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World investment and political risk 2013 (English)

This report seeks to understand investors' perceptions of political risk as they affect Foreign Direct Investment (FDI), as well as the role of the political risk insurance industry in mitigating these risks. It is found that investors continue to rank political risk as a key obstacle to investing in developing countries, though investors classify macroeconomic instability as their top concern over the medium term. The report confirms a continued increase in the use of political risk insurance as a risk-mitigation tool and reaffirms the industry's health and resilience. Providers have met the challenge of these years with new products and innovative ways to use existing tools as well as substantial capacity to meet growing demand. It also looks at breach of contract risk and its causes. The research helps guide investors and insurers when they participate in a project that involves a contract with a developing-country government entity. As private and public sectors continue to increase their cooperation in service of bringing important investments to fruition, this research is particularly timely.


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    World investment and political risk 2013

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    political risk;breach of contract;net private capital flows;net portfolio equity inflows;Net private capital inflows;private investment in infrastructure;global financial crisis;political risk insurance;sovereign wealth fund;perceptions of risk;financial sector regulation;sovereign debt crisis;high public debt;initial public offering;private insurance market;access to finance;impact of development;foreign direct investment;net private debt;international financial institution;global economic recovery;high unemployment rate;privileges and immunity;private equity fund;internationalization of production;lack of investment;lack of finance;banking sector restructuring;euro zone;regulatory change;macroeconomic instability;south-south investment;business risk;global economy;commodity price;private market;monetary policy;private insurer;product offerings;recipient countries;positive impact;business environment;risk appetite;Macroeconomic Stability;equity flow;financial system;public provider;private ownership;foreign investor;regulatory risk;investment opportunities;monetary cycle;supply side;financial obligation;future investment;Real estate;increasing investment;macroeconomic condition;investor confidence;consumer base;public insurer;sectarian violence;financial market;investment policy;lending boom;private fund;domestic imbalances;exporting country;private flow;sovereign bond;short-term adjustment;real gdp;oil supply;account deficit;currency depreciation;political development;fiscal situation;economic slowdown;investment outlook;security concern;inflationary pressure;resource nationalism;metals sector;transition process;downside risk;medium-term outlook;foreign operation;financing constraint;infrastructure capacity;domestic banking;Learning and Innovation Credit;Political Violence;contractual relationship;global investor;global growth;monetary economy;survey respondent;primary commodity;political institution;contract duration;investment dispute;financial loss;improving growth;fundamental changes;interest economy;additional claim;Energy Sector;contract maturity;contract design;political consideration;production process;basic infrastructure;poor infrastructure;market coverage;government institution;red tape;creating job;government regulation;survey results;political regime;tax revenue;insurance provider;innovative way;government entity;informed investor;marginal increase;market condition;advanced economy;tourism sector;commercial purpose;mining investment;financial analyst;long-term yield;graphic design;market economy;asset quality;foreign affiliate;macroeconomic data;convertibility restriction;unanticipated event;portfolio investment;adjustment process;demand growth;net debt;political uncertainty;regional variation;economic recession;marginal improvement;regional breakdown;



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World investment and political risk 2013 (English). Washington, D.C. : World Bank Group.