Barriers and Opportunities for Enhancing Capital Flows
In the COMCEC Member Countries
99
 Relations are poor and this poses major risks for
business
 Conflict between government and opposition poses
risks of major political disruptions
Consider the impact of government-opposition relations on
the predictability of the business and policy environment;
the risk of major political disruptions; the extent to which
governing and opposition forces engage in populist rhetoric.
If the country is authoritarian, with latent or suppressed
opposition, then score according to the risk (5 very low to 1
very high) that the government's efforts to suppress
opposition could lead to serious disturbances in the policy
and business environment.
5. Assess the threat of politically motivated violence
(terrorism) to the conduct of government and business.
 None  Low  Moderate  High  Very high
6. Assess the threat of international disputes and tensions to
the economy and/or polity during the forecast period.
 None  Low  Moderate  High  Very high
Ib. Political effectiveness
7. Is the present or prospective government likely to
implement open, liberal and pro-business policies for
nationals and foreigners?
 Strongly yes  Yes  Inconsistently  No
 Strongly no
8. Assess the effectiveness of the political system in
formulating and executing policy.
 Very high  High  Moderate  Low 
Very low
Consider: tensions between the legislative and
executive branches of government; instability in government
formation; cohesion of the legislature.
9. Assess the quality of the bureaucracy and its ability to
carry out government policy.
 Very high  High  Moderate  Low 
Very low
Consider: the amount of red tape encountered by
business and the country’s administrative procedures.