Global Political Risk Index

Global Political Risk Index

India rose four notches to 11 in Eurasia Group’s ranking of 24 countries based on their political risk. The November outlook is unchanged for India, according to the political risk consultancy, which expects the Reserve Bank of India to further lower reserve ratio requirements to ease liquidity problems.

In October, when India ranked 15, Eurasia Group had given the country a negative outllok on concerns the government will increase subsidies and other handouts ahead of several state polls this year and general elections next year.

Also See Composite Score (Graphic)

The outlook is negative for 11 countries in the list, unchanged for nine and positive for four. The index is topped by Poland, which has a positive outlook, followed by Hungary and South Korea (both negative). Pakistan brings up the rear because of concerns that the global credit crisis would hurdle government efforts to win loans and boost depleted foreign exchange reserves.

The index, compiled by Eurasia Group, a political risk consultancy, is a composite measure of a country’s government, society, security and economy. While the score indicates stability or instability for the month gone by (October, in this case), the outlook (positive, negative or neutral) indicates which way the scores will likely move.

Mint has partnered with the Eurasia Group for GPRI and runs this every month. Mint carried the previous GPRI on 3 October.

Also Read Previous articles of the index

Graphics by Paras Jain / Mint

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