Modelling the Country Risk of Zambia

Posted on March 24, 2022 by Assistant Editor

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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The Karakax List: Dissecting the Anatomy of Beijing’s Internment Drive in Xinjiang

Posted on February 17, 2020 by Adrian Zenz

Journal of Political Risk, Vol. 8, No. 2, February 2020

Figure 1. The first (redacted) page of the 137-page PDF. Source: Uyghur Human Rights Project.

Dr. Adrian Zenz [1]
Senior fellow in China Studies
Victims of Communism Memorial Foundation

Abstract

The “Karakax List”, named after the county of Karakax (Qaraqash) in Hotan Prefecture, represents the most recent leaked government document from Xinjiang. Over 137 pages, 667 data rows and the personal details of over 3,000 Uyghurs[2], this remarkable document presents the strongest evidence to date that Beijing is actively persecuting and punishing normal practices of traditional religious beliefs, in direct violation of its own constitution.

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Legislatures Elected by Evaluative Proportional Representation (EPR): An Algorithm

Posted on January 14, 2020 by admin

Journal of Political Risk, Vol. 8, No. 1, January 2020

A cartoon depiction of hands in blue, red, purple, yellow, green, pink and orange against a white backdrop.

Source: Pixabay

Stephen Bosworth, Anders Corr, Stevan Leonard¹

Abstract

Unlike existing voting methods, this article describes a new method that gives all voters every appropriate reason to be pleased. Evaluative Proportional Representation (EPR) invites each citizen to grade the suitability for office of any number of candidates as either Excellent (ideal), Very Good, Good, Acceptable, Poor, or “Reject” (completely unsuitable). EPR allows each citizen to guarantee that one of the elected members of the legislature has received either their highest grade, remaining highest grade, or proxy vote – no vote is needlessly wasted. Continue reading →

Making Political Risk More Politically Relevant

Posted on December 13, 2019 by admin

Journal of Political Risk, Vol. 7, No. 12, December 2019

Ukraine's Independence Square depicted from above against a blue backdrop.

Ukraine’s Independence Square in Fall 2013, taken only months before it erupted into violent protests culminating in the overthrow of the sitting government. A busy commercial and tourist hub that day, there was no sign of the war zone it would soon resemble. Photo: Alicia Ellis.

Alicia N. Ellis, Ph.D.
Arizona State University

Executive Summary

This report assesses the state of the academic literature on political risk and evaluates its contribution to understanding and mitigating risk for both business and political professionals. This assessment concludes that policy-relevant research has been in some cases limited and, in most cases, ineffectively communicated. Several major problems contribute to the persistent disconnect between policy, industry, and academia. Political scientists do not approach their research questions in a communicable way, nor do they often take the necessary step of connecting their research to an end use. Risk rating organizations have become overly reliant on cross-national aggregate models. Mixed methods research has been applied inappropriately and thus, ineffectively. Systematic biases have been introduced to models at a structural level, and conceptual difficulties plague some of the most basic questions for risk analysts.

Despite these problems, opportunities do exist for bridging the gap between research and practice, and producing policy-relevant research. This article proposes some recommendations for moving forward. Research questions must be structured in new ways to reflect the needs of end consumers that include non-academic professionals. Several research agendas in need of a practical-minded researcher are put forth, including the rise of China and what it means for global trade patterns, the ‘buy local’ movement spreading across the United States, and the problem of democratic consolidation. For each problem identified, the article makes suggestions for how we might reframe the questions in a way that produces more useful research on political risk. Continue reading →

“Wash Brains, Cleanse Hearts”: Evidence from Chinese Government Documents about the Nature and Extent of Xinjiang’s Extrajudicial Internment Campaign

Posted on November 24, 2019 by Adrian Zenz

Journal of Political Risk, Vol. 7, No. 11, November 2019

Adrian Zenz, Ph.D.
Senior Fellow in China Studies
Victims of Communism Memorial Foundation

A cartoon depiction of women seated in a row in a room behind bars.

Women undergoing “reeducation” in Xinjiang Uyghur Autonomous Region (XUAR, China) were kept in their classroom behind a gated metal fence. See Figure 16, below. Source: anonymous informant.

In the wake of growing international criticism, the Chinese government has sought to counter human rights accusations over its re-education and internment campaign in Xinjiang through an elaborate propaganda campaign. This campaign portrays the region’s network of so-called “Vocational Skills Education Training Centers” (zhiye jineng jiaoyu peixun zhongxin 职业技能教育培训中心) as benign training institutions that offer persons who committed minor offenses an alternative to formal prosecution. Since late 2018, the state has invited media and official representatives from other nations and even from the western media to participate in official and closely-chaperoned tours of a select number of “showcase” centers.[1]

Drawing on the government’s own statements, this article seeks decisively to refute these propaganda claims. Overall, the author analyzed three types of data sources, all of which are mutually consistent and confirm the growing body of first-hand witness accounts. The first type consisted of official government documents and related media reports that are publicly accessible but not designed for international audiences. The second source consists of local government data in the form of detailed tables and spreadsheets that list the fates of thousands of minority individuals. The third source is a confidential, classified Chinese policy document issued by the Xinjiang Uyghur Autonomous Region’s Party Political and Legal Affairs Committee. This highly significant document details how Xinjiang’s so-called “vocational training centers” are supposed to be run.

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