Albania judged as medium political risk for investors

TIRANA, Nov. 10 – The well-known company for assessing risk management consultancy, “Control Risk”, has included Albania in the list of countries with medium political risk, together with countries such as Bosnia, Russia, Serbia, Montenegro, Ukraine, and others. According to its 2007 report, Control Risk notes all developing countries have had their political risks for businesses increase. This trend might scare off foreign investors from those markets currently seeking foreign capital. Adam Strangfeld, “Control Risk” Head of research, says that the political risk is back in at least 57 percent of the examined developing countries and that investors should factor this into their decision making process. “Control Risk” says that in countries with medium political risks, businesses run into exposure to corruption, strong competitive groups that might receive government covert support, lack of legal protection, restrictions on imports or exports and weak state institutions. One additional risk is present in South Eastern European countries, according to the report. This is the trend to create protectionist populist measures affecting the normal trade and capital flow in the region.