Final answer:
Insulation from interest groups under non-democracies can lead to corruption and inefficiency, hindering economic development.
Step-by-step explanation:
Insulation from interest groups under non-democracies can lead to corruption and inefficiency, which can hinder economic development. In non-democratic countries where power is concentrated in the hands of a few, interest groups are often suppressed or controlled by those in power. Without the check and balance provided by independent interest groups, the government officials may engage in corrupt practices and misuse their power for personal gain, leading to inefficiencies in the economy.
For example, in countries where there is limited transparency and accountability, government officials may receive bribes or engage in nepotism when making decisions. This can result in the misallocation of resources and a lack of competition, which can hinder economic development.