It was an old belief that economic life of a country was very much influenced by its government and its policy and laws. But it is now widely held that the political structure of a State is conditioned by its economic life and system. Karl Marx, die founder of scientific socialism, propounded the theory of economic determinism of history and politics. He declared that economic conditions of a society determine its social and political structure.
It shows the dependence of Politics on Economics. There is much, truth in it But it will be more correct to say that economic and political conditions act and react upon each other, and this interaction is increasing in the present times. All political questions and quarrels of the modem age are directly or indirectly due to die economic causes and conditions prevailing in the country or the world.
Besides these fundamental questions, there is a host of ‘Other problems today, which indicates interdependence of Economics and Political Science, e.g., the government control of industries, the question of labour and capital relations, inflation, price control, industrialisation and mechanisation of agriculture, land reforms, and others.
They are all economic questions which are deeply political in their nature and solution. In short, the theory and practice of modem administration and government are becoming more and mOre economic. Such is the close relationship between the two sciences.