The best way to describe political stability is by referring to the state of peace that can exist in a country. As long as the government makes decisions that serve people’s interests, the society will evolve and things will function as they should.
Political stability involves a predictable political environment which can attract domestically and internationally investments on long terms. Helping economy has various amazing benefits that can create better standards of living. Here are some of the most important influences that political stability involves:
• It increases the state incomes which can be used as investments for many important institutions: hospitals, orphanages and asylums.
• It decreases unemployment rates by creating new jobs, and that is how global productivity and economy can be improved.
• Education is a field that can also be helped thanks to the economic growth implied by a stable political environment.
• Primary Health Care Services will also be attended properly.
• Reducing poverty is one of the most important effects implied by the activities of a government.
Everyone likes stability. A reliable environment that is hard to overthrow encourages people to see that laws are being followed. Moreover, they can trust that those who have the power in their hands are doing the right thing for their country. Political stability implies that a government will be tomorrow or two years from now what it is today, and there won’t exist any drastic changes. In a Democracy, a lasting system involves that the majority of people is happy while the minorities don’t have enough power or influence to disturb this stability.
Political changes can have a positive or a negative impact on business performance. Governmental attitudes towards business can result in business taxation and regulations, or marketing alterations. Furthermore, the most important thing that the majority of the people don’t know is that small and medium-sized enterprises exceed the number of large industries, so they are the main source of employment. That is how they sustain the global economy which implies that they must be supported by the government. By applying lots of taxes on their incomes, the political representatives only succeed leading these small firms to bankruptcy, which can have a very bad impact on the society.
Political instability can affect in a negative way a business growth, and that is why some entrepreneurs choose to invest their capital in other areas. Nobody wants to take risks by entering new unpredictable markets, because they don’t have the reliability that things are going to function as they should for a long period of time.