How Do Political Decisions Shape Economic Development?

How Do Political Decisions Shape Economic Development?
Political decisions affect economic development in different ways. Firstly, political decisions involve policies enforced by goverments. Such policies may determine the business climate hence the economic development of the country. Secondly, political decisions influence stability of a country. In turn, political stability determines the exchange rate of the country’s currency hence its economy. Besides, political decisions determine the level of corruption in a country. When corruption is high, the economy is likely to face hardships.
A look at Singapore’s economic growth model reveals that the country embarced intensive manufacturing which insutrialized the country making it to grow between the 60s and the present day state (Le & Le, 2020). The GDP growth of the country has been greater than the world average since the country gained its independence. The government made decisions such as provision of subsidies to business people to en...