WAEC - Economics (2022 - No. 37)
Political instability hinders economic growth because it
scares many people from politics
prevent politicians from playing effective politics
discourage entrepreneurs generally
encourages urban-rural migration
Vysvětlení
Most developing countries are not politically stable e.g frequent changes in government, commnual crises, etc. These generally lead to low economic growth and development. Theferore, political instability, through its adverse influence on investment, accounts for substantial reduction in the economic growth.