Economic and political instability often remains, or even worsens, after the formation of the interim government in different countries — because of wars, mass uprisings, or other reasons such as coups — leading to concerns. According to multiple sources including the BBC and CNN, several countries in Asia, Africa and other regions including, but not limited to, Burkina Faso, Egypt and Bangladesh faced economic and/or political instability during the interim government, a government that administers a country usually between one to another elected government. But economic and political instability leads to diverse negative outcomes including decreased investor confidence, a decline in foreign direct investment and economic growth and further political violence in different countries.
It is notable that there are policy based, political and other reasons that lead to economic and political instability after the formation of the interim government. The economic instability before the fall of the immediate past government, a lack of effective leadership, conflicting interests among stakeholders including the interim government and political parties and the inability of the interim government to implement effective policies to address economic and political challenges are crucial causes. Among others, a lack of cooperation from political parties, ill intention or political desire of the interim government and external factors including international sanctions or interference contribute to the instability faced by the interim government in some countries. The interim government of Egypt, formed after the fall of the Hosni Mubarak government in 2011, faced economic and political instability due to a decrease in foreign investment and a lack of transparency in government operations, along with other reasons.
The interim governments of different countries take policy based, talks based and other steps to address the challenges to economic and political stability, leading to positive outcomes many times. Interim governments implement economic policies including fiscal reforms, promote foreign investment, promote entrepreneurship and foster good governance practices through addressing corruption and improving transparency in government institutions. Additionally, different interim governments put emphasis on establishing the rule of law, hold dialogues with different political parties and address political grievances. For instance, the 2007-08 transitional government of Bangladesh put emphasis on establishing the rule of law. Among others, interim governments foster collaboration with international organizations and different countries to navigate economic and political challenges.
But there are flaws in the steps of the interim governments in many countries in addressing economic and political instability. There remains a lack of long-term planning, inconsistency in making and implementing policies and reliance on short-term fixes in different countries during interim governments probably because of several causes including, but not limited to, the limited time of the interim government. Additionally, there remains a failure to address corruption, a lack of transparency in decision-making processes and a failure to engage with stakeholders — effectively. Among others, interim governments sometimes misuse or overuse power, restrict peaceful political activities and fail to secure cooperation from different countries and international organizations.
Steps are needed to address economic and political instability during interim governments. Introducing economic reforms aiming to stimulate growth, putting emphasis on attracting foreign investment and increasing transparency and accountability in government finances to rebuild trust with investors are definitely crucial for many interim governments. Additionally, effective collaboration with other countries and regional partners to access resources and seeking financial assistance from international organizations including the International Monetary Fund and World Bank can help many times. But the emphasis also needs to be given to talks with the parties involved to reduce economic and political instability, especially during the post-war interim governments.
It is vital to establish the rule of law and ensure accountability often to bring economic and political stability during the interim government in different countries. But it is desired that power is not misused or overused in the efforts of the government to establish the rule of law and address economic and political instability, and peaceful political activities be allowed. For this, the good intentions of the interim governments are vital in many countries.
