Political stability and its effect on economy: some lessons from Sikkim Himalaya

Abstract

The Himalayan state of Sikkim has a unique political culture and social environment that could be replicated. Unlike other north-eastern states of India where ethnic identities have been intensely used for electoral politics and state developmentalism, the collective Sikkimese identity has taken precedence over narrow ethnic identity politics in Sikkim. As a result, the state has evolved as one of the most politically stable and better-governed states in India, resulting in rapid economic growth. This has been made possible by the charismatic quality of its political leadership, and the peoples’ collective vision of an inclusive Sikkimese identity.

Institutions and economic growth: the role of financial inclusion, public spending on education and the military

“…Regarding the effect of specific institutional factors, Singha and Singh (2022) confirm that political stability contributes to economic growth. Trabelsi and Trabelsi (2020) found that beyond the optimal threshold high and low corruption negatively impact economic growth.…”