abhishreshthaa
Abhijeet S
Functions of MIGA
MIGA is a member of the World Bank Group and membership is open to all World Bank members. The MIGA was created in 1988 to promote foreign direct investment into emerging economies to improve people’s lives and reduce poverty. MIGA fulfills this mandate and contributes to development by offering political risk insurance to investors and lenders, and by helping developing countries attract and retain private investment.
MIGA provides investment guarantees against non-commercial risks to eligible foreign investors for qualified investments in developing member countries. MIGA’s coverage is against the following risks, transfer restriction, expropriation, breach of contract, war and civil disturbance. MIGA insures new cross-border investments originating in any MIGa member country, destined for other developing member country. Projects supported by MIGA have widespread benefits:
- Local jobs were created
- Tax revenue was generated
- Skills and technological know-how were transferred.
- Local communities often receive significant secondary benefits through improved infrastructure, including roads, electricity, hospitals, schools and clean water.
- Foreign Direct Investment supported by MIGA also encourages similar local investments and spurs the growth of local businesses that supply related goods and services. As a result, developing countries have a greater chance to break the cycle of poverty.
- Since its inception MIGA has issued more than 500 guarantees for projects in 78 developing countries.
- The total coverage issued exceeds $9 billion, bringing the estimated amount of foreign direct investment facilitated since inception to more than $41 billion.
- MIGA’s technical assistance services also play an integral role in catalyzing foreign direct investment by helping developing countries around the world define and implement strategies to promote investment.
- MIGA develops and deploys tools and technologies to support the spread of information on investment opportunities.
- The agency uses its legal services to further smooth possible impediments to investment. Through its dispute mediation program, MIGA helps government and investors resolve their differences and ultimately improve the country’s investment climate.
- MIGA compliments the activities of other investment insurers and works with partners through its coinsurance and reinsurance programs to expand the capacity of the political risk insurance industry’s income. To date, MIGA has officially established 18 such partnerships.