UNIVERSITY OF CEBU-MAIN CAMPUS

COLLEGE OF ARTS AND SCIENCES

UNIVERSITY OF CEBU POLITICAL SCIENCE SOCIETY

University of Cebu-Main Campus, Sanciangko St., Cebu City, Philippines

The impact of economic inequality on political stability in a national context.

Researchers:

Giuliani Alfonso Abadilla

Deniel Montebon

John Rownick Lacida

Prof. Milphene Pinatil

Research Method Professor 2023

 CHAPTER I

I. Rationale

Economic inequality is the unequal distribution of income and opportunity between

different groups in society. It is a concern in almost all countries around the world and

often people are trapped in poverty with little chance to climb up the social ladder.

According to (Cingano, F. 2014), Economic inequality is a significant and persistent

problem that has an impact on numerous aspects of today's society, including political

stability. Therefore, it is essential to understand how these important aspects relate to

economic inequality.

The effects of economic disparity on political stability have been the subject of an

expanding amount of research. For example, research has shown that greater financial

inequality can increase political division and tensions (Alesina et al., 2018; Campante &

Chor, 2012), as well as weaken trust in governmental organizations and political leaders

(Luttmer & Singhal, 2014; Persson et al., 2013). Economic inequality can also lead to a

wealthy minority holding a majority of the political power, which contributes to cronyism,

corruption, and political capture (Meltzer & Richard, 1981). However, while the

relationship between economic inequality and political stability has been widely explored,

there is still much to learn about the underlying mechanisms and factors that drive this

relationship.

Despite the considerable body of research on the relationship between economic

inequality and political stability, there is a need for a further qualitative inquiry into the
mechanisms through which economic inequality impacts political stability in a national

context (Henderson & Appelbaum, 2021). Specifically, this research aims to identify the

factors that moderate or worsen the relationship between economic inequality and

political stability (Bjørnskov et al., 2021).

This study will address the following research question: How does economic

inequality impact political stability in a national context, and what are the fundamental

mechanisms and factors that contribute to this relationship?

Based on the studies that exist, we assume that higher levels of economic

inequality will be associated with greater political instability in a national context. We also

expect that this relationship will be moderated by factors such as the country's political

institutions, cultural values, and historical context.

For politicians and practitioners concerned with promoting social and political

stability and lowering economic inequality, this study has significant implications. The

relationship between economic inequality and political stability can be better understood

by understanding the fundamental mechanisms and elements that contribute to it. This

will help policymakers create more effective solutions to the problem and promote an

equal and secure society.

The present study aims to determine the impacts of economic inequality on political

stability in a national context. To analyze the primary processes and elements that

contribute to the relationship between economic inequality and political stability.

We developed a core theory called the "Inequality-Political Stability Theory," which suggests
that economic inequality significantly impacts political stability in a national context. This core
theory is supported by the "Social Instability Sub-Theory" and the "Power Concentration Sub-
Theory."

 Inequality-Political Stability Theory:

I. Economic inequality significantly affects political stability in a national context.
II. The theory suggests that increasing economic inequality causes more political and
social instability.
III. It also suggests that economic inequality can lead to an increased concentration of
political power in the hands of a wealthy few, which affects political stability by favoring
cronyism and corruption.
 Social Instability Sub-Theory:
i. Political stability is affected by social instability, which is a result of increasing
economic inequality.
ii. Economic inequality leads to differences in wealth, opportunities, and access to
resources, which causes societal instability, disputes, and protests.
iii. The sub-theory suggests that riots, social unrest, rallies, and political division are only
a few examples of how economic inequality's impact on social stability can take many
different forms and threaten political stability.
 Power Concentration Sub-Theory:
i. Economic inequality has played a part in the concentration of political power in the
hands of a wealthy few.
ii. The sub-theory suggests as economic inequality rises, the wealthy few would come
with more influence and control over political activities and decision-making processes.
iii. This concentration of power has the possibility of resulting in cronyism, corruption, and
policies that worsen inequality while weakening political stability.
Together, these sub-theories provide a comprehensive framework for understanding the
mechanisms through which economic inequality impacts political stability. The Social
Instability Sub-Theory emphasizes the role of social unrest and disputes, while the Power
Concentration Sub-Theory highlights the influence of wealth concentration on political power
dynamics.
REFERENCES:

Alesina, A., Glaeser, E. L., & Sacerdote, B. (2001). Why doesn't the US have a European-
style welfare state? Brookings papers on economic activity, 2001(2), 187-277.

Bjørnskov, C., & Serritzlew, S. (2021). Economic inequality and political instability: A micro-
level analysis. Social Science Quarterly, 102(2), 431-447.

Campante, F. R., & Chor, D. (2012). Why was the Arab world poised for revolution?
Schooling, economic opportunities, and the Arab Spring. Journal of Economic Perspectives,
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Cingano, F. (2014), "Trends in Income Inequality and its Impact on Economic Growth", OECD
Social, Employment and Migration Working Papers, No. 163, OECD Publishing, Paris,

Henderson, E. A., & Appelbaum, R. P. (2021). Economic inequality and political instability: A
qualitative study. Journal of Politics & Society, 32(1), 67-83.

Luttmer, E. F., & Singhal, M. (2014). Tax morale. Journal of Economic Perspectives, 28(4),
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Meltzer, A. H., & Richard, S. F. (1981). A rational theory of the size of government. Journal of
Political Economy, 89(5), 914-927. can you revise this with your current response?

Persson, T., Roland, G., & Tabellini, G. (2013). The economic effects of constitutions. MIT
Press.