World Investment and Political Risk 2012

Global economic growth estimates for 2012 indicate a continuing fragile recovery. The ongoing sovereign debt crisis and recession in the euro zone, curtailed bank lending and domestic deleveraging, fluctuating but elevated commodity prices, and the ongoing political turmoil in the Middle East and North Africa have slowed the initial rebound that followed the 2008 global financial crisis. This slow progress has had an impact on developing countries, which initially fared well in terms of rebounding growth rates, private capital flows, and foreign direct investment (FDI). This report examines investors' perceptions and risk-mitigation strategies as they navigate today's uncertain economic waters. It finds that investors continue to rank political risk as a key obstacle to investing in developing countries and are increasingly turning toward Political Risk Insurance (PRI) as a risk-mitigation tool. The insurance industry has responded with new products and innovative ways to use existing products as well as substantial capacity to meet the growing demand.

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Bibliographic Details
Main Author: Multilateral Investment Guarantee Agency
Language:en_US
Published: Washington, DC: World Bank 2013
Subjects:access to capital, access to capital markets, access to financing, accounting, advanced economies, balance of payment, bank lending, banking crises, banking sector, bond, bond issuance, bond spreads, brokers, business risk, business risks, capital constraints, capital flow, Capital Flows, capital requirements, Central Bank, claim payments, commodity, commodity prices, communication technologies, Confidence Index, consumer base, contract renegotiations, convertibility restrictions, corporate investment, corporate investors, country debt, country debt crisis, Credit default, Credit default swaps, Credit Rating, Credit Risk, currency, debt burdens, debt contracts, debt crisis, debt financing, debt flows, debt investment, debt levels, debt obligations, Debt Securities, debts, default risk, deregulation, Developing Countries, developing country, developing economies, divestment, domestic market, domestic markets, economic crises, economic developments, emerging markets, equities, equity contracts, equity financing, equity investment, equity investments, expenditure, Expenditures, exporters, Exposure, Expropriation, Expropriations, external debt, financial crisis, Financial Flows, financial institutions, financial markets, financial returns, financial sector, financial services, fiscal deficit, flow of investment, food prices, foreign assets, foreign capital, foreign direct investment, foreign firms, Foreign Investment, foreign investments, foreign investor, Foreign Investors, global capital, global capital flow, Global Economic Prospects, global economy, government actions, Government debt, government guarantees, government involvement, government regulation, Gross domestic product, growth rates, host country, host government, host governments, income, income inequalities, inflation, infrastructure projects, Insurance, insurance companies, Insurance Industry, insurance market, insurers, interest rate, interest rates, International Bank, international business, international capital, international capital markets, International Investment, inventory, Investing, investment climate, investment climates, investment decision, investment decisions, investment disputes, investment flows, investment incentives, investment opportunities, investment patterns, Investment Plans, investment policy, Investment Positions, investment projects, investment promotion, investment restrictions, investor confidence, Investor perceptions, Issuance, joint venture, joint ventures, jurisdictions, liability, liberalization, liquidity, liquidity problems, local economy, local investors, Low-income economies, macroeconomic data, macroeconomic environment, Macroeconomic instability, macroeconomic stability, market conditions, market developments, market size, Markets database, Monetary Fund, Multilateral Investment Guarantee Agency, natural disasters, natural resource, natural resources, Net debt, new markets, new product, new products, offerings, oil prices, outstanding debt, political regime, political regimes, POLITICAL RISK, Political Risk Insurance, Political Risks, political stability, political systems, Political Turmoil, political uncertainty, political upheaval, portfolio, portfolio investment, portfolio investment flows, Private bond, Private Capital, Private Capital Flows, Private debt, Private Market, Public debt, public finances, Public Policy, Public utilities, rapid growth, regulatory framework, regulatory requirements, remittances, reputation, return, returns, Risk Management, risk of expropriation, risk of expropriations, risk profile, Solvency, Sovereign Debt, Sovereign Debt Restructuring, Sovereign Default, Sovereign Defaults, Sovereign Risk, stocks, Surety, Terrorism, transparency, turnover, urbanization, volatile capital, world economy,
Online Access:https://hdl.handle.net/10986/15504
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