Investments in states including Pakistan, Russia, Nigeria and Ecuador may be facing “increased risk” during 2008, according to a report, RiskMap-2008, issued this week by UK-based organisation Control Risks.Control Risks is an independent, specialist risk consultancy with 18 offices in five continents. In its report, Control Risks rates 57 percent of emerging markets at medium political risk or above, indicating significant threats to foreign investment.
It has identified a trend in these countries towards economic nationalism – the promotion of national interests in economic policy. “The vast majority of countries worldwide are classified as emerging markets where, increasingly, national political agendas will impact the operational effectiveness of foreign investors,” the report said.