Global Foreign Investment Insurance The Case of MIGA with Comparisons to OPIC and Private Insurance

The World Bank established the Multilateral Investment Guarantee Agency (MIGA) in 1985 as the first truly global agency which insures foreign investments against political risks. MIGA is now in its fifth full year of operations and has been more successful than originally forecast. This paper will discuss the formation of MIGA and includes an analysis of its operations to date. When appropriate, comparisons will be made between MIGA operations and those of the U.S. investment insurance agency, OPIC, the Overseas Private Investment Company, as well as private market insurers. Selected cases of MIGA guarantees are discussed in the paper.