Governance structures significantly influence economic policies by dictating how decisions are made and who has authority. Different systems—such as parliamentary vs. presidential—affect policy priorities and implementation. For instance, a stable parliamentary system may allow for swift economic reforms, while a presidential system might encounter gridlock. Additionally, governance frameworks shape fiscal policies, regulatory measures, and public spending priorities. The interaction between institutions and political actors also determines how responsive economic policies are to societal needs and challenges, thus impacting overall economic development.