Political Polarization in Western Democracies and Economic Instability
One of the key concerns discussed was the increasing political polarization in Western democracies. The inability of political parties to collaborate on economic policies has resulted in:
Gridlocked Decision-Making: Political divisions prevent governments from enacting effective fiscal policies.
Weakened Institutions: The rise of extreme ideologies threatens democratic governance and financial stability.
Declining Investor Confidence: Markets react negatively to political uncertainty, leading to financial volatility.