Unit II: Political Development

1. Ideas of Political Systems as learnt from History

2. Different models of Governing system and their comparative study

Unit III: Economic Development

1. Birth of Capitalism, Socialism, Marxism
2. Concept of development in pre-British, British and post British periodBarter, Jajmani
3. Idea of development in current context.
4. E. F. Schumacher's idea of development, Buddhist economics. Gandhian idea of
development. Swaraj and Decentralization.

Here’s a breakdown of Unit II: Political Development and Unit III: Economic
Development, with simplified explanations to make the concepts more accessible. These
notes cover the main ideas related to political systems, governance models, the birth of
economic systems like capitalism and socialism, and the evolution of development
concepts.

Unit II: Political Development

1. Ideas of Political Systems as Learnt from History

Political systems refer to the structures through which power and authority are organized,
exercised, and controlled within a society. These systems have evolved over time,
influenced by historical events, conflicts, ideologies, and cultural values.

Key Historical Political Systems:

• Monarchy: A political system where power is held by a king or queen, usually

passed down through family lines. Monarchs were often seen as divinely appointed.
 o Example: Ancient Egypt, European monarchies (e.g., the British monarchy
before democracy).
• Feudalism: In the Middle Ages, especially in Europe, power was decentralized.
Kings granted land to nobles (lords), who in turn provided military service. Serfs
worked the land in exchange for protection.
o Example: Medieval Europe, Japan’s Edo period.
• Democracy: A system where power rests with the people, either directly or through
elected representatives. Ancient Greece is often considered the birthplace of
democracy.
o Example: Ancient Athens (direct democracy), modern liberal democracies
(e.g., the United States, India).
• Dictatorship/Authoritarianism: A political system where power is concentrated in
the hands of one individual or a small group. Political opposition is often
suppressed.
o Example: Nazi Germany, North Korea.
• Socialism/Communism: Political systems based on the idea of collective
ownership of resources, aiming for an egalitarian society. In theory, there would be
no private property, and wealth would be distributed according to needs.
o Example: The Soviet Union (Socialist), China (Communist).
• Republic: A system where the country is considered a "public matter" and the head
of state is elected (not a monarch). Power is vested in elected officials and
representatives.
o Example: The Roman Republic, the United States.

Lessons from History:

• Political systems evolve based on changing economic, social, and cultural

conditions.
• History shows a shift from centralized monarchies and empires to more
participatory forms of governance like democracies.
• Political systems often reflect the balance of power between different social
classes and groups in society.

2. Different Models of Governing System and Their Comparative Study

There are different models of governing systems around the world, each with unique
characteristics and mechanisms of power.
1. Democracy vs. Authoritarianism:

• Democracy: Power is vested in the people through voting and elections.

Governments are accountable to citizens.
o Advantages: Ensures freedom, equality, and participation. Leaders are
accountable.
o Disadvantages: Can be slow in decision-making. Risk of populism or
instability.
• Authoritarianism: Power is concentrated in the hands of a single leader or a small
group. Political freedoms are limited.
o Advantages: Quick decision-making. Can maintain order in times of crisis.
o Disadvantages: Can lead to oppression, human rights violations, and lack of
political freedoms.

2. Monarchy vs. Republic:

• Monarchy: Rule by a king or queen, often hereditary.

o Advantages: Stability and continuity.
o Disadvantages: Can be undemocratic, with power concentrated in one
family or individual.
• Republic: Power rests with elected representatives.
o Advantages: Reflects the will of the people and is more democratic.
o Disadvantages: May lead to factionalism or political instability if not
properly managed.

3. Capitalism vs. Socialism:

• Capitalism: A system based on private ownership of the means of production.

Individuals and businesses operate for profit.
o Advantages: Encourages innovation, individual freedom, and economic
growth.
o Disadvantages: Can lead to inequality, exploitation, and environmental
degradation.
• Socialism: A system where the government or the community owns the means of
production. Resources are distributed based on need, not profit.
o Advantages: Aims for equality, social welfare, and basic rights for all.
o Disadvantages: Can reduce individual freedom, discourage innovation, and
lead to inefficiency.
Unit III: Economic Development

1. Birth of Capitalism, Socialism, and Marxism

Capitalism:

• Origin: Capitalism emerged in the early modern period (16th-18th centuries) with
the rise of trade, markets, and the Industrial Revolution.
• Core Ideas: The key feature of capitalism is private property and the free market.
Individuals and companies are motivated by profit, and wealth is distributed based
on market outcomes.
• Key Figures: Adam Smith is often regarded as the father of modern capitalism, with
his idea of the "invisible hand" of the market.

Socialism:

• Origin: Socialism arose as a reaction against the inequalities caused by capitalism,

particularly during the Industrial Revolution.
• Core Ideas: Socialism advocates for collective or state ownership of the means of
production. The goal is to reduce inequality and provide for the needs of all citizens.
• Key Figures: Karl Marx and Friedrich Engels developed the theory of socialism and
communism, which sought to abolish class structures and create a society without
private property.

Marxism:

• Origin: Marxism developed as a critique of capitalism in the 19th century, especially

through the works of Karl Marx and Friedrich Engels.
• Core Ideas: Marxism believes that capitalism leads to class struggle between the
bourgeoisie (capitalists) and the proletariat (working class). Marx predicted that the
working class would overthrow capitalism and establish a classless, stateless
society (communism).
2. Concept of Development in Pre-British, British, and Post-British Period

Pre-British Period:

• Economic Systems: India’s economy before British colonization was largely

agrarian and localized. Trade was conducted through barter systems, and the social
structure (like the Jajmani system) revolved around mutual obligations between
different castes and communities.
• Barter System: Goods and services were exchanged directly without money. This
system was prevalent in pre-British India and other parts of the world.
• Jajmani System: A system in rural India where specific families or castes provided
services (like blacksmithing, pottery, or weaving) to others in exchange for
agricultural produce or other goods.

British Period:

• Colonial Economic Policies: Under British rule, India’s economy was restructured
to serve the interests of the British Empire. Resources were extracted, and local
industries were deindustrialized in favor of British goods.
• Impact on Development: British policies hindered the growth of indigenous
industries, disrupted local economies, and created a dependence on British
imports. India’s traditional economic systems were broken down to integrate it into
the global capitalist economy.

Post-British Period:

• Economic Nationalism: After independence in 1947, India adopted economic

policies aimed at self-reliance, focusing on industrialization and the development
of public sector enterprises.
• Green Revolution: In the 1960s-70s, India focused on increasing agricultural
productivity, which led to self-sufficiency in food production.
• Liberalization (1991): Economic reforms led to a shift towards a market economy
with privatization, deregulation, and integration into the global economy.
3. Idea of Development in Current Context

Modern Development:

• Sustainable Development: Modern development focuses not just on economic

growth, but also on environmental sustainability and social equity.
• Human Development: The Human Development Index (HDI) introduced by the
United Nations focuses on improving quality of life through education, healthcare,
and access to resources.
• Globalization: The global economy is increasingly interconnected. Globalization
has led to economic growth in many developing countries but also has contributed
to rising inequality and environmental concerns.

4. E. F. Schumacher's Idea of Development, Buddhist Economics, and

Gandhian Ideas of Development

E.F. Schumacher's Development Ideas:

• Small is Beautiful: Schumacher argued that economic development should focus

on small-scale, sustainable industries rather than large-scale industrialization.
• Human-Centered Development: He emphasized the importance of human well-
being over profit, advocating for economics that prioritize human needs,
community welfare, and ecological balance.

Buddhist Economics:

• Core Idea: Buddhist economics is a philosophy that advocates for development

that prioritizes spiritual well-being over material wealth. It emphasizes moderation,
non-violence, and the interconnectedness of all life.
• Development Focus: It advocates for self-reliance, ethical behavior, and
sustainable living in balance with nature.

Gandhian Idea of Development:

• Swaraj (Self-rule): Gandhi’s idea of development focused on self-sufficiency, rural

development, and non-violence. He believed in the importance of local economies
and community-driven growth.
• Decentralization: Gandhi advocated for decentralized economic systems, where
decision-making power and economic activities were placed in the hands of local
communities.
• **Sarvodaya (Welfare for All