Political instability severely hampers economic development by creating an environment of uncertainty and risk. Investors often hesitate to commit to regions experiencing instability due to worries about policy changes, governance issues, and potential conflicts. This lack of investment can stifle growth, limit job creation, and disrupt vital services. Furthermore, instability can lead to social unrest, further complicating recovery efforts and discouraging both domestic and foreign businesses. Ultimately, the cycle of instability can create long-lasting challenges for economic progress.