Despite high profile terror attacks, international threats to business have decreased for a second year, according to Control Risks, the business risk consultancy
The London-based consultancy has released its annual RiskMap report, detailing the risks that face businesses in more than 200 countries.
Despite high-profile security and political crises including the social unrest in France and bombings in Jordan, nuclear proliferation in Iran, and the ongoing war in Iraq, Control Risksโ aggregate security and political risk ratings for business have fallen for the second year running.
While there is no single reason for this trend, the consultants add, it reflects the below the radar stabilisation that is occurring in many countries which have traditionally presented risks to investors. In Africa, the holding of elections in a number of post-conflict countries in 2005, such as Liberia, Burundi, the Central African Republic and Guinea-Bissau, has helped to improve stability indicators. While in Eastern Europe those countries that acceded to the EU, or are on the verge of doing so, have year on year become more stable places to do business.
In the Middle East, despite the problems faced in Iraq, Syria and Iran, high oil prices have allowed many of the Gulf States and Saudi Arabia to improve their law enforcement capabilities and their basic infrastructure, creating a more attractive business environment. At the same time political upheaval in South America and civil unrest in China, although worrying in the long term, have had lower than expected impacts on the foreign investment climate.
