The constitutional foundations of government

In 1992, American political scientist Frances Fukuyama proclaimed 'the end of history', because with the collapse of communism, Western-style liberal democracy was the only credible form of political organisation (Fukuyama 1992). While many people disagree with the 'end of history' argument, Fukuyama is right that in the early 21st century nearly every country claims to have some form of democracy. Even China, with its strong communist traditions, is embracing market capitalism and forms of democratic participation (He 1996). Despite this strong trend towards democratic systems of government, it is important to remember that even in the present era of globalisation, significant variations in national political systems remain. In short, the rules of the political game vary from country to country because of a host of historical, cultural and economic reasons. The Constitution of a country represents the foundation of its political and legal system and so represents the logical starting point of our examination of different political systems and their implications for business.