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essay political stability and economic growth ssc chsl tier 2

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essay political stability and economic growth ssc chsl tier 2

essay political stability and economic growth ssc chsl tier 2


The fall of the stock market and the value of the Euro during Brexit gave a clear message that political stability and economic growth are directly related. Political stability is defined as the attribute of the government to resist its collapse or change.


Political stability and economic growth are two sides of the same coin. The uncertainty associated with an unstable political environment may reduce the pace of economic development. Similarly, poor economic performance may lead to government collapse and political unrest.


The yellow vest movement in France in October 2018 for economic justice clearly showed the political instability existing there in the implementation of schemes. Similarly, the economic slowdown in Spain led to political unrest and a secessionist movement in Catalonia.


Similarly, in India, the political stability from 1950-1977 provided sturdy economic growth, whereas the instability in the next decade almost brought our economy to the verge of collapse. Political stability provides a peaceful environment for growth because if a country is free from conflicts and radical changes of regimes,


the people concentrate on working, saving, and investing. Moreover, political stability has been empirically found to be among the factors found to reduce corruption. Political instability is an investor’s nightmare. Change in regime often leads to a change in....To continue read this topic click here

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