Modelling the Country Risk of Zambia

Journal of Political Risk, Vol. 10, No. 3, March 2022

Simon Muwando
University of Lusaka

Victor Gumbo
University of Botswana

Gelson Tembo
University of Zambia

Abstract

The world has experienced a dramatic increase in the flow of transnational investments following increased internationalization and globalization of firms in the previous decade. Country risk exposure is a cause for concern for all the institutions that are engaged in multinational trade and finance. The main objective of this study is modelling Zambia’s country risk. A mixed method with concurrent research design was employed. Personal interviews were the main instrument for collection of primary data and snowball sampling was used to select the interviewees. Secondary data was collected from the Lusaka Stock Exchange (LSE), Ministry of Finance, Bank of Zambia and Central Statistical Office. An autoregressive distributed lag technique was employed on annual data for the 1994 to 2018 period. This approach was chosen as it works best for small samples. The findings of the study revealed that the short run drivers for country risk of Zambia are beta, current account balance, political risk, unemployment rate and weighted short term interest rates. Current account balance was found to positively affect country risk while beta, political stability, and weighted short term interest rates negatively influence it.  The study findings established that the long run determinants of country risk of Zambia are current account balance, betas, political risk, and unemployment rate. From the study findings, current account balance positively influences country risk of Zambia whereas beta, and political stability negatively influence country risk of Zambia. The study concluded that the major determinant of country risk of Zambia in the short run and long run is current account balance as it has significant positive influence. Effective policies need to be implemented by authorities to manage or reduce persistent current account deficits and political risk, in order to manage country risk.

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Putin’s Folly

Journal of Political Risk, Vol. 10, No. 2, February 2022

Protestors against 2022 Russia invasion of Ukraine, at the Hachiko square in Shibuya, Japan. Wikimedia.

Richard Shortt, Ph.D.
Leader of New Zealand’s multi-agency Combined Threat Assessment Group

The work of unravelling Putin’s folly in the Ukraine began February 24 with the firing of the first missiles and artillery shells that signalled his invasion. It will be slow, time-consuming work, assuming no national uprisings in either the Ukraine or Russia by ordinary folks demanding an end to the killing and destruction, or more significant interventions by Western powers – both of which I consider unlikely. It will, in all probability, take longer than the time Putin has left sitting on the Russian imperial throne. But it will happen.

We are currently in what I term the Chaos Phase of the work. This is where invasion leads to death, destruction, despair and defiance. It is the defiance that will ultimately lead us to the next phase, meanwhile, troops and civilians will die, infrastructure will be destroyed and damaged and people on all sides of the issue will watch in stunned horror at what modern warfare and forced occupation means in a modern-day European country.

The Russian forces will emerge victorious. There is very little doubt about that, but not before the Ukrainian efforts deliver martyrs who will fuel the next phase – Resistance. Continue reading

South Africa’s Hidden Pandemic: Rape

Journal of Political Risk, Vol. 10, No. 2, February 2022

Anti-femicide protest in Cape Town in response to the murder of Uyinene Mrwetyana. Wikimedia Commons.

Stephanie Wild
University of Cape Town

42,289. This is the number of women raped in South Africa in 2019. Such shocking levels of sexual violence have prompted President Cyril Ramaphosa to dub gender-based violence as a “second pandemic, second only to COVID-19.  

Violence against women does not end there. Murder rates against women are also extremely high. A widely discussed statistic amongst South Africans is that a woman is murdered every four hours. This statistic was for the April to December 2016 period. The most up-to-date statistics are even more shocking. In the 2017 to 2018 period, a woman was murdered every 3 hours. Such data has prompted a discussion of what is now called “femicide.”

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The Risks of AI: An Interview with Georgetown’s Helen Toner

Journal of Political Risk, Vol. 10, No. 1, January 2o22

Helen Toner, Director of Strategy at the Center for Security and Emerging Technology (CSET) at Georgetown University.

Anders Corr, Ph.D.
Publisher of the Journal of Political Risk

The JPR interview with Helen Toner, the Director of Strategy at the Center for Security and Emerging Technology (CSET) at Georgetown University, was conducted via email between 4 January 2022 and 13 January 2022.

Corr: What are the national security risks and benefits of AI?

Toner: This is a huge question! AI is a general-purpose technology, meaning that—like electricity or the computer—its impacts will be felt across practically all industries and areas of society. Accordingly, it presents a huge range of potential risks and benefits from a national security perspective. One way of trying to summarize the possibilities might be as follows: the benefits will largely be in line with the kinds of benefits we have seen from increasingly sophisticated computing technology more generally: greater efficiency and accuracy, as well as the ability to perform tasks at scales impossible for humans (think: how Google search trawls the web). In terms of risks, one breakdown proposed by Zwetsloot and Dafoe is to think in terms of risks from accidents (i.e. unintended outcomes from using AI), misuse (i.e. the deliberate use of AI to cause harm), and structural changes (i.e. how progress in AI shapes surrounding systems and dynamics). I realize this is fairly abstract, but it’s impossible to enumerate specific risks without narrowing the scope to particular application areas, time frames, and actors.

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The Banyamulenge Genocide in the Democratic Republic of Congo

On the Interplay of Minority Groups’ Discrimination and Humanitarian Assistance Failure

Journal of Political Risk, Vol. 9, No. 11, November 2021

Village in Bibogobogo set alight. Photograph by Neri Patrick, taken on October 19, 2021.

Delphin Ntanyoma
Erasmus University

For two weeks now, a humanitarian convoy (five trucks) transporting humanitarian assistance to support the Banyamulenge in Bibogobogo (sometimes spelled Bibokoboko) has been intercepted by administrative and security officials in the city of Baraka [1].Two international humanitarian organizations, including the World Food Program (WFP), that have been working in this region to support displaced and local populations, resolved to support internally displaced Banyamulenge in Bibogobogo. The WFP’s support used an intermediate humanitarian organization, familiar of the context, to provide the assistance. On its way from Uvira to Baraka, rumors circulated that this is not humanitarian assistance but rather that the trucks contained ammunition and guns. Several sources including ones linked to civil society organizations in the region have confirmed that youth in Baraka (who support administrative and security officials) erected barricades to block the trucks. Truck drivers were obliged to unload everything to check what was inside each box. In the end, the search found that there was nothing linked to guns and ammunition. However, the assistance is now stored in Baraka, and it is uncertain if these organizations will be courageous enough to reload and bring the assistance to Bibogobogo. Continue reading