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<br /> 2013<br /> WIPR<br /> World Investment<br /> and Political Risk<br /> World Investment Trends and Corporate Perspectives<br /> The Political Risk Insurance Industry<br /> Breach of Contract<br /> © 2014 The International Bank for Reconstruction and Development/The World Bank<br /> 1818 H Street, NW<br /> Washington, DC 20433<br /> t. 202.473.1000<br /> www.worldbank.org<br /> feedback@worldbank.org<br /> Some rights reserved<br /> 1 2 3 4 15 14 13 12<br /> This work is a product of the staff of The World Bank with external contributions. Note that The World Bank<br /> does not necessarily own each component of the content included in the work. The World Bank therefore<br /> does not warrant that the use of the content contained in the work will not infringe on the rights of third<br /> parties. The risk of claims resulting from such infringement rests solely with you.<br /> The findings, interpr<a title="WIPR 2013 page 1" href="http://viewer.zmags.com/publication/1ea4e02d?page=1"> 2013 WIPR World Investment and Political Ri</a> <a title="WIPR 2013 page 2" href="http://viewer.zmags.com/publication/1ea4e02d?page=2"> © 2014 The International Bank for Reconstruction </a> <a title="WIPR 2013 page 3" href="http://viewer.zmags.com/publication/1ea4e02d?page=3"> 2013 World Investment and Political Risk </a> <a title="WIPR 2013 page 4" href="http://viewer.zmags.com/publication/1ea4e02d?page=4"> Table of Contents FOREWORD ...................</a> <a title="WIPR 2013 page 5" href="http://viewer.zmags.com/publication/1ea4e02d?page=5"> BOXES Box 2.1 Overview of the PRI market ....</a> <a title="WIPR 2013 page 6" href="http://viewer.zmags.com/publication/1ea4e02d?page=6"> 1 | WIPR 13 Foreword </a> <a title="WIPR 2013 page 7" href="http://viewer.zmags.com/publication/1ea4e02d?page=7"> WIPR 13 | 2 As in pr</a> <a title="WIPR 2013 page 8" href="http://viewer.zmags.com/publication/1ea4e02d?page=8"> 3 | WIPR 13 Acknowledgments T hi</a> <a title="WIPR 2013 page 9" href="http://viewer.zmags.com/publication/1ea4e02d?page=9"> WIPR 13 | 4 Selected Abbreviations </a> <a title="WIPR 2013 page 10" href="http://viewer.zmags.com/publication/1ea4e02d?page=10"> 5 | WIPR 13 Executive Summary </a> <a title="WIPR 2013 page 11" href="http://viewer.zmags.com/publication/1ea4e02d?page=11"> WIPR 13 | 6 </a> <a title="WIPR 2013 page 12" href="http://viewer.zmags.com/publication/1ea4e02d?page=12"> 7 | WIPR 13 </a> <a title="WIPR 2013 page 13" href="http://viewer.zmags.com/publication/1ea4e02d?page=13"> WIPR 13 | 8 or cancel investments in devel</a> <a title="WIPR 2013 page 14" href="http://viewer.zmags.com/publication/1ea4e02d?page=14"> 9 CHAPTER ONE World Investment </a> <a title="WIPR 2013 page 15" href="http://viewer.zmags.com/publication/1ea4e02d?page=15"> 10 After a recovery following the 2008</a> <a title="WIPR 2013 page 16" href="http://viewer.zmags.com/publication/1ea4e02d?page=16"> 11 | WORLD INVESTMENT TRENDS AND CORPORATE PERSPE</a> <a title="WIPR 2013 page 17" href="http://viewer.zmags.com/publication/1ea4e02d?page=17"> WORLD INVESTMENT TRENDS AND CORPORATE PERSPECTIVE</a> <a title="WIPR 2013 page 18" href="http://viewer.zmags.com/publication/1ea4e02d?page=18"> 13 | WORLD INVESTMENT TRENDS AND CORPORATE PERSPE</a> <a title="WIPR 2013 page 19" href="http://viewer.zmags.com/publication/1ea4e02d?page=19"> WORLD INVESTMENT TRENDS AND CORPORATE PERSPECTIVE</a> <a title="WIPR 2013 page 20" href="http://viewer.zmags.com/publication/1ea4e02d?page=20"> 15 | WORLD INVESTMENT TRENDS AND CORPORATE PERSPE</a> <a title="WIPR 2013 page 21" href="http://viewer.zmags.com/publication/1ea4e02d?page=21"> WORLD INVESTMENT TRENDS AND CORPORATE PERSPECTIVE</a> <a title="WIPR 2013 page 22" href="http://viewer.zmags.com/publication/1ea4e02d?page=22"> 17 | WORLD INVESTMENT TRENDS AND CORPORATE PERSPE</a> <a title="WIPR 2013 page 23" href="http://viewer.zmags.com/publication/1ea4e02d?page=23"> WORLD INVESTMENT TRENDS AND CORPORATE PERSPECTIVE</a> <a title="WIPR 2013 page 24" href="http://viewer.zmags.com/publication/1ea4e02d?page=24"> 19 | WORLD INVESTMENT TRENDS AND CORPORATE PERSPE</a> <a title="WIPR 2013 page 25" href="http://viewer.zmags.com/publication/1ea4e02d?page=25"> WORLD INVESTMENT TRENDS AND CORPORATE PERSPECTIVE</a> <a title="WIPR 2013 page 26" href="http://viewer.zmags.com/publication/1ea4e02d?page=26"> 21 | WORLD INVESTMENT TRENDS AND CORPORATE PERSPE</a> <a title="WIPR 2013 page 27" href="http://viewer.zmags.com/publication/1ea4e02d?page=27"> WORLD INVESTMENT TRENDS AND CORPORATE PERSPECTIVE</a> <a title="WIPR 2013 page 28" href="http://viewer.zmags.com/publication/1ea4e02d?page=28"> 23 | WORLD INVESTMENT TRENDS AND CORPORATE PERSPE</a> <a title="WIPR 2013 page 29" href="http://viewer.zmags.com/publication/1ea4e02d?page=29"> WORLD INVESTMENT TRENDS AND CORPORATE PERSPECTIVE</a> <a title="WIPR 2013 page 30" href="http://viewer.zmags.com/publication/1ea4e02d?page=30"> 25 | WORLD INVESTMENT TRENDS AND CORPORATE PERSPE</a> <a title="WIPR 2013 page 31" href="http://viewer.zmags.com/publication/1ea4e02d?page=31"> WORLD INVESTMENT TRENDS AND CORPORATE PERSPECTIVE</a> <a title="WIPR 2013 page 32" href="http://viewer.zmags.com/publication/1ea4e02d?page=32"> 27 CHAPTER TWO The Political Ris</a> <a title="WIPR 2013 page 33" href="http://viewer.zmags.com/publication/1ea4e02d?page=33"> 28 T he dramatic increase in political </a> <a title="WIPR 2013 page 34" href="http://viewer.zmags.com/publication/1ea4e02d?page=34"> 29 | THE POLITICAL RISK INSURANCE INDUSTRY </a> <a title="WIPR 2013 page 35" href="http://viewer.zmags.com/publication/1ea4e02d?page=35"> THE POLITICAL RISK INSURANCE INDUSTRY | 30 </a> <a title="WIPR 2013 page 36" href="http://viewer.zmags.com/publication/1ea4e02d?page=36"> 31 | THE POLITICAL RISK INSURANCE INDUSTRY bu</a> <a title="WIPR 2013 page 37" href="http://viewer.zmags.com/publication/1ea4e02d?page=37"> THE POLITICAL RISK INSURANCE INDUSTRY | 32 </a> <a title="WIPR 2013 page 38" href="http://viewer.zmags.com/publication/1ea4e02d?page=38"> 33 | THE POLITICAL RISK INSURANCE INDUSTRY Ac</a> <a title="WIPR 2013 page 39" href="http://viewer.zmags.com/publication/1ea4e02d?page=39"> THE POLITICAL RISK INSURANCE INDUSTRY | 34 </a> <a title="WIPR 2013 page 40" href="http://viewer.zmags.com/publication/1ea4e02d?page=40"> 35 | THE POLITICAL RISK INSURANCE INDUSTRY In</a> <a title="WIPR 2013 page 41" href="http://viewer.zmags.com/publication/1ea4e02d?page=41"> THE POLITICAL RISK INSURANCE INDUSTRY | 36 </a> <a title="WIPR 2013 page 42" href="http://viewer.zmags.com/publication/1ea4e02d?page=42"> 37 | THE POLITICAL RISK INSURANCE INDUSTRY </a> <a title="WIPR 2013 page 43" href="http://viewer.zmags.com/publication/1ea4e02d?page=43"> THE POLITICAL RISK INSURANCE INDUSTRY | 38 </a> <a title="WIPR 2013 page 44" href="http://viewer.zmags.com/publication/1ea4e02d?page=44"> 39 CHAPTER THREE Breach of Cont</a> <a title="WIPR 2013 page 45" href="http://viewer.zmags.com/publication/1ea4e02d?page=45"> 40 B reach of contract and regulatory </a> <a title="WIPR 2013 page 46" href="http://viewer.zmags.com/publication/1ea4e02d?page=46"> 41 | BREACH OF CONTRACT </a> <a title="WIPR 2013 page 47" href="http://viewer.zmags.com/publication/1ea4e02d?page=47"> BREACH OF CONTRACT | 42 Figure 3.1 Types</a> <a title="WIPR 2013 page 48" href="http://viewer.zmags.com/publication/1ea4e02d?page=48"> 43 | BREACH OF CONTRACT </a> <a title="WIPR 2013 page 49" href="http://viewer.zmags.com/publication/1ea4e02d?page=49"> BREACH OF CONTRACT | 44 new cases for breac</a> <a title="WIPR 2013 page 50" href="http://viewer.zmags.com/publication/1ea4e02d?page=50"> 45 | BREACH OF CONTRACT What we do and what w</a> <a title="WIPR 2013 page 51" href="http://viewer.zmags.com/publication/1ea4e02d?page=51"> BREACH OF CONTRACT | 46 </a> <a title="WIPR 2013 page 52" href="http://viewer.zmags.com/publication/1ea4e02d?page=52"> 47 | BREACH OF CONTRACT However, for investor</a> <a title="WIPR 2013 page 53" href="http://viewer.zmags.com/publication/1ea4e02d?page=53"> BREACH OF CONTRACT | 48 negative effect con</a> <a title="WIPR 2013 page 54" href="http://viewer.zmags.com/publication/1ea4e02d?page=54"> 49 | BREACH OF CONTRACT A terms-of-trade shoc</a> <a title="WIPR 2013 page 55" href="http://viewer.zmags.com/publication/1ea4e02d?page=55"> BREACH OF CONTRACT | 50 </a> <a title="WIPR 2013 page 56" href="http://viewer.zmags.com/publication/1ea4e02d?page=56"> 51 | BREACH OF CONTRACT Looking at the most i</a> <a title="WIPR 2013 page 57" href="http://viewer.zmags.com/publication/1ea4e02d?page=57"> BREACH OF CONTRACT | 52 Towards a better h</a> <a title="WIPR 2013 page 58" href="http://viewer.zmags.com/publication/1ea4e02d?page=58"> 53 | BREACH OF CONTRACT Ta</a> <a title="WIPR 2013 page 59" href="http://viewer.zmags.com/publication/1ea4e02d?page=59"> BREACH OF CONTRACT | 54 </a> <a title="WIPR 2013 page 60" href="http://viewer.zmags.com/publication/1ea4e02d?page=60"> 55 | WIPR 13 END NOTES 1 </a> <a title="WIPR 2013 page 61" href="http://viewer.zmags.com/publication/1ea4e02d?page=61"> WIPR 13 | 56 28 16 </a> <a title="WIPR 2013 page 62" href="http://viewer.zmags.com/publication/1ea4e02d?page=62"> 57 Appendices</a> <a title="WIPR 2013 page 63" href="http://viewer.zmags.com/publication/1ea4e02d?page=63"> APPENDICES | 58 Appendix 1 FDI Inflows, </a> <a title="WIPR 2013 page 64" href="http://viewer.zmags.com/publication/1ea4e02d?page=64"> 59 | APPENDICES Appendix 1 (cont'd) FDI</a> <a title="WIPR 2013 page 65" href="http://viewer.zmags.com/publication/1ea4e02d?page=65"> APPENDICES | 60 Ap</a> <a title="WIPR 2013 page 66" href="http://viewer.zmags.com/publication/1ea4e02d?page=66"> 61 | APPENDICES </a> <a title="WIPR 2013 page 67" href="http://viewer.zmags.com/publication/1ea4e02d?page=67"> APPENDICES | 62 Question </a> <a title="WIPR 2013 page 68" href="http://viewer.zmags.com/publication/1ea4e02d?page=68"> 63 | APPENDICES </a> <a title="WIPR 2013 page 69" href="http://viewer.zmags.com/publication/1ea4e02d?page=69"> APPENDICES | 64 </a> <a title="WIPR 2013 page 70" href="http://viewer.zmags.com/publication/1ea4e02d?page=70"> 65 | APPENDICES Question 6A. In which de</a> <a title="WIPR 2013 page 71" href="http://viewer.zmags.com/publication/1ea4e02d?page=71"> APPENDICES | 66 </a> <a title="WIPR 2013 page 72" href="http://viewer.zmags.com/publication/1ea4e02d?page=72"> 67 | APPENDICES </a> <a title="WIPR 2013 page 73" href="http://viewer.zmags.com/publication/1ea4e02d?page=73"> APPENDICES | 68 </a> <a title="WIPR 2013 page 74" href="http://viewer.zmags.com/publication/1ea4e02d?page=74"> 69 | APPENDICES </a> <a title="WIPR 2013 page 75" href="http://viewer.zmags.com/publication/1ea4e02d?page=75"> APPENDICES | 70 Question 12. To your kno</a> <a title="WIPR 2013 page 76" href="http://viewer.zmags.com/publication/1ea4e02d?page=76"> 71 | APPENDICES </a> <a title="WIPR 2013 page 77" href="http://viewer.zmags.com/publication/1ea4e02d?page=77"> APPENDICES | 72 Question 14. In your opin</a> <a title="WIPR 2013 page 78" href="http://viewer.zmags.com/publication/1ea4e02d?page=78"> 73 | APPENDICES </a> <a title="WIPR 2013 page 79" href="http://viewer.zmags.com/publication/1ea4e02d?page=79"> APPENDICES | 74 </a> <a title="WIPR 2013 page 80" href="http://viewer.zmags.com/publication/1ea4e02d?page=80"> 75 | APPENDICES </a> <a title="WIPR 2013 page 81" href="http://viewer.zmags.com/publication/1ea4e02d?page=81"> APPENDICES | 76 </a> <a title="WIPR 2013 page 82" href="http://viewer.zmags.com/publication/1ea4e02d?page=82"> 77 | APPENDICES </a> <a title="WIPR 2013 page 83" href="http://viewer.zmags.com/publication/1ea4e02d?page=83"> APPENDICES | 78 </a> <a title="WIPR 2013 page 84" href="http://viewer.zmags.com/publication/1ea4e02d?page=84"> 79 | APPENDICES Appendix 3 Bern</a> <a title="WIPR 2013 page 85" href="http://viewer.zmags.com/publication/1ea4e02d?page=85"> APPENDICES | 80 Appendix 3 (cont'd) Prag</a> <a title="WIPR 2013 page 86" href="http://viewer.zmags.com/publication/1ea4e02d?page=86"> 81 | APPENDICES Appendix 3 (co</a> <a title="WIPR 2013 page 87" href="http://viewer.zmags.com/publication/1ea4e02d?page=87"> INSURING INVESTMENTS r ENSURING OPPORTUNITIES</a> <a title="WIPR 2013 page 88" href="http://viewer.zmags.com/publication/1ea4e02d?page=88"> 1818 H Street, NW Washington, DC 20433 US</a>