How does political stability affect economic development? 🔊
Political stability is crucial for economic development, as it creates a favorable environment for investment and growth. Stable governance promotes investor confidence, encourages business expansion, and facilitates job creation. When a state is politically stable, it is better equipped to implement coherent economic policies and manage public resources effectively. Conversely, political instability can deter investment, disrupt markets, and lead to economic downturns, hindering development efforts. A well-functioning political system enables the establishment of infrastructure and services necessary for economic prosperity, ultimately contributing to a nation's overall well-being and resilience.
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