Impact of Political Instability on Economic Development in Pakistan: Sample Research Proposal

 Impact of Political Instability on Economic Development in Pakistan

                                  

1.Introduction

Political Stability plays an important role in Economic Development of a country. An unstable political system could seriously hamper economic growth. The concept of political instability was described by Lipstel (1960). He stated, “a country is considered as stable if it has been a liberal and consistent democracy or dictatorship for 25 years”, but recent politico-economic school of thought has changed the tradition of political instability. The standard definition of political instability is the propensity of a government collapse either because of conflicts or rampant competition between various political parties (Hussain, 2014). Economic growth and political stability are strongly related. The uncertainty associated with an unsteadfast political environment may decrease investment and the speed of economic development. Moreover, weak economic performance may lead to government fall down and political instability (Chowdary, 2016).  Terrorism, election, regime and strikes have been used as political instability proxies. The overall results imply that political instability has significant negative effect on economic growth and the government should take corrective measures to bring political stability. (Aftab Hussain Tabassama, 2016)

2.Statement of Problem

The main purpose of the study is to investigate how the political instability of Pakistan affects the economic development of the country. The problem of political instability generates more serious for a society which is multi ethnic, having people of diverse cultural attributes. In a politically stable state all sections of society get their due shares and are satisfied being a part of a multi ethnic society which ultimately leads towards the nation-building. In stable conditions people are empowered and exert their energies for the development of nation. (Memon, Shaikh & Memon 2011). In case of instability the case is vice versa, people feel unsatisfied and powerless, lose their trust on institutions and they prefer their own interest in front of state and ultimately society leads to split.

3.Significance of research

I propose to review the available literature on how the political instability of Pakistan affects the economic development. Pakistan is facing the serious issue of political instability since its birth in 1947. It has experienced many democratic regimes but unfortunately none of its single Prime Minister has ever completed his tenure. The research will find the basic problems of the changing political situations and the causes of the downfall of the democratic regimes. Also Pakistan is facing serious burden of loans from IMF and World bank. That’s why it remains underdeveloped.

In my review, I will find and discuss the causes of political instability and its relation with economic development of Pakistan. Economic growth and political instability are deeply interconnected. Poor economic performance may lead to government collapse and political unrest. If a country does not need to worry about conflicts and radical changes of regimes, the people can concentrate on working, saving and investing thus driving the country towards Economic Development (Hussain, 2014).

4.Literature review

It is revealed that the effect of Socio-economic inequality upon political instability is dependent on which measures are used, and that the effect of instability upon economic development varies between different analytical models. Economic growth and political stability are deeply interconnected (Hussain, 2014).

We must also realize that the inability to deepen the democratic compact along these lines will lead to persistent contestation that is likely to impose a heavy cost on Pakistan’s future (Cheema, 2014).

Since 2008, things have become more covert with no unnatural dismissals of assemblies but only of Prime ministers via dodgy verdicts (Khan, 2017).

 5.Research methodology

The methodology will be used in this research will be Qualitative. I have read different Journal articles and Research papers which were conducted in Pakistan and Abroad as well.

6. Research Questions

1.How political instability affects the economic development of Pakistan?

2.What are the main causes of political instability in Pakistan?

3. Reasons of Bad economic conditions of Pakistan?

4.What is the relation between political instability and economic development?

 7.Variables

The two variables are as following

Dependent variable: Economic development

Independent variable: Political instability

8. Theoretical Framework

The Theory which could be helpful to understand the problem is Neoclassical economic theory. Neoclassical economic theory does not deny conflictual or antagonistic interests caused by scarcity. With or without fight, there is a settlement or compromise in which the rights are defined. Those who benefit from the activity gain the approval of those who object by giving them something to get them to agree. What I want particularly to stress is that the solution is essentially the transformation of the conflict from a political problem to an economic transaction.

An economic transaction is a solved political problem.

9. Division of Study

Introduction

Chapter 1. Theoretical Framework

Chapter 2.  Significance of Political stability

Chapter 3. Analysis of Economic Degradation in Pakistan

Chapter 4. Relation between Politics and Economy

Chapter 5. Political Instability and Economy of Pakistan

Conclusion

Bibliography: APA style will be applied for references.

Bibliography

Aftab Hussain Tabassama, S. H. (2016). Nexus between Political Instability and Economic Growth in Pakistan. sciencedirect.

Aisen, v. (2013). how does political instability affect economic growth. European journal of Political Economy.

Cheema, A. (2014). political instability. daily dawn.

Chowdary, J. (2016, december). POLITICAL INSTABILITY A MAJOR OBSTACLE TO ECONOMIC GROWTH IN BANGLADESH.

Hussain, Z. (2014). can political stability hurt economic growth.

Khan, A. A. (2017). political instability in Pakistan. daily dawn.

S.H Ali, S. H. (2013). Relationship between political instability and domestic private investment in Pakistan. Pakistan Business review.