The importance of government transition for investments

[soniya55531]

Therefore, it is the team's responsibility to gather as much information as possible and pass it on to the elected candidate.


The current management team is fundamentally responsible for acting as facilitators in the transition process, taking into account, above all, the impacts on the population, considering that the absence of a government transition or its implementation without ethical and transparent bases may culminate in the administrative discontinuity of public policies that affected society with the interruption of the delivery of goods and provision of services.


More than ensuring that the population has access to the continuity of public policies through the continuity of management, the government transition also plays a fundamental role in relation to the investments that the country will receive and that will guide its economic progress.


In this sense, the way in which the transition occurs will determine jamaica mobile database whether the results will be positive or negative for the economy, depending on its ability to promote predictability and stability.


A stable political scenario provides the market with the security it needs to make investments. Otherwise, the crisis of confidence that arises could lead to significant economic losses.


Transparency throughout the transition process, combined with predictability, are elements that can guide investors’ actions. If the public budget is clear about all the government’s steps regarding the works that will be carried out, for example, investors are better able to assess the scenario and know where they should really invest. In other words, transparent processes have a direct impact on the country’s growth.


One of the most recent examples of a crisis during a government transition can be seen in the US elections . With Joe Biden's victory and Donald Trump's refusal to facilitate the government transition, the political scenario became unstable and, as a result, one of the most consolidated democracies in the world began to have its foundations questioned.


The accusations regarding the American electoral system, the non-recognition of the opponent's victory, the difficulties imposed on the government transition, as well as all the violence against Congress, as well as Trump's absence from Biden's inauguration contribute significantly to the instability of American democracy and point to a very high political risk, which could influence the relationship with investors.