Political Risk to Investment in Iran: Sanctions, Inflation, Protectionism, War, Bonyads, and the IRGC

Posted on January 10, 2014 by admin

Journal of Political Risk, Vol. 1, No. 7, November 2013.

Figure 1 is a bar graph titled "Foreign Investment in Iran and its Neighboring Countries, March 19, 2012-March 19, 2013" and follows a parabolic shape.

Figure 1: Foreign Investment in Iran and its Neighboring Countries, March 19, 2012-March 19, 2013. Data Source: The Government of the Islamic Republic of Iran News.

Reza Yeganehshakib
University of California

Despite a tumultuous recent political history that includes revolution, war and sanctions, relations between Iran and the West are improving and Western investors are increasingly interested. But, Iran’s politics cause sanctions, and the economy suffers from inflation. Protectionist laws are on the books, and in some cases economic crimes are punishable by death. Regardless of warming relations with the West, Iran has in the past reneged on its agreements, and war is still a risk with non-Western bordering countries and regional powers. The Iranian Revolutionary Guard Corps (IRGC) has nationalized foreign investments in the recent past, and the politically powerful revolutionary foundations known as Bonyads control large segments of the most lucrative investment sectors. Continue reading →

Physical Vulnerability of the Internet

Posted on November 7, 2013 by admin

Journal of Political Risk, Vol. 1, No. 7, November 2013.

Tom Elliott, Ph.D.
Managing Consultant and Vice President

On March 27, 2013, while the technology world preoccupied itself with a sophisticated cyberattack on a spam prevention service, a low-tech assault on the Internet was taking place in shallow waters off Alexandria, Egypt. Three men with scuba gear and a fishing boat were arrested while allegedly trying to cut one of the main communications cables that links Europe to the Middle East and Africa.[1] This incident of hacking – in the most literal sense of the word – should remind us that the Internet we all rely upon depends upon physical infrastructure, much of which is easily located and relatively unprotected.

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Constitutional Change Needed to Avoid Future US Shutdowns

Posted on October 6, 2013 by admin

United States Capitol Building photographed in black and white.

United States Capitol Building. Artwork by Damian Brandon.

Journal of Political Risk, Vol. 1, No. 6, October 2013

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

The United States is, and continues to be, a politically stable country. Despite a shutdown of non-essential federal government services that started at midnight on October 1, uniformed military personnel and most federal services, including the postal service, federal courts, and federal prisons, will remain open and functional. The “shut-down” is more accurately described as a temporary defunding of non-essential federal services. A spending bill will pass within the next few weeks, and non-essential government services will return to normal. Nevertheless, the appearance of a shutdown of the United States Government has huge reputation costs both domestically and internationally.

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