Answer: It can undermine other factors.
Government instability is one of the main problems that affect developing countries. This is because an unstable government can undermine all other factors.
An unstable government is unable to provide consistent help and maintenance to social projects, such as schools and hospitals. It is also unable to have a monopoly on violence, which means it cannot ensure the safety of its citizens, or of foreigners involved in development projects. These types of governments are often unskilled at spending, with a lot of money being lost due to inneficiency and corruption. Finally, unstable governments are often overly interested in partisan issues, which means that their support can be fickle.