Essay on the Impact of Political, Economic, Cultural and Social Forces on Country Growth

Introduction

There are different types of forces that affect a country either negatively or positively. These forces include the political forces, the economic forces, the cultural forces, and the social forces. These forces affect the way a country operates. For instance, in the case of political forces, when a country is politically stable, it is more likely to grow economically.

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On the other hand, when a country is politically unstable, it is likely to experience economic deterioration. The economic forces likewise determine whether the gross national product will be high or low. The social forces which include religion and technology also have an impact in the country. Therefore, this paper is mainly focusing on the types of forces that have both positive and negative implications in countries.

Political Forces

Have you at any case wondered what role does power and politics play in administrative nations? When implemented effectively, they can be well-suited in helping a nation achieve its economic goals. Power is described as the ability to get somebody to do something you need to be done or the ability to make things come to pass in the way you want them done.

Political Instability

Political forces affect the operations of businesses in a country either negatively or positively. For instance, political stability plays a major role in determining the fate of a country. When a country is faced with political instability, the economic sector is negatively affected. Political instability leads to massive killings of citizens, destruction of business infrastructures, riots, increased rates of strikes, and increased disorders in the country. When a country is hostile, the number of tourists in that country, both domestic and foreign goes down. Therefore, the foreign exchange earned is very low, and this results in the business sector being affected negatively. In other cases, when a country is politically unstable, business people close down their business because of insecurity. Therefore, the country is left with no or few business activities going hence resulting in the country earning little income, and eventually, it can become bankrupt.

Economic and Taxation Policies

The government makes economic and taxation policies. These policies can positively or negatively affect the economy of a country. When taxes in a country are raised, the prices of goods and services also rise, and therefore, life becomes expensive. High taxations result in high rates of inflation, the cost of borrowing also goes up, and tax evasion cases increase. For instance, when the value-added tax of a country rises, the cost of carrying out business activities in that country rises. Therefore, less stable companies are likely to collapse. On the other hand, new investors are likely to shy away. This leads to the country's interest rates rising because of inflation cases, and therefore, the banking industry is affected.

The tax rate system of a country often results in various macroeconomic consequences. Important to mention, the significant increase or decrease in the amount of tax charged to business organizations often retroacts with numerous consequences, both positive and adverse.

The national protectionism policies involve measures to protect local firms from stiff competition from imports. The various strategies that can be used by the government to protect the businesses within its country from imports include: imposing Tariffs on imports, restrictive quotas, imposing anti-dumping laws, or even manipulating exchange rate systems. Important to note, import competition mainly arises from import competition from developing countries due to the fact the labor in such countries is cheap. Consequently, cheap labor often translates to affordable products which are often preferred by majority customers. Also, import competition can come from large enterprises from more wealthy countries. Big firms in such countries have a significant market dominance, which can cause increased competition for businesses. Protectionism is essential for local enterprises as far as survival is concerns. The government may also put into place various strategies to promote domestic firms to ensure that their products compete effectively in the global market. Some of the ways that the government uses to promote the local businesses include direct subsidies to local firms, export subsidies, and use of tax mechanisms. Through such efforts, local businesses can undercut international competitors. Such efforts also promote the growth of local firms and industry.

Type of Regime

The type of regime in a country also impacts the growth of the country. This includes the country's form of government. A country can either be democratic, communist, or authoritarian. The type of government in a country influences the policies and formed that affect the economic development in both personal and public level. For example, when a country has a democratic form of government, people are free to obtain loans from banks or government Sacco's and start companies of their own. By doing this, the business status of the country expands, and the country gains enough revenue to pay its workers according to the work one has done. Hence the gross national product of the country rises. On the other hand, when a country is practicing a communist form of government, the rules and regulations are strict, and all people are entitled to equal earnings regardless of the work one has done. This affects the operations of the businesses, and it inhibits economic growth.

Political Management

Political management is another political force that has impacts on a country. This refers to how effectively the government is able to monitor and implement international and national laws. For example, in countries where piracy laws and copyright laws are less enforced, they are less appropriate for operations of business activities. This is because when piracy and copyright practices are standard in a country, a person's or company's business activity will be at risk of collapsing. For instance, a company that has decided to invest in music may change its mind because it will not be able to gain desired profits due to everyone illegally downloading the music free of charge.

According to Driskeel, Embry, and Lyon (2012), political participation is influenced by different religious beliefs. Notably, the investigation about the relationship between politics and faith has shown that various macro religious beliefs are directly related to macro-political behaviors which are likely to influence national political participation (Driskeel et al., 2012). For the instance of United States Territories, the situation is not different because religious leaders have influenced their religion to support various political opinions.

Davis (2012) pointed out that religion has been the critical factor in shaping the views of the people regarding the political status of their territories. Descriptively, it is evident that during the formation of the new constitution of the United States, religion played a vital role. And so, its territories have been influenced by their religious views in making decisions regarding political opinions. Since politics aims to address the issues of a group, Christian churches changed political ideas that played a role in the ending of slavery in the United States as well as its territories.

Political activities can be influenced by religious factors but not in all circumstances. According to Omelicheva and Ahmed (2017), religion does always serve as a mobilizing force for political engagement but often discourage individuals from participating in political activities. These political activities include participating in demonstrations, the signing of petitions, voting, and membership in political parties, among others. Their investigation concluded that individuals who are likely to engage in political activities include those who are members of voluntary associations and religious organizations.

Corruption

The level of corruption among politicians also has impacts in a country. When the level of corruption in a country is high, many illegal practices happen due to a high level of dishonesty. Corruption can happen in different ways. For example, politicians can be bribed to authorize illegal practices, or local companies can be bribed to provide illegal materials. Government officials can also be bribed by local entrepreneurs to prevent external investors from investing in the country. In this way, a competitor is locked out of the market. This encourages monopoly in the country due to lack of competition, and hence, economic growth is delayed. The services provided in an in-competitive economy are also costly, and hence, the cost of living becomes expensive.

Corruption is prevalent in both the public and private sectors, and it is either informs of petty bribery that is for one to get a service done, you have to give some amount of cash or grand corruption. In corrupt countries, the poor have no justice. Pakistan is one of the countries categorised as an underdeveloped globally.

Corruption has also led to more people in society becoming morally depraved. The common business people who are part of the community at large find it hard to operate businesses without having to pay bribes to certain people. Some of the reasons as to why people pay these bribes is to be able to keep up with their competitors who are also paying up. The business people who pay bribes are also able to have easy access to raw materials and supplies. For the common citizens wishing to put up a business and run them successfully, they are faced with the challenges of having to pay bribes on top of the costs of business start-up.

The fight on corruption should be done by the implementation of numerous laws in regards to corruptions. There are, however, numerous discrepancies in implementing these laws. One of the reasons why the implementation faces challenges is the fact that the government and the ruling party control the judiciary system in the word.

Strengthening citizen's ultimatum for anti-corruption and empowerment should be improved so that the administrative government's accountability is justifiable to the general public this helps to build mutual trust between the government and citizens. For instance, the practice of community monitoring inspirations has, in some situations subsidised to the recognition of corruption, abridged embezzlement of resources, and value-added the quantity as well as the quality of public generated services. Operational law enforcement is also important to make sure that all corrupt personnel is penalised and break the sequence of corruption impunity, or self-determination from retribution or loss. A strong legal outline reinforces effective law enforcement systems, law implementation branches, as well as a sovereign and active court of law Citizens, usually have an outlook of their government's administration or the services that it provides, but then the people do not have a clear follow up of what is going on. With the help of the court system, the citizens will be able to have an eye on all government activities.

Cultural Forces

Culture

Culture defines the way people live and interact with each other in the community. Cultural practices of a society are supposed to be obeyed by all members of the community and going against the values of the community will result in a given penalty. International trading relationships allow different people to interact, communicate, and share ideas. The individuals can help each other to enhance their strengths. Additionally, people have opportunities to learn about new cultures and languages. This enables them to develop diverse ski...