الفهرس 
Definitions & Indicators of Political Instability and Economic DevelopmentOnly 14 pages are availabe for public view
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Abstract
Introduction
Political instability is a critical issue to developing and underdeveloped countries, leading to massive obstacles in their development track. Moreover, the development of a country needs a firm and organized system of politics or the government will be equal in power to other groups. The concept of economic development has a wider scope as it includes economic growth and socio-economic indicators like education, poverty, inequality and literacy. Meanwhile, economic growth means an increase in the country’s production of goods and services without touching on these above-mentioned socioeconomic problems. Hence, the political instability has an adverse effect on the most of the areas of the economy.
Indonesia is Asia’s fifth largest economy, the fourth most- populous nation in the world and rich with natural resources. Indonesia is the only country in Southeast Asia that turned to a democracy after being ruled by a dictator for thirty years. The government of Indonesia adopted the National Long-Term Development Plan divided into four Medium –Term Development Plans (RPJMs). Each plan consists of priorities and development strategies to be implemented throughout five years as a continuity of the preceding development strategies. After ten years of democratic rule, Indonesian economy appeared to be recovering. Hence, Indonesia is considered a good model in achieving economic development resulting from good planning and healthy government intervention.
Problem
Egypt has made many social and economic improvements in many fields but, unfortunately, the global financial crisis and the domestic circumstances that Egypt faced in last the year caused deterioration in its economic condition. But there is hope that these domestic circumstances will benefit all Egyptian through improvements in the efficiency of economic policies. Additionally, bringing back security will encourage investments and tourism, which consequently will decrease unemployment.
There are important lessons that one can extract from the Indonesian experience. However, we cannot make generalizations as each country has its own conditions according to which it will built its own development policies and strategies suit their conditions.
Building on all the above mentioned we come up with the following research questions:
1. What is meant by political instability and economic development? And what are their indicators?
2. What did Indonesia do to develop its economy? And what has Indonesia accomplished after a long process of economic development?
3. What are the general features of the political environment in Egypt? What is the current performance of the Egyptian economy?
4. What are the challenges that face economic development in Egypt? And how can Egypt benefit from the Indonesian experience in economic development?
Hypotheses
First Hypothesis:
There is an indirect relationship between political instability and economic development.
Second Hypothesis:
Indonesia is considered a role model of achieving economic development.
Third Hypothesis:
Egypt can overcome these political instability conditions and achieve economic development in the future as it can benefit from Indonesian Experience in achieving economic development.
Objectives
1. To confirm the inability of achieving economic development in any country without political stability.
2. To study the Indonesian experience in political stability and economic development.
3. To study the developments in the Egyptian economy after the 25th January and 30th June revolutions and the obstacles that impede economic development in Egypt.
4. To study how Egypt can benefit from the Indonesian experience in achieving economic development.
Findings
1. The political instability has an adverse effect on economic progress in any country due to withdrawal of FDI and cease of tourism.
2. Indonesia is the third largest democracy in the world after India and the United States. Indonesia is the Asia’s fifth largest economy, the fourth most populous nation in the world and rich with natural resources. Political stabilization and economic progress are the two major characteristics of Indonesia’s overall development.
3. Egypt became in a series of political, economic and security transition period which will take many years in order to reach the safety. Appropriate economic policies and strategies are essential in this period to achieve progress towards economic development overcoming all the challenges and problems faced.
4. Egypt can benefit from Indonesian experience in economic development in some areas including investments, poverty and income distribution, and education.
Hypotheses Results:
1. It is accepted that there is an indirect relationship between political instability and economic development.
2. It is accepted that Indonesia is considered a role model of achieving economic development.
3. It is accepted that Egypt can exceed these political instability conditions and achieve economic development in the future as it can benefit from Indonesian Experience in achieving economic development.
Recommendations:
1. In spite of the importance of Egypt’s benefit from Indonesian experience, it should be adapted according to the requirements of the Egyptian economy as ’’No one model can be applied all over the world’’.
2. In the first place, Egypt should focus on political reforms on which we will achieve security and thus will encourage investors to invest at home and activate tourism, which allows a lot of job opportunities.
3. For fiscal position, Egypt should rationalized government spending through reforming subsidies system in which more resources will be shifted to social services targeting poor people such as education, health, training and infrastructure developments. Also, it should reform the tax system in order to mobilize additional revenues.
4. Also, coordination between fiscal and monetary policy is a must in order to strengthen monetary policy in achieving low and stable inflation rate accompanied with sustainable economic growth.
5. Moreover, Egypt should focus on reforming the overall labor market through reviewing labor laws to provide protection for workers, gradually converting informal sector to be formal and supporting SMEs and PPP to create more job opportunities.
6. Finally, there is a need to give more attention toward investments in education and R&D, exploiting scientists, reducing obstacles in registering new patent and reforming technical and Vocational training education to close the gap between the market requirements and labor qualifications.