'India highly exposed to global risks'
A robust economic growth seems to have made little improvement to India's ability to withstand major external shocks, making it the most exposed and least resilient BRIC nation to the global risks.business Updated: Feb 20, 2012 22:36 IST
A robust economic growth seems to have made little improvement to India's ability to withstand major external shocks, making it the most exposed and least resilient BRIC nation to the global risks.
According to a study conducted by risk analysis firm Maplecroft, India has been ranked as the 19th most exposed and least resilient country worldwide to global risks on a list of 178 countries.
Somalia tops with the highest exposure and least resilience, while other BRIC countries, Russia, China and Brazil have been ranked 30th, 58th and 97th, respectively.
Risks such as high corruption, terrorism and political violence "threaten human security and business continuity, while diverting valuable government resources and money."
Maplecroft said in its report ‘The Global Risks Atlas 2012’ that BRIC countries have made little improvement in terms of societal governance and are no better placed to withstand major shocks and risks, despite their strong economic growth.
"With hopes for a global economic recovery resting with the BRICs, investors and business seeking new high-growth, high-risk markets need to be aware of their limited resilience to global risks," Maplecroft CEO Alyson Warhurst said.
Brazil however is "largely buffered" from the destabilising influences of global risks, than the other BRICs counterparts, owing to its to its strong democratic governance and regime stability.