Friday, December 18, 2009

Economic Growth and Social unrest.

Economic Growth and Social unrest.
The Economic growth of a Country is interrelated to the peaceful social conditions of a Country. A social harmony in a country would automatically turns into a peaceful Business atmosphere.
A peaceful and harmonial social environment of a Country would attract foreign Investors to invest in their country. Local businessmen would be doing business peacefully which in turn would put the Economy in growth path.
One best example of Social harmony is important for Economic growth is, India and Pakistan. Though India and Pakistan were in the same plain in the 1990s, India turned out to be big Economic Power by 2008.
The reason is the social unrest in the country had put the economic development into the backseat. Frequent bombings, Killing of Political figures, hate campaign against the westerners has presented a poor picture on that Country.
That has dithered away potential Foreign Investments from that Country. On contrary, India which is having a vibrant democracy and rule of the law has grew leaps and bounds.
When comparing India with China, we say the growth of China is better than India because of this Social harmony factor. Even though our environment is much more better than Pakistan, it is not better than China.
In India, we had frequent terrorist attacks, bombings and political unrest. But in China, there is no such incidents taking place. That is why the growth rate is higher for China than India.
If a country wants to grow Economically, then it surely should have a peaceful social atmosphere.

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