Political instability hinders economic growth because it?

A. scares many people from politics
B. prevent politicians from playing effective politics
C. discourage entrepreneurs generally
D. encourages urban-rural migration

Correct Answer:

Option C – discourage entrepreneurs generally

Explanation

Most developing countries are not politically stable e.g frequent changes in government, communal crises, etc. These generally lead to low economic growth and development. Theferore, political instability, through its adverse influence on investment, accounts for a substantial reduction in economic growth.