MBARARA UNIVERSITY OF SCIENCE AND TECHNOLOGY

FACULTY OF INTERDISCIPLINARY STUDIES

SEMESTER 1, 2021/2022

CLASS TEST

DVS 1106

INTRODUCTION TO POLITICAL ECONOMY

Date: 15th MARCH 2022

Time: 11.30 AM-1:00 PM

Instructions:

 Answer Two Questions

 All questions carry equal marks
 Credit will be awarded for the use of relevant examples

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 MARKING GUIDE
1. (a) What are the objectives of Political Economy (10 Marks)
Definition of concepts like politics, economics and political economy (2 marks)
Objectives of political economy
• Increasing the wealth of society, and
• Strengthening the revenue base of the state so as to enable it deliver crucial public
services, such as health care, education, security, housing etc.
• Determining the relationship between governments and individuals
• Studying the relationship between the state and market or politics and economy
• Understanding how public policy affects society.
• Any other relevant points
Any 4 points well explained, each 2 marks= 8 marks

(b) With reference to specific examples, discuss the relationship between

politics, economics and development (10 Marks)
Definition of concepts
Politics is the arts and science of managing a society or refers to the set of institutions and
rules by which society and political interactions are formed.
Economics refers to the system of producing, distributing and using wealth in any
society.
Development refers to the transition from a less desirable to a more desirable state of life.
It also implies empowerment and skills development. Development lays in the
elimination of poverty, increase in literacy, improvement in the health system as opposed
to the increase of per capita output.
The relationship between the two concepts (politics and economics) leads to development
or underdevelopment if they don’t relate and influence each other positively.
The student should use examples local/national or international to explain the
influence of the first two concepts on the third concept. E.g. using below points
Nature of laws
Taxation system
Governmental or private institutions
Economic system

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Corruption
Education and other social services
Government officials try to maximize individual utilities from some kind of social welfare
function.
Economic impacts of international relations and economic models of political processes.
Those in power determine what, where and how resources are distributed in society and
this influences development
Economy also influences politics e.g. a government may be voted out if the economy is
bad. Voters’ behavior is influenced by politician manifestos, performance, the economy
and development
Politics influences the economy through power of taxation, budgeting, issuance of
currency and legislation on matters of the economy and this leads to development
Wars/conflicts (continuation of politics through other means) have been waged because
of struggle for resources. Wars affect the economy and development
Development or underdevelopment can be explained by the nature of politics e.g Africa
is underdeveloped not because of lack of resources but due to politics (bad governance,
corruption, wars, leaders without clear vision, poor policies, neo-colonialism etc.
Politicians or governments are responsible for development plans e.g visions 2040 in
Uganda, 5-year development plans after independence etc. in Singapore, Prime Minister
Lee Kuan led to the transformation of his country from third world to first world in a
single generation. Visionary leaders have led to transformation of their countries.
Government programs like youth employment, wealth creation, entandikwa, prosperity
for all etc. are aimed at improving people’s incomes and purchasing power and generally
development
Example of answering: A student can use above points/examples to explain how- e.g. a
well-managed taxation system (sounding laws, policies to ensure proper use of taxes)
will lead to provision of social services, thus reducing out of pocket expenditure for
individuals, which leads to personal development and at national level leading to
national development. If there is corruption, the systems may be unable to provide social
services as the collected taxes are embezzled and don’t reach the national treasury,
leading to paralyzed social service provision, high disease burden, etc. and thus
hindering development.
Basically, this question requires students to think through and identify how politics,
economics influence development or underdevelopment.
Any other relevant points
Any 5 points well explained, each 2 marks= 10 marks
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2. (a) What is the nature of production under Primitive Communalism (10
Marks)
Introduction and definition of primitive communalism- 1st stage of production
• Low levels of production
• Poor tools of production
• Means of production were communally owned
• Production relations were non-antagonistic
• Towards the end of primitive communalism, tools of production improved and
• This led to production of surplus
• Any other relevant points

Any 5 points well explained, each 2 marks= 10 marks

(b) How does Karl Marx explain the origins of classes in society (10 Marks)
Introduction- 1 mark
Karl Marx spent his time to study the origin of human society. Karl Marx defines a class
as a group of people that share a similar relationship to the means of production. He
studies the societies in the European context from the first to the last society referred to
as the stages of society development or modes of production (primitive communalism,
slavery, feudalism, capitalism, socialism and communism).
The second, third and fourth modes of production are class societies with two classes
(dominant and subordinate classes) slaves and slave masters; serfs and lords; and
bourgeoisie and proletariats respectively.
The first mode of production (primitive communalism) was a classless society, classes
emerged later in the development of this mode of production. The classes emerged as a
result of:
• Improvements in the instruments of labour,
• Production of the surplus
• Permanent settlement
• Struggle over the control of surplus (one group acquired the surplus and another
one did not)
• Any other relevant factor.
Any 4 points, each 2 marks= 8 points
Conclusion- 1 mark

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3. With the use of relevant examples, discuss the functions of politics in
your country (20 Marks)
Introduction and definition- 2 marks
Politics is the arts and science of managing a society or refers to the set of institutions and
rules by which society and political interactions are formed.
Any other relevant definition
Functions of politics in the country
• Resource distribution
• Making laws
• Implementation and enforcement of laws
• Conflict resolution
• Provision of social services
• Development of infrastructure
• Provision of security
• Planning e.g. Development plans
• Protection of rights and liberties
• Citizenship & belonging to the state
• Career-politicians, leaders etc.
• Management of relations & diplomacy with other countries
• Any other relevant points

Any 9 points well explained, each 2 marks= 18 marks

END