Can Political Instability Hurt Economic Development?

Political instability occurs when a government collapses either because of rampart competition or conflict between many political parties.

Political instability and economic growth are deeply interrelated. On the one hand, unstable political environment may reduce investment and economic development. On the other hand, poor economic performance leads to political unrest and government collapse.

Many citizens want their country to be politically stable. If a country does not need to worry about radical changes of regimes and conflicts, the people can focus on working, investing and saving. Political stability is also a factor that can reduce corruption.

However, they are some people who think that political stability does not only demoralize the public but also precludes any form of change. Ingenuity and innovation take a backseat. Such people want change in all sectors of life (business, culture, politics) in order to have a happier future through better opportunities. Although change is risky, it is essential. Political stability can be in the form of stagnation and complacency that does not allow competition. In this case, political stability means lack of competition for the governing elite. Consequently, freedoms such as freedom of religion, freedom of press and access to internet are truncated.

In short, not all forms of political stability are development friendly. We should encourage a stability that translates into good governance.


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