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This chapter from the “World Investment and Political Risk 2010” report published by the Multilateral Investment Guarantee Agency focuses on the role that political risk perceptions play in influencing investment into conflict-affected and fragile economies.

The authors argue that countries considered fragile and prone to conflict
present unique challenges, caused not only by heightened risks of new or recurring political violence, but also by structural and institutional weaknesses. As a result, the volume and composition of foreign capital flows to these countries is significantly different from patterns observed in developing countries in general.