Question

her presidency was hampered by several coups attemtp which prevented a return to political stability and economic devrlopment​

Answer 1

POLITICAL INSTABILITY A MAJOR OBSTACLE TO ECONOMIC

Political stability plays a crucial role in economic development, integration of economic modes and in

maintaining natural development in the national economy. An unstable political environment can be

detrimental to the speed of economic development for any country of the world. Any kinds of

lingering inactivity can be barrier to international or domestic trade. That can cause an obstruction for

commercial organizations that import or export perishable goods. Opposition political parties and

interest groups in Bangladesh organize hartals, one kind of strikes as a form of protest against the

ruling parties that last an entire working day though the duration could either be shorter or even

longer. Hartal has a history of civil disobedience against colonialism in South Asian countries, but

that is increased dramatically in Bangladesh in last decades.

It is observed carefully at various forms of political instability, such as, civil-war onset, social unrest,

coups d’état, and transitions to and from democracy and its connection to economic growth. The

effect on different arena of economy like Export, Price level, Activity of port, Tourism sector, Human

right etc. is considered as well. This paper provided strong evidences of substantial productivity loss

by firms when multiple hartals occur in a week. Though it has been found that firms re-optimize in

response to political strikes, they became able to substitute among factors inputs, mostly by

decreasing costs on wages and capital consumptions. Obviously small firms suffer the most due to

hartal because it is harder for them to re-optimize those factors to reduce the expenditures in the

short-run. Another disappointing fact that hartal imposes a large cost on the whole economy. It has the

negative impacts on GDP, revenue collection and some other crucial economic factors. These findings

suggest that the relationship between economic growth and political stability are more complex than is

widely presumed.

Key words

Economic instability, Economic development, Hartals, Bangladesh Economy