Global political risk has moderated as emerging economies stabilize in the wake of the Arab Spring and pressures related to the financial crisis abate, according to Aon Risk Solutions' latest mapping of such risk.
On Aon's political risk map for 2013, 13 countries were upgraded to show they pose less political risk, while 12 were downgraded to show they pose a higher risk. While that nearly even split between upgrades and downgrades may not sound encouraging, it represents a big improvement over 2012, when just three countries were upgraded and 21 were downgraded, and 2011, when 11 upgrades were outpaced by 19 downgrades.
"The overall situation has been improving," said Roger Schwartz, senior vice president of political risk for Aon Risk Solutions, noting that the ripple effects of the Arab Spring uprisings in 2011 have been subsiding. "The political violence has eased in some areas, and the economics have eased in some areas but not in others."
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