ASSESSMENT OF THE CONSEQUENCES OF POPULIST MEASURES FOR THE SOCIO-ECONOMIC DEVELOPMENT OF THE COUNTRY

Abstract

Populism is one of the defining phenomena of contemporary politics, significantly influencing the socio-economic development of countries. From Argentina to Hungary, populist leaders and their programs are gaining popularity by proposing quick, often ill-considered solutions to complex social and economic problems. This article examines how populist policies impact economic performance, social institutions, and the long-term stability of societies.

The study provides a comprehensive analysis of the effects of populist measures on national socio-economic development. It systematizes theoretical approaches to defining the nature of populism and its core characteristics. Based on a review of current research and empirical data, the article identifies the primary channels through which populist policies affect economic growth, fiscal stability, the investment climate, and social cohesion.

The findings suggest that populist governments typically rely on short-term actions aimed at increasing public approval, such as unbalanced social spending, administrative price controls, and protectionist trade policies. In the long run, however, such measures tend to lead to macroeconomic destabilization, reduced economic growth, institutional degradation, and rising public debt.

Special attention is devoted to the social consequences of populism, including growing societal polarization, eroding trust in public institutions, and the promotion of «us versus them» narratives that undermine social unity. The article provides examples from international practice and draws parallels with the Ukrainian context, analyzing the potential risks that populist initiatives pose to the country’s sustainable development.

Populist measures, despite their potential short-term electoral appeal, have systemic negative consequences for the socio-economic development of the country in the long term. Economic populism, through the mechanisms of unbalanced fiscal expansion and institutional voluntarism, leads to macroeconomic destabilization, a decrease in investment attractiveness, erosion of the institutional environment and, as a result, to stagnation or decline of the economy. Social consequences are manifested in increased social polarization, a decline in trust in democratic institutions and the blocking of necessary structural reforms.