Multilateral Investment Guarantee Agency
MIGA logo
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| Formation | 1988 |
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| Type | Development finance institution |
| Legal status | Treaty |
| Purpose | Political risk insurance, foreign direct investment |
| Headquarters | Washington, D.C. |
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Membership
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181 countries |
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Executive Vice President
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Keiko Honda |
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Parent organization
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World Bank Group |
| Website | miga.org |
The Multilateral Investment Guarantee Agency (MIGA) is an international financial institution which offers political risk insurance and credit enhancement guarantees. Such guarantees help investors protect foreign direct investments against political and non-commercial risks in developing countries. MIGA is a member of the World Bank Group and is headquartered in Washington, D.C., United States. It was established in 1988 as an investment insurance facility to encourage confident investment in developing countries. MIGA's stated mission is "to promote foreign direct investment into developing countries to support economic growth, reduce poverty, and improve people's lives". It targets projects that endeavor to create new jobs, develop infrastructure, generate new tax revenues, and take advantage of natural resources through sustainable policies and programs.
MIGA is owned and governed by its member states, but has its own executive leadership and staff which carry out its daily operations. Its shareholders are member governments that provide paid-in capital and have the right to vote on its matters. It insures long-term debt and equity investments as well as other assets and contracts with long-term periods. The agency is assessed by the World Bank's Independent Evaluation Group each year.
In September 1985, the Board of Governors of the World Bank endorsed the Convention establishing the Multilateral Investment Guarantee Agency. MIGA was established and became operational on April 12, 1988 under the leadership of then-Executive Vice President Yoshio Terasawa, becoming the fifth member institution of the World Bank Group. MIGA initially had $1 billion ($1.94 billion in 2012 dollars) in capital and 29 member states. All members of the International Bank for Reconstruction and Development (IBRD) were eligible to become members of the agency. MIGA was established as an effort to complement existing sources of non-commercial risk insurance for investments in developing countries, and thereby improve investor confidence. The agency's mandate to be apolitical has been said to be an advantage over private and national risk insurance markets. By serving as a multilateral guarantor, the agency reduces the likelihood of confrontations among the investor's country and the host country.
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Wikipedia