World Investment and Political Risk 2010
Political risk remains the top preoccupation for foreign investors operating in developing countries over the next three years, in spite of persistent concerns over the global downturn in the short term. The global economic recession triggered by t...
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Language: | English |
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World Bank
2012
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Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000356161_20101213045219 http://hdl.handle.net/10986/2538 |
Summary: | Political risk remains the top
preoccupation for foreign investors operating in developing
countries over the next three years, in spite of persistent
concerns over the global downturn in the short term. The
global economic recession triggered by the financial crisis
that has unfolded over the past two years has not spared the
developing world. Yet, the fragile and modest recovery now
under way is being led by developing countries, which are
expected to remain attractive destinations for Foreign
Direct Investment (FDI). In light of overt political risk
perceptions, the revival of FDI to these destinations calls
for continued risk mitigation, including Political Risk
Insurance (PRI). In the short term, concerns over the
fallout from the financial crisis appear to dominate
investors' preoccupations. Yet, FDI projections and
surveys conducted for this report suggest that investors are
cautiously optimistic about prospects for a global economic
recovery led by the developing world. As a result, FDI to
developing countries is expected to recover over the medium
term. Investors from the primary industries, as well as
those based in developing countries, appear particularly
bullish in their investment intentions. As concerns over the
health of the global economy recede, political risk
considerations will return to pre-eminence for investors
from both developed and developing countries. |
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