Multilateral Investment Guarantee Agency (MIGA)
What Is the Multilateral Investment Guarantee Agency (MIGA)?
The Multilateral Investment Guarantee Agency is an international institution that advances investment in agricultural nations by offering political and economic risk insurance.
By advancing foreign direct investment into agricultural nations, the agency aims to support economic growth, reduce poverty, and work on individuals' lives.
Understanding the Multilateral Investment Guarantee Agency (MIGA)
The Multilateral Investment Guarantee Agency (MIGA) is a member of the World Bank Group and is settled in Washington, D.C. As of March 2020, 181 member state run administrations make up MIGA — 156 agricultural countries and another 25 industrialized countries.
A Brief History of MIGA
The agency was made to supplement both public and private investment insurance sources against non-commercial risks in agricultural nations. Its multilateral character and sponsorship by advanced and emerging countries were viewed as reinforcing certainty among individuals going across borders to invest their money.
In September 1985, the World Bank embraced the possibility of a multilateral political risk insurance provider and laid out MIGA in April 1988. The agency began with $1 billion worth of capital among its initial 29 member states. These nations included Bahrain, Bangladesh, Barbados, Canada, Chile, Cyprus, Denmark, Ecuador, Egypt, Germany, Grenada, Indonesia, Jamaica, Japan, Jordan, Korea, Kuwait, Lesotho, Malawi, Netherlands, Nigeria, Pakistan, Samoa, Saudi Arabia, Senegal, Sweden, Switzerland, United Kingdom, and the United States.
In 1991, the number of member states of MIGA bested 100. After eight years, guarantees issued by the agency arrived at a total of $1.3 billion, besting the $1 billion dollar mark out of the blue. The agency additionally gave guarantees worth $1.2 billion out of 2009 to support the economies in Europe and Central Asia following the global financial crisis.
What MIGA Does
MIGA offers different services to support foreign direct investment. These incorporate risk insurance against foreign exchange limitations, a flare-up of contentions or wars, forced spending limits, and related limitations on company assets.
As well as giving political risk insurance to corporations that need to invest in non-industrial nations, MIGA offers advisory services to emerging nation legislatures. The organization prompts on the policies and procedures these state run administrations ought to follow and the best ways these countries can draw in foreign investment. Different services by MIGA incorporate licensing arrangements, franchising, and technology support.
To assist with facilitating the flow of foreign investment dollars into certain districts, the agency supports and runs a number of international projects. One of those is the Afghanistan Investment Guarantee Facility, sent off in 2005. The agency's aim was to help the country in its reconstruction efforts while the country was entangled in the conflict by opening up the ways to direct foreign investment.
MIGA's Current Leadership Team
As per MIGA, individuals in its group have experience in political risk insurance and are knowledgeable in banking and capital markets, environmental and social sustainability, project finance and sector strengths, and international law and dispute settlement.
The group's current management team comprises of Hiroshi Matano, executive vice president and CEO, and S. Vijay Iyer, senior vice president and COO.
Features
- MIGA is a member of the World Bank Group and has 181 member states as of March 2020.
- The Multilateral Investment Guarantee Agency (MIGA) is an international institution that advances investment in agricultural nations by offering political and economic risk insurance.
- The agency aims to support economic growth, reduce poverty, and work on individuals' lives through foreign direct investment into emerging nations.
