Insurance broker Aon says the political-risk-exposure rating inits 2013 Aon Political Risk Map has improved for 13 countriesover the past year, a notable upgrade over last year's report, whenonly two nations had been upgraded. The number of nations that sawrating downgrades also dropped from 21 in 2012 to 12 this year.

The map measures political risk, political violence andterrorism in 163 countries and territories to help companies assesstheir risk levels for exchange transfer, legal and regulatory risk,political interference, political violence, sovereign non-paymentand supply chain disruption. New for this year, the map measurersbanking sector vulnerability, risk to fiscal stimulus and risk ofdoing business.

The following pages highlight the highs and lows of Aon'sratings and trends.

Europe'sPeriphery

Medium-High Risk Nations: 3

Medium Risk Nations: 6

Medium-Low Risk Nations: 2

Upgraded: Azerbaijan, Armenia, Belarus,Macedonia and Montenegro

Downgraded: Moldova.

Upgrades for five nations were the result structural reform toattract investment. However, persistent economic strains in Westernand Eastern Europe increased economic pressure on several regionalgovernments.

(AP Photo/Ilkin Huseynov)

The Middle East

Very High Risk Nations: 5

Medium-High Risk Nations: 2

Medium-Low Risk Nations: 2

Upgraded: Bahrain, Oman and United ArabEmirates (UAE).

The region dominated downgrades in 2012, but saw a reversal ofsorts in 2013 with three upgrades. The upgrades reflectstabilization and economic differentiation in the region, but Aonsays this could be a temporary situation because the region remainsfragile.

(AP Photo/Hasan Jamali)

Asia

Very-High Risk Nations: 1

High Risk Nations: 7

Medium-High Risk Nations: 7

Medium Risk Nations: 1

Upgraded: Pakistan, Thailand.

Downgraded: Turkmenistan, Uzbekistan.

Overall, the Asia region remains difficult to operate in, butthere were two countries that saw modest upgrades. For Pakistan,though, Aon notes that despite the upgrade, political violence andterrorism make the country a difficult environment to operatein.

(AP Photo/Sakchai Lalit)

Africa

Very-High Risk Nations: 8

High Risk Nations: 8

Medium-High Risk Nations: 7

Upgraded: Swaziland.

Downgraded: Algeria, Cameroon, Chad, Ethiopia,Madagascar, Mali and Namibia.

The African continent remains a hotbed of political-risk concernwith only two countries—Botswana and South Africa—rated asmedium-low risks. Most of the continent is rated high-risk orvery-high-risk.

(AP Photo/Sunday Alamba)

South America and Caribbean

Very-High Risk Nations: 2

High Risk Nations: 4

Medium-High Risk Nations: 8

Upgraded: Barbados and Guatemala.

Downgraded: Panama and Paraguay.

Strong economic growth supported improvement in two nations, butthe region still faces weakness in property rights, politicalviolence, corruption and weak rule of law.

(AP Photo/Moises Castillo)