Political Risk

The return of emerging market political risk

“Taking the world by surprise, Egypt’s uprising may prompt renewed focus on political risk in emerging economies at a time of rising food and fuel prices, raising investor fears of unorthodox or repressive policy moves.

That could see investors demand a higher risk premium on investments particularly in authoritarian emerging economies, refocusing attention on potential political and succession risks in countries previously seen to be stable.

Demonstrators thronging the streets in Cairo and other cities continued to call for President Hosni Mubarak’s resignation on Monday in unprecedented protests that come hot on the heels of the ousting of Tunisia’s President Zine-al Abidine Ben Ali.”

Source: BusinessWorld Online Edition |The return of emerging market political risk

OODA Analyst

OODA Analyst

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