Journal of Political Risk, Vol. 1, No. 4, August 2013.
Figure 1: Comparison of Gambia and Sierra Leone on the Ease of Doing Business in 2013. Data Source: World Bank. 
By Anders Corr, Ph.D., and Naheed Vadsaria
Political risk in the tiny West African state of “The Gambia” is high. Named after the small river around which its borders fluctuate, the country hosts a dictatorship established in a 1994 coup. The country also hosts Hizbollah operatives who conduct international financial transactions, and is one of the top African cocaine transshipment points to Europe. Local businesses are considering fleeing to Sierra Leone to escape a raft of seemingly arbitrary and protectionist laws promulgated by the President for potentially personal reasons. Continue reading →
Figure 1: China and Philippines: Military Expenditure and Energy Use, 1989-2011. Shortly after most US forces left the Philippines in 1991-2, Chinese military expenditure and activity in the South China Sea increased dramatically. Data source: Correlates of War Project.
Journal of Political Risk, Vol. 1, No. 3, July 2013.
By Anders S. Corr, Ph.D., and Priscilla A. Tacujan, Ph.D.
The Philippine government is constitutionally required to craft an independent foreign policy, but it must accelerate cooperation with foreign powers to do so effectively. China’s growing militarization and energy consumption are fast out-pacing the meager military spending and energy consumption of the Philippines (See Figure 1). This makes China, more so than the Philippines, willing to risk military conflict over disputed energy resources, fishing areas, and transportation routes in the South China Sea. Continue reading →
Figure 1. Effect of GDP Per Capita on the Social Progress Index (Model 1)
Journal of Political Risk, Vol. 1, No. 1, April 2013.
By Anders Corr, Ph.D.
Social Progress Imperative, a global group that produces well-being data for 50 countries, released their Social Progress Index (SPI) today. The index compares countries not on GDP, but rather on a single quality of life metric as a function of housing, health, education, and environmental sustainability. The index is backed by Harvard Business School professors and the Skoll Foundation (WSJ).
Sweden, Britain, and Switzerland have the best Social Progress Index scores, because these countries have some of the highest GDPs per capita of the fifty countries in the index. It is no coincidence that the three lowest SPI scores – Ethiopia, Nigeria, and Uganda, have very low GDPs per capita. The best way to understand SPI is therefore to control for GDP per capita. Corr Analytics did simple regression analysis on SPI. Approximately 84% of the index is explained by gross domestic product (GDP) per capita (see technical details below). Countries with large economies relative to their populations will have more wealth that can be channeled to the basic necessities measured by SPI. Therefore the simpler standard used by economists for decades — GDP per capita — works quite acceptably for well-being. Continue reading →
A new Israeli-Palestinian peace initiative promoted by Secretary of State John Kerry today in Israel is unlikely to bear fruit, especially in the short-term. Secretary Kerry unveiled the plan, which is purposefully non-specific. It includes meager US-funded economic incentives, and a call for supporting the Arab League’s 2002 proposal for Israel to accept the pre-1967 border in exchange for recognition (WSJ).
Israel will not accept the 1967 borders, and any proposal for the same is an attempt to solicit Arab nations on other issues. Likewise, Palestinians will not be influenced by scarce development funding available from the Department of State. Such development funding is the price of admission for a new peace initiative, another in a string of de rigueur Israeli-Palestinian peace processes led by successive US Secretaries of State. Continue reading →