FT - MIGA Summit: Managing Global Political Risk
 

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MIGA was created in 1988 as a member of the World Bank Group to promote foreign direct investment into developing countries to support economic growth, reduce poverty, and improve people’s lives. MIGA fulfils this mandate by offering political risk insurance (guarantees) to investors and lenders, covering risks including expropriation, breach of contract, currency transfer restriction, war and civil disturbance, and non-honoring of sovereign financial obligations.

Projects supported by MIGA create jobs, provide water, electricity, and other basic infrastructure, rebuild collapsed financial systems, generate tax revenues, transfer skills and technological know-how, and help countries tap natural resources in an environmentally sustainable way. MIGA works actively with investors and host countries, helping to resolve disputes before they reach a claims situation.

The agency also offers technical assistance to its member countries and shares research and knowledge on political risk and foreign direct investment. Since its inception, MIGA has supported more than 700 projects in 100 developing countries, totalling more than $27 billion in coverage. MIGA’s gross exposure stands at $10.3 billion.