Essay Case

734 WordsJun 20, 20133 Pages
Hong Le 4/11/2013 MGMT 4670 Prof. Damkar Written Response #1 1. What systems make up the political economy? What is the relationship of these systems? Political economy is made up of political systems, economic systems and legal systems of a country. The political, economic, legal systems can have a profound impact on the level of the economic development in a country and hence the attractiveness of a country and its potential as a trading partner or host for a foreign direct investment. 2. There are two types of violation of property rights: public actions and private actions. Who commits private action violations and what do they involve? Who commits public action violations and what do they involve? Private action…show more content…
The economic condition of Nigeria has been damaged due to conflict among several competing ethnic, tribal and religious group has limited political stability and led to political strife. As per United Nations, Nigeria has low human development because of the high number of illiteracy among adult population and also due to low life expectancy rate. 2. How did Nigerian military dictator Sani Abacha violate the property rights of the people of Nigeria? What were some of the results of this public action violation? Sani Abacha used 25% of the federal budget of Nigeria for his personal use (property right). He did that by setting up trust funds scams like Petroleum Trust Fund. In order to keep his scams going he had to pay political leaders (public action violations) some of the money so that they won’t say anything. The results of these violations were that they were just wasting all there natural resources and became one of the poorest country in the world. 3. Based on this case and what we discussed in class, what is the relationship of corruption, a public action violation, on economic development? I think corruption and public actions violations have direct impact on a country’s development. If public officials are corrupt, then they will only think of ways in which they can benefit themselves instead of ways to help in country’s progress. 4. What explains the high level of corruption at

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