How does political instability affect economic development? 🔊
Political instability adversely affects economic development by creating an unpredictable environment that deters investment and disrupts economic activities. When a country experiences instability—through conflicts, governmental changes, or social unrest—businesses often hesitate to commit resources due to the heightened risks. This uncertainty can lead to reduced foreign and domestic investment, impacting job creation and economic growth. Furthermore, instability can strain public resources, diverting attention from long-term development priorities. Strengthening political stability and fostering inclusive governance are essential for creating conducive conditions for sustainable economic progress and development.
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