Political Risk Latin America Blog @PolRiskLatam

Political risk: a heat map

Posted in News and Articles, Political Risk by politicalrisklatam on March 4, 2011

by Stefan Wagstyl for Financial Times – Beyond Brics, March 4th, 2011.

In recent weeks, there’s been plenty of opportunity to reconsider the realities of political risk – and the possibilities of contagion.

In a report entitled The political and social unrest index – who’s next?RBC bank has put all the info together on a map, with red showing the potential hot spots and green the cool havens of safety:

 

There are few surprises, of course, with risk concentrated in the Middle East and Africa. But it is a bit of a surprise to see China painted red for reasons not related to ideology.

It gets there because among the factors identified as contributing to risk include voice and accountability, as well as income inequality, youth unemployment, inflation, GDP per capita, and political stability. In other words, democracy matters. And on democracy, China scores very low. (continue reading… )

 

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