Category Archives: Nationalization

Political Risk to Investment in Iran: Sanctions, Inflation, Protectionism, War, Bonyads, and the IRGC

Journal of Political Risk, Vol. 1, No. 7, November 2013.

Figure 1: Foreign Investment in Iran and its Neighboring Countries, March 19, 2012-March 19, 2013. Data Source: The Government of the Islamic Republic of Iran News.

Figure 1: Foreign Investment in Iran and its Neighboring Countries, March 19, 2012-March 19, 2013. Data Source: The Government of the Islamic Republic of Iran News.

By Reza Yeganehshakib

Despite a tumultuous recent political history that includes revolution, war and sanctions, relations between Iran and the West are improving and Western investors are increasingly interested. But, Iran’s politics cause sanctions, and the economy suffers from inflation. Protectionist laws are on the books, and in some cases economic crimes are punishable by death. Regardless of warming relations with the West, Iran has in the past reneged on its agreements, and war is still a risk with non-Western bordering countries and regional powers. The Iranian Revolutionary Guard Corps (IRGC) has nationalized foreign investments in the recent past, and the politically powerful revolutionary foundations known as Bonyads control large segments of the most lucrative investment sectors.

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Political Risk in Latin America and the Caribbean: smart move from nimble players, a few populists, and a giant that misses one more opportunity

Pol vs Cred GDP

Political vs. Credit Risk in Latin America and the Caribbean. Data source: International Monetary Fund and Standard & Poor’s, 12/2012.

Journal of Political Risk, Vol. 1, No. 2, June 2013.

By Evodio Kaltenecker

The latest events in Latin America and the Caribbean provide good examples of the current political and economic tone in the region. On one hand, small and mid-sized economies such as Peru, Colombia, Chile and Mexico are working towards the advancement of the Pacific Alliance – an economic group whose agenda includes free trade and economic integration. On the other hand, a group of not-so-small economies still linger with populist recipes for government intervention, nationalization of companies, and manipulation of published government economic data. Continue reading