Waz the point of stability?

In Economy, Political economy on 22/02/2011 at 8:43 am

We are told that stability is to be prefered over democracy because investors want stability. But the rapid collapse of the autocratic governments in Tunisa, Egypy and Libya should make one reflect whether stability is over-rated. These countries economies and politics are now in utter chaos.

India, S Korea, M’sia, Indonesia, the Philippines and Taiwan (with their messy democracies) are safer places to invest in. They may be less stable than places like Libya and Egypt, but they don’t go from stability to chaos in 21 days.

  1. Wouldn’t a democratic nation be more stable due to the inherent checks and balances?

    Especially when you are talking about political/regulatory risks to investments.

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