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Firms with a position of market-dominance in Venezuela, particularly those related to the food sector, face increasing expropriation risks before the new Congress is sworn in.

On 25 October 2010, President Chávez announced the expropriation of the Venezuelan subsidiary of US-based glassmaker Owens-Illinois. Although President Chávez justified the move citing that the company had allegedly exploited Venezuelan workers for years, its takeover is in line with his promise of stepping up state control over the economy following the 26 September elections, in which he lost his

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Global Regulatory / Civil Unrest Risks: High grain and meat prices have raised regulatory risks and civil unrest risks across the developing world.

Rafael Gomes

Adverse weather, drought and a ban on all grain exports by Russia, extending upto December 2011, have led to a sharp spike in global grain and meat prices, raising civil unrest and associated political risks globally. Fire and drought in Russia reduced estimated wheat output for 2010 to 65 million tonnes, down over 25% from the 97 million tonnes produced

Pakistan – Contract/Regulatory Risk: Export controls are likely to be imposed on wheat and cotton in the six-month outlook, due to flood related supply shortage.

Rafael Gomes

Heavy flooding across Pakistan in July-August 2010 resulted in over 17 million acres of farmland being destroyed and over $3 billion in losses to the Pakistani economy, which is heavily dependent on agriculture. Pakistan’s agricultural belt is primarily spread across central Punjab and Sindh, areas that were among those worst-hit by the floods. Flooding has destroyed up to 20% of