On the one hand the source of political risk and instability is indeed shifting between developed and emerging markets /Gillian Tett, FT, 2 October 2020/, but on the other hand we witness the emergence of two new groups of countries.
The first one tends to be a northern economy, with able governments, enlightened population and strong institutions. The second one tends to be a southern economy, with weak governments, divided population and decentralized institutions. There are exceptions to the rule, especially when a northern developed country does not enjoy the benefits of an able government.
This is a new geography for investors where the effectiveness of governments and central banks determine the results of handling both the pandemic and the future reconstruction of the economy.
Governor Matolcsy, MNB, the Central Bank of Hungary