What are the implications of political instability for economic development? 🔊
Political instability can have severe implications for economic development. Uncertainty arising from conflicts, regime changes, or social unrest can deter investment and disrupt trade. This instability often leads to diminished foreign direct investment and a volatile business environment, weakening economic growth. Furthermore, governments may struggle to implement effective economic policies during unstable periods, exacerbating existing socioeconomic disparities and hindering long-term progress.
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