A cross-country analysis of the impact of political stability on Essay

A cross-country analysis of the impact of political stability on economic growth - Essay Example This analysis will then be followed by an in-depth examination of these four diverse countries, each representing different regions of the world. Finally, this essay will demonstrate that political stability must be present for an economy to be healthy and is a necessary condition for the promotion of strong and continued economic growth. How does one define political stability? Theoretically speaking, the term is notoriously difficult to define and definitions will necessarily vary (see Ake 271-283; Fosu 329-348; Pasos 70-86; Goldsmith 471-480). Nonetheless, it is integral that the concept of political stability be defined for the theoretical purpose of this essay. Leon Hurwitz explored four conceptions of political stability and defined it as: 1) the absence of violence, 2) the duration of government, 3) the existence of a legitimate political regime, and 4) the absence of structure change (149-163). Since this definition is comprehensive it will guide the political component of this essay as well as complement the economic systems analysis of our four case studies. What sort of factors influence economic growth? The economic growth of a country is routinely measured by an aggregate indicator such as Gross Domestic Product (GDP), which represents the increase in goods and services produced by an economy. Economic growth can also be measured in GDP per capita, an indicator of the average annual income of an individual within a given economy. Annual economic growth and national productivity are influenced by a variety of factors including international terms of trade (imports vs. exports), the national unemployment rate and inflation rates (Henderson 338). Canada, Iraq, the United Kingdom and Somalia represent a fascinating cross-section of countries with which to analyze the effect of political stability on economic growth. From a