Impact of politics and economics on development and vice versa

Politics
development

economics

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Can determine the pace of what is to be done by politicians. Politicians have to move at the pace of changing economic times Results in the structuring of political positions. Eg the ministry of environment and tourism was too big economically to run hence had to be divided into ministry of environment and ministry of tourism

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Can determine government expenditure, resource allocation and priorities Can shape policies eg ICT and farming equipment have had tariffs removed. These have been beneficial to development processes

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Economic stability attracts investment and politicians have to move along with the pace of economics economic transformation which can sustain growth, to cope with population increases, become competitive in the global economy and to create the conditions for better governance.

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Economic instability can have a negative impact as it can cause political and social unrest. Countries that suffered from the instability included Ghana, the then Zaire, the Congo Republic, Uganda, Nigeria, Angola, Mozambique, the Gambia, Ethiopia, and recently Liberia, Sierra Leone, the Ivory Coast and Burundi and Rwanda, Somalia, Chad and Zimbabwe.

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IMF, World Bank, General Agreement on trade and Tariffs (GATT) and World Trade Organisation (WATO) have had positive and negative effects on the international political arena.