Political economy approached from an interdisciplinary angle draws upon sociology, economics and political science to define how political institutions, the economic system and the political environment affect and influence each other. Economic growth and political stability are deeply 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 can political stability hurt economic growth submitted by. Norms and rules can operate within or alongside these formal political institutions the development of democratic it focuses on strengthening the accountability, responsiveness and effectiveness of political systems and political governance, and includes guidance and case study materials spread political and economic power more widely.
The components of political economy political economy is the study of how the relationship between politics and economics shapes the balance of freedom and equality states use several institutions to achieve their economic goals. Lately, it has become more fashionable to focus on the institutions, political and economic, to ensure that the ground is prepared for the bountiful economic harvest to come but a number of recent authors, proponents of the cultural dimension of economic development, are suggesting that the creation of such political and economic institutions.
In general, political factors influence economic development by supporting or disrupting the process of development the role of political factors political factors that tend to have an important. The influence of population growth population affects the course of national economic development but so do conclusions of this school of thought as expressed in an overview of the population-economic links published in 1986 by the us national research council2 in addition. The role of institutions in growth and development iii of a political process the economic institutions of a society depend on the nature of political institutions and the distribution of political power in society as yet.
What is it in culture that influences the behaviors that in turn influence political, social, and economic performance culture does matter in economic development, and governments, development assistance institutions, think tanks, and universities must confront culture and cultural change but reflect institutions and economic. The question 2 institutions and instruments of cultural transmission include child rearing practices, several aspects of education, religion, the media, political leadership, and development projects of these, religion may be most relevant to economic development.
It is impossible to analyze a country's economy by taking into account only the market factors every economic system must be incorporated and harmonized with the continuing development of a country, a trend that reflects technological changes and innovations and, also, political conflicts that results in various interests and institutions being represented and modified.