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How government political system and economy influence each other? There are many countries in a world, and each country has its specific government system, also different government systems leads to diverse economic results. Otherwise, the economic output shapes the certain government system as well. As a consequence, government system interacts with economic results, and vise versa. Such as the relationship between centrally controlled political system or decentralized political system and economic income. Next, more details information will be given and bring a discussion about how they influence each other.

Through searching on the internet, political system is “a system of politics and government. It is usually compared to the legal system, economic system, cultural system, and other social systems. However, this is a very simplified view of a much more complex system of categories involving the views: who should have authority, how religious questions should be handled, and what the government’s influence on its people and economy should be. ” (Almond, 2011) Different countries from all over the world owe their own specific political system and economic results.

For example, China’s remarkable economic success rests on reforming political government system foundation. In article “Federalism, Chinese Style: The Political Basis for Economic Success in China”, it referred that the government political reform provides significant degree of available commitment to markets and lead to the successful economy in China. What’s more, a special type of institutionalized or organized decentralized is reflected by this reform, and author call “federalism, Chinese style. In addition, Montinola who is the author of this article claimed there are three consequences: at first, it helps to promote competition, not only just in product markets, but also among labour and foreign capital of local governments. And without any doubt, the competition also lead new forms of enterprises, regulation, and economic relationships are promoted by government trying and learning. After that, it provides incentives for local governments to encourage local economic prosperity. At last, there are considerable amount of protection for local governments and enterprises which come from political intrusion by the central government. 2011). This article describes how the government political system impacts the economy output. On the one hand, China reform the political system depends on the national conditions, and take advantages of this system to develop economy and achieve successful goal. On the other hand, China already got wealthy benefits from the existing political system. Moreover, in article “US Political System Gets Downgraded, Failure to Deal with Economy the Reason”, Dayen said “To the extent that there’s any fallout from the political gridlock in Washington, it’s that the country cannot execute the simple, fundamental steps to improve economic performance. (Aug 3, 2011) And also talked about a Chinese rating agency did actually downgrade US debt all the way, which could resonate with their sovereign wealth funds. This agency appeared to not so much downgrade the credit rating as the political system. It discussed if there was not existing good and suitable government political system, and there is no way to develop economic as expect. In other words, instable and inadaptable political cannot help to further the development of economic outputs. Meanwhile, there is no doubt that if there is existing terrible economy, the new type of government system need to form.

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Government agencies influence the economy through a variety of policies all the time. “Political system has helped initiate new industries, cushion the effects of economic depression, create a sound economic infrastructure, and protect the living standards of the citizenry. ” (n. d. ) Japan is such a typical country. Japan through adjusting the relationship between government political system and economic income in order to set up the most suitable government and increase economy as much as possible. They focus on enterprise.

In other words, Japan's economic development is primarily the product of private entrepreneurship. There is no doubt government make a significant contribution to nation's prosperity. In a word, the enterprise focus need the help of centrally controlled political system, because it can pay a lot more attention to develop their enterprise in order to promote their economy. There are advantages and disadvantages among different type of government political, both of them have opportunity to increase or decrease their national economy.

However, it has great challenges to reconcile the centralized and decentralized systems. Most of time, centrally controlled is focus on specific area, decentralized controlled has diverging structure, the scope is much more abroad and wide than centrally controlling. But centrally control can get more attention. So chose the right system need depend on each country’s specific situation. In order to reach the economy goals, it is necessary to look for the right government political system to push its developing.

Also under current system, government should consider how to achieve their economy target. Above all, no matter which government systems, such as centrally controlled political system and decentralized controlled political system, both of them could generate significant economic results, at the same time, the country should get wealthy benefit from a specific controlled political system. Reference Almond, G. A. , (June 25, 2011). Comparative Politics Today: A World View. Political System. Retrieved from http://en. wikipedia. org/wiki/Political_system Dayen, D. (August 3, 2011). US Political System Gets Downgraded, Failure to Deal With Economy the Reason. FDL. Retrieved from http://news. firedoglake. com/ 2011/08/03/us-political-system-gets-downgraded-failure-to-deal-with-economy-the-reason/ Montinola, G. (June 13, 2011). Federalism, Chinese Style: The Political Basis for Economic Success in China. World Politics. Retrieved from http://journals. cambridge. org/action/displayAbstract? fromPage=online&aid=7607848 The role of government and business. (n. d. ). Retrieved from http://countrystudies. us/japan/99. htm

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