Political Stability and Economic Development : Case of South Sudan

Political stability and economic development are deeply interconnected. On the one hand, the uncertainty associated with an unstable political environment may reduce investment and the speed of economic development. On the other hand, poor economic performance may lead to government collapse and political unrest.The question is “Why most of developing countries are unable to enjoy rapid growth? A politically unstable environment usually means that the government is misusing or mismanaging the country's resources: resources are not being used to their full capacity, or in a manner whereby economic development could be maximized. In a situation where civil war is occurring, money and human resources can be taken away from normal jobs and processes, which could had been used to develop the economy. It is also right that if a country's political environment is volatile, this will deter investors, foreign trade, and economic development. Those problems are embodied in the new state of South Sudan along with the dependance on one economic resource, oil production. How to finance development can be an impediment in the process of building a nation.