References:

1. Article titled: political stability and economic growth in Asia by American

journal of applied sciences
2. Global business review article titled: does political stability accelerate
economic growth in Tanzania? A time series analysis
3. Article titled: political instability and economic growth in Harvard business
review
4. Noor ul ann sallahuddin in her paper impact of political instability on
Pakistan’s economic growth
5. Nexus between political instability and economic growth in Pakistan:
Procedia - social and behavioral sciences article by aftab and shujahat
6. The Pakistan development review published by: Pakistan institute of
development economics, Islamabad: corruption, political stability and
economic growth by Ghulam shabbir
7. Organization for economic co-operation and development (OECD) report
8. Martin paldam’s article titled: does economic growth lead to political
stability?
9. Article titled: political stability and economic stagnation by philip keefer the
world bank policy maker
10. Good Governance: Pakistan’s Economic Growth and Worldwide
Governance Indicators by Syed Sohaib, University of the Punjab
11. Political stability and sustainable development in Nigeria: any nexus
by Dr. Comfort. M. Amire
12. Impact of Political Instability On Economic Growth by Imran and
Sajjad University of the Punjab

Definition
Political Stability
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”, that means longevity of ruling
authority in a country: rules the country for a long period without any major
political upheaval and turmoil, but recent politico-economic school of thought
has changed the tradition of political instability and defined as efficiency of the
government system depends mainly on the consistency of strong political
government
Sustainable Development
Sustainable development or Sustainable economic development is not
concerned whether the regime is a democracy or a dictatorship; Their main
concern when analyzing the relationship between political regimes and
economic growth is the longevity of the regime. If it has longevity in a
peaceful manner, the country is considered to have political stability. The
concept of sustainable development is widely examined by scientists working
 within different disciplinary frameworks. Sustainable development is defined
by three key dimensions: economic, environmental and social.

Introduction
 Economic growth and political stability are deeply interconnected .
On the one hand, the uncertainty associated with an unstable political
environment may reduce investment and the pace of economic
development. On the other hand, poor economic performance may lead to
government collapse and political unrest. In times of crisis the role of the
political economy is crucial in redefining the policies and objectives that
must assure the desired economic outcomes. This belief was strongly
proved by the recent economic crisis which had a powerful impact on
reshaping the political context in almost each European country.
 Political stability influences economic growth. It is called “politicization of
the economic growth”
 Political stability determines the factors which determine economic
growth such as investments (foreign direct investment (FDI), stock market
capitalization, private investment) technologies which comes with FDI and
skilled labor who migrate to countries which have political stability. So
political stability indirectly determines economic growth.
===============
 The relationship between politics and economy still remains a favourite
subject of economists. Pakistan’s history reveals a strong correlation
between the two.Although with the changing pattern of politics and
governments, the relationship never remained on the same pace. It’s a
known fact that political instability deeply causes the uneven economic
growth. The causes and impact of the interplay of politics in economy of
Pakistan are briefly discussed here.

Political Instability
Political instability is detrimental to economy because it weakens governance as
the government continues to strive for its survival with economy getting the least
attention. Political instability shortens the horizon of the government, disrupting
long-term economic policies conducive to a better economic performance. The
government is forced to take short-term but populist measures to win the hearts
and minds of the people. Such short-term populist measures never improve
economic performance and thus, economy continues to suffer.  
According to index for aggregate political stability, China, Singapore and Malaysia
have higher political stability whereas India, Philippines, Pakistan and Sri Lanka
have worse political instability. Thailand and South Korea possess average
political stability. China ranks first and India the last.
 Rulers in sub-continent introduced art, music, but not democracy. The British
introduced controlled democracy. Since 1947, 11 dissolved assemblies, 3 Martial
Laws; making, amending and abrogating 3 constitutions; frequent LFOs and
Ordinances. Fragmented Opposition worked for personal interests instead of
national interest. Personalization of Politics No manifestoes but personalities,
family politics, No party elections.

Examples: GDP growth, Trade deficit

 Vietnam, for example, is controlled entirely by the ruling party. The economy is
one of the most volatile in Asia.  What once was thought of being a promising
economy has recently been in distress. Vietnam’s macro economy was relatively
stable in the 1997-2006 period, with low inflation, a 7 to 9 percent total output
expansion annually and a moderate level of trade deficit. curbed the FDI flow into
its economy. Starting in late 2006, both public and private sector firms began to
experience structural problems, rising inefficiency, waste of resources.

Examples: Industrial Development

 Chile's average annual per capita growth of 10.6 per cent per year between
1985 and 1993 stands in stark comparison to Bolivia's growth rate of 0.9 per
cent a year from 1989 to 1993. Although both countries adopted similar
macroeconomic policies over the period.

Pakistan case
Back in the 1960s, Pakistan was one of the fastest growing economies in the
developing world, in 1965, GDP per capita of Pakistan was $116, whereas
China’s and South Korea’s GDP per capita were only $98 and $109,
respectively. Unfortunately, Pakistan as an economic nation could not
materialize the promise it had. Today Pakistan’s GDP per capita is around
$4,000, whereas, GDP per capita of China and South Korea are around $13,400
and $30,500, respectively.
Pakistan is among those few countries where political instability had badly
damaged the prospects of growth despite the fact that the country is rich in
natural resources. It has been an impediment to development in every sphere of
life. Countries considered to be the allies of Pakistan are showing reluctance in
providing financial support and hence the overall balance of payments is in
deficit. The foreign investors are losing confidence in Pakistan’s economy and
their foreign investments are falling short. 

 it is imperative to seek for some out-of-the-box solutions. It is high time that the
political parties sit together and carve out policies to foster political stability in
Pakistan. 
 Political instability is associated with greater uncertainty regarding future
economic policy, it certainly affects investment adversely, slows economic
growth, increases unemployment and poverty, which, in turn, further fuels
political instability by giving rise to violence, civil unrest and strikes. A higher
 degree of political instability is associated with lower productivity growth, lower
physical and human capital accumulation thus weakening the foundation of long-
term economic growth and prosperity.

James Freeman believes, “A politician thinks of the next election, a

statesman, of next generation.”
 Factors behind political instability: Illiteracy, corrupt politicians and
bureaucracy, weak judiciary, Generals, controlled Media.
 Pragmatic Solutions: True democracy, strong Judiciary, free media, people’s
participation, Literacy, Development.

Military Oath
Members of the Armed Forces as given in the Second Schedule (Article 244) of
the 1973 Constitution of Pakistan is as follows: solemnly swear, he will uphold
the Constitution of the Islamic Republic of Pakistan which embodies the
will of the people, that I will not engage myself in any political activities
whatsoever and I will honestly and faithfully serve Pakistan in the
Pakistan Army (or Navy or Air Force) as required by and under the law.”
 military dictator in the name of the “doctrine of necessity.”