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 investmen...

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Main Authors: Dreyhaupt, Stephan, Nimac, Ivan, Hornberger, Kusi
Format: Brief
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
TAX
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
id okr-10986-10416
recordtype oai_dc
spelling okr-10986-104162021-04-23T14:02:50Z Political Risk : The Missing Link in Understanding Investment Climate Reform? Dreyhaupt, Stephan Nimac, Ivan Hornberger, Kusi 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 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. 2012-08-13T11:23:57Z 2012-08-13T11:23:57Z 2012-03 http://documents.worldbank.org/curated/en/2012/03/16240760/political-risk-missing-link-understanding-investment-climate-reform http://hdl.handle.net/10986/10416 English Investment Climate in Practice; No. 20 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Brief Publications & Research
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic 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
spellingShingle 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
Dreyhaupt, Stephan
Nimac, Ivan
Hornberger, Kusi
Political Risk : The Missing Link in Understanding Investment Climate Reform?
relation Investment Climate in Practice; No. 20
description 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.
format Publications & Research :: Brief
author Dreyhaupt, Stephan
Nimac, Ivan
Hornberger, Kusi
author_facet Dreyhaupt, Stephan
Nimac, Ivan
Hornberger, Kusi
author_sort Dreyhaupt, Stephan
title Political Risk : The Missing Link in Understanding Investment Climate Reform?
title_short Political Risk : The Missing Link in Understanding Investment Climate Reform?
title_full Political Risk : The Missing Link in Understanding Investment Climate Reform?
title_fullStr Political Risk : The Missing Link in Understanding Investment Climate Reform?
title_full_unstemmed Political Risk : The Missing Link in Understanding Investment Climate Reform?
title_sort political risk : the missing link in understanding investment climate reform?
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2012/03/16240760/political-risk-missing-link-understanding-investment-climate-reform
http://hdl.handle.net/10986/10416
_version_ 1764413009601495040