Sample Solution

change during election times or after elections. For instance, President Rajaonarimampianina did not have a political party before elections. His Platform for a Presidential Majority (PMP) is an amalgamation of numerous political parties. The lack of the institutionalization of political parties produced a polarised National Assembly and hence, the nomination of the prime minister was disputed. These possibilities could ignite another wave of political instability that will have a negative impact on the economy.
The current relative political stability has resulted in economic recovery that has enabled the country to gain some quick-wins. However, the economic recovery remains fragile and the business environment remains weak. This is exemplified by the government’s failure to attract adequate investment towards other key sectors of the economy such as manufacturing and diversify the economy. During election time periods, elites are likely to focus more on political survival than economic growth, and this will delay the implementation of crucial structural reforms.
As a result, the outlook in the short-term and long-term is not positive. Without a smooth election and transition of power, the current political challenges will be heightened and this will adversely affect the economy in a number of ways – fundamental reforms will be delayed and the business environment will continue to be weak for long-term investment. This will undermine the investment potential of the export processing zones that have contributed to the recovery of the economy. Therefore, the country needs to maintain political stability in the short-term and long-term for development to take place. However, looking specifically at demographic transition and politics, we do not see any substantial contribution or impact this instability has had on the population numbers. From time o