Political instability can adversely affect economic development by creating uncertainty that deters investment and disrupts market operations. Frequent changes in government, social unrest, and lack of coherent policy can hinder business activity and economic growth. Investors often seek stable environments for their capital, so instability can lead to lower foreign direct investment (FDI) and hinder local enterprises. Over time, this can result in higher unemployment rates, reduced access to services, and decreased overall economic performance, perpetuating cycles of instability and poverty.