The term “political unrest” encompasses a range of political protests and violence, from organized demonstrations and violent riots to more subtle expressions of frustration. These can occur over short or long timeframes and are generally, although not exclusively, urban acts (Kalyvas 2000:3).
A major cause of political unrest is economic inequality. When a large portion of the population feels excluded from the economic benefits that a government offers, they may become dissatisfied and express their frustration with government actions or lack thereof through peaceful or violent means. This can happen even in countries that have relatively stable economies and low poverty rates, as demonstrated by Chilean citizens’ reaction to an increase in subway fares.
In addition to the economic costs of policing, controlling and repairing damage caused by political unrest, the uncertainty of the situation can impede business and lead to job losses. This is particularly true when businesses are unable to maintain a level of operations that they would have been able to in the absence of civil unrest.
If a country experiences sustained political unrest, it can also lead to trade restrictions imposed by other nations that see its instability as a threat to global peace. This can further destabilize the economy and lead to higher unemployment rates.
