Can a country have economic growth if it has a politically unstable government? Please explain.
Can a country have economic growth if it has a politically unstable government? Please explain.
Homework Answers
Economic growth and political scenario of a country are deeply connected. Political instability creates an atmosphere of uncertainty. This mainly hampers investment and production in the economy. A country with political turbulence makes it a risky venture for investors. So they shy away from investing in production. This causes economic growth to slow down. Vice versa poor economic performance can also be a driving cause of political unrest. So it is like a vicious cycle. Sound political regimes, corruption free political set up not only develop the domestic economy but also attracts foreign investors. So a country cannot have economic growth if the government is politically unstable.
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Can a country have economic growth if it has a politically
unstable government? Please explain.
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