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

A thesis

Presented to

The Faculty of the College of Arts and Sciences

University of Cebu-Main

Cebu City, Philippines

In partial Fulfillment

of the Requirement for the Degree

Bachelor of Arts in Political Science

By:

Giuliani Alfonso Abadilla

Orcid #: 0000-0002-3445-0464

John Rownick Lacida

Orcid #: 0000-0003-4836-384X

Deniel Montebon

Orcid #: 0009-0009-9719-8562
 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.

THEORIES:

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, is mainly an economic inequality
significantly affects political stability in a national context.

The theory suggests that increasing economic inequality causes more political and
social instability.

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, is a political stability is affected by social

instability, which is a result of increasing economic inequality. Economic
inequality leads to differences in wealth, opportunities, and access to resources,
which causes societal instability, disputes, and protests. 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, is states that economic inequality has

played a part in the concentration of political power in the hands of a wealthy few.
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. 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.
Statement of the Problem

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

stability in a national context.

To be more explicit, the following information was decided to seek in terms

of:

1. What are the primary processes and elements that contribute to the
relationship between economic inequality and political stability?

2. How does economic inequality impact political stability in a national

context?

3. What are the fundamental mechanisms and factors that contribute to this
relationship?

4. What are the urgent difficulties posed by the influence of economic

inequality on political stability, which has the capacity to destabilize and weaken
the current political systems?

4.1 Particularly in the distribution of wealth;

4.2 and access to resources;

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, 26(2), 167-188.

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), 149-168.

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.