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New in-depth reports from Maplecroft detail strategic, operational and labour risks in Armenia, Colombia and Poland

16/02/2011

Armenia

Maplecroft’s in-depth Country Risk Report on Armenia offers high-level analysis and maps of the country’s governance framework, corruption, regime stability, political violence, the regulatory and business environment, and the environment.

Despite constitutional reforms aimed at separation of powers, Armenia’s system of government is dominated by the executive, headed by President Serzh Sargsyan and his Republican Party (HKK). Whilst this provides for short-term stability and reduces the risk of governmental deadlock over legislation and policy, longer-term risks relating to low accountability do exist. Close connections between business and political elites persist, which may have reputational implications for companies operating in Armenia, such as appearing to support a political climate in which dissent is marginalised. There may be practical implications such as reduced operational efficacy and higher costs as a result of corruption and absence of level playing field where favoured elites control key industries.

Legislation and institutional structures for protection of biodiversity and natural resources has improved but poor implementation is also a key concern. Protected areas are not respected or monitored, economic development is prioritised over protection of the environment, and water and air quality are not effectively regulated. Failure to adhere to environmental regulations brings risks beyond damage to the environment, including complicity in corrupt or unlawful activity as well as reputational risks.

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Colombia

The Labour Standards Report on Colombia offers in-depth analysis for all major labour issues, country scores, maps, key recent events and stakeholder viewpoints, which help responsible companies better manage their risk.

There is a low rate of unionisation in Colombia, in part due to assassinations of trade unionists, which are often associated with the ongoing armed conflict. Union leaders have been targeted and assassinated for years at a dramatic rate. Colombia accounts for the highest incidence of union deaths worldwide and in 2008, 65% of all 101 unionists murdered worldwide were killed in Colombia.

The lack of unionisation, as might be expected in turn plays a part in the high rate of industrial accidents that occur, especially in Colombia’s coal mines. In 2010, 73 workers died in a methane gas explosion in a coal mine in Antioquia province. Several other fatal workplace accidents occurred in coal mines throughout the year and this report highlights the continued risk to extractive companies of industrial accidents due to poor enforcement of health and safety standards, the lack of training and the dearth of a safety conscious culture. Although workers are permitted to leave a workplace when a health and safety hazard is discovered, the lack of union protection discourages workers from doing so for fear of being dismissed.

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Poland

The Labour Standards Report on Poland offers in-depth analysis for all major labour issues, country scores, maps, key recent events and stakeholder viewpoints.

Poland’s most pressing labour standards issues include low wages and poor working conditions, both of which are aggravated by a high level of unemployment. Data from the National Labour Inspectorate indicate that whilst the effect of the crisis on the economy has not been as marked in Poland as in some European countries, firms are struggling and it has increased the numbers of fines levied for violations of worker rights, including wage arrears.

Concerted efforts in government policy had helped bring unemployment down from around 20% in 2002. It was falling until 2008 when it hit 7.1% for the year. It has now risen again to 13.1% in the 1st quarter of 2011. The European Employment Observatory has noted that because the size of the skilled workforce is outpacing the growth of skilled jobs, there could be an emerging skills mismatch in the Polish labour market.

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In-depth reports contain detailed analysis, country scores, maps, key recent events and stakeholder viewpoints. They are available for all countries, sectors and issues. Please contact info@maplecroft.com for more information.