and cabinet, dissolve parliament, or veto legislation.

3. Prime Minister's Role

The prime minister is typically chosen by the president and is responsible to the legislature,
meaning they can be removed from office by a vote of no confidence.
 4. Power Sharing
The key feature of a hybrid system is the sharing of executive power between the president and
the prime minister.
Why Adopt a Hybrid System?

❖ Addressing Political Polarization

❖ Preventing Gridlock

❖ Combining Strengths

❖ Potential Challenges

❖ Power Struggles

❖ Executive Dominance

❖ Constitutional Ambiguity

Case Study: United States of America

Form of Government: Federal Republic with a Presidential System

Head of State and Head of Government: President Donald John Trump
Vice President: James David Vance
Legal Basis: United States Constitution

❖ Article II, Section 1 (Presidency)

❖ Article II, Section 4 (Impeachment and removal)

Legislature (Congress)
Bicameral Congress: House of Representatives and Senate
❖ House of Representatives
Article I, Section 2: Representation based on population
❖ Senate
Article I, Section 3: Two senators per state
Powers (Article I, Section 8): taxation, defense, commerce regulation
Executive

❖ President, Vice President, and Cabinet form the executive branch.

❖ Article II, Section 2: Commander-in-Chief, treaty power, appointment

of officials

❖ Article II, Section 3: Duty to faithfully execute laws

Judiciary

❖ Article III, Section 1: Establishes Supreme Court and inferior courts

❖ Article III, Section 2: Defines judicial power and jurisdiction

❖ Landmark Case: Marbury v. Madison (1803) established judicial

review

Case Study: United Kingdom

Form of Government: Constitutional Monarchy and Parliamentary
Democracy
Head of State: King Charles III (ceremonial authority)
Head of Government: Prime Minister Keir Starmer (executive authority) Legal Basis:

❖ Bill of Rights (1689)

❖ Ministerial and Other Salaries Act (1975)

Legislature (Parliament)
Bicameral Parliament: House of Commons and House of Lords

House of Commons

❖ Elected chamber

❖ Law-making supremacy established by Parliament Acts (1911, 1949)

House of Lords

❖ Appointed chamber

❖ Reformed under House of Lords Act (1999)

❖ Functions as a revising and scrutinizing body

Executive

❖ Prime Minister and Cabinet exercise real executive authority

❖ Derived from royal prerogative powers but limited by parliamentary

conventions

Judiciary

❖ Independent judiciary

❖ Supreme Court of the United Kingdom established by Constitutional Reform Act (2005)
❖ Principle: Parliamentary sovereignty – courts cannot strike down
primary legislation

Case Study: France

France is governed under the Constitution of the Fifth Republic (1958), which was designed by
Charles de Gaulle and Michel Debré. The system is a semi-presidential republic, often described as
a hybrid system because it blends features of both presidential and parliamentary governments.
The Executive Branch (Dual Executive)
A. President of the Republic

- Head of State
- Directly elected by the people for a 5-year term (renewable)

Powers & Roles:

❖ Appoints the Prime Minister.

❖ Presides over the Council of Ministers.

❖ Commander-in-chief of the armed forces.

 ❖ Can dissolve the National Assembly.

❖ Can call for referendums.

❖ Has emergency powers under Article 16 of the Constitution.

B. Prime Minister
- Head of Government - Appointed by the
President Responsibilities:

❖ Directs government policy and oversees ministries.

❖ Accountable to the National Assembly.

❖ Implements laws and ensures day-to-day administration.

The Legislative Branch

A. National Assembly (Lower House)

- Composed of 577 deputies elected for 5 years

- Holds greater power compared to the Senate
- Can censure the government, forcing the Prime Minister to resign
- Initiates most legislation
B. Senate (Upper House)

- About 348 senators, elected indirectly by local officials

- Represents local governments and territories
- Has less influence than the National Assembly but reviews legislation
The Judicial Branch
The French judiciary is independent from the executive and legislative branches. Key institutions
include:
Constitutional Council – reviews the constitutionality of laws
Council of State – the highest administrative court
Ordinary courts – handle civil and criminal cases

Case Study: People’s Republic of China

The People’s Republic of China (PRC) is a unitary one-party socialist state founded in 1949. Its
political system is based on the leadership of the Communist Party of China (CPC), which exercises
ultimate authority over the state, the military, and society. While the government has a formal
structure with executive, legislative, and judicial organs.
The Communist Party of China (CPC)
It is the core institution in Chinese politics; it also exercises supreme leadership over the state.
The General Secretary of the CPC is the most powerful leader.
The Party leads everything; state institutions operate under Party supervision.

Article 1, Paragraph 2
"The leadership of the Communist Party of China is the defining feature of socialism with Chinese
characteristics."
Article 1, Paragraph 3
"The leadership of the Communist Party of China is the most essential feature of socialism with
Chinese characteristics. It is prohibited for any organization or individual to damage the socialist
system."
The State Structure
A. The Executive (State Council)

- Equivalent to a cabinet, headed by the Premier.

- Oversees ministries, commissions, and agencies that manage the economy, education, defense,
etc.

- Implements policies decided by the CPC.

B. The Legislature (National People’s Congress (NPC)

- The NPC is the highest organ of state power under the Constitution.
- About 3,000 deputies, elected indirectly through a tiered system.
- Powers on paper: pass laws, approve the budget, elect the President, and amend the Constitution.

Article 57
"The National People’s Congress of the People’s Republic of China is the highest organ of state
power.
Its permanent body is the Standing Committee of the National People’s Congress."

C. The Presidency

- The President of the PRC is the head of state.

- Usually the same person as the General Secretary of the CPC, concentrating both Party and state
leadership in one individual.
D. The Judiciary

- Courts and procuratorates (prosecutors) exist, but are not independent.

- The judiciary is under the authority of the CPC.
Article 126
“The people’s courts shall exercise judicial power independently, in accordance with the law, and are
not subject to interference by administrative organs, social organizations, or individuals.”

The Military – People’s Liberation Army (PLA)

- Controlled by the Central Military Commission (CMC).

- Though it is the state’s army formally, in practice it is the Party’s army (“the Party commands the
gun”).

- The CMC is chaired by the CPC General Secretary

Political Processes
A. Elections and electoral systems
B. Party systems and party politics
C. Interest groups and civil society
D. Case studies: Germany, India, Brazil

POLITICAL PROCESSES
Refers to the methods and activities through which decisions are made and power is distributed
and exercised within a society or political system. These included how leaders are selected, how
laws are made and implemented, how public policies are developed, and how citizens and groups
influence government actions. It also encompasses the entire field of political science, studying the
allocation and transfer of power, governance systems, political behaviour, and public policies within
societies and between nations.

Main ideas within the scope of political processes:

•Political theory
•Public policy and public administration
•Comparative politics
•International relations
•Political economy
•Political behavior
•Government and institutions
•Power, authority and influence

A. Elections and Electoral Systems Voter Registration

● Administered by the Commission on Elections (COMELEC)
● To be eligible to vote, individuals must be at least 18 years old, a citizen of the Philippines, and
a resident of the area where they plan to vote.

Election Campaign Period

● For national candidates: 90 days prior to election day
● For local candidates: 45 days prior to election day
● There are stringent regulations regarding campaign expenditures, advertisements, and
contributions.
Election Day
● Occurs on the second Monday of May every three years.
● Since 2010, elections have been automated through the use of Vote Counting Machines
(VCMs) that scan and send votes.
● The process is supervised by the Commission on Elections (COMELEC), along with election
inspectors and various, watchdog organizations

Vote Counting and Canvassing

● Occur at the precinct, municipal, provincial, and national levels
● Congress is responsible for the canvassing of votes for the President and Vice President.

Announcement of Winners
● Winners at the local level are announced by their corresponding Boards of Canvasseть
● Congress is responsible for proclaiming the President and Vice President.

[The Philippines employs a plurality system (first-past-the-post) and occasionally a mixed electoral system]
NOTE: In the so-called multiparty system, and according to our Philippine setting on Article 9, Philippines is adhering to multiparties.
Usually, what is the ideological belief on multiparty adherance?
-PLURALISM (ISM means idea, system, practice or doctrine)
 Multiparty System → Means more than two political parties are legally allowed to operate and compete in elections. In the Philippines,
this is guaranteed by Article IX-C of the 1987 Constitution, which establishes a multi-party system under the supervision of the
COMELEC.
 Ideological Basis: Pluralism

Pluralism is the belief that power and representation should not be monopolized by a single party or elite group, but instead
spread across many groups and voices in society.

It assumes that society is diverse, with multiple interests, values, and identities (e.g., labor groups, farmers, professionals,
women, youth, indigenous peoples).

A multiparty system institutionalizes this diversity, giving space for various ideological, social, and sectoral groups to form
political parties.

 Why pluralism in the PH?

1. The Philippines has many regions, languages, cultures, and socio-economic conditions → a single party cannot fully represent
everyone.
2. The party-list system was created to ensure that even marginalized and minority groups have a voice in Congress.
3. It reflects the democratic principle that power should be dispersed rather than concentrated.

Presidential System
● The President and Vice President are chosen independently via direct plurality voting (the candidate with the most votes wins.
They coach hold a term lasting six years, with the President restricted to a single term, whereas the Vice President can seek
reelection one additional time

Senate (Upper House)

● A total of 24 senators are elected from across the nation for a term of six years, with elections held for half of them every three
years.

House of Representatives (Lower House)

● District Representatives: Chosen from legislative districts via plurality voting.

● Party-list Representatives: Selected using proportional representation: 20% of the seats in the House are designated for party-
list groups that represent marginalized sectors.

NOTE: How does partylist representative proclaimed?

- 2% of the total number of votes perpartylist reserves one sear, maximum of three seat.

 Mechanism:
 A party-list group must secure at least 2% of the total valid votes cast for the party-list elections.That earns them one seat in the
House of Representatives. For every additional 2% earned, they can gain additional seats. However, each party-list group is
allowed a maximum of three seats only, no matter how many votes they receive.

 Purpose:

To give marginalized and underrepresented sectors (e.g., laborers, peasants, women, youth, IPs) a voice in Congress. Ensures a
more pluralistic representation, not just dominated by district-elected representatives.

Local Elections
● Governors, mayors, and various local officials are chosen through a plurality voting system.

● Barangay (village) officials and members of the Sangguniang Kabataan (youth council) are
selected independently in non-partisan elections.
B. Party Systems and Party Politics Political Party
"An association of voters believing in certain principles of government formed to urge the adoption and execution of such principles
in governmental affairs through officers of like belief," as defined in the case of Peralta vs. COMELEC.

Members of Political Parties

1. Supporters
2. Leaders
3. Active Members

Functions of Political Parties

1. Leadership Recruitment
2. Interest Aggregation
3. Policy Formulation
4. Campaigning
5. Governing

Types of Political Parties The Maurice Duverger's:

1. Mass Political Parties

-feature large, dues-paying memberships, leadership, centralized communication and strong

2. Cadre Political Parties

-ave small, loosely affiliated memberships, elite leadership with limited control, and weak communication

Party Systems
"The political system is defined by the number of parties that operate within it." It is described in terms of party movement and
impacts, and operations of the political parties.

Three Types of Party Systems

1. Single-Party System
2. Two-Party System
3. Multi-Party System

C.Interest Groups and Civil Society Interest Groups

Interest groups are organized actors Individuals that seek to influence public policy and decision-making in favor of a specific
cause, profession, or interest, but do not directly run for elections.

Civil Society
Community of people and organizations outside the government and business world, working together for the common good. They
represent citizens' voices, provide services, or advocate for rights.

Role of Civil Society and Interest Groups

In comparative politics, interest groups and civil society are crucial in shaping governance and public policy because they:

1. Aggregate and Articulate Interests

-They collect citizens' demands and present them in a more organized way to policymakers.
 Explanation:

Civil Society refers to the sphere of

 2. Influence Decision-making
-Through lobbying, petitions, campaigns. and public demonstrations.

3. Enhance political participation

-Offering an alternative or complement to direct political party involvement.

4. Check government power

-Acting as watchdogs for transparency. accountability, and rights protection.

5. Foster pluralism
-Representing diverse voices, preventing dominance by a single elite or political ideology.

Note: What is the mathematical formula for Civil Society?

-Political Organization + Nongovernmental Organizations = Civil Society

Interest Groups Similarities Civil Society

● Organized around specific Both give citizens a voice and ● Broad organizations
issues connect people to ● Volunteer/ NGOs
politics
● Influence policies ● Humanitarian Aid
● Lobbying ● Watchdog Role
Government

● Do not run for office

D. Case Studies: Germany, India & Brazil

Case Studies
GERMANY INDIA BRAZIL
Federal Federal Federal
Parliamentary Republic Parliamentary Republic Presidential Republic

Electoral Process ● Mixed- Member ● First-Past-T he-

Proportional Post (FPTP)
(MMP) ● Open-List
● Elections every 5 Proportional
● Elections every 4 years (Lok Sabha) Representati on
years (Bundestag)
● Deputies are
elected every 4
years,
Senate every
8 years

Party System Multi-Party, but relatively Multi-Party, but with a Multi-Party, but
stable dominant party tendency extremely
fragmented

Interest Groups German Trade Union Bharatiya Kisan

Confederation Union (Farmers), Bancada Ruralista
(DGB) FICCI (Business) (Agribusiness
Caucus), CUT (Trade
Union
Federation)

COMPARATIVE POLITICAL ECONOMY

WHAT IS POLITICAL ECONOMY?

 - Political economy is a subfield of political science that studies how politics and economics are interconnected. It examines
how governments, markets, and societies interact with each other.
- Political economy asks: How do politics shape the economy, and how does the economy shape politics? It looks at things like
wealth distribution, provision of public goods, and international trade.

KEY TERMS
● Market – exchange of goods & services
● Public goods – provided by state, non-excludable (roads, hospitals)
● Private goods – owned exclusively, scarce, competitive
● Property & Property Rights – legal ownership & use of resources ● Wealth distribution – how resources are divided across
society

HISTORICAL FOUNDATIONS
● Plato & Aristotle – “oikos” (household) → roots of economy
● Adam Smith (1776) – Wealth of Nations → free markets
● David Ricardo – Comparative advantage in trade
● Karl Marx – Critique of capitalism; class conflict

STATE-MARKET RELATIONS
● Regulation – government rules (e.g., environment, safety)
● Taxation (Fiscal Policy) – collecting revenue, redistributing wealth
● Monetary Policy – central bank controlling money supply
● International Trade – exchange between states, guided by comparative advantage

POLITICAL ECONOMY AS MODERN DISCIPLINE

Per Bozonelos (2022), "in the early twentieth century, economics began to separate itself formally from politics by focusing on theories
of economic behavior as they related to human behavior".

In our 21st century, economists have increasingly accepted and have in most analyses, incorporated politics and policy decisions.

● Comparative Political Economy (Cpe) is defined as the comparison across and between countries of the ways in which politics
and economics interact.
● International political economy (IPE) is defined as the study of political economy from a global perspective or through
international institutions.

POLITICAL ECONOMIC SYSTEMS: CAPITALISM, SOCIALISM, AND MIXED ECONOMY

CAPITALISM - is an economic system where individuals or private businesses own and control property, industries, and trade—not the
government.

TYPES OF CAPITALISM
● Free-Market Capitalism – Economy run by supply & demand.
● Corporate Capitalism – Big corporations dominate markets.
● Finance Capitalism – Focus on banks, stocks, investments.
● Welfare Capitalism – Capitalism with government welfare programs.
● State Capitalism – Government controls major industries for profit.

SOCIALISM - is an economic and political system characterized by social ownership of the means of production, meaning industries
and resources are owned or controlled by the community or the state, rather than private individuals or businesses.

● Democratic Socialism: Government provides social services; people vote; some private businesses exist.
● Communism: Everything owned collectively; goal is total equality; government controls almost everything in practice.

MIXED ECONOMY - is a system where private businesses and the government coexist in running and controlling resources and
industries.

COMPARATIVE ANALYSIS: CAPITALISM, SOCIALISM, AND MIXED ECONOMY

 Aspect Socialist Economy Mixed Economy
Capitalist
Economy

Ownership Private individuals own Both private and government

businesses ownership
Government or Community
owns/controls industries

Market forces Central government Combination of market forces

Decision-ma king
(supply & demand) planning + government planning

Goal Profit & efficiency Balance of profit and welfare

Equality & social welfare

STATE MARKET RELATIONS: REGULATION, DEREGULATION, AND PRIVATIZATION

REGULATION - is the establishment of rules, laws, and standards to govern economic activities and market behavior.

FORMS OF REGULATION

- Barriers of entry into markets

- Price regulation
- Setting of quality
- Obligatory contracting

DEREGULATION - is the reduction or elimination of government oversight of an industry, usually cited as a way to boost economic
growth.

PRIVATIZATION - is the transfer of ownership of public enterprises to private entities.

COMPARATIVE CASE STUDY: US, SWEDEN, CHINA, SINGAPORE

COMPARTIVE CASE STUDY: SWEDEN VS. CHINA

ECONOMIC SYSTEM: SWEDEN

● Mixed Economy system ECONOMIC SYSTEM: CHINA

“NORDIC MODEL”
● Capitalist side: IKEA, Volvo, ● Socialist Market Economy
Spotify ● State-owned: Energy, banking, telecoms (China
● Welfare side: Free healthcare, free education, Mobile)
pensions (funded by high taxes) ● Private firms: Alibaba, Huawei
● Hybrid: Socialism + Market
ECONOMIC STRUCTURE: SWEDEN Competition

● Primary (tiny): Forestry, iron ore, hydropower —-> ECONOMIC STRUCTURE: CHINA
IKEA wood
● Secondary (20-25%): Cars (Volvo, ● Primary (7% GDP, big workforce): Rice Farming
Scania), green tech,
● Secondary (39%): “World’s
pharmaceuticals
Factory” —-> electronics, clothes, steel, toys
● Tertiary (70%): Services (Spotify, finance, education,
● Tertiary (50%+): Growing fast —> e-commerce
healthcare)
(Alibaba, JD.com), finance, tourism
● Export-driven: High-value,
● Exports: Cheap mass production + growing high-tech.
Innovation-based
KEY COMPARISON
 ASPECTS SWEDEN CHINA

System Mixed(capitalism + welfare Socialist Market (state-led)

Referee (regulates, provides welfare Coach + Player (controls & plans)

Government Role

Primary Small (forestry, hydropower) Still large (agriculture jobs)

Secondary High-tech, sustainable Mass manufacturing

Tertiary Dominant, Innovation Rapidly growing

Exports High-value goods Mass production

COMPARATIVE CASE STUDY:USA VS. SINGAPORE

ECONOMIC SYSTEM : USA ECONOMIC SYSTEM: SINGAPORE

● Mixed Market Economy trade ● Open and mixed-market economy Private

● Private Ownership ● Ownership: Businesses are privately
● Extensive International owned but the state holds stakes in key
(WTO, IMF, World bank) industries
Liberal Capitalism Market Economy: Highly
● ● competitive
Pro-business regulation, strong anti-
● corruption measures.
Financial Sector: Leading Asian financial
hub
● Global Trade: One of the world’s busiest
ports.
● Impact: Model of state-guided capitalism

● Sectors: Services dominate; advanced manufacturing

ECONOMIC STRUCTURE: USA strong; minimal agriculture.
● Ownership: Mostly private
● Mixed-market capitalist economy ● Skilled local workforce + large foreign labor share.
● Primary (Agriculture): ~1–2% ● Finance: Major Asian financial hub, pro-business and
● Highly mechanized, globally competitive in crops and innovative.
livestock. ● Highly trade-dependent; global port and aviation hub.
● Secondary ● Impact: Model of state-guided capitalism driving rapid
(Industry/Manufacturing): growth.
~18–20%
● Strong in aerospace, automobiles, electronics,
machinery, and defense.
● Tertiary (Services): ~77–80%
● Dominant sector: finance, healthcare, education,
retail, technology, professional services.
● Financial System
● Global Orientation
● Labor Market
● Ownership and Institutions ECONOMIC STRUCTURE:
SINGAPORE

● System: Open mixed-market with state guidance.

 KEY COMPARISON

ASPECTS US SINGAPORE

System Mixed-market capitalism State-guided capitalism.

Sectors Services dominate, strong industry Services & advanced manufacturing

Ownership Mostly private Private + state stakes (Temasek,

GIC).

Labor Flexible, unequal; Skilled, foreign labor reliant.

Finance Wall Street, global dollar; Asian financial hub.

Global Role Largest economy, sets rules; Trade hub, free-trade model.