The last two decades of the 20th century were great for democratic governments. The Cold War ended with the collapse of communist dictatorships throughout Eastern Europe, including the Soviet Union itself. South Korea and Taiwan moved out of their authoritarian pasts toward greater democracy. Apartheid was ended in South Africa.
But democracy is still not the only form of government in the world today. Despite differences in form and function, most of the world's governments still try to fulfill similar primary objectives.
Most governments are designed to provide their inhabitants with two important services: protection from outside invasion and protection of citizens from one another. How many different ways can a government protect from invasions? They can form large armies and navies, build fortified cities, provide border patrols, negotiate with potential enemies, threaten or punish "rogue" states, or join international organizations. The list goes on and on. It makes sense, then, that every country has its own way of accomplishing these basic needs. Of course, some are more successful than others. But some similarities between governments will surely exist as well. For example, more than one country has thought to build strong armies and navies.
Likewise, try to think of different ways that countries can protect citizens from one another. Some commonalties will surely appear — police forces, crime prevention, putting criminals in jail, passing laws that define what is a crime and what is not. Again, governments have different ways to accomplish this end. Some allow more individual freedoms than others, some will have national police forces, and others will organize protection on the local level. As modern governments have taken on more responsibilities, such as regulating the economy and providing social services, the possibilities for different government structures and functions increase.
Economic systems provide needs for citizens by answering several questions:
Different economic systems around the world answer these questions in different ways.
The resources of an economic system are called factors of production because the economy needs them to produce goods and services. They may be grouped into four categories:
The world at the turn of the 21st century was becoming smaller, as global interconnections made distant places seem close. At the same time, bloody nationalist conflicts turning neighbor against neighbor still raged. Government leaders around the world examined their own systems and each others to chart a course for the new millennium.