Articles and Analysies
Relationship Between Economic Mismanagement & Social Instability by Eng. Tarig M.M.K. Anter
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Nov 26, 2006 - 11:22:00 AM

Relationship Between

Economic Mismanagement & Social Instability

The performance of any economy is the main factor that influences total social stability. At the level of individuals, as well as for enterprises & states, the relationship between competence and economic participation or output is determined by political, ethnic & administrative policies. When economic output falls  while there is actual gain in experience then this will be translated into resentment & any form of protest against these policies &  states. (as the case with many famous rebels, outlaws & rich terrorists)

Badly managed economies (or underdeveloped), as shown in Output Curve 2 below, are characterized by the following:

1. Low level of maximum output due to strong reliance on inexperienced work force.

2. Higher percentage of resentment, and consequently higher social instability.

3. Low over all productivity ( total area under the curve, it is short & shifted to the left).

Key:

1. Output Curve 1 � production pattern in successfully managed economies.
2. Output Curve 2 � production pattern in badly managed economies.
3. The X-axis � Time of involvement of individuals & enterprises, in a career.
4. The Y-axis � Relative output or income of individuals & enterprises.
5. Competence & Knowledge Gain Curve � Normal learning development.
6. Resentment � The dissatisfaction due to fall in income & opportunities.
7.  

The main features of bad management of an economy are:

1. Ethnic & personal favoritism.                               2. weak sense of responsibility.

3. Appointment of incompetents.                            4. Disregard to specialization.

5. Weak monitoring system.                                    6. Professional disorganization.

7. Ineffective justice institutions.

Eng. Tarig M.M.K. Anter, 

Khartoum, Sudan , [email protected]  , Cell 00249-92 27 25 29 5