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Thursday, August 25, 2011

Political Environment of Project

Political environment of project is related to the management of public affairs. The important factors that influence projects are:
Factors in Political Environment of Project
i) Political System: It consists of ideological forces, political parties, election procedures and power centers. A stable, efficient and honest political system is essential for projects. Political instability resulting from civil war, emergencies and terrorist activities adversely effect the projects.

ii) Political Institutions: They consists of legislature, executive and judiciary.
  • The legislature (parliament) enacts laws that guide project activities.
  • The executive (Government) implements the decisions of the legislature and lays down policies, regulations and procedures that influence the activities of projects.
  • The judiciary (Courts of Law) servers as watchdog and their rulings influence project practices. It settles disputes.
iii) Political Philosophy: It can be democratic, totalitarian or a mix of both. Democracy vests power in the hands of people. Totalitarian vests power in the hands of the state. A mix of both is based on power sharing.
Political philosophies influence project activities. Democracy provides greater role to the private sector. Totalitarianism provides greater role to the state. Mixed philosophies provide roles to both private sector and state.

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