Question

Which of the following is considered a political obstacle to economic growth?

A. Low foreign investment B. Explosive population growth C. Few government subsidies D. Insecure property rights E. Lack of entrepreneurial talent

Answer 1

Political framework and policy dispensation also plays an important role in the economic development of a country.

Political stability and conducive policy making creates a stable economic environment and encourages businesses to undertake investment with long term view.

Moreover, it is the duty of the political dispensation that it creates independent and robust institution that can create and grant secure property rights as secure property rights are one of the most important ingredient for attaining rapid economic growth.

So, if property rights are not secure then it is the failure of the political establishment to put economy on high growth trajectory.

Thus,

Insecure property rights is considered a political obstacle to economic growth.

Hence, the correct answer is the option (D).