DOI: 10.11118/978-80-7701-082-5-0192

The Role of Conflicts from an Economic Perspective: Case Study of Slovak Republic from 2020

Alex Mičáň ORCID...¹

¹ Department of Economic and Social Policy, Faculty of Economics, Prague University of Economics and Business, nám. W. Churchilla 1938/4, 130 00, Prague, Czech Republic

In a time of increasing polarization, the leadership styles and egos of political leaders can worsen conflicts and economic instability. However, the links between public trust in politicians and macroeconomic outcomes in small open economies are rarely examined with high-frequency data. This article aims to analyse the relationship between politicians' trustworthiness and GDP, foreign direct investment (FDI) inflows, and inflation in Slovakia from 2020 to 2024. Personal ego can hinder crisis resolution and escalate tensions. When political conflicts are seen as defeats, they diminish leaders' credibility and raise the chances of failure before a new political cycle begins. Citizens' perceptions of credibility often reflect the status of their leaders. In Slovakia, this perception has remained below fifty percent for a long time, negatively impacting the economy. Public distrust extends beyond politicians to public institutions, leading to adverse trends in macroeconomic indicators and economic stagnation. Political uncertainty, driven by visible coalition disputes and rapid legislative changes, affects voter expectations, capital valuations, and delays in investment and reforms. The findings highlight the need for better coalition regulations, increased transparency in decision-making, and improved government communication to reduce the effects of emotionally charged political disagreements on economic volatility.

Keywords: Political Development, Instability, Dimensions of Conflicts, Trustworthiness, Economic Development

pages: 192-199, online: 2026