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The Political Risk Index - Winter 2019/20

Analysing trends and patterns seen over the last quarter in the world’s most vulnerable countries

Credit, Political Risk and Terrorism
N/A

February 3, 2020

This edition shows a worrying jump in the number of countries with rising risk of political violence. 

Demonstrations related to climate change that stand out for being the start of an important trend.

In the Autumn edition of the political risk index, we looked at some of the issues that produced demonstrations and protests and noted the number that were associated with economic hardship or industrial threats to the local environment. But, when we look back on 2019, it may well be the demonstrations related to climate change that stand out for being the start of an important trend.

While climate change as an economic factor is already part of the risk calculations required for many companies, the relationship between climate and political risk remains less clear. Yet, from the flooding in Africa to the fires in Australia, 2019 saw governments facing a number of unusual weather-related catastrophes that left them open to serious criticism. An inability to provide effective assistance and relief stoked popular frustration with government inadequacy in responding to climate events, magnifying other grievances. The implication for political risk is not only the prospect of greater disturbance and disruption, but also the tendency of governments under pressure to regard the private sector as a source of relief, either through additional taxation or via a populist attempt to deflect criticism onto foreign companies.

Sign up to read the political risk index to:

  • Gain insights and analysis of 40 countries across the world
  • See an analysis into the terrorism, expropriation, political violence, exchange transfer and trade sanction, and sovereign default risks for each country
  • Discover the risk temperature index for each country as well as a comparison on each region and country

Contact us if you would like to discuss any of the topics in this Index.

Read the Political Risk Index Winter 2019

Author

Chairman, Financial Solutions

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