ECONOMICS

PRESENTATION
 World Bank Group
• Established on 27th December, 1945

• Headquartered in Washington, D.C.

• Vital source of financial and technical

assistance to developing countries around the
world.

• provide low-interest loans, interest-free credits

and grants to developing countries.
The World Bank's activities are focused on
developing countries, in fields such as:

• Human development

• Agriculture and Rural development

• Environmental protection

• Infrastructure

• Governance
• International Bank for Reconstruction and
Development (IBRD)

• International Development Association (IDA)

• International Finance Corporation (IFC)

• Multilateral Investment Guarantee Agency

(MIGA)

• International Centre for Settlement of

Investment Disputes (ICSID)
• One of the 5 agencies of the World Bank
group.

• Founded in 1988.

• Capital base of $1 billion.

• Headquarters at Washington D.C.

To promote Foreign Direct Investment (FDI) into
developing countries to help support economic
growth, reduce poverty, and improve people's lives.
MIGA's strength compared to private
providers of political risk insurance is
its membership of the World Bank
Group, which allows it to intervene
with host governments to resolve
claims before they are filed.
• Insuring investors and lenders against political risk,

• Advising governments on attracting investment,

• Sharing information through on-line investment

information services

• Mediating disputes between investors and

governments.

• Covering risks including breach of contract, currency

transfer restriction, & war and civil disturbance.
MIGA’s strategies focus on
specific areas:

1.Infrastructure development

2.Frontier markets

3.Investment into conflict-affected countries

4.Investment between developing countries

• MIGA helps investors and lenders deal
with political risks by insuring projects
against losses relating to:

1.Currency transfer restrictions

2.Expropriation

3.War and civil disturbance

4.Breach of contract

5.Non-honoring of sovereign financial obligations

 Currency Inconvertibility &
Transfer Restriction
• MIGA protects against
losses arising from an
investor’s inability to
legally convert local
currency into foreign
exchange and transfer
local currency or foreign
exchange outside the
country due to
government action or
failure to act.
• Protects against losses arising from
government actions that may reduce
or eliminate ownership of, control
over, or rights to the insured
investment.
 MIGA protects against
• Loss from,
• Damage to, or
• The destruction of tangible assets or total
business interruption caused by
politically motivated acts of war or civil
disturbance in the country, including
Revolution, Insurrection, Sabotage, and
Terrorism
• MIGA protects against losses arising
from the government’s breach or
repudiation of a contract with the
investor.
• Protects against losses resulting from
a government’s failure to make a
payment when due under an
unconditional financial payment
obligation or guarantee given in
favor of a project that otherwise
meets all of MIGA’s normal
requirements.
• Deterring harmful actions
• Resolving disputes
• Accessing funding
• Lowering borrowing costs
• Increasing tenors
• Providing extensive country knowledge
• Providing environmental and social
expertise