2006-03-20 16:13:59Yu Yi, TSAI

Managing risk in an unstable world

How to measure the political risk?

Some questions which political risk analyst asked about China:
1, Can China’s explosive economy growth survive its corrupt and inefficient political system?
2, Do the country’s political leaders agree that preparations for a soft landing to avoid recession are necessary?
3, Would reform that opens its political process make China more stable or less?

China’s continued expansion depends on the central government’s capacity to handle complex economic transitions and avoid instability. At the same time, the state must juggle huge security, demographic and political challenges.

A nation’s stability is determined by 2 things: 1, political leader’s capacity to implement the policies they want even amidst shocks 2, their ability to avoid generate shock to their own.