Emerging social unrest threatens foreign investors

[Joanne98]

Source: Reuters

LONDON, Jan 15 (Reuters) - The threat of social unrest is growing across emerging markets as the financial crisis boosts unemployment and economic pain, with both the instability itself and government reactions threatening foreign investors.

Demonstrations were reported turning violent in Bulgaria and Latvia this week as well as China, potentially a sign of more to come with ruling coalitions coming under threat and future policy becoming unpredictable.

Analysts say governments from Eastern Europe to Asia are already bracing themselves for potential social upheaval, with more authoritarian leaders most willing to use force to hold their position but with investors also facing a range of policy shifts that could endanger their positions.

At the same time, if governments fail to contain discontent then that too would be negative for foreign money managers who have already yanked record amounts of money out of emerging markets last year giving emerging stock markets their worst performance on record.

"At a time when there is already less money in the system, this will really put people off," said Lars Christensen, head of emerging markets research at Danske Bank. "These events are happening because of the financial crisis but in some of these markets they are also going to make it worse."


Read more: http://uk.reuters.com/article/latestCrisis/idUKLF755477

[balantz]

1. Who will win? The elite with their robbed wealth, superior firepower and owned governments?

Or the hordes of millions upon millions of bodies crying out for justice?

[DCKit]

2. Who are these altruistic investors threatened with having their assets nationalized?

I can think of no higher calling than investing in third-world countries with repressive regimes. The benefits to the people of slave wages is highly underrated.

Teh little people can be so damn ungrateful.

:nopity:

[struggle4progress]

3. Bulgarians stage second day of anti-govt protests (Reuters)

By Irina Ivanova and Anna Mudeva

SOFIA, Jan 15 (Reuters) - Thousands of Bulgarians renewed calls for the government to resign over corruption and a host of economic problems, including a cut-off in gas supplies, in a second day of protests on Thursday.

Police deployed in large numbers in front of parliament to try to prevent a repeat of Wednesday's unrest in which rioters, including students and farmers, clashed with police and smashed windows in some of the worst violence in Sofia in 12 years.

"We want the government to step down," said student Adriana Ivanova, 23, one of the protest organisers. "We want a better life in Bulgaria and we are ready to keep rallying until we see a change."

Many Bulgarians say they are fed up with the quality of life in the Balkan country of 7.6 million, which has the lowest GDP per capita in the European Union ...

http://uk.reuters.com/article/latestCrisis/idUKLF747856