Archive | December, 2013

GRI Person of the year in political risk

In one year Mexican President Enrique Peña Nieto has overhauled key branches of Mexico’s economy such as energy and telecommunications, while also working to increase government revenue. He has enacted these reforms in a politically masterful way, which only begs the question of how much more Mexico can change under his leadership. On December 1, […]

Continue Reading
Ben Bernanke television

Central banks rely on forward guidance

As interest rates remain low among developed economies, shaping expectations through communication is proving to be an effective monetary tool. Communicating the taper At its last monetary policy meeting, the U.S. Federal Reserve announced its intent to reduce the size of its bond purchases beginning in January. Known as “tapering,” this long-awaited move cut future […]

Continue Reading

One year in, is the honeymoon over for Abenomics?

Shinzo Abe celebrated his first year as Japanese Prime Minister in December, which also marked one year with Abenomics. For many, this will be a dismal anniversary, as the latest figures are not particularly encouraging. However, the game is not over yet. On December 26th, Shinzo Abe celebrated his first anniversary as Japanese Prime Minister. […]

Continue Reading
oil rig

Has India lost the bid for Sri Lankan hydrocarbons?

There have been signs of natural gas and oil reserves off the coast of Sri Lanka since the 1970s. However, a prolonged, bloody civil war lead to a halt in exploration. With the prospects of peace beginning to show, exploration resumed. Cairn Ltd, an Indian oil and gas exploration company, began drilling the first well offshore […]

Continue Reading
bond market

3 unexpected risks posed by transnational organized crime

As globalization eases the flow of finances, goods, and ideas, political risk expands the opportunities and scope for criminal activity, which can have severe consequences for businesses. Organized crime is defined by the United Nations Office on Drugs and Crime as a “structured group of three or more persons…acting in concert with the aim to […]

Continue Reading
Sochi 2014 Olympics

Sochi Winter Olympics are the costliest Games ever

The Sochi Olympics, due to be held next February, will be the biggest international event hosted by Russia since the fall of the Soviet Union. While the event aims to affirm Vladimir Putin’s international legitimacy and power, the Games have also emerged as a touch point for corruption and all types of abuse. Sochi is […]

Continue Reading
India elections

5 key takeaways from state elections in India

On December 8, 2013 citizens of India voted in state elections in five states: Delhi, Rajasthan, Chhattisgarh, Madhya Pradesh, and Mizoram. Here are 5 insights into what elections might mean. After a few days the elections were called a resounding defeat for the ruling Indian National Congress party. In what was called a ‘thumping’ by […]

Continue Reading
Murray Ryan

U.S. Congress has a budget deal, but more uncertainty lies ahead

Despite the successful Ryan-Murray budgetary agreement, another U.S. Debt Ceiling Debate Looms on the Horizon. A compromise brokered by Republican Representative Paul Ryan and Democratic Senator Patty Murray is poised to become law, setting federal spending for 2014 and 2015. Not only did this deal avoid eleventh-hour theatrics, but it also is more substantial than […]

Continue Reading

Suriname’s squabble with the Netherlands overshadows economic progress

The Surinamese government recently partnered with Spanish energy firm CEPSA and became a full voting member of the Caribbean Development Bank. However, the Dutch denouncement of the Surinamese executive branch shows that this country may suffer from a lack of presidential legitimacy, which could inhibit investment. Dutch legislators requested to arrest Surinamese President Desi Bouterse […]

Continue Reading
oil pumpjacks

Tensions rise as OPEC countries look to increase production

OPEC’s internal tensions rise as producers like Iran, Iraq and Libya, after years of production below capacity, look to increase output. Still, those increases will not come online for some time, and Saudi Arabia remains the de facto group leader, keeping oil prices stable. Oil markets have had a lot to wonder about lately. Following […]

Continue Reading