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Who defines Risk? The Construction of Risk management in Foreign Infrastructure Investments in Low- and Middle-Income Countries.

Persson Sahlin, Ina LU and Larsson Mechouk, Alia LU (2026) STVK12 20261
Department of Political Science
Abstract (Swedish)
This thesis investigation examines how understandings of risk are constructed in decisions of foreign investments in infrastructure projects in low and middle income countries, using the sustainability Impact Accelerator at the International Council of Swedish industry as a case study. Drawing on constructivist theory and risk management frameworks, it combines a qualitative document analysis of IFC aligned standards, internal risk matrices, due diligence tools and external indices with semi structured interviews with SIA programme staff. The study shows that risk is not treated as a neutral, technical category, but is defined through international norms, Western development agendas and organizational mandates, which prioritize certain... (More)
This thesis investigation examines how understandings of risk are constructed in decisions of foreign investments in infrastructure projects in low and middle income countries, using the sustainability Impact Accelerator at the International Council of Swedish industry as a case study. Drawing on constructivist theory and risk management frameworks, it combines a qualitative document analysis of IFC aligned standards, internal risk matrices, due diligence tools and external indices with semi structured interviews with SIA programme staff. The study shows that risk is not treated as a neutral, technical category, but is defined through international norms, Western development agendas and organizational mandates, which prioritize certain environmental, social, governance and political risks while rendering others less visible. It finds that Swedish and international standards provide important safeguards and a common language, yet also simplify complex local realities and reinforce top down power relations in project governance. The analysis further demonstrates that those controlling finances and standard setting largely determine what counts as acceptable risk, thereby shaping investment priorities, partner selection and project design. The thesis concludes that risk is constructivist in nature and is largely context dependent and understandings lie in the hands of powerful actors sharing their definitions of acceptable risk, the thesis thus argues for a more locally grounded approach to risk management and mitigation. (Less)
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author
Persson Sahlin, Ina LU and Larsson Mechouk, Alia LU
supervisor
organization
course
STVK12 20261
year
type
M2 - Bachelor Degree
subject
keywords
Risk management, Complex environments, Risk governance, Development projects, Constructivism
language
English
additional info
Acknowledgements

This thesis would not be possible without the support of our supervisors at our respective internship that we have completed this semester. Therefore, we wish to extend our deepest appreciation to Johanna Parikka Altenstedt and Petra Fröderberg at RISE, and Evalena Persson and Annie Ross at NIR. Together with the rest of the teams at the organizations, they have provided us with invaluable insight into development work in practice and given us the opportunity to apply the knowledge we have gained through the BIDS programme in a professional setting.

Our time at RISE and NIR has introduced us to new perspectives, terminology and practical experiences that have formed a fundamental basis for this thesis, as well as marked an important first step into professional life work, which will be valuable for the rest of our careers within the field of development.
id
9227454
date added to LUP
2026-06-16 15:09:08
date last changed
2026-06-16 15:09:08
@misc{9227454,
  abstract     = {{This thesis investigation examines how understandings of risk are constructed in decisions of foreign investments in infrastructure projects in low and middle income countries, using the sustainability Impact Accelerator at the International Council of Swedish industry as a case study. Drawing on constructivist theory and risk management frameworks, it combines a qualitative document analysis of IFC aligned standards, internal risk matrices, due diligence tools and external indices with semi structured interviews with SIA programme staff. The study shows that risk is not treated as a neutral, technical category, but is defined through international norms, Western development agendas and organizational mandates, which prioritize certain environmental, social, governance and political risks while rendering others less visible. It finds that Swedish and international standards provide important safeguards and a common language, yet also simplify complex local realities and reinforce top down power relations in project governance. The analysis further demonstrates that those controlling finances and standard setting largely determine what counts as acceptable risk, thereby shaping investment priorities, partner selection and project design. The thesis concludes that risk is constructivist in nature and is largely context dependent and understandings lie in the hands of powerful actors sharing their definitions of acceptable risk, the thesis thus argues for a more locally grounded approach to risk management and mitigation.}},
  author       = {{Persson Sahlin, Ina and Larsson Mechouk, Alia}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Who defines Risk? The Construction of Risk management in Foreign Infrastructure Investments in Low- and Middle-Income Countries.}},
  year         = {{2026}},
}