Understanding the State, Economic Systems, and Globalization

The State: Politics and Governance

The state is the highest social and administrative unit governing a territory. Key elements include:

• Borders: Defining its territorial separation from other states.
• Capital: The central administrative city.
• Currency: The official monetary unit.
• Language: The primary means of communication.
• Government and Laws: The system of rules and administration.
• Citizens: The people who reside within its borders.

Characteristics of States Worldwide

States vary greatly. Some are ancient, like Egypt, while others, like Serbia, are recent. Some are vast, like Russia, while others are tiny, like Monaco. Some are superpowers, like the USA, while others are less powerful.

State Functions

The primary functions of a state include:

• Maintaining public order.
• Defending its territory from attack.
• Establishing relations with other states.
• Developing legislation.
• Ensuring social rights.

Types of State

Democratic States

Citizens are directly involved in government through voting, choosing representatives to govern. All adult citizens can vote. Power is distributed among:

• Legislative Power: Responsible for making laws, submitted by parliament.
• Executive Power: In charge of implementing laws, held by the government.
• Judiciary Power: Responsible for enforcing laws and punishing those who do not comply, managed by judges.

Dictatorships

One person concentrates all power. Dictatorships are established through violent means, not popular elections. Citizens do not participate, and the dictator only respects laws that suit them.

Monarchies

These states have a head of state, a king, who typically has no governmental function.

Republics

The head of state is a president elected by citizens, not a king.

The United Nations (UN)

Founded in 1945, with 192 member states. Main institutions include:

• Secretary General
• General Assembly
• Security Council

Objectives include:

• Protecting human rights.
• Warranting peace.
• Promoting international cooperation.

Specialized agencies include:

• UNICEF: Protecting and promoting the survival of all children.
• UNESCO: Contributing to peace and security through education.

Phases of Economic Activity

• Production: The creation of goods and services.
• Distribution: The allocation of goods and services.
• Consumption: The purchase of products to meet needs.

Economic Systems

• Subsistence Systems: Families are self-sufficient, producing everything they need.
• Communist System: The state owns the economy, sets prices, and controls production.
• Capitalist System: Based on private property and free markets.

Globalization

An economic process aiming to connect countries economically.

Advantages:

• Increased productivity.
• Rapid technological spread.

Disadvantages:

• Increased economic dependence.
• Job losses due to company relocation.
• Unequal benefits for all countries.

The Great Centers of the Global Economy

Major centers include the U.S., the European Union, and Japan.

U.S.

The U.S. has the highest production value, accounting for 20% of the world's total. Many of its companies are global leaders, investing heavily in research. It receives significant foreign investment and has extensive natural resources and energy.

The European Union

The EU has common economic policies, and goods circulate freely within its territory. It is the world's leading economic power.

Japan

One of the richest countries, but its main problem is a scarcity of natural resources, making it dependent on other countries for energy and raw materials.