Political and Economical

Systems
A sociology group based research assignment

Mohammad Osama Introduction to Sociology

 ACKNOWLEDGMENT:
We would like to express our heartiest appreciation to Almighty Allah with whom mercy
enabled us to complete this report. A Special Thanks to group members “Mohammad Osama
Atiq,Sabeeh,Rohaan Mobin, Allah Bachayo, Rasmeen Razzaq, Maria Imran” whom heartedly
contributed their effort and time in completing this project report. We also like to thanks to our
Subject teacher and Bahria University as without their Support, efforts and teaching we may not
here to where we are at now. The world is a better place thanks to people who want to develop
and lead others. What makes it even better are people who share the gift of their time to mentor
future leaders. We present this Project Report titled “Political and Economic Systems” to our
teacher Dr Fareeha Majeed. To turn ideas, research and findings into a report is as difficult as it
seems. The experience is both internally challenging and exciting. This report does not dictate
the end to our efforts and we will Insha’Allah keep improving.
 EXECUTIVE SUMMARY
The differences, types and Comparison between Political and Economical systems have been
a topic of interest in the research community for much time. These differences, similarities
have lead to misunderstanding, conflict, and even dissatisfaction between audience to whom
it was presented. This research study analyzes the different styles among both systems, more
specifically among selected types. It examines how effects of different styles of governing,
economic systems their evolution and current dominance on world. The study will be
conducted through the use of selective analysis. Its goal is to increase the amount of knowledge
regarding effective and efficient economic-political systems and how it relates to personal
satisfaction and represents two ends of spectrum on which actual system can be placed and the
aid in knowledge of people enable other researchers to grasp on topic with less to strive for.
 TABLE OF CONTENTS
ACKNOWLEDGMENT: ............................................................................................................. 1
EXECUTIVE SUMMARY ............................................................................................................ 2
INTRODUCTION: ......................................................................................................................... 4
METHODS OF DATA COLLECTION: ........................................................................................ 5
LITERATURE REVIEW: .............................................................................................................. 7
POLITICAL SYSTEM: .............................................................................................................. 7
MONARCHY: .......................................................................................................................................... 8
DEMOCRACY: ........................................................................................................................................ 8
AUTHORITARIANISM AND TOTALITARIANISM:................................................................................... 10
ECONOMICAL SYSTEM: ...................................................................................................... 11
CAPITALISM: ........................................................................................................................................ 12
SOCIALISM:.......................................................................................................................................... 14
COMMUNISM: .................................................................................................................................... 16
FEUDALISM: ........................................................................................................................................ 18
CONCLUSION: ............................................................................................................................ 20
INTRODUCTION:
A political and economic are systems of politics, government and economics; the way any
country budget is formed. It is commonly compared to the economic system, cultural
system, and other social systems. It is different from them, and can be generally defined on
a spectrum from left as communism to the far right fascism. However, this research is just
a simplified overview of what we know about it excluding the detailed studies that are
crucial part of both systems. The commonly perceived view is that the form of the political
system is very closely linked to the economic system of country. When defining politics,
we knew that it is an organized way in which power is distributed and decisions are made
with involvement of society.

While economics is a social institution that organizes the production, distribution

and consumption of goods and services. These goods or services can include any human
activity that can be valued or material goods. The human state that successfully claims the
monopoly of legitimate use of physical forces with law backing up the sovereignty of
government.

As political and economic systems are closely linked together in terms of activities,
they actually quit differ in terms of their types, below are some types of both systems that
give us some idea about them:

Democracy: a type of political system in which power is exercised by the people as a

whole by means of mutual decisions and activities.

Communism: a utopian type economic and political system in which all property is
collectively owned and managed by all members of society or government is in charge of
power.

Monarchy: it is one of oldest political system known, which is has effects from tribal
structure where one person is absolute owner.
METHODS OF DATA COLLECTION:
In this research we have used secondary types of data collection to formulate
our study of political economical systems as both systems are extensively studied by
scholars and other people.

As it is indicated in the title, this heading includes the research methodology of the systems.
In more details, in this heading research strategy, the research method, the research
approach, the methods of data collection, the selection of the sample, the research process,
the type of data analysis, the research limitations of the project.

The research was held with respect to this dissertation was an applied in reference articles
but not this one. Rather, numerous pieces of previous academic research exist regarding
the role of Political Economical Systems and their types in general, not only including
specific famous ones but also other smaller ones. As such, the proposed research topic took
the form of a new research but on an existing research subject.

In order to satisfy the objectives of the dissertation, a qualitative research was held. Its
advantage, which also constitutes its basic difference with quantitative research, is that it
offers a complete description and analysis of a research subject, without limiting the scope
of the research and the nature of participant’s responses.

For the purposes of this research, in depth old research papers and old authors publications
were used. In depth research was personal and unstructured preferences regarding a
particular research subject. Unstructured sampling, sorting offer flexibility in terms of the
course of topic, thereby leaving room for the generation of conclusion that was not initially
meant to be derived regarding a research subject.

As far as data collection tools were concerned, the conduction of the research involved the
use of semi-structured self-questionnaire shared in group, which was used as a guide for
ourselves as what we need to think and search for. Some certain questions were prepared,
so as for the satisfaction of research objectives, but any additional questions were also
made which were not casually written.
Some sample questions that are written in the questionnaire are the following:

Question 1: What is political and economic systems?

Question 2: What are some common types of both mentioned systems?

Question 3: What is common relation between them?

Question 4: Do we think that this research is interesting and how many types of both
systems exists out there?

Question 7: In our view, which are the improvements that should made in order to increase
its efficiency and productivity of both economical political systems?

The method of selective sampling was used to develop the sample of the research under
discussion According to this method, sample members were selected on the basis of their
knowledge, expertise regarding research questions.

Content analysis was used to analyze the data which was gathered from group interaction.
A main advantage of content analysis is that it helps in data collected being reduced and
simplified. Moreover, content analysis gives us ability to structure the qualitative data
collected in a way that satisfies the achievement of research objectives. However, human
error is highly involved in content analysis, since there is the risk for us to misinterpret the
data gathered, thereby generating false and unreliable conclusions.
LITERATURE REVIEW:
POLITICAL SYSTEM:
A political system can be designated as the interaction through which values are
authoritatively allocated for a society. Political systems are ultimate source of legitimate
power in a social system whether the system is based upon the rule by many or rule of the
few. These systems are concerned with the distribution of power in society. Rationally
enacted rules underlie most authority. A classroom teacher has some realization of traditional
legitimacy, but his authority is based on holding specific positions and operating according to
rules and regulation designed and practiced by institution management.in the same way, the
bureaucratic authority of political leaders is not a personal quality but lies in their offices; the
status they occupy in the social structure. So like a president is highest ranking official in
government but he loses his power when retired but enjoys a generous pension. four major
political systems can be distinguished in world now that are practiced. While some lesser
known systems are below. All of these political systems have one common phenomena.
However, governments attempt to legitimate their power so that at least most of population
think their rulers are good:
MONARCHY:
It is a type of political system in which power is passed from generation to generation
within a single family. Monarchy is a very old form of government; such as series of king
Charles and kingdom hood. By socialist Weber’s analysis, monarchy is legitimated primarily
by tradition.in Britain, the current royal family can trace their ancestry back through centuries
of nobility. While in some cases those ruler men and women were aided by personality
charisma. But the most important reason royal family was able to hold their authority was
because of deeply embedded monarchy in culture. During medieval times most agrarian
societies took concept of absolute monarchy in which rulers were virtual monopoly of power.
Chinese emperors were widely regarded as gods themselves. Monarchy remained widespread
into the early twentieth century. In 1910, the funeral of Great Britain's King Edward VII
brought leaders of some seventy nations to London. During this century, however, national
leadership gradually shifted from hereditary nobility to elected officials. Even in European
societies in which royal families are still around; including Great Britain, Norway monarchs
have none of the absolute power they enjoyed in the past. The governments of these nations
take the form of a constitutional monarchy, in which the royal is the symbolic head of state,
but the government of operates according to a constitution. The actual heads of government
are typically elected prime ministers. In Short, in some nations of the world, the nobility may
reign, but elected officials now rule.
DEMOCRACY:
More common than monarchy in the modern world is democracy: a political system in
which power is exercised by the people as a whole. Of course, this does not mean that every
member at society participates directly in decision-making; this would be possible only in a
very small political entity. In most cases, a representative democratic system places
governmental authority in the hands of elected leaders. Thus, in principle at least, everyone
shares political power through the process of democratic elections. In reality, however,
democracy rarely involves the participation of the entire adult population.
Democratic political systems are usually found in industrial societies that are relatively rich
by world standards. industrial societies have a highly specialized economy that demands a
literate populace. Thus increasing education is historically linked to broader participation in
the political system. in addition, industrial societies contain a wide range of formal
organizations, most of which seek to advance their interests within the political arena.
Consequently, in contrast to the high concentration of power found in the absolute
monarchies common to agrarian societies, industrial societies have a more complex and
diffuse political system. The traditional legitimation of power typical of monarchy gives way
in democratic political systems to rational-legal patterns of authority. This means that
democratic leaders are chosen through a rational process of election involving at least two
competing candidates. Leaders exercise the authority of the office to which
they are elected. Thus democracy and rational-legal authority are linked in much the same
way as monarchy and traditional authority are.

Democratic governments are far more bureaucratic than any monarchy in the past. But
although bureaucracy is necessary to carry out the extensive activities of democratic
governments, there is an inherent antagonism between democracy and bureaucracy. The
political system of the United States, for example, includes some 3 million employees of the
federal government-surely one of the largest bureaucracies in the world-and almost 14 million
employees in over eighty thousand local governments. The great majority of these bureaucratic
employees were not elected by the people: choosing bureaucrats this way would be both
undesirable and impractical, given the need for specially trained people to manage
government agencies. Indeed, most Americans lack the time and interest required to
understand the full operation of our complex political system. As a result, much day to day
decision making is done by career bureaucrats in an undemocratic way. Most Americans view
democracy as a fairer and more egalitarian system of government than monarchy,
but democratic political systems are not inherently egalitarian. Leaders are only a small
proportion of the population. Although, in principle, they represent everyone, leaders in the
United States hardly represent the population in a descriptive sense. Women-a numerical
majority of the population-are grossly underrepresented among our leaders, as are members of
virtually all minority groups. Moreover, as is evident from published tax returns, high
government officials are among the richest of all Americans. So while the American
population as a whole may share significant political power, actual decision making in the
United States is carried out by professional bureaucrats and-in the highest positions
of power-a small, wealthy elite.

AUTHORITARIANISM AND TOTALITARIANISM:

It refers to the exclusion of the majority from political participation, although with little
governmental intervention in people’s lives. Since no society actually involves all its people
in the daily activities of government, all political systems are authoritarian to some degree. We
have noted that political decision-making in the United States is carried out by millions of
government officials who are not directly accountable to the population, and by top elected
leaders who are typically men of great wealth. But because virtually all Americans over the.
age of eighteen have the right to vote, the political system of the United States is not actually
very authoritarian. The term authoritarian is more correctly used to characterize political
systems in which the population has little or no institutionalized means to voice an opinion.
Absolute monarchies are therefore highly authoritarian, although they are rare in the world
today. Authoritarian political systems in this century more commonly take the form of military
juntas and other dictatorships. These include the regime of Juan and Eva Peron in Argentina
during the 1940s and 1950s, the recently overthrown dictatorships of Ferdinand Marcos in the
Philippines and the Duvalier family in Haiti, as well as the military junta that rules Chile.
Political control of a population is even greater in cases of governmental totalitarianism,
meaning the exclusion of the majority from free political participation Coupled with extensive
governmental intervention in people’s lives. While authoritarian governments have existed
throughout history, totalitarianism has emerged only within the last century as governments
have gained the technological means to rigidly control the lives of citizens. For this reason,
absolute monarchies in the past may have been authoritarian, but they certainly lacked
the ability to become totalitarian. By the time the Nazis rose to power in Germany, leading to
World War II, the technological resources were available to support totalitarianism. In recent
decades, advanced electronic technology-including electronic surveillance and computers for
storing vast amounts of information-has greatly increased the potential for government
manipulation of a large population. In principle, leaders of totalitarian governments often claim
to represent the win of the people, but in practice, the government seeks to manipulate people’s
attitudes and actions to resist the will of the government. Thus such governments permit no
opposing centers of power. Citizens are not free to join together for political purposes: indeed,
totalitarianism is most effective in a society that is socially atomized. The government also
typically limits the ability of its citizens to freely disseminate information: in the Soviet Union,
for example, both telephone directories and copying machines are generally unavailable to the
public. Further, the government may encourage citizens to report the unpatriotic activities of
others. In the recent past, for instance, children were instructed to report disloyalty on the part
of even their own parents in the People’s Republic of China. As Timothy Carton Ash put it, in
totalitarian societies, wherever two or three are gathered together, there the party-state desires
to be. Socialization in totalitarian societies is thus intensely political-a process that critics have
suggested involves not just obedience but also thought control. Political messages and pictures
of leaders are often prominently displayed in public, serving as a constant reminder that each
citizen is to provide total support to the state. The mass media present only official information
favorable to the government, rather than providing a forum for a number of different political
viewpoints, as they do in democratic societies. Totalitarian governments span the political
spectrum from the far right (e.g., Nazi Germany) to the far left (e.g., the Soviet Union).
Americans are socialized to view all socialist societies as totalitarian. True, socialism does
involve greater governmental regulation of the economy, but socialism (a type of economic
system) and totalitarianism (a quality of political systems) are not synonymous. The Reagan
administration has charged the Sandinista regime in Nicaragua with being totalitarian in part
simply because it has a largely socialist economy.

ECONOMICAL SYSTEM:
One of the most significant developments of modern times is the creation of a global
economy, affecting work worldwide. The concept of the global economy acknowledges that
all dimensions of the economy now cross national borders, including investment, production,
management, markets, labor, information, and technology. Economic events in one nation now
can have major reverberations throughout the world. When the economies of any major nation
are unstable, the effects are worldwide. The development of a global economy is part of the
broad process of economic restructuring, which refers to the contemporary transformations in
the basic structure of work that are permanently altering the workplace. This process includes
the changing composition of the workplace, deindustrialization, and use of enhanced
technology. Some changes are demographic that is, resulting from changes in the population.

Types of economic systems are as under:

CAPITALISM: Capitalism is an economic system in which natural resources, as well as the

means of producing goods and services, are privately owned. An ideal capitalist economy
has three distinctive features-unrestricted rights to private property, the pursuit of maximum
personal profit, and free-market competition based on consumer sovereignty.
Private ownership of property. In principle, a capitalist economy supports the right of
individuals to own virtually anything. These rights are enacted into law that is, upheld by the
power of the state so that violating property rights is not only morally wrong but criminal.

All societies recognize some right of private property, at the very least including small personal
possessions. The more capitalist an economy is, however, the more extensive private
ownership of wealth-producing property becomes. Factories, retail businesses, real estate, and
even a society’s crucial natural resources may be privately owned.
Pursuit of personal profit. A capitalist society encourages people to maximize personal profit
that is, to act in ways that acquire for them the greatest amount of private property, even at the
expense of others. Of course, the cultural goal of amassing private property is embraced
by some people more than others and, for most people, does not guide behavior within primary
groups such as the family. In general, however, capitalism views as selfish orientation as
natural and simply a matter of doing business. Capitalist societies also defend the pursuit of
Personal profit on practical grounds. The Scottish economist Adam Smith (1723-1790), whose
ideas were influential in the development of capitalist economies, claimed that the individual’s
pursuit of profit has a practical advantage for all of society. He argued that argued that such
self-centered goals actually lead an entire society to “wealth and prosperity".

Free Competition and Sovereignty: Adam Smith's defense of private property and personal
profit is based on a third characteristic of capitalist economies-free competition and consumer
sovereignty. Free competition means that, in principle, the economy operates without
interference from the government. In this way, the state assumes what is often called a Laissez-
faire (a French expression meaning roughly “to leave alone") approach to the economy. In the
absence of a guiding hand “from government, Smith argued, a freely competitive economy
regulates itself by the “invisible hand” of consumer sovereignty. In the marketplace, he
asserted, consumers benefit by comparing products in terms of quality and price and then
buying those goods and services that provide the greatest value. Producers, competing with
one another for sales, know that the greatest profits go to those who produce the highest-quality
goods and services at the lowest possible price. Therefore, they attempt to be as efficient as
possible, embracing technological advances in production that will ultimately benefit
consumers even more. Producers and consumers are likely to be motivated by personal gain
more than by concern for others. Yet, according to Smith, the whole society benefit because
production becomes more efficient, technology advances, and consumers enjoy ever
increasing value. In short, the classic defense of capitalism rests on the conclusion that from
narrow self-interest comes the greatest good to the greatest number of people. In other words,
even without a captain, the actions of crew members who are motivated by self-interest are
sufficient to ensure that the ship will remain on course.
The United States is the leading capitalist Society, yet the guiding handoff government
regulates the American economy to some extent. Not all productive property in the United
States is privately owned. The US. Postal Service, the Amtrak railroad system, the Tennessee
Valley Authority (a large electrical utility company), and the Nuclear Regulatory Commission
(which conducts atomic research and produces nuclear materials) are all owned and operated
by the federal government. In some cases, the federal government will assume partial or total
control of privately-owned businesses in order to prevent their collapse. This bailout approach
led the government to become involved in Amtrak and, for a time, the Chrysler Corporation.
State and local governments are also involved in numerous large business organizations,
including the Port Authority of New York and New jersey, the Los Angeles Department of
Water and Power, and San Francisco’s Bay Area Rapid Transit (BART) system
(Herman, 1981). The government also regulates economic activity in a host of other ways:
through laws setting minimum wage levels and safety standards for the workplace, antitrust
laws affecting mergers of large corporations, price supports for farm products, Social Security
and welfare payments, student loans, and veteran’s benefits. Local governments also intervene
in the economy by, for example, controlling rents or utility costs within a city. In addition,
roughly 17 percent of the American labor force is employed by local, state, or federal
government.

SOCIALISM: It is an economic system in which natural resources, as well as the means of

producing goods and services, are collectively owned. In ideal terms, a socialist
economy is based on the antithesis of each of the three characteristics of capitalism described
above.

Collective ownership of property. An economy is socialist to the extent that it limits the
rights to private property, especially property used in producing goods
and services. Socialist economies reject the belief that productive property should provide
goods and services for the whole society and therefore should be collectively owned. Housing,
for example, is a social resource needed by everyone. A socialist society should therefore
ensure that housing is available to everyone instead of treating it as a private commodity to be
traded in the marketplace for the enrichment of those who produce it. Private ownership of
productive property is the basis of social classes-the target of criticism by such socialist
thinkers as Karl Marx. Since productive property generates wealth, an economy that places
productive property in private hands invariably confers great wealth and privilege 0n owners
at the expense of the majority of people. Furthermore, the ownership of productive property
also provides power to shape the lives of working employees. In contrast to capitalism,
socialism regards social classes as a destructive force within society, and therefore seeks
to legally regulate private ownership of property.

Pursuit of collective goals. The individualistic pursuit of personal profit is also at odds with
the collective orientation of socialism. Cultural values and norms in the strictest socialist
societies define such self-serving behavior as immoral and often as illegal. Socialist values and
norms encourage individuals to seek personal satisfaction through contributing to the
prosperity and well-being of society as a whole.

Government control of the economy. Socialism rejects the idea that the economy is self-
regulating on the basis of free competition. It rejects Laissez-faire Approach in favor of placing
some or all sectors of the economy under government control. For this reason, a socialist
economy is often described as a command economy or a centrally controlled economy. In a
socialist system, government attempts to ensure that the needs (the whole population for food,
housing, transportation, and various consumer goods are met in an equitable manner. From a
socialist point of view, individuals acting on the basis of narrow self-interest are unlikely to
generate this result. Indeed, an economy that operates like a ship without a captain can be
expected to flounder or worse still be destroyed on the rocks. In the absence of the
guiding hand of government, the economy will experience spasms of growth and recession,
and ultimately collapse with the onset of serious depression. Moreover, continuous inflation
and unemployment are likely to adversely affect millions of people. In short, pure socialism
considers Adam Smith’s “invisible hand” the profit motive of consumers and producers an
inadequate regulator of a whole society’s well-being.

Socialism challenges the assertion that through their purchasing power consumers are
able to guide the activities of capitalist producers. Consumers often do not have the information
necessary to make objective evaluations of the performance and potential dangers of various
products. On the contrary, producers manipulate consumers through commercial advertising,
creating artificial needs to increase their own profits instead of meeting the genuine needs of
consumers. For this reason, commercial advertising plays little, if any, part in a purely socialist
economy. Just as important, capitalist producers are far more concerned with affluent
consumers than with the poor, so a free-market economy is unlikely to solve social problems
such as unemployment and poverty (Pryor, 1985). From a socialist point of view, only
government committed to serving the needs of all members of society in an equitable manner
can accomplish such goals. The Soviet Union, Eastern European societies, and some societies
in Asia, Africa, and Latin America pattern their economies on the socialist ideal, and place
almost all wealth generating property under government control (Gregory & Stuart, 1985). In
the Soviet Union, the most powerful socialist society in the world, private ownership of
productive property is virtually nonexistent. Eastern European societies have been under the
political control of the Soviet Union since the end of World War II in 1945. Even so, their
economies are not all alike. The economies of Bulgaria, Czechoslovakia, and Past Germany,
for example, are tightly controlled by the government. In Poland and Hungary, on the other
hand, a limited market system coexists with a centralized economy (Rakowska-Harmstone,
1978; Gregory 61 Stuart, 1985). In Yugoslavia, the only Eastern European nation that is not
under the political domination of the Soviet Union, the government sets broad economic
policies. but large businesses are collectively operated by their own employees according to
what the Yugoslavs call worker self-management. Moreover, small businesses with no more
than six employees representing about 20 percent of all businesses are allowed to operate
privately in the belief that they do not generate enough wealth to cause excessive social
inequality.

COMMUNISM:
It is a philosophical, social, political, economic ideology and movement whose ultimate
goal is the establishment of a communist society, namely a socioeconomic order structured
upon the ideas of common ownership of the means of production and the absence of social
classes, money and the state. Communism includes a variety of schools of thought which
broadly include Marxism and anarchism (especially anarchy-communism) as well as the
political ideologies grouped around both, all of which share the analysis that the current order
of society stems from capitalism, its economic system and mode of production; that in this
system there are two major social classes; that conflict between these two classes is the root of
all problems in society; and that this situation will ultimately be resolved through a social
revolution.

Along with social democracy, communism became the dominant political tendency
within the international socialist movement by the 1920s. While the emergence of the Soviet
Union as the world's first nominally communist state led to communism's widespread
association with the Soviet economic model and Marxism–Leninism, some economists and
intellectuals argued that in practice the model functioned as a form of state capitalism, or a
non-planned administrative or command economy.

The 5th-century Mazak movement in Persia (modern-day Iran) has been described as
"communistic" for challenging the enormous privileges of the noble classes and the clergy; for
criticizing the institution of private property; and for striving to create an egalitarian society.
At one time or another, various small communist communities existed, generally under the
inspiration of Scripture. In the medieval Christian Church, some monastic communities and
religious orders shared their land and their other property. Communist thought has also been
traced back to the works of the 16th-century English writer Thomas More. In his 1516 treatise
Utopia, more portrayed a society based on common ownership of property, whose rulers
administered it through the application of reason. In the 17th century, communist thought
surfaced again in England, where a Puritan religious group known as the Diggers advocated
the abolition of private ownership of land. In his 1895 Cromwell and Communism, Eduard
Bernstein argued that several groups during the English Civil War (especially the Diggers)
espoused clear communistic, agrarian ideals and that Oliver Cromwell's attitude towards these
groups was at best ambivalent and often hostile. In its modern form, communism grew out of
the socialist movement in 19th-century Europe. As the Industrial Revolution advanced,
socialist critics blamed capitalism for the misery of the proletariat-a new class of urban factory
workers who labored under often-hazardous conditions. Foremost among these critics were
Karl Marx and his associate Friedrich Engels. In 1848, Marx and Engels offered a new
definition of communism and popularized the term in their famous pamphlet The Communist
Manifesto.

FEUDALISM:
Feudalism was a combination of legal, economic, military and cultural customs that
flourished in Medieval Europe between the 9th and 15th centuries. Broadly defined, it was a
way of structuring society around relationships that were derived from the holding of land in
exchange for service or labour. Although it is derived from the Latin word feudum or feudum
(fief), which was used during the Medieval period, the term feudalism and the system which
it describes were not conceived of as a formal political system by the people who lived during
the Middle Ages. The classic definition, by François-Louis Gansh of (1944), describes a set of
reciprocal legal and military obligations which existed among the warrior nobility and
revolved around the three key concepts of lords, vassals and fiefs.

A broader definition of feudalism, as described by Marc Bloch (1939), includes not

only the obligations of the warrior nobility but the obligations of all three estates of the realm:
the nobility, the clergy, and the peasantry, all of whom were bound by a system of manorialism;
this is sometimes referred to as a "feudal society". Since the publication of Elizabeth A. R.
Brown's "The Tyranny of a Construct" (1974) and Susan Reynolds's Fiefs and Vassals (1994),
there has been ongoing inconclusive discussion among medieval historians as to whether
feudalism is a useful construct for understanding medieval society.

The term "feudal" or "feodal" is derived from the medieval Latin word feudum. The
origin of the feudum and why it replaced beneficium has not been well established, Feudalism,
in its various forms, usually emerged as a result of the decentralization of an empire: especially
in the Carolingian Empire in 8th century AD, which lacked the bureaucratic infrastructure
necessary to support cavalry without allocating land to these mounted troops. Mounted soldiers
began to secure a system of hereditary rule over their allocated land and their power over the
territory came to encompass the social, political, judicial, and economic spheres.

These acquired powers significantly diminished unitary power in these empires. Only
when the infrastructure existed to maintain unitary power as with the European monarchies
did feudalism begin to yield to this new power structure and eventually disappear. There is a
classic feudalism era when a set of reciprocal legal and military obligations which existed
among the warrior nobility, revolving around the three key concepts of lords, vassals and fiefs.
In broad terms a lord was a noble who held land, a vassal was a person who was granted
possession of the land by the lord, and the land was known as a fief. In exchange for the use
of the fief and protection by the lord, the vassal would provide some sort of service to the lord.
There were many varieties of feudal land tenure, consisting of military and non-military
service. The obligations and corresponding rights between lord and vassal concerning the fief
form the basis of the feudal relationship.
CONCLUSION:
In practice there is a strong relationship between economics and politics because the
performance of the economy is one of the key political battlegrounds. Many economic issues
are inherently political because they lend themselves to different opinions. Politics is inevitably
a matter of disagreement about goals and means to achieve them. Yet all political systems
attempt to resolve controversy within a system of rules. Economics is concerned with studying
and influencing the economy. Many economic issues are seen through the eyes of political
beliefs. If we for example set different economists to report on the desirability of income tax
cuts for the rich, their policy proposal are likely to reflect their political preferences. We can
always find some evidence to support the benefits of tax cuts, we can always locate some
evidence to support the benefits of higher tax.

An issue with economics is that some criticize the subject for prioritizing economic
growth and maximization of monetary welfare. Some argue that the aim of society is not to
maximize GDP – but to maximize happiness. For example, a politician from an environmental
background may disagree with the whole Scenario behind economics and wish to run it on
own principles. Despite all complexity of Political Economical Systems, we can say that both
of them are deeply interlinked and their relation facilitates them to coexist and mutually evolve.
REFERENCS:
Beckman, Johanna (2011). Markets in the name of Socialism: The Left-Wing origins
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