Question

econ question;

Explain how political systems are not always drivers of economic systems.

Answer 1

Economic growth and political stability are deeply interconnected. On the one hand, the uncertainty associated with an unstable political environment may reduce investment and the pace of economic development. Poor economic performance, on the other hand , can lead to collapse of government and political upheaval. Political stability can, however, be achieved through oppression or by having a political party in place that doesn't have to compete for re-election. Political stability is in these situations a double edged sword. While a desideratum is the peaceful setting that political stability can offer, it could easily become a breeding ground for impunity cronyism.

Political stability isn't the norm in human history at all. As with all political regimes, the democratic regimes are fragile. Regardless of political regimes, if a country doesn't have to worry about conflicts and radical regime changes, the people can focus on working, saving , and investing. Recent empirical research on corruption has established a long list of variables substantially correlating with corruption. Decades-long tradition of democracy and political stability are among the factors identified to reduce corruption. However, in today's world there are several countries combining one of these two strong corruption determinants with the opposite of the other

Political stability may take the form of complacency and deflation that prevents competition from happening. Competition principles don't just apply to business. In everything – political systems, education , business, innovation, even the arts – competition can be applied. In this case, political stability refers to the lack of any real competition for the governing elite. The 'politically stable' system enforces rigorous barriers to personal liberties. Similarly, there are also truncated other rights , such as freedom of the press, freedom of expression, access to the internet and political opposition. That brings about abuse of power and corruption.