Risk Aversion Comes Home

October 2008 | Ratings Update

On October 6, 11,000 teachers in Gabon began to strike over rising living costs and unpaid salaries owed to them. The strike over rising living costs underscores the social instability fostered by inflation, and may make it more difficult for Gabon to end its generous fuel and food subsidies, which weigh on the fiscal balance. We currently give Gabon a score of 47.5 for the social stability component of our short-term political risk ratings, reflecting primarily a high unemployment rate. National strikes are very common, but violent unrest is relatively rare. The workers began negotiating with the government on October

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