The Impact of Political Instability on Economic Development (A Comparative study between Indonesia and Egypt)

Abstract

Political instability is a critical issue to developing and underdeveloped countries, which led to massive obstacles to their development track. Economic development is a more comprehensive concept as it includes economic growth and socio-economic indicators. So, political instability has an adverse effect on most of the areas of the economy. In this study, the researcher finds that Indonesia made remarkable progress towards achieving political stability accompanied with economic development that makes it a role model for developing countries. As for Egypt, it entered into a series of political, economic and security transitions which will take many years in order to reach the safety. From the study, the researcher reached a conclusion that Egypt can benefit from the Indonesian experience in achieving economic development to overcome some of its economic and social challenges.