Nepal less risky for investment

Nepal is listed as less risky but still dangerous country in the Terrorism Risk Index that lists world’s most dangerous countries based on the degree of terrorist threats.
The index published today has categorised 198 states — almost all the countries of the world — in four groups; most dangerous, less risky but still dangerous, moderate risk and the safest countries.
In August the analysts of Maplecroft — a British company specialising in assessing global risks — published the Terrorism Risk Index — the world’s most dangerous countries — that also reflects the investment image of countries.
International investors check the index before they invest in any of the country for the investment security.
"Nepal, however, being less risky has not been able retain minimum growth and failed attract any big multinational investment, Prof Dr Bishwambher Pyakuryel said, adding that there is a systemic error in the governance.
Without identifying systemic error, it will be difficult for policy intervention, he added.
In recent years, lack of internal capacity building, infrastructure bottlenecks, energy crisis and militant labour unions also spoiled the perspective of the foreign direct investment (FDI), though according to the central bank, Nepal has attracted FDI of Rs 6.06 billion in the first 11 months of the fiscal year 2010-11 compared to Rs 2.41 billion in the same period a fiscal year ago.
The closure of Surya Nepal garment unit, last month, has also sent a negative message to the world that the country is not safe for the investment, though the newly elected Prime Minister today vowed to take private sector in confidence top increase investment that could create more employment.
The premier’s guarantee of investment security could help build the investors’ confidence again.
Nepal with Turkey, Mauritania, Morocco, Egypt, Saudi Arabia, Kenya, Ethiopia and Myanmar are featured in the less risky but still dangerous category of second group.
According to the index, the USA, Canada, Australia, New Zealand, Germany and those countries which are not featured in other three categories are listed as the safest countries.
In the countries of the third group the risk is moderate. Greece, Great Britain, France, China, Peru, Paraguay, Libya, Niger, Mali, Indonesia Tunis, Bangladesh and Uganda are in the third group.
The first group includes the 20 most dangerous countries including Somalia, Pakistan, Iraq and Afghanistan.

Most dangerous countries
1) Somalia
2) Pakistan
3) Iraq
4) Afghanistan
5) South Sudan
6) Yemen
7) Palestinian Occupied Territories
8) DR Congo
9) Central African Republic
10) Colombia
11) Algeria
12) Thailand
13) Philippines
14) Russia
15) Sudan
16) Iran
17) Burundi
18) India
19) Nigeria
20) Israel