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Analyzing Political Risks in Developing Countries: A Practical Framework for Project Managers


  • Jha, Saumitra

    (Stanford University)


This paper illustrates a practical framework for understanding and predicting political economy risk for project managers operating in a variety of developing country settings, including non-democracies, ethnically diverse environments and societies undergoing political transition. In doing so, the paper also develops a number of novel cases illustrating the effectiveness of this framework in helping us understand both surprising success and failure in the realms of sustainable, private sector and human development. These cases include Tata Nano's difficulties in locating its automobile plant in West Bengal, how a small NGO, the Mehta Foundation, helped secure passage of green fuel mandates in Delhi over strong political opposition and the sustained success of Mexico's pioneering conditional cash transfer program--Progressa/Oportunidades--in an environment of dramatic political regime change.

Suggested Citation

  • Jha, Saumitra, 2011. "Analyzing Political Risks in Developing Countries: A Practical Framework for Project Managers," Research Papers 2094, Stanford University, Graduate School of Business.
  • Handle: RePEc:ecl:stabus:2094

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    References listed on IDEAS

    1. Kenneth L. Sokoloff & Stanley L. Engerman, 2000. "Institutions, Factor Endowments, and Paths of Development in the New World," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 217-232, Summer.
    2. Raghuram G. Rajan, 2009. "Rent Preservation and the Persistence of Underdevelopment," American Economic Journal: Macroeconomics, American Economic Association, vol. 1(1), pages 178-218, January.
    3. Joan Esteban & Debraj Ray, 2008. "On the Salience of Ethnic Conflict," American Economic Review, American Economic Association, vol. 98(5), pages 2185-2202, December.
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    Cited by:

    1. Jha, Saumitra, 2014. "‘Unfinished business’: Historic complementarities, political competition and ethnic violence in Gujarat," Journal of Economic Behavior & Organization, Elsevier, vol. 104(C), pages 18-36.

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