Table 6

Summary of the political risks in EMs

Political risk factorsCase ACase BCase CCase DCase ECase F
1 – Corruption and bribes✓✓✓✓−✓
2 – Delay in approval of permits✓✓✓−−−
3 – Nationalism or confiscation−−−−−−
4 – Profit remittance and exchange restrictions−✓✓✓−−
5 – Import restrictions−−✓✓−✓
6 – Discriminatory taxation/change in tax regulations✓−✓−✓✓
7 – Political regime change✓✓✓−✓✓
8 – Restriction on the number of expatriate employees✓−✓✓−✓
9 – Contract repudiation✓−−−−−
10 – Excessive demands and variations in project from the host government over time (contract violations)✓✓−✓−✓
11 – Enforced renegotiations of contract by the host government−✓−✓−−
12 – Unstable government policies impacting the project−✓✓−✓−
13 – Unstable local transportation rules and regulations−✓✓✓✓−
14 – Terrorism at site location✓✓−✓✓−
15 – Risk of labor unions/labor protests✓✓✓✓−✓
16 – Outbreak of inter-state war−−−−✓−
17 – Social violence/strikes✓✓✓✓✓−
18 – Weakly enforced laws and regulations−✓✓−✓−
19 – Anti-project demonstrations by public✓−−✓−−
20 – Security problems/risk of violent attack on project site✓✓−✓✓−
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