Thursday 20 September 2007

Global political risk, September 2007


Emerging markets yearn to be boring, at least politically. The Global Political Risk Index, which is produced by Eurasia Group, a global political risk advisory and consulting firm, rates Hungary just in front of South Korea as the most stable country in a 24-strong field. The index uses a range of qualitative and quantitative indicators to measure both the capacity of countries to withstand shocks and their susceptibility to internal crises. Pakistan comes bottom of the list, because of mounting political and security tensions, and Eurasia Group is not expecting things to improve. Nigeria and Iran also jostle at the foot of the table. But stability should not be confused with pluralism: China outranks South Africa, India and some other democracies.

Source: Economist, Sep 13th 2007