CIVICS & ETHICAL EDUCATION

NOTE FOR GRADE 12

Compiled unit 9, 10&11
UNIT NINE

SAVING
Lesson 1
Methods of saving
9.1 Methods of Saving
Saving:-Is the proper utilization of resources

 The resources we use to satisfy our needs and wants are scarce. They can’t satisfy
the unlimited needs and wants of humans.
 If we utilize our resources properly, we can use them for a longer period and for
more people
 Some of our resources are very scarce and are in danger of being totally
exhausted. For example, the environment.
 In order to utilize resources, we need to plan. Planning requires an understanding
of what we want or need and what resources we have. For example, to have a big
house and new model car we need to save a considerable amount of money.

 Needs exist from the very nature of human biology and the human
condition.
 Wants are desires for specific satisfiers of needs.
 An American needs food and wants a hamburger. An American satisfies
his wants by hamburger.
 An Ethiopian can satisfy his wants by eating Injera.
 Demands are wants for specific products that are backed by an ability and
willingness to buy them.
 Wants become demands when supported by purchasing power

9.2 Things to consider before planning consumption and saving

9.23 Level of income: Because the amount of income determines how much we
can actually save or consume.
9.24 Consumption has to be made based on need: We shouldn’t consume just
because we have the money or spend impulsively as we need to identify
those things that are necessities. Identifying the necessities, it will be easier

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 to estimate how much money is required to fulfill those needs after which
the rest of the money can be saved.
9.3 Gross Domestic Product (GDP): Is the monetary market value of all
final goods and services made within a country during a specific period. It is also
the total value of production of goods and services.
It is the value of the total final output produced inside a country, during a given
year. GDP, like all measures of national income, is a flow (as opposed to stock)
figure accruing over the period of one year.

World countries by GDP

Rank Name GDP Per capital income

1 Nigeria $ 496.12 billion $2,407

2 South Africa $ 386.73 $6,521
3 Egypt $ 331.36 $3,238
4 Algeria $ 193.06 $4,403
5 Morocco $ 129.06 $3,496
6 Kenya $ 109.12 $2,029
7 Ethiopia $ 99.37 $864

Countries with a greater GDP can consume and save more

The more goods and services we produce, the more we are likely to consume and save
As far as saving is concerned, the most important thing for a country to consider is its
national income
One of the ways that a country can properly utilize resources is through using those
that are locally available

Sources: World population review 2020

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 African Countries by GDP

Rank Name of the State GDP Per Capital Income

1 United States $ 22.20 trillion $67,063
2 China $ 15.47 trillion $10,747
3 Japan $ 5.50 trillion $43,450
4 Germany $ 4.16 trillion $49,617
5 India $ 3.26 trillion $2,361
148 Ethiopia $ 99.37 billion $864

Lesson 2
Regulating the National Economy on Realistic
International Principles
No country

No country is free from the influence of globalization. It therefore requires an

understanding of global economic principles and trends in order to align oneself in a
beneficial way. Before the defeat of the socialist block 29 years before, there had been
opposite principles that were supported by two blocks: the capitalist west (led by the
United States) and the socialist east (led by the former Soviet union).These blocks had
different ideologies as to how the economy should be managed.

The socialists believed that the command economic structure was appropriate while the
capitalists believed the market economic structure was better. However, over the past 29
years the capitalist free market structure has prevailed in been used by many countries.

9.4 Characteristics of a Market economy

 Private property

 Freedom of choice: Owners are free to produce, sell, and purchase goods and
services in a competitive market

 Competition: The force of competitive pressure keeps price law

 Limited government involvement: The role of government is to ensure that the

markets are open and working.

Supporting these basic concepts of a market economy, there are other international
principles. These include
 Global welfare
 Distributive justice
 Comparative advantage
 sustainable development

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 9.41 Global welfare: Abroad concept that considers the well – being of
individuals all over the world.
- Eliminating hunger and disease
- Increasing literacy rates are among the global goals to increase welfare and
enhance the quality life around the globe
9.42 Distributive justice: Deals with fairness in the distribution of socio –
economic benefits
- Is maintaining equality in the economic status of the people
9.43 Comparative advantage: Is taken from the market economic principle
- Countries should produce products which bear a minimum cost and should not
produce products that cost more. Instead they should import those products from
other countries.
- It makes sense for a country to specialize in the production of those goods that it
produces most efficiently and to buy the goods that it produces less efficiently
from other countries. For example, Ghana is comparatively more efficient at
producing cocoa than it is at producing rice.

9.44 Sustainable development: Very much related to global welfare

- In order to ensure the well – being of individuals, it is important for them to
develop both economically and socially. These includes
 Increasing people’s income through production
 Developing other socio – economic factors like education, health
institutions which ensure sustainable development.
 All the above principles are supported by the international multilateral
organizations like the IMF and world trade organization(WTO)
 Knowing the dominating global economic principles is important for any
country to make its own economic decisions.
 As no economy exists in isolation, it has to align its economic decisions to
fit in with the global economic order and principles.

What economic system do you believe is suitable for

Ethiopia? Discuss in groups.

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 LESSON 3
Types of economic System
9.5 Types of economic system
9.51 Free market/Capitalist economy: A free market/capitalist economy is a system in
which the questions about what to produce, how to produce and for whom to produce are
decided primarily by the demand and supply interactions in the market.
9.52 Command/planned economy: A command or planned economy is a mode of
economic organization in which the key economic functions – for whom, what, how
to produce are principally determined by government directive.

9.6 World trade organization (WTO)

Established in 1994 replacing the general agreement on tariffs and trade (GATT) by 128
member countries to administer trade agreements between countries.

 Is concerned with the regulation of international trade between nations

 The head quarter is in Switzerland
 Ethiopia has been playing observatory role in the WTO and has been negotiating
to be member of the organization.
 WTO has general principle of promoting free trade between countries
 Encourages removal of all kinds of trade barriers
9.7 Why countries impose trade barriers?
Because they want to protect their industries from completion from outside. When
countries remove trade barriers, many products come in and compete with domestic
industries profit decline.

9.8 Studies of Economics

9.81 Microeconomics: Studies the behaviors of consumers and
producers
- Deals with the determination of prices. Includes the analysis of the welfare of a
particular grope of people.
- Consumers produce based on their utility and their purchasing capacity
- Producers, on the other hand, want to maximize their profits and choose a level of
production that achieves this outcome
9.82 Macroeconomics : Studies the overall economy
 Said to be a bird’s eye view of the national economy
 It is the analysis of the national economy looking at the
overall prices, growth, production and consumptions,
savings and investment, unemployment, export and import.
 Analyze the growth performance of a country. This is
because growth could only be analyzed through the

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 summary of the total domestic productions measured by the
GDP.
 Growth is the percentage increase of the GDP

Lesson 4
Money and Capital
9.9 Money and capital
9.91 The Meaning of Money

M
oney is the set of assets in the economy that people regularly use to buy
goods and services from each other. The cash in your wallet is money
because you can use it to buy a meal at a restaurant or a shirt at a store. By
contrast, if you happened to own a large share of Facebook, as Mark Zuckerberg does,
you would be wealthy, but this asset is not considered a form of money. You could not
buy a meal or a shirt with this wealth without first obtaining some cash. According to the
economist’s definition, money includes only those few types of wealth that are regularly
accepted by sellers in exchange for goods and services.

9.92 The meaning of capital

E
conomists use the term capital to refer to the stock of equipment and structures
used for production. That is, the economy’s capital represents the accumulation
of goods produced in the past that are being used in the present to produce new
goods and services. For apple agricultural firm, the capital stock includes the ladders used
to climb the trees, the trucks used to transport the apples, the buildings used to store the
apples, and even the trees themselves.

9.10 Funding
The source of funding is an important goal in the development efforts of different
countries. Local, national, and international organizations are expected to play significant
roles in providing funds. Local monetary organizations: - primarily concerned with the
mobilization of capital in the local area
 Cater to the needs of the local communities and business
 Give out loans to local consumers and businesses. For example, credit
unions
9.11 The study of prices: Is very important issues in economics

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 9.12 The Consumers price index (CPI):
The consumer price index (CPI) is a measure of the overall cost of the goods and services
bought by a typical consumer. The most common measurement of the price level. It is the
weight index of prices of goods and services consumed in the economy

9.13 Inflation: - Is the percentage increase of consumers’ price index (CPI).

 NOTE:

You may not be surprised at the increase in the price of ice cream or other items. In most
modern economies, most prices tend to rise over time. This increase in the overall level of
prices is called inflation. Economists use the term inflation to describe a situation in which
the economy’s overall price level is rising. The inflation rate is the percentage change in the
price level from the previous period.

 The analysis of inflation determines what kind of policy will be needed to

stabilize it
 It is only when there is enough saving that there can be investment which helps
to create jobs and increase production
9.14 National monetary institutions: - Are larger and give a much bigger financial
service giving substantial amounts of loans to the public. Example national bank,
commercial banks.

 Both local and national monetary organizations work mainly in the

response to what happens in the economy while at the same time
trying to stimulate the economy produces more.

9.15 International monetary organizations: - Are a little bit different from the local and
national monetary organizations because of their policies in providing funding

 Device their policies based on the shred principles of member countries.

 The policies are dominated by the beliefs of some rich countries who are the
major financiers.
 Only give the loans and grants when the developing countries satisfy some of the
conditions specified in the policies (more liberalization of the economy and
privatizing state enterprise).One of the international monetary organizations is the
world bank.

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 9.151 The World Bank
An organization that tries to encourage the flow of capital to poor countries is the World
Bank. This international organization obtains funds from the world’s advanced countries,
such as the United States, and uses these resources to make loans to less developed
countries so that they can invest in roads, power generation plants, hospitals, and other
types of capital. It also offers the countries advice about how the funds might best be
used.

9.152 International Monetary Fund (IMF)

The international Monetary Fund (IMF) is an international organization which woks to
foster global monetary cooperation, secure financial stability, facilitate international
trade, promote high employment and sustainable economic growth, and reduce poverty
around the world.

9.16 World economy and politics: - Economic leadership is very much related to
political & cultural leadership. Example, the United States.

Exercise

Direction III: Match the items under column “B” with Column “A”.

Answer No Column A Column B

18. Macroeconomics A Deals the individual unit of the economy
19. Micro economics B The stock of equipment and other resources
20. Capital C Gross national product
D Studies the overall economy

Say True or False

1. Product is the percentage increase of consumers’ price index

2. Economic leadership has nothing to do with political & cultural leadership.

3. No country is free from the influence of globalization.

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UNIT TEN
ACTIVE COMMUNITY
PARTICIPATION
Lesson 1
Effective Leadership for Active Participation

The success of an organization depends on its leader – his/her attributes, approaches, and
problem solving techniques. The quality of a good leader comprises of the personality
and style of treatment which influences the behavior of others.

10.1 Leadership: - Refers to:

 Giving direction
 The capacity to inspire individuals to give of their best to achieve a desired result
and to maintain effective relationships with individuals and the team as a whole.
 Leadership can be defined as the ability to persuade others willingly to behave
differently.

10.2 Three features of leadership

I. Influence/Support
II. Voluntary effort
III. Goal achievement
 A good leader creates vision and inspires others to achieve goals through
stretching their capabilities. A leader influences members of the community so
that they perform together willingly for the achievement of their goal.
 In a democracy, effective leadership is very important to enhance good
governance, transparency, openness and accountability which are cornerstones for
active community participation.
 A democratic environment requires a good leader who inspires and develops
followers to achieve the stated objectives. He/she assumes the responsibility of
looking after the well – being of a community.
 Threats and coercion are not part of good leadership. It is mutual trust and
confidence which helps the community to attain its objectives.

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 10.3 Some personal qualities of a leader to promote public participation
include being:
10.31 Planner: - Somebody who has the ability to set appropriate courses of action
through well – prepared plan.
10.32 Versatile: - Somebody who is adoptable, flexible resourceful, multitalented
and
all – round personality. A leader can work in situations totally different from
routine functions. Intelligence, ambition, assertiveness (confident and forceful
personality), politeness and psychological stimulation are essential attributes of a
leader.
10.33 Motivator: - It is a quality of a leader to inspire others to be willing, feel
enthusiastic about, interested, and committed to the objective of the task.
It is the ability to give somebody a reason or incentive to do something. The
leaders own performance guides and motivates the members; for example, being
prompt them when asking members to come on time.
10.34 Engaging: - A good leader has personal qualities of being charismatic,
attractive, appealing, charming and influential. A leader must have the quality to
influence others morally and socially by using good communication.
10.35 Realistic: - A leader will realize what is achieved or possible, based on
known facts. This is evidenced by setting realistic goals and being practical.

 Generally, active community participation requires effective leaders

who have personal integrity, self - confidence, analytical ability, knowledge,
creativity, charisma, flexibility and direction.

Lesson 2
Civic participation
10.4 Civic Societies/Associations/: Are organizations formed by the
collection of voluntary individual members. Civic societies are not static; they are
dynamic and ever changing to meet the needs of society, their members, corporate
objectives and environmental changes. Some organizations are established with
the objective of advocating certain societal issues. Others are formed to help the
individuals in the group. Therefore, organizations need to formulate their
objectives and structures.
Once the objectives have been agreed:
 Suitable plans or courses of action are prepared;

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  Appropriate structures and arrangements are decided upon; and
 The actions for individual and groups of people are identified to achieve
those objectives.

 Active participation of the members in their civic organization

enables the attainment of individual and collective objectives.

The usual characteristics of members’ of civic organizations

 Define themselves as members;

 Share common goals;

 Engage in different activities.

 Citizens’ participation is vital for the development of democratic system .This

participation of citizens extends from merely voting in a democratic election to reflecting
interests in policy process.

Citizens’ participation in policy making and evaluating public policies has many
advantages. It is very important for a democratic government to know how the citizens
feel and react to various issues. This enables a government to shape policy that suits
society so that its policies will be more suitable and productive. Consequently, as
members of society, citizens will benefit from the good policies that enable development
of their society.

It is useful and important that citizens from all walks of life participate in the democratic
processes and only then can the nation develop alternative ideas and the government use
the opportunity to consider and balance different perspectives.

If citizens participate actively in the policy making & evaluation process, consensus cold
be reached on developing a sense of ownership and responsibility.

10.5 Interest groups & NGOS

- In recent decades, however, the nature and number of interest groups have
grown and proliferated enormously to encompass almost every area of social,
cultural, and political, even religious, activity.
- Professional organizations have risen to prominence, along with public
interest groups that support causes—from improved health care for the poor to
protection of the environment—that may not directly benefit their members

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 - Governments themselves may function as interest groups: in the United
States, associations of state governors, big-city mayors, and state legislatures
regularly lobby the U.S. Congress on issues of concern to them.
- In attempting to serve the needs of a community, nation, or cause, which may
be defined globally, these NGOs try to supplement or even challenge the work
of the government by advocating, educating, and mobilizing attention around
major public issues and monitoring the conduct of government and private
enterprise.

 NOTE:

Governments and NGOs frequently work as partners. NGOs may provide expertise and personnel
on the ground for implementation of government-funded projects. NGOs may be politically
unaffiliated, or they may be based on partisan ideals and seek to advance a particular cause or set of
causes in the public interest. In either model the key point is that NGOs operate under minimal
political control of states.

Once the objectives have been agreed;

 Suitable plans or course of action are prepared

 Appropriate structures and arrangements are decided upon
 The actions for individuals and groups of people are identified to achieve
those objectives
.
Lesson 2
Civic participation
The essence of democratic action is the peaceful, active, freely chosen participation of its
citizens in the public life of their community and nation. For democracy to succeed,
citizens must be active, not passive, because they know that the success or failure of the
government is their responsibility, and no one else’s.

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Characters of members of civic associations
 Define themselves as members
 Have common goals
 Engage in different activities
Citizens’ participation extends from merely taking part in election to reflecting interests
in policy processes.

Advantages of citizens’ participation in policy making and evaluating public

policies

 Alternative ideas are acquired

 Opportunities to consider and balance different perspectives
 Consensus could be reached
How citizens engage in the process of policy making?
 By directly participating in civic life and by discussing pressing issues
with their neighbors or with citizens who belong to civic forums in their
community, like parent – teachers associations or Idirs.
 By taking part in various facets of the formal process of governance. For
example, citizens can attend public meetings and hearings sponsored by
government agencies; they can meet with, or write to, public officials to
express their concerns; they can join organizations such as trade groups etc.;
and of course, they should vote in elections. This form of participation enables
to have a say on policy issues.
Associations and organizations help extensively in the participation of citizens in policy
making. How they do that?

 Firstly organize the venue for airing views and important issues in the community
 Serve as forums to analyze the problems of community
 Directly influence public policy and advice the government by identifying local
issues and problems and raising awareness of the community.
 Propose suitable solutions to a problem
 The above associations and organizations could be in the form of professional
associations, NGOs, community clubs etc. All have access to information about
society’s’ problems and the possible solutions.

 Freedom of press doesn’t mean that anybody can write what he/she pleases

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10.6 The role of media in democratic system
As modern societies grow in size and complexity, the arena for communication and
public debate has become dominated by the media: radio and television, newspapers,
magazines, books—and increasingly by newer media such as the Internet and satellite
television.

Whether Web logs (known as blogs) or printed books, the media in a democracy have a
number of overlapping but distinctive functions that remain fundamentally unchanged.

One is to inform and educate. To make intelligent decisions about public policy, people
need accurate, timely, unbiased information. However, another media function may be to
advocate, even without pretense of objectivity. Media audiences may benefit from
various, conflicting opinions, in order to obtain a wide range of viewpoints. This role is
especially important during election campaigns, when few voters will have the
opportunity to see, much less talk with, candidates in person.

A second function of the media is to serve as a watchdog over government and other
powerful institutions in the society. By holding to a standard of independence and
objectivity, however imperfectly, the news media can expose the truth behind the claims
of governments and hold public officials accountable for their actions.

The media can also take a more active role in public debate through editorials or
investigative reporting, and serve as a forum for groups and individuals to express their
opinions through letters and articles, and postings on the Web, with divergent points of
view. Commentators point to another increasingly important role for the media: “setting
the agenda.” Since they can’t report everything, the news media must choose which
issues to highlight and which to ignore. In short, they tend to decide what news is and
what isn’t. These decisions, in turn, influence the public’s perception of what issues are
most important.

I. Check the accountability of government officials: - One of the major means

of used in shaping the perceptions and impressions of people. For example,
in times of conflict, media can play a major role in escalating or de –
escalating the war.
II. In the process of policy making, media can be used as a means of
communication between the government and the people and vise versa.
Press freedom: Is a means of protecting values, such as individual rights and a viable
representative government. It implies, on the other, substantial obligation to search for
the truth, and to be fair and unbiased. However, the basic idea of this principle is that the
press should be free to communicate to the people.

Freedom of press implies that the press should get access to the government information
in order to communicate its activities to the people.
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Exercise
Choose the best answer
1. Which one of the following is among the features of leadership?

A. Influence/Support
B. Voluntary effort
C. Goal achievement
D. All
2. Civic duty deals with

A. tolerance of differences
B. hardworking
C. Obeying the law
D. All of the above
3. Which one doesn’t fit with the characters members of Civic associations should
have?
A. Define themselves as members
B. Have common goals
C. Engage in different activities
D. All

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UNIT ELEVEN
THE PURSUIT OF WISDOM
Lesson 1
Knowledge
11.1 Knowledge: - Knowledge is the most powerful tool in the hands of man. It
influences the way man lives and interacts with nature. It is understanding or learning
about that which is known.

The development in science and the transformations in technology have impacted greatly
on social life. This transformation has brought a change in our conception of distance and
time. Within seconds we can reach people in any corner of the world. For example,
mobile telephone has reduced barriers of communications.
 Due to technological developments, which are manifestations of knowledge, our
world is being a tiny village.

Lesson 2
Information as a source of knowledge

11.2 Information:
Information is knowledge in the form of facts. It helps us to develop our knowledge

 Note: We acquire knowledge but we obtain information. This indicates that

knowledge refers to something very wide in scope, but information refers to more
specific facts obtained for a particular purpose. Wisdom is gained through the
accumulated and practical use of knowledge.

11.3 Research: -
Research is one of the methods through which we can gather information. In carrying out
research we identify different sources of information and data in various formats.

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Scientific methods of collecting and analyzing data involve through testing before a
theory or hypothesis is accepted as a fact. A hypothesis is a problem that we need to solve
through research. A desire for a potential cure for an illness, for example, may serve as a
hypothesis which will lead to research into the use of a new drug.

The type of method used to collect data depends on the nature of research that we wish to
carry out. The data that is collected and analyzed for a specific purpose will help to form
a generalization or judgement

Lesson 3
Developing Reading Habits

The habit of reading is linked to the pursuit of wisdom. A widely read population is also
an informed public which can make informed judgements. Without a purpose, reading is
meaningless, and there cannot be any conscious activity. Reading requires drawing out
the main ideas and also involves reviewing the content and developing a general picture
that can be stored for the future.
When we read for knowledge, we should try to summarize and review (either in our head
or by taking brief notes) to make the purpose of reading more fruitful.

11.4 Truth

11.41 Philosophical approach to truth

It is related to space and time. This is what is called the relativity theory of truth and it
means that there is no absolute or fixed truth.

What is believed to be true for a given society may not be true for another. What is true
for a society today may not remain true tomorrow or thereafter.

11.42 The pragmatic theory of truth

Developed by American philosophers, namely Charles S. Pierce,Wiliam Jems and John
Deway in the 19th and 20th centuries. They believed that their theory of truth was
dynamic, practical and measurable.

In this theory truth is measured by its usefulness or utility. What is true is that it is useful
for a person, group or even a country. What is false is the reverse of this.

This theory rejects the thinking of the ancient Greek philosophers like Plato and Aristotle
that truth is absolute.

This theory resembles some sayings in our own society, for example, the Amharic saying
‘’washito kematalat washito mastarek’’.

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11.43 Scientific theory of truth
Differs from the above mentioned that scientific facts are not relative or measured by
utility to individuals or groups. They depend purely on objective facts which remain the
same for everyone, all the time.

11.5 Data: - Row facts that are not processed

11.51 Qualitative data: - Deals with characteristics and descriptors that can’t
be easily measured, but can be observed subjectively – such as smells, tastes,
textures, attractiveness, and color.

11.52 Quantitative: - Data that can be numerically measured

Once we have gathered our information, we need to interpret it

Power is the capacity to secure the dominance of one’s goals or values over others.
Four different types of power have been identified by French and Raven (1959):

11.6Reward power – Derived from the belief of individuals that compliance brings
rewards; the ability to distribute rewards contributes considerably to an executive’s
power;
11.7 Coercive power – Making it plain that non-compliance will bring punishment;
11.8 Expert power – Exercised by people who are popular or admired and with whom
the less powerful can identify;
11.9 Legitimized power – Refers to power conferred by the position in an organization
held by an executive.

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Exercises

True False Questions

1. The habit of reading is linked to the pursuit of wisdom.

2. Due to technological developments, which are manifestations of knowledge, our

world is being a tiny village.
3. Knowledge influences the way man lives and interacts with nature.

4. Expert power is exercised by people who are popular or admired and with whom the
less powerful can identify.

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