Multilateral Investment Guarantee Agency: Overview, History

The Multilateral Investment Guarantee Agency (MIGA) is an international financial institution that promotes foreign direct investment (FDI) into developing countries by providing political risk insurance (PRI) and other risk mitigation services. MIGA was established in 1988 as a member of the World Bank Group.

MIGA's PRI products help investors protect their investments against political risks, such as expropriation, war and civil disturbance, and currency transfer restrictions. MIGA also offers non-PRI services, such as technical assistance and training, to help developing countries attract FDI.

MIGA has a AAA credit rating from Standard & Poor's and Fitch Ratings. As of December 2021, MIGA had a portfolio of over $30 billion in insured investments in over 160 countries.

MIGA's history can be traced back to the early 1960s, when the World Bank began to explore ways to promote FDI into developing countries. In 1965, the World Bank established the International Finance Corporation (IFC), which provides loans and equity investments to private sector companies in developing countries.

In the early 1980s, the World Bank began to study the feasibility of establishing a multilateral agency to provide political risk insurance to investors in developing countries. In 1985, the World Bank established a working group to develop a proposal for such an agency.

The working group's proposal was approved by the World Bank's Board of Governors in 1987, and MIGA was established in 1988. MIGA's headquarters are located in Washington, D.C.

MIGA has been a successful organization in promoting FDI into developing countries. Since its inception, MIGA has insured over $30 billion in investments in over 160 countries. MIGA's insurance has helped to protect investors from political risks, and has helped to encourage FDI in developing countries.

MIGA is an important part of the World Bank Group's efforts to promote economic development in developing countries. MIGA's insurance products help to protect investors from political risks, and its non-PRI services help developing countries attract FDI. MIGA is a valuable resource for investors and developing countries alike.