By Maplecroft’s Asia Practice
In the second part of Maplecroft’s 2013 global outlook, we focus on the emerging economies of Asia and the key challenges affecting the investment climate for foreign investors.
High levels of societal unrest, manifesting in regular demonstrations involving tens of thousands of people – including mass strikes and protests targeting the government – will continue in 2013, creating the potential for significant disruption to business operations. The inevitable increase in tensions in association with the general election, scheduled to be held in late 2013, will almost certainly increase political instability.
Much-needed foreign investment in Bangladesh continues to be deterred by a number of structural weaknesses which present significant operational and reputational risks for businesses. These include the constraints posed by the country’s chronic energy shortages, very high rates of labour rights violations, low wages and exceptionally poor health and safety provisions (as illustrated by the November 2012 factory fire in Dhaka, which left more than 100 people dead). (more…)