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What are the effects of an unstable government?

An unstable government can be problematic. When a government is perceived as unstable, other countries are less likely to be able to predict what may happen to that country in the future. This could have serious economic ramifications. If a country is perceived as unstable, there may be less investment in that country. Those who do invest will want a higher rate of return. This will increase economic costs for the unstable country.


An unstable...

An unstable government can be problematic. When a government is perceived as unstable, other countries are less likely to be able to predict what may happen to that country in the future. This could have serious economic ramifications. If a country is perceived as unstable, there may be less investment in that country. Those who do invest will want a higher rate of return. This will increase economic costs for the unstable country.


An unstable country is very risky to support politically and militarily. If there is a good chance that the government will be overthrown, it might not be wise to provide weapons that could fall into the hands of a new, possible unfriendly, government. Supporting a government politically when that government might get overthrown may also cause diplomatic problems in the future.


Unstable countries might resort to tactics that suppress individual freedoms. The government might restrict freedom of speech or freedom of the press in order to try to suppress dissent and to try to maintain order. People might be more likely to be persecuted with an unstable government in power.


There are often problems associated with an unstable government.  

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