Group
Discussions
Group
C:
Discussion
Outcomes
1.
Political Risks ●
Change in leadership ●
Result of ‘bad’ privatisation and PPP ●
Lack of transparency: -
Lead to political unrest -
Change of review/reversal ●
Interference/manipulation of the system by privatised players (MNCs) ●
Changing/Fluctuation legal commitment/political will ●
Political unrest ●
Nationalistic feeling/sovereignty issues 2.
Economic Risks ●
Unsuitable pricing policy/mismatch of demand & supply in the
long term ●
Global/regional economic crisis ●
Macro economic stability ●
Lack of good corporate governance ●
Unemployment --> trade unions --> social unrest ●
Adverse fluctuation in exchange rates 3.
Financial Risks ●
Valuation of assets: -
Less --> government loses -
More --> investors lose ●
Companies with huge liabilities with existing government
guarantees: -
Government exposed to risk -
Nature of the asset 4.
Social Risks ●
Quality of good/services ●
Lack of enforceable laws/faulty regulatory mechanism ●
Social unrest ●
Unaffordability/lack of the goods/services ●
Sense of relative depravation ●
Gap between expectations/fulfillment 5.
Institutional Risks ●
Lack of regulatory framework in place ●
Efficient judiciary ●
Stage of development of financial system/capital market 6.
Political Risks - Recommendations ●
Political will/commitment ●
Political reform: -
Good governmence -
Transparency/accountability ●
International regulations ●
Develop clear guidelines/procedures for privatisation and PPP ●
Massive PR/awareness
● Building of
political consensus 7.
Economic Risks - Recommendations ●
Sound economic policies ●
Early warning system (networking of information amongst financial
institutions) ●
Good corporate governance 8.
Financial Risks - Recommendations ●
Prudent/independent valuation of assets ●
Proper development of financial institutions 9.
Social Risks - Recommendations ●
Establish enforceable/good regulatory framework ●
Social security safety net ●
Establish standards/monitoring system ●
Reward/punishment
● PR Awareness
programme 10.
Institutional Risks - Recommendations ●
Proper regulatory framework ●
Proper development of financial system/capital market ● Efficient judiciary
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