# **Table B2:  Political Stability**

<!-- Start of picture text --> Code Table Concept Measured<br>Representative Sources<br>DRI A14 Military Coup Risk : A military coup d’etat (or a series of such events) that reduces the GDP growth rate by 2% during any<br>12-month period.<br>Major Insurgency/Rebellion : An increase in scope or intensity of one or more insurgencies/rebellions that reduces the<br>GDP growth rate by 3% during any 12-month period.<br>Political Terrorism: An increase in scope or intensity of terrorism that reduces the GDP growth rate by 1% during any 12-<br>month period.<br>Political Assassination : A political assassination (or a series of such events) that reduces the GDP growth rate by 1%<br>during any 12-month period.<br>Civil War : An increase in scope or intensity of one or more civil wars that reduces the GDP growth rate by 4% during any<br>12-month period.<br>Major Urban Riot: An increase in scope, intensity, or frequency of rioting that reduces the GDP growth rate by 1% during<br>any 12-month period.<br>EIU A9 Armed conflict<br>Violent demonstrations<br>Social Unrest<br>International tensions<br>GCS A28 Country terrorist threat : Does the threat of terrorism in the country impose significant costs on firms?<br>HUM A26 Frequency of political killings<br>Frequency of disappearances<br>Frequency of torture<br>IJT A17 Security Risk Rating<br>MIG A21 Extremism. The term “extremism” covers the threat posed by any individuals or organisations who hold a narrow set of<br>fanatical beliefs. Extremists are likely to believe that any and all means are justified to eradicate the target of hostility, and<br>are not afraid to destroy themselves in the process. This ideological aspect of extremism makes it highly unpredictable,<br>and its close association with violence makes it highly dangerous. The extent to which extremism should be judged a<br>threat to a particular business in a particular market can be assessed along the following lines: integration issues; religious<br>tensions; pressure groups; terrorist activity; xenophobia.<br>PRS A23 Internal Conflict : Assesses political violence and its influence on governance.<br>External conflict: The external conflict measure is an assessment both of the risk to the incumbent government and to<br>inward investment.<br>Government Stability. Measures the government’s ability to carry out its declared programs, and its ability to stay in office.<br>Ethnic tensions : This component measures the degree of tension within a country attributable to racial, nationality, or<br>language divisions.<br>PTS A26 Political Terror Scale<br>WMO A15 Civil unrest How widespread political unrest is, and how great a threat it poses to investors. Demonstrations in themselves<br>may not be cause for concern, but they will cause major disruption if they escalate into severe violence. At the extreme,<br>this factor would amount to civil war.<br>Terrorism Whether the country suffers from a sustained terrorist threat, and from how many sources. The degree of<br>localization of the threat is assessed, and whether the active groups are likely to target or affect businesses.<br>Non-representative Sources<br>BRI A6 Fractionalization of political spectrum and the power of these factions.<br>Fractionalization by language, ethnic and/or religious groups and the power of these factions.<br>Restrictive (coercive) measures required to retain power.<br>Organization and strength of forces for a radical government.<br>Societal conflict involving demonstrations, strikes, and street violence.<br>Instability as perceived by non-constitutional changes, assassinations, and guerrilla wars.<br>WCY A18 Risk of political instability<br><!-- End of picture text --> 83