Political instability hinders economic growth because it
- scares many people from politics
- prevent politicians from playing effective politics
-
discourage entrepreneurs generally
- encourages urban-rural migration
The correct answer is: C
Explanation
Most developing countries are not politically stable e.g frequent changes in government, commnual crises, etc. These generally lead to low economic growth and development. Theferore, political instability, through its adverse influence on investment, accounts for substantial reduction in the economic growth.