- Business Monitor International Ltd www BMi ratings � Brief Methodology composite rating The composite rating is an unweighted geometric mean of the short-term political and short-term economy ratings, allowing a ranking of all countries in BMI s emerging markets universe. political ratings The political ratings are an indicator of political stability, seen as a pre-requisite for a stable economy and business environment. ...The factors considered include: the state of the national infrastructure, the education system, cronyism/ corruption, red tape, the legal framework, property rights, market access and the corporate tax regime. - Business Monitor International Ltd www BMI Ratings poLiticaL risK relative stability, But numerous risks We maintain the view that Jordan s long-term political outlook is among the most stable in the region, with the monarchy having implemented a series of political and economic reforms in recent years. Nonetheless, the social uprisings that emerged in the region since ---- are indicative of the threat that low living standards and lack of political freedoms pose to long-term stability. ...At the same time, disruptions to unrest in Syria and weak growth in a number of Jordan s key trading partners, particularly in Europe, have taken their toll on the export sector. That said, we expect economic activity to strengthen from ---- onward, on the back of progress on public investment projects � financed by grants from the Gulf Cooperation Council � and gradual improvements in domestic demand.
...BMi s ratings rank states in terms of political risk, the economy and the quality of the business environment. There are four ratings: a composite rating, a political rating, an economic rating and a business environment rating. ...A negotiated settlement to resolve the Israeli-Palestinian dispute remains highly unlikely. econoMic risK reliant on aid Both the PA and Hamas are reliant on external aid to support their budgets, and while the PA has made efforts to reduce its dependence on donors, we believe that process will take several years. The PA re- lies on aid flows from a large number of donors, including the US, EU, Japan, Canada and several Arab states. ...In the West Bank, there are controls on internal movement through the use of checkpoints, as well as high levels of red tape to prevent the development of large tracts of land. A lack of seaports and airports signifies that the West Bank, too, relies on Israel to be able to export goods.
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