Political Science is a branch of social science. It studies the State, the government and its policies. It deals with the analysis of political systems, theoretical and practical application to politics and examination of political behaviour. Political science intersects many branches such as anthropology, history, economics, sociology etc. The relationship between political science and economics is the centrepiece of this article.
Economics is a science that deals the study of economic and non economic activities that directly or indirectly brings growth and development to the economy. Economics is the study of how people allocate scarce resources for production, distribution, and consumption, both individually and collectively.
The political science and economics have a base connection, a political leader has to make a decision that concerns the economy or the decisions are based on the economic conditions of the country. Political science and economics have a strong relationship because the performance of the economy is the key to political background. Many economic issues are inherently political because they lend themselves to different opinions. People can be biased but there are some people who have second thoughts on political beliefs and prefer economic policies.
CONTRIBUTION OF POLITICAL SCIENCE TO ECONOMICS
Political science and economics are social sciences and they affect each other. They are both closely related interdependent disciplines. The major contributions of political science to Economics are given below.
- Stable Government – Stable government means stable economy. Government plays an important role in the development of the economy. It has crucial roles to play especially in under developed or developing economies. The government has to build up policies for efficient use of limited resources. The nature, scope and progress of economic development depend upon the stability of government. Instable government weakens the economic system.
- Political science defines Economic goals
The economic planning is done by the government. The political leaders determine the economic goals, objectives and the policies. The goals are set in such a way that the economy’s resources are used efficiently. The goals are set to secure the people of the country. One of the major goals of economic policy is to promote economic goals and to achieve these goals, the government set policy rules which are under its control.
- Economic system and Political relations
The political ideology determines the economic system. Economics closely follow political goals, beliefs and relations. The Economic goals are set by the political leaders and it benefits the economy as a whole.
- Economic problems and the State
The State solves the economic problems of the economy. The leaders have to decide the activities that will take place in the country. In doing so, they consider the problems of the economy and they make sure the policies and activities that take place solve the economic problems of the country.
- The Budget
The Government Budget is an annual financial statement of estimated revenue and estimated expenditure during a fiscal year. The objectives of the budget include Economic growth and development; reduction of unemployment and poverty; redistribution of income; reallocation of resources; price stability and economic stability. The budget is the backbone of the economy and it is a major political instrument.
These are the major contributions of Political Science to Economics. Economics is guided by Politics and Economics always takes the help of Political Science for securing right economic policies and goals. State action is all the more inevitable in under-developed economies which are struggling hard to get rid of poverty and to attain higher living standards.
Political economy is a social science that studies production, trade, and their relationship with the law and the government. It is the study of how economic theories affect different socio-economic systems such as socialism and communism, along with the creation and implementation of public policy.
In simple words, political economy is an advice given by economists of the country to the government, regarding their economic policies, activities, objectives etc., Or on proposals put forward by the politicians of the county.
Political economics is split into two sections: Classical Political Economy and Modern Political Economy. Classical Political Economy studies the works of philosophers such as Machiavelli, Adam Smith, and Karl Marx. Modern Political Economy, on the other hand, studies the work of modern philosophers, economists, and political scientists such as John Maynard Keynes, Milton Freidman, and Friedrich Hayek.
They study of political economy can be seen digging in three areas:
• Interdisciplinary study
This study is a combination of sociology, economics and political science. It defines how government institutions, an economic system, and a political environment affect and influence each other.
• New Political Economy
This study monitors economic policies as an action to be taken rather than a framework that needs to be analysed. It unites the ideologies of classical economics and new advances in the field of politics and economics.
• International Political Economy
This is also known as Global Political Economy. This study analyses the relationship between economics and international relationships. International political economy focuses on how states and institutions use global economic interactions to shape political systems.
TO CONCLUDE, I think political activities grow out of economic activities. Economy is the centrepiece out of which all the actions are taken. The decisions taken by the government, the annual budget, the goals for the development and growth of the country etc., are all based upon the betterment of the economy. Economy flourishes because of the decisions taken by the political leaders.
Political science has contributed a lot to Economics. But they go hand in hand. Good Economics and good political science have a good conclusion, a developed and prospering economy.