ICRG’s risk metrics in the category “Investment Profile” were used to test the impact of public capital (state funds) on growth in 52 developing countries. Researchers in the IMF’s Fiscal Affairs Department and Strategy, Policy, and Review Department used our risk indicators to measure a government’s general attitude towards investment, and concluded they can be considered as a relatively close proxy of factors affecting public investment in a country. See S Gupta, A Kangur, C Papageorgiou, and A Wane, “Efficiency-Adjusted Public Capital and Growth,” IMF Working Paper (11/217), September 2011.

Below is a sample of the data utilized:

ICRG TABLE 3B, POLITICAL RISK POINTS BY COMPONENT – AUGUST 2016

This table lists the total points for each of the following political risk components out of the maximum points indicated. The symbol > indicates a rise in the points awarded to that specific risk component from the previous month (an improving risk), while the symbol < indicates a decrease (deteriorating risk).  The final columns in the table show the overall political risk rating (the sum of the points awarded to each component) and the change from the preceding month.

 

A Government Stability 12 E External Conflict 12 J Ethnic Tensions 6
B Socioeconomic 12 F Corruption 6 K Democratic  
    Conditions   G Military in Politics 6     Accountability 6
C Investment Profile 12 H Religious Tensions 6 L Bureaucracy Quality 4
D Internal Conflict 12 I Law and Order 6      

 

COUNTRY A B C D E F G H I J K L Political Risk Rating
Albania 7.5 4.5 <8.0 9.5 11.0 2.5 5.0 5.0 2.5 4.5 5.0 2.0 67.0 -0.5
Algeria 7.0 5.5 7.0 7.5 9.5 2.0 2.5 2.5 3.0 3.5 4.0 2.0 56.0 0.0
Angola 6.5 3.0 6.5 8.5 10.5 1.0 2.0 4.0 2.5 3.0 2.5 1.5 51.5 0.0
Argentina 7.0 5.0 8.0 9.5 9.5 2.0 4.5 6.0 2.0 6.0 4.0 3.0 66.5 0.0
Armenia 6.0 4.5 7.5 9.0 <6.5 2.0 3.5 5.0 3.0 5.5 2.5 1.0 56.0 -0.5
Australia >6.5 <9.0 12.0 9.5 11.0 4.5 6.0 6.0 5.5 4.0 6.0 4.0 84.0 0.0
Austria <5.5 <8.5 9.5 9.5 11.5 4.5 6.0 5.0 6.0 4.0 6.0 4.0 80.0 -1.0
Azerbaijan 7.5 7.5 6.5 8.5 <7.0 1.5 3.0 4.0 3.5 4.5 1.5 1.0 56.0 -0.5
Bahamas 8.0 5.5 11.0 11.0 12.0 4.5 6.0 6.0 4.0 4.0 5.5 3.0 80.5 0.0

 

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