Effects of Government Structures on Growth, Sustainability, and Development of Nations - Research Proposal Example

Name Institution Date of submission Instructor Introduction Government systems have either negatively or positively impacted economic development of their nations. Capitalism is whereby all governmental systems and institutions are democratic in nature and all properties are self owned by citizens (Johnson 2014). The economic practices of capitalist governments have characteristics of a free enterprise and the wealth is unevenly allocated and distributed among citizens. Communism is however, a government system whereby wealth and education is given by the state to all citizens regardless of race, age, and elite standards and all property is owned and distributed by the government when it wills to do so, and that the government has a full mandate of providing health and or medical services to people (Chen 2010). US For a long time, the US has been among the premier nations that have always been generating a lot of revenues and one of the reasons has been that, it has a strong and well established capitalized government system. Adam Smith outlined that capitalism is the way for nations to make wealth and that capitalism only allows minimum interference from the government, a stepwise approach that gives businessmen piece of mind to become more innovative and skilled (Chantrill 2014). The US GDP is ranked among the most consistent in comparison to other nations, and this is because most of its industries are privately owned by individuals or groups of companies. The private sector has owned assets allover the US and the overall outcome has been that, it has led to health competition among its business men and entrepreneurs which at the end leads to production of quality provision of services (Chantrill 2014). Historical GDP growth of the US (Chantrill 2014) Year GDP-US $ billion nominal Population-US million - $ billion nominal 1950 293.7 151.326 0.00 1951 339.3 153.917 0.00 1952 358.3 156.552 0.00 1953 379.3 159.232 0.00 1954 380.4 161.958 0.00 1955 414.7 164.731 0.00 1956 437.4 167.551 0.00 1957 461.1 170.420 0.00 1958 467.2 173.337 0.00 1959 506.6 176.305 0.00 1960 526.4 179.323 0.00 1961 544.8 181.588 0.00 1962 585.7 183.881 0.00 1963 617.8 186.204 0.00 1964 663.6 188.555 0.00 1965 719.1 190.937 0.00 1966 787.7 193.348 0.00 1967 832.4 195.790 0.00 1968 909.8 198.263 0.00 1969 984.4 200.766 0.00 1970 1038.3 203.302 0.00 1971 1126.8 205.515 0.00 1972 1237.9 207.752 0.00 1973 1382.3 210.013 0.00 1974 1499.5 212.299 0.00 1975 1637.7 214.609 0.00 1976 1824.6 216.945 0.00 1977 2030.1 219.307 0.00 1978 2293.8 221.694 0.00 1979 2562.2 224.107 0.00 1980 2788.1 226.546 0.00 1981 3126.8 228.670 0.00 1982 3253.2 230.815 0.00 1983 3534.6 232.979 0.00 1984 3930.9 235.164 0.00 1985 4217.5 237.369 0.00 1986 4460.1 239.595 0.00 1987 4736.4 241.842 0.00 1988 5100.4 244.110 0.00 1989 5482.1 246.399 0.00 1990 5800.5 248.710 0.00 1991 5992.1 251.802 0.00 1992 6342.3 254.933 0.00 1993 6667.4 258.103 0.00 1994 7085.2 261.312 0.00 1995 7414.7 264.561 0.00 1996 7838.5 267.850 0.00 1997 8332.4 271.180 0.00 1998 8793.5 274.552 0.00 1999 9353.5 277.966 0.00 2000 9951.5 282.162 0.00 2001 10286.2 284.969 0.00 2002 10642.3 287.625 0.00 2003 11142.2 290.108 0.00 2004 11853.3 292.805 0.00 2005 12623 295.517 0.00 2006 13377.2 298.380 0.00 2007 14028.7 301.231 0.00 2008 14291.5 304.094 0.00 2009 13973.7 306.772 0.00 2010 14498.9 309.350 0.00 US Gross Domestic Product GDP History Fiscal Years 1950 to 2010 It is also significant that economic development of the US was at a stake because the government collects enormous amounts of taxes from citizens who are in business and in private sectors. UK and China The UK governance has been conducting their economic practices through the capitalistic governance system. Infact, it is the third most known capitalistic nation in Europe. Most elites in UK do advocate that the only way to economically advance further is by establishing a more neo-liberal capitalistic governance system to counter advanced investment from China that has taken root in Britain (Clark 2013). It has shocked many people in UK because of the steps that have been made by the vice chancellor of exchequer who together with Mayor of London who have gone to beg the Chinese government to invest in Britain. The fear from this is that China has been branded a communist nation since 1949. Their governance was centralized and managed by the state (Clark 2013). This meant that there was no freedom given to people to conduct and exercise their choices in terms of agricultural and entrepreneurial investments (Hart-Landsberg 2010). It is till the end of 1970s that Deng came into power and it was not long when he started to make reforms with intentions of expanding their economic operations both regionally and internationally. Till now, the GDP and revenue from exports of China has increased to greater magnitudes while that of the UK is decreasing significantly. Trading Economics, 2013 GDP Last Previous Highest Lowest Forecast Unit Trend Gross Fixed Capital Formation 241756.80 2012-06-29 215682.00 241756.80 80.70 243897.01 2012-12-31 CNY HML Gross National Product 516282.10 2012-06-29 468562.40 516282.10 679.00 520393.33 2012-12-31 CNY HML GDP per capita 3348.01 2012-12-31 3120.93 3348.01 85.52 3566.43 2013-12-31 USD GDP per capita PPP 7957.62 2012-12-31 7417.89 7957.62 523.95 8490.65 2013-12-31 USD GDP Growth Rate 1.80 2013-11-15 2.20 2.60 1.40 1.49 2014-02-28 Percent GDP Annual Growth Rate 7.70 2013-12-31 7.80 14.20 3.80 8.08 2014-03-31 Percent GDP 8230.00 2012-12-31 7320.00 8230.00 46.50 9272.35 2013-12-31 USD Billion Source: Trading Economics, 2013 The Chinese governance has combined both capitalistic and communism practices because the State still has an upper hand in controlling major economic operations and still, it has allowed private investors and individuals to own their businesses and manage industrial processes (Clark 2013). It is of essence to note that this is the same system that was used by Britain between 1945 and 1979, a period that helped Britain to achieve a sustainable economic growth that inturn improved lives of individuals. Chinese governance is hybrid in nature and has been depicted to be one of the most reliable economic advancement of the decade and is the reason why it suffered less during the 2008 financial crisis (Clark 2013). Russia and China Comparing the Chinese governance structure and Russian governance reveals that China has managed to rocket from a socialist republic to a greater level of governance that has allowed market-based economic growth (Chen 2010). After the fall of the Soviet Union, Russian governance got confused because they did not arguably and innovatively decide on what was to be chosen as the best option. The options were either to choose communism or to make radical changes according to the definitions that were given at that time by western economists. At the end, the Russian government chose radical reforms but whose benefits were not realized because of the political constraints that were present after the soviet fall (Chen 2010). Trading Economics Aims The main aim for documenting this analysis will be to evaluate effects of government structures on growth, sustainability, and development of nations with regard to the most recent development techniques. It is possible that the present state of nations is a result of long term impact of their government structures and global economic change (Ihmctan N.D). Methods Data will be collected through both secondary and primary data collection. Primary data will include sending survey questionnaires through interrelated communication channels like emails, personal contacts, and through teleconferencing. The survey questions will be prepared by use of surveymonkey software (Ihmctan N.D). Oral interview will also be applied to collect ideas, views, and suggestions from targeted respondents. It is expected that documentary analysis of published journal articles, reports, and books will generated empirical and relevant data that reflects aims of the analysis. Care will be taken to ensure that only valid and recommended documents are used (Ihmctan N.D). Bibliography Clark, N. 2013, Ruled by hardcore capitalism, UK looks longingly at China. Viewed 4 Tuesday, 2014. Chantrill, C 2014, US gross domestic product GDP history. Viewed 3 Monday, 2014. Chen, E 2010, The lessons of economic transition: Soviet Russia and Communist China. Viewed 3 Monday, 2014. Hart-Landsberg, M. 2010, The U.S Economy and China: Capitalism, class, and crisis. Monthly Review, vol 61 no. 9. Viewed 4 Tuesday, 2014 Ihmctan. (N.D). Research methodology. Viewed 5th February 2014 Johnson, J 2014, The advantages of capitalism in business. Viewed 3 Monday, 2014 Trading Economics 2013, Trading Economics. Viewed 4 Tuesday, 2014. Read More