TSXV:AAA.P - Post by User
Comment by
hakodateon Feb 24, 2011 8:48am
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Post# 18185822
RE: Security of Foreign Investment - MIGA
RE: Security of Foreign Investment - MIGAOne clarification to your post. The "25 countries whose governments could get crushed by food price inflation" is based on the Nomura Index. That index is based on the top 80 countries by GDP. Ethiopia didn't make the cut and therefore is excluded. However here is a comparison between Ethiopia and Bangledesh the worst country on the list.
Bangledesh: GDP/person $497, food as a percentage of spending 53.9%, food exports -3.3%
Ethiopia: GDP/person $345, food as a percentage of spending 58%, food exports -5.4%
So Ethiopia (and probably a lot of other countries not in the top 80) would score worse.
My food exports data for Ethiopia is a bit dated but probably not far off as Ethiopia still relies on food aid.
I am long AAA but Ethiopia has both plus and minus aspects as a country to invest in.