Monthly Archives: March 2013

Increased Unrest in Bangladesh

Posted on by admin

Journal of Political Risk

By Anders Corr, Ph.D.

A few weeks ago Corr Analytics predicted a likely increase in Bangladesh unrest due to steps leading to the criminalization of the Islamist political party, Jamaat-e-Islami (canalyt.com).

With today’s arrest of a Jamaat-e-Islami party official, the predicted unrest materialized. A demonstration that clashed with police resulted in at least 61 injured. Demonstrators threw crude bombs at police, who responded with tear gas and rubber bullets. The Bangladesh Nationalist Party (BNP) — the main opposition in parliament — is now more closely allied with Jamaat-e-Islami. The BNP called for a General Strike on Thursday (Associated Press).

Given the extensive business interests and relatively strong alliance of Bangladesh with the West, it is paramount to maintain the country’s relative stability. Given the pro-Islamist outcomes of the Arab Spring events, it would not be advised to risk another such movement in Bangladesh. The US and other Western ambassadors to Bangladesh should encourage moderation of the Bangladesh Government with respect to Islamist political parties. Not doing so risks further increases in unrest, a less stable investment environment, and potential increases in Bangladesh-originated terrorism.

JPR Status: Commentary

Death of Hugo Chavez

Posted on by admin

With the death of President Hugo Chavez of Venezuela today, expect increased political stability in Latin America. President Chavez was an activist in international politics, encouraging ideological conflict of the anti-Western and anti-market variety. He used his country’s oil wealth to magnify his voice and achieve these ends. Investments in Venezuela and Latin America will be safer without Chavez.

Concerns that his likely successor, Mr. Maduro, will be more radical (Wall Street Journal) are almost certainly overblown. Mr. Maduro’s comments on foreign influence in the country, and his expulsion of two US diplomats, are likely meant to solidify political support among Chavez supporters. This is a short-term political strategy on the part of Mr. Maduro, without long-term effect on the Venezuelan investment environment.