Multilateral Investment Guarantee Agency
The Multilateral Investment Guarantee Agency (MIGA) is a member organization of the World Bank Group that offers political risk insurance. It was established to promote foreign direct investment into developing countries. MIGA was founded in 1988 with a capital base of $1 billion and is headquartered in Washington, DC. 175 member countries comprise MIGA's shareholders.[1]
MIGA promotes foreign direct investment into developing countries by insuring investors against political risk, advising governments on attracting investment, sharing information through on-line investment information services, and mediating disputes between investors and governments. MIGA's membership in the World Bank Group enables the organization to intervene with host governments to resolve claims before they are filed.[2]
Membership
Members of the MIGA include 174 members of the United Nations and the Republic of Kosovo.
Non-members are: Brunei, Sao Tome and Principe, Niger, Somalia, Comoros, San Marino, Bhutan, Myanmar, Tuvalu, Kiribati, Marshall Islands, Samoa, Cuba, North Korea, Andorra, Monaco, Liechtenstein, Nauru, Cook Islands, Niue, Vatican City and the rest of states with limited recognition.
MIGA's Business
MIGA provides guarantees against noncommercial risks to protect cross-border investment in developing member countries. The organization's efforts protect investors against the risks of currency inconvertibility and transfer restriction, in addition to expropriation, war, civil disturbance, and terrorism. MIGA also oversees breach of contract disputes for conflicts between the investor/project enterprise and the authorities of the host country.[3] These coverages may be purchased individually or in combination.
MIGA can cover only new investments. These include:
- new, greenfield investments;
- new investment contributions associated with the expansion, modernization, or financial restructuring of existing projects; and
- acquisitions involving privatization of state enterprises.
Over the years, the organization has provided more than $22 billion in political risk insurance for over 600 projects in 100 developing countries. Its outstanding guarantees portfolio stands at $7.7 billion. Among MIGA's accomplishments: it provides water, electricity and other basic infrastructure, in addition to generating tax revenues and creating training programs. MIGA also assists with the development of facilities to tap natural resources through sustainable policies and programs.
Izumi Kobayashi joined MIGA as Executive Vice President on November 24, 2008. James P. Bond occupies the position of Chief Operating Officer; Ana-Mita Betancourt is Director and General Counsel; Kevin Lu is Regional Director, Asia and Pacific; Thomas Hum is Acting Chief Financial Officer and Director, Finance and Risk Management; Ravi Vish is Chief Economist and Director, Economics and Policy; and Edith Quintrell is Director of Operations.
See also
- World Bank International Bank for Reconstruction and Development (IBRD)
- Multilateral aid
References
- ^ "MIGA Member Countries (175)". Retrieved 18 December 2010.
{{cite web}}: Text "date" ignored (help) - ^ "MIGA - Multilateral Investment Guarantee Agency". September 2008. Retrieved 18 December 2010.
{{cite web}}: Unknown parameter|source=ignored (help) - ^ Donovan, Patrick J. (2004). "Creeping Exportation and MIGA". Retrieved 22 December 2010.
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