Tuesday 1 December 2009

Dubai—A Lesson In Why Transparency Matters

Dubai's troubles offer a warning of the perils of investing in places where leaders--whether of governments or companies--have limited accountability.

In fact, it raises questions about other investment destinations: China, for example.

One reason why markets continue to be jittery over last week's news of a standstill on property conglomerate Dubai World's debt is the lack of transparency surrounding it. That's a direct function of a closed political system that is not conducive to foreign investment.

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