World Investment and Political Risk 2010

Abstract

All rights reserved 1 2 3 4 12 11 10 09 This volume is a product of the staff of the Multilateral Investment Guarantee Agency / The World Bank. The findings, interpretations, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgement on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries.

Political risk: Interpreting the International context

“…According to the United nations Conference on Trade and Development -UnCTAD-, southern markets have lately become attractive for investors, thus showing some of the best economic growth rates worldwide [15], [16]. This is so despite their being territories with complex political conditions, as indicated in World Investment and Political Risk, the report of the Multilateral Investment guarantee Agency -MIgA [4], it shows the complexity of decision making in the current context of inversion.…”

“…From the standpoint of business activity, these actions have recently attracted the interest of academia [23], due to their increase along the 21st century and the consequent risk of losses [4].…”

“…This particular risk consists in the possibility of losses for foreign investors due to the impossibility to convert local into foreign currency, or to transfer it abroad [4]. This type of restriction on the part of local governments has been interpreted as a result of economic difficulties, lobbying on the part of pressure groups [26], or lack of foreign currency [23].…”