Political+Stability+and+Instability

 ﻿ Political Stability and Instability - Meiji and Paul
=A Comparison of their Effects on Economic Development =


 * Political Stability **

Stable means predictable/reliable and hard to overthrow. In a Democracy, it means the majority are happy, they have a constitution and laws that they follow, and the minority does not have enough influence/power to enforce any drastic changes. In a totalitarian government, stability means that everyone is scared to topple it. A stable government (or political stability) means you can count on the government to be tomorrow or a year from now to be what it is today.

**Some Effects of Political Stability** **-** Female life expectancy rate and infantile survival rate will improve - Primary Health Care services will experience improvement as well - Will promote investments domestically and internationally - Well utilized and manged resources - Job creations, making it possible to increase employment rates and decrease unemployment rates



**Political Instability **

Political instability is a situation where by a country is currently going through political turmoil. It may also involve the death of people within that country and in many cases the country deteriorates in terms of its economic progress.

Political instability is regarded by economists as a serious malaise harmful to economic performance. Political instability is likely to shorten policymakers’ horizons leading to sub-optimal short term macroeconomic policies. It may also lead to a more frequent switch of policies, creating volatility and thus, negatively affecting macroeconomic performance.

**Some Effects of Political Instability** - Decrease in FDI (Foreign Direct Investment) - Not able to develop into a wealthier nation <span style="font-family: 'Times New Roman',Times,serif;">- Decrease in production levels; reaching consensus will be difficult <span style="font-family: 'Times New Roman',Times,serif;">- Without consensus, governments will have a hard time imposing economic reforms <span style="font-family: 'Times New Roman',Times,serif;">- Damage to infrastructure <span style="font-family: 'Times New Roman',Times,serif;">- Resources will not be used to their full capacity or in a manner where economic development could be maximized <span style="font-family: 'Times New Roman',Times,serif;">- Human and money resources are not used wisely, they are invested for war instead <span style="font-family: 'Times New Roman',Times,serif;">- Deter investments and trade with foreign nations <span style="font-family: 'Times New Roman',Times,serif; line-height: 0px; overflow: hidden;">

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=<span style="background-color: #b21818; color: #ffffff; display: block; font-family: Georgia,serif; text-align: center;">Example:- Thailand's (In)stability + Economic and Social Effects =

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=<span style="background-color: #b21818; color: #ffffff; display: block; font-family: Georgia,serif; text-align: center;">References =

<span style="font-family: 'Times New Roman',Times,serif;">Natarajan, Ramesh. "Political Stability and Economic Growth." South Asian Analysis. South Asian Analysis Group, 20 September 1999. Web. 10 Feb 2011. <http://www.southasiaanalysis.org/%5Cpapers%5Cpaper81.html>

<span style="font-family: 'Times New Roman',Times,serif;">"Political Risk." Wikipedia - The Free Encyclopedia. Wikimedia Foundation Inc, 8 February 2011. Web. 10 Feb 2011. <http://en.wikipedia.org/wiki/Political_risk>

<span style="font-family: 'Times New Roman',Times,serif;">Ziogas, Constantine. Economics - for the IB Diploma. 1st ed. Great Clarendon Street, Oxford: Oxford University Press, 2008. 121 - 125. Print.


 * <span style="font-family: 'Times New Roman',Times,serif;">Note: Other references are mentioned in the Powerpoint slide above - Political (In)stability for Economic Development **