In countries with weak democracies and weak political parties, demands are based on patronage, which is likely to harm the business climate and discourages investment.

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Patronage-based demands, where individuals expect favors or personal benefits in exchange for political support, can lead to corruption and a lack of transparency in decision-making. This can harm the business climate and make investors reluctant to invest in such countries. Additionally, weak political parties may rely heavily on patronage to maintain their power, further exacerbating the problem.

In Countries with Weak Democracies and Weak Political Parties, Demands