The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.NEW YORK ( TheStreet) -- Political risk, rarely mentioned in the developed world, is alive and well in the developing world. The biggest challenge to investors is not that political risk, such as social unrest and regulatory change, exist. It is the unpredictability of when they occur. This is because data from public and private sources is unreliable or unavailable. The World Bank lists 162 developing countries. This article will focus on the large developing nations with independent seats at the G20, which amounts to the BRICS, plus 5. In order of economic size, this includes: China, Brazil, Russia, India, Mexico, Indonesia, Turkey, Saudi Arabia, Argentina and South Africa. Data is often unavailable in developing countries because the informal economy does not produce records -- in addition to income taxes and worker benefits. In South Africa, 65% of workers are estimated to work in the informal economy. In India, it is more than 85%. The World Bank estimates that in general, informal workers outnumber formal workers in developing countries.
|In India, more than 85% of workers are estimated to work in the informal economy.|