New Delhi: 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 the global risks.
On a list of 178 countries, Somalia has been named on the
top with highest exposure and least resilience, while other
BRIC countries, Russia, China and Brazil have been ranked
30th, 58th and 97th, respectively.
Among the ten countries most exposed and least resilient
to global risks, Somalia is followed by Congo, South Sudan,
Sudan, Afghanistan, Pakistan, Central African Republic, Iraq,
Myanmar and Yemen.
The report noted that high corruption, terrorism and
political violence are some of the most prevalent risks in
India and "threaten human security and business continuity,
while diverting valuable government resources and money."
"Continuing poor governance is evidenced by the endemic
nature of corruption, especially in India and Russia, where
the political process is undermined by an inability to tackle
the problem," the report said.
It further said that the political stand-off over a new
anti-corruption law between the ruling Indian National
Congress and the opposition Bharatiya Janata Party, both of
which have been hit by recent corruption scandals, has
severely disrupted law-making.
Maplecroft said that the 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.
Their strong economic growth in the last four years has
not translated into better societal resilience, which
constrains a country`s ability to adapt and combat potential
shocks from pandemics, conflict, terrorism, economic contagion
and impacts of climate change, Maplecroft said in its report
titled `The Global Risks Atlas 2012`.
This is despite the cumulative GDP growth between 2009
and 2012 of 16 per cent for Brazil, 13 per cent for Russia, 28
per cent for India and 32 per cent for China, it said.
"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.