Assault on Democracy: Impact on Economy
How does the assault on democracy affect the country's economy?
The assault on democracy significantly undermines a country’s economic stability and growth. Its adverse effects include:
- Investor Confidence: Political instability deters both domestic and foreign investment due to increased risks.
- Capital Flight: Uncertainty prompts capital outflows as investors seek safer environments.
- Disrupted Markets: Protests and unrest can halt production, disrupt supply chains, and affect trade.
- Policy Paralysis: Weak democratic institutions lead to poor governance and unpredictable economic policies.
- Reduced Aid and Partnerships: International organizations and countries may cut aid and cooperation.
- Loss of Human Capital: Brain drain may occur as skilled workers emigrate for stability.
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