2026-01-16 18:20:21

What does political upheaval really do to a nation's economic growth? Economists have struggled to quantify this for years, but history provides some stark answers. Look at Venezuela and Iran—their experiences show how political instability can trigger capital flight, disrupt supply chains, and erode investor confidence. When governments become volatile, businesses halt expansion plans, talent leaves, and economic activity contracts sharply. These real-world case studies offer lessons for anyone monitoring emerging market risks and geopolitical impacts on asset performance.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

19 Likes

Reward
19
5
Repost
Share

Comment

0/400

LightningSentry

· 10h ago

Venezuela's Napo is indeed miserable, capital is fleeing extremely fast.

View OriginalReply0

¯\_(ツ)_/¯

· 10h ago

Venezuela's recent maneuvers are truly incredible, with capital fleeing directly. This is the cost of political instability. Once politics become chaotic, the economy is doomed. Just look at Iran; investors have long since pulled out. In simple terms, it's a loss of confidence, money flowing out, and companies dare not act. Who can withstand this combination of measures? History is repeating itself; every political upheaval is a nightmare for emerging markets. This is the real systemic risk, more severe than any technical analysis. Government stability truly directly determines the future of the economy, not just empty words.

View OriginalReply0

MEVHunterNoLoss

· 10h ago

Venezuela and Iran are truly textbook examples of the opposite, once politics collapse, everything is over.

View OriginalReply0

SchrodingerWallet

· 10h ago

The same old trick in Venezuela is still happening, just changing the place and the name.

View OriginalReply0

CryptoWageSlave

· 10h ago

Venezuela and Iran are now textbook examples of the opposite, when politics collapse, the economy has to follow as a sacrificial victim. --- In simple terms, political stability is a premium; without it, capital will run away in minutes. --- That's why we must always keep an eye on geopolitical issues, or else the assets in the bag can disappear without warning. --- The exodus of talent was heartbreaking; even the smartest minds have to escape, what can we rely on then? --- Once the supply chain breaks, the entire economic system begins to decline, and this chain reaction is truly hard to prevent. --- So doing business in unstable countries is pure suicide; risk premiums can't fill this gap at all.

View OriginalReply0