POLITICAL ECONOMY DEFINITION

GOVERNMENT ===> IS THE FORMAL ORGANIZATION THAT HAS THE LEGAL AND POLITICAL AUTHORITY TO REGULATE THE RELATIONSHIPS AMONG MEMBERS OF A SOCIETY AND BETWEEN THE SOCIETY AND THOSE OUTSIDE ITS BORDERS.

[[[WE OFTEN USE THE TERM "GOVERNMENT" TO MEAN EVERYTHING CONNECTED WITH RUNNING A COUNTRY, INCLUDING THE PEOPLE OR PARTIES IN POWER AND THEIR LAWS, CUSTOMS, AND INSTITUTIONS. IN FACT, THAT IS WHAT WE MEAN WHEN WE TALK ABOUT "LEVELS OF GOVERNMENT" OR A "SYSTEM OF GOVERNMENT."

WE ALSO USE "GOVERNMENT" TO MEAN ONE INSTITUTION, SUCH AS THE HOUSE OF COMMONS, OR PERHAPS JUST THE PARTY IN OFFICE, SUCH AS "THE CONSERVATIVE GOVERNMENT" OR "THE LIBERAL GOVERNMENT" OR "THE NEW DEMOCRAT GOVERNMENT." BUT IN OUR PARLIAMENTARY SYSTEM, "GOVERNMENT" HAS A VERY LIMITED AND SPECIFIC MEANING: IT'S THE TEAM OF ELECTED REPRESENTATIVES (THE CABINET) WHO, WITH THE SUPPORT OF A MAJORITY IN THE ASSEMBLY, TAKES CARE OF PUBLIC BUSINESS, INCLUDING MAKING LAWS AND SPENDING TAX DOLLARS.]]]

STATE ====> A POLITICALLY ORGANIZED BODY OF PEOPLE UNDER A SINGLE GOVERNMENT – OR – WHAT SOCIAL SCIENTISTS CALL “GOVERNMENT” AS – THE POLITICAL ENTITY THAT POSSESSES A LEGITIMATE MONOPOLY OVER THE USE OF FORCE WITHIN ITS TERRITORY TO ACHIEVE ITS GOALS.

FINANCE ==> A BRANCH OF ECONOMICS CONCERNED WITH RESOURCE ALLOCATION AS WELL AS RESOURCE MANAGEMENT, ACQUISITION AND INVESTMENT. SIMPLY, FINANCE DEALS WITH MATTERS RELATED TO MONEY AND THE MARKETS.

POLITICS ====> IS THE SOCIAL INSTITUTION THROUGH WHICH POWER IS ACQUIRED AND EXERCISED BY SOME PEOPLE AND GROUPS ==> HAROLD LASWELL, "POLITICS IS THE PROCESS BY WHICH IT IS DETERMINED WHO GETS WHAT, WHEN AND HOW."

*****POLITICAL ECONOMY =====> IS DERIVED FROM THE COMBINING OF TERMS THAT MAKE REFERENCE TO AN ANALYTIC EMPHASIS ON THE POLITICAL/SOCIAL CONSTRUCTION AND CONSEQUENCES OF ECONOMIC ACTIVITY.

IT IS AMBIGUOUS BECAUSE IT HAS COME TO REFER TO BOTH – (1) A HISTORICAL PROCESS (IT IS A GLOBAL/ INSTITUTIONAL REALITY); AND (2) AN INTEPRETIVE FRAMEWORK (A BODY OF SCHOLARSHIP).

THE INTERPETIVE FRAMEWORK – THAT UNDERSTANDS HISTORY NOT AS THE RESULT OF NATURAL/EVOLUTIONARY PROCESSES BUT AS THE RESULT OF ACTIONS AND DECISIONS BY THOSE WHO HAVE ECONOMIC AND POLITICAL POWER.

{MARX WAS CONCERNED WITH THE “SUPREME FACTS ABOUT MAN'S ROLE IN THE POLITICAL MAKING OF HISTORY” - C.W. MILLS, THE SOCIOLOGICAL IMAGINATION PP. 167}