The political environment of a country influences its economic growth. The political environment includes the characteristics and policies of political parties, the nature of the government system, and key policies around industry, fiscal policy, and foreign trade. The main components of the political environment that affect economic growth are the political system, political ideology, political institutions like the legislature, executive, and judiciary, and pressure groups. Factors like poor management, political instability, trade laws, and corruption within the political system can negatively impact a country's economic growth. Nepal is projected to have strong economic growth of 6.94% for the 2016-17 fiscal year, beating its own target due to good monsoon, steady electricity supply, and improved law and order.

1. Political Environment
influences the
economic growth of a
country
Ajay Thakur
Pooja Dulal
Sushant Thapa
Prachee Ghimire

3. Intro duction
• The political environment includes the
characteristics and policies of the
political parties, the nature of the
constitution and government system and
policies.
• The important policies are industry
policy, fiscal policy, foreign trade policy

5. • An increase in the amount of goods and
services produced per head of the
population over a period of time.

6. Political
Environment
Political
system
Political
Ideology
Political
Institutions
Pressure
Groups
Components of Political Environment

7. Political System
Totalitarian
Democratic
Political Ideology
Capitalist
Socialist

8. Political Institution
Legislature
A legislature is a assembly with the authority to
make laws for a political entity such as a country or
a city

9. Executive
The executive is the law implementing body of the
state. The Council of Ministers or government is
the executive body of a country.

10. Judiciary
The judiciary gives equal justice to the people using
existing laws and it interprets the law and punishes the
law breakers

11. Pressure Groups
A pressure group is an organized group that seeks to
influence government policy to protect or advance a
particular cause or interest.

12. Globalization as a major factor

13. Poor Management Political Instability
Trade Laws Corruption
Political Factors affecting
Economy

14. Poor management
Poor management
skills carry long-lasting effects and may infect
the whole country. The results of toxic,
misguided leadership reach far and wide.
Political instability
It refers to the
reliability and durability of a government's
structures. The more stable a political system
is, the less risk a business operating in that
country will face.

15. Trade laws
Trade laws are the local and
international policies that impact the
importation or exportation of goods.
Corruption
Corruption can include
bribing politicians, bribing local companies for
materials, or paying to prevent competitors
from entering the market. Imagine that a
company pays the government to keep a
competitor out.

16. NEWS
• April-25,2017
 Nepal’s economic growth has been
projected to grow by 6.94% in the fiscal
year 2016-17, as per the data released by
central bureau of statistics.
The government’s preliminary growth
forecast is higher than its previous estimate
of 6.5%. This is probably the first time in
the recent history that the government had
beaten its own economic growth target.

18. Good monsoon, which is expected to
raise agricultural output.
Steady supply of Electricity which has
eased problem of enterprise
Improvement in law and order situation
due to sharp decline in protests