What is the significance of political stability for economic growth? 🔊
Political stability is key to economic growth, as it fosters an environment conducive to investment and long-term planning. Countries with stable political systems tend to attract foreign investments, as businesses seek assurance that investments will not be jeopardized by abrupt changes in policies or regime dynamics. Stability also encourages domestic entrepreneurship, as citizens feel secure in their ability to engage in economic activities. Conversely, political instability can result in uncertainty, reduced investor confidence, and economic decline. Thus, maintaining stability is crucial for achieving sustained economic development.
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