Explain the concept of political instability.

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Explain the concept of political instability.

Political instability refers to a situation where a country or region experiences frequent changes in its government, political leadership, or policies. It is characterized by a lack of political consensus, social unrest, and uncertainty in the political environment. Political instability can arise due to various factors such as corruption, conflicts, economic crises, social inequality, or ineffective governance. This instability can have significant impacts on the economy, including reduced investment, decreased business confidence, disrupted supply chains, and increased risk for both domestic and foreign investors.