CAPITAL MARKETS CLIENT ALERT: In the Wake of the Global Financial Crisis, Political Risk Becomes a Growing Concern for Investors in Emerging or Unstable Markets

In the aftermath of the 2009 economic crises in Eastern Europe, Spain, Greece and Dubai and the commercial risks these failures have presented to investors, it is not surprising that avoiding political risk remains a high priority for investors in emerging markets.  Many view political risk as a growing concern given the potential for the financial pressures on states to affect their ability to meet contract obligations or to lead them to exercise greater control over their economies through confiscation, nationalization or expropriation.