LESSON 2

1. What is the significance of political economy?

Political economy helps us to be more critical in decision-making it will help us
mold our logic and will teach us how to solve issues properly and with proper context. Politics is
important to have proper agreement for a peaceful life. Economics helps politics balance it by
knowing the factors we need to be able to develop our country. By combining these two it gives
us broader view of everything. It will help us study how economic theories affect different socio-
economic systems such as socialism and communism, along with the creation and
implementation of public policy. Political Economy involves different groups competing for finite
resources and power that assess which policies will provide the most beneficial results. It also
relates to the capability of the economy to achieve the desired results.
2. Who developed the theory of political economy?
There are a lot of people who tried to explain the definition and concept of
Political economy. As time goes on more people are trying to broaden the true meaning of
Political economy. But to all those who tried only Karl Marx theory is the most accepted and the
most known among them. The briefer term economy was substituted in the early 20th century
with the development of more rigorous statistical methods for analyzing economic factors. But
the modern economist’s theory has three main ideologies namely Liberalism, Marxism, and
Economic Nationalism.
3. What is a Political thinker?
In the world of politics, everything is essentially an argument over ideas. But
just because a politician has a number of ideas, it doesn’t make them a philosopher. A political
thinker is a person who studies deeply the meaning and concepts of politics, liberty, justice,
property, rights, law, and the enforcement of laws by authority and many more. They tend to
dig deeper rather than simply believing to the literal meaning of politics. They make their own
definition based on their opinions and understanding. The political thinkers help expound the
ideas of Political economy.
4. What is Political development?
Political development is synonymous to political modernization. This
modernization is caused by the changing course of the world. We need to keep up to the new
trends. To be able to suit the lifestyle in our generation. As time passes by new generations keep
coming and many things are being developed. An example of this is the business world, in the
past there is no machines or technologies that can be used to lessen the labor. Thus, slowing the
production process and trading process. Unlike today most of the works requires fewer labor
works making it easier for everyone. This changes the economic system and in order to achieve
success Political tendencies should be developed also to keep up and balance the works.
5. What are the political factors that impact development?
Political development can be affected by all political factors. Governments need
to do lots of things to encourage development because they need to build and maintain
infrastructure, and raise and spend finance wisely, on the right projects. However, there are
often political factors involved in why some countries remain poor, and one of those is bad
government. When governments are inept at managing infrastructure, development is
impossible. They need to set up their policies that will encourage more investments to achieve
development economically. Corruption can also deeply affect a development. When you live in a
country where corruption is rampant and it is not even in secret. You’ll know immediately how
frustrating it is to know that we have no chance of developing our economy as it continues from
the current sited officials to the new set of sitting officials. Trading policies can also impact
development as it helps us improve our economy.