Discuss the impact of political stability on a country's economic development.

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Accepted Answer

∻Answer∻ ⚹ Political stability positively influences a country's economic development by creating a conducive environment for investment, fostering consistent economic policies, and reducing the risk of disruptive economic changes. ⚹ ∻Solution∻ ‖ a ⋮ Attraction of Investment: Political stability can attract both domestic and foreign investments, as it reduces uncertainty and the risk of abrupt policy changes that could affect the profitability of investments. ‖ ‖ b ⋮ Consistency in Economic Policies: Stable governments are more likely to maintain consistent economic policies, which is crucial for long-term planning and growth. ‖ ‖ c ⋮ Risk Reduction: Political stability reduces the risk of conflict, which can cause significant economic disruptions and destroy physical and human capital. ‖ ∻Key Concept∻ ⚹ Political Stability and Economic Development ⚹ ∻Explanation∻ ⚹ Political stability is a key determinant of economic development as it creates a predictable environment that is essential for investment and growth. ⚹◊How does political stability affect a country's GDP growth rate in the long term?⍭ Generate me a similar question◊

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