Political Risk : The Missing Link in Understanding Investment Climate Reform?

Political risk has once again become a key concern of investors after the perceived openness and liberalization of foreign direct investment (FDI) regimes in the 1990s. Governments that do not recognize this trend pay a high price in lost investments. Confronting political and regulatory risks as part of the investment climate is thus crucial for countries to make their business environments more competitive. This note suggests reforms that can have immediate impacts: addressing ex ante and ex post issues in the legal and regulatory framework to protect investors, mitigating risks at the sector level, managing reputational and integrity risks at the project level, and using financial instruments to ease short-term impediments in the investment climate.

Bibliographic Details

Main Authors:	Dreyhaupt, Stephan, Nimac, Ivan, Hornberger, Kusi
Format:	Brief biblioteca
Language:	English
Published:	World Bank, Washington, DC 2012-03
Subjects:	ALTERNATIVE DISPUTE RESOLUTION, ARBITRATION, ASSETS, BARGAINING POWER, BARRIERS TO ENTRY, BASIS POINTS, BREACH OF CONTRACT, BUSINESS ENVIRONMENT, BUSINESS ENVIRONMENT RANKINGS, BUSINESS ENVIRONMENTS, BUSINESS TAX, CHECKS, CODES OF CONDUCT, COMMERCIAL DISPUTES, COMMITMENT DEVICES, COMPETITIVE MARKETS, COMPLIANCE COST, CORPORATE INVESTMENTS, CORPORATE INVESTORS, CORRUPTION, COUNTRY RISK, CREDIBILITY, CREDIT AGENCIES, CURRENCY, CURRENCY TRANSFER, CURRENCY TRANSFERS, DEBT, DEVELOPING COUNTRIES, DISCRETIONARY POWER, DISPUTE RESOLUTION, DISPUTE RESOLUTION MECHANISMS, DUE DILIGENCE, ECONOMIC CRISES, ECONOMICS, EMERGING MARKETS, ENFORCEMENT OF LAWS, ENTRY POINT, EXISTING LAWS, EXPORT CREDIT, EXPROPRIATION, EXPROPRIATIONS, FACE VALUE, FINANCE CORPORATION, FINANCIAL INSTRUMENTS, FINANCIAL PRODUCTS, FIRM GROWTH, FOREIGN DIRECT INVESTMENT, FOREIGN INVESTMENT, FOREIGN INVESTMENTS, FOREIGN INVESTORS, FOREIGN OWNERSHIP, FRAUD, GLOBAL BUSINESS, GLOBAL BUSINESSES, GLOBAL ECONOMY, GLOBAL TRADE, GOVERNMENT INTERVENTION, HOME COUNTRIES, HOST COUNTRIES, HOST GOVERNMENT, HOST GOVERNMENTS, INSTRUMENT, INSURANCE, INSURANCE INDUSTRY, INSURERS, INTERNATIONAL FINANCE, INTERNATIONAL FINANCIAL INSTITUTIONS, INTERNATIONAL INVESTMENT, INTERNATIONAL TRADE, INVESTING, INVESTMENT CLIMATE, INVESTMENT CLIMATE REFORM, INVESTMENT CLIMATES, INVESTMENT DECISIONS, INVESTMENT ENVIRONMENT, INVESTMENT INSURANCE, INVESTMENT POLICY, INVESTMENT PROMOTION, INVESTMENT REGIMES, INVESTMENT REGULATION, INVESTOR CONFIDENCE, INVESTOR INTERESTS, INVESTOR PERCEPTIONS, INVESTOR PROTECTION, JOB CREATION, JUDICIARY, LAND OWNERSHIP, LEGAL RECOURSE, LENDERS, LIBERALIZATION, MACROECONOMIC INSTABILITY, MARKET SIZE, MONETARY VALUE, MONEY LAUNDERING, MULTILATERAL INVESTMENT GUARANTEE AGENCY, NATURAL RESOURCES, NEGOTIATION, OPPORTUNITIES FOR INVESTORS, PAYOFF, POLITICAL RISK, POLITICAL RISK INSURANCE, POLITICAL RISKS, POTENTIAL INVESTMENT, POTENTIAL INVESTORS, PRIVATE SECTOR DEVELOPMENT, REGULATORY FRAMEWORK, REGULATORY FRAMEWORKS, RENEWABLE ENERGY, REPATRIATION, REPUTATION, REPUTATIONS, RISK MANAGEMENT, RISK MANAGERS, RISK MITIGATION, RISK PREMIUM, RISK PREMIUMS, RISK PROFILE, SMALL BUSINESS, SOVEREIGN RISK, STARTUP, TAX, TAX REVENUE, TRANSACTION, TRANSACTION COSTS, TREATIES,
Online Access:	http://documents.worldbank.org/curated/en/2012/03/16240760/political-risk-missing-link-understanding-investment-climate-reform http://hdl.handle.net/10986/10416
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