This volume is the latest in a series based on the MIGA (Multilateral Investment Guarantee Agency)-Georgetown University Symposium on International Political Risk Management, with contributions from ...experts from the international investment, finance, insurance, and legal fields. Highlights include a treatment of regulatory risk in emerging markets by three distinguished lawyers, a proposal for a new type of war risk insurance coverage, the examination of the risk management needs of the international power sector from both legal and user perspectives, and a discussion of the future of the international investment insurance industry by leading private and public sector industry representatives.
The document is an assessment of the impacts of a large sample of the Multilateral Investment Guarantee Agency (MIGA) assisted investments, reflecting to various degrees, the actual impacts in the ...twenty seven countries it operated. However, these differences should not mask the reality that, relative to the investment-specific anticipated impacts, these investments generally met, or exceeded the original anticipated impacts. For regardless of some difficulties, and failures, the broad positive impact of these projects is evident. The present analysis both encompasses, and extends the analysis of 1998, and, represents a comprehensive evaluation of the development impacts of foreign direct investments, ever undertaken by an investment insurer, offering a research that explores the nexus between private investment, and development across multiple dimensions, and time. A description of MIGA's development mandate is offered, as described in the Agency's Convention and Operational Regulations, and a brief overview of MIGA's growth since inception is provided, highlighting the increasing regional, and sectoral diversification of its portfolio. A comparison of anticipated, vs. actual benefits for some quantitative indicators is provided, as well as an analysis of impacts within a multidimensional framework. Two case studies are presented, and the lessons learned lay the foundation for future work.
The document is an assessment of the
impacts of a large sample of the Multilateral Investment
Guarantee Agency (MIGA) assisted investments, reflecting to
various degrees, the actual impacts in the ...twenty seven
countries it operated. However, these differences should not
mask the reality that, relative to the investment-specific
anticipated impacts, these investments generally met, or
exceeded the original anticipated impacts. For regardless of
some difficulties, and failures, the broad positive impact
of these projects is evident. The present analysis both
encompasses, and extends the analysis of 1998, and,
represents a comprehensive evaluation of the development
impacts of foreign direct investments, ever undertaken by an
investment insurer, offering a research that explores the
nexus between private investment, and development across
multiple dimensions, and time. A description of MIGA's
development mandate is offered, as described in the
Agency's Convention and Operational Regulations, and a
brief overview of MIGA's growth since inception is
provided, highlighting the increasing regional, and sectoral
diversification of its portfolio. A comparison of
anticipated, vs. actual benefits for some quantitative
indicators is provided, as well as an analysis of impacts
within a multidimensional framework. Two case studies are
presented, and the lessons learned lay the foundation for
future work.
Part One provides a first look from the
"supply side" at the reaction of the political
risk insurance market to September 11, 2001, the Argentine
economic crisis, and other recent corporate ...upheavals. This
section starts off with the public provider's
perspective, provided by Vivian Brown, Chief Executive of
the U.K.'s Export Credits Guarantee Department (ECGD)
and President of the Berne Union. Part Two explores the
reactions of investors and lenders to the recent upheavals
in the global economy. It pays particular attention to the
problems confronting large infrastructure projects, in which
purchase agreements are guaranteed by the host country, and
revenues are denominated in local currency. It examines how
political risk insurance can help lenders to return to
financing infrastructure development in emerging markets,
and asks to what extent investors and lenders need new
products or new kinds of coverage to deal with currency
crises. Part Three brings together Felton "Mac"
Johnston, President, FMJ International Risk; Charles Berry,
Chairman, Berry, Palmer & Lyle Limited; and Witold
Henisz and Bennet Zelner, Assistant Professors at Wharton
and Georgetown University respectively. Additional
commentary is provided by David Bailey, Vice President,
Sovereign Risk Insurance Ltd. and Edith Quintrell, Manager,
Insurance, at the Overseas Private Investment Corporation,
who provide perspectives on how the political risk insurance
industry might evolve to meet the needs of insurers and
reinsurers, on the one hand, and investors and lenders, on
the other.
This publication is the third in a
series of volumes based on the Multilateral Investment
Guarantee Agency-Georgetown University Symposium in
International Political Risk Management. Like its
...predecessors, this volume offers expert assessments of
needs, trends, and challenges in the international political
risk insurance industry. These assessments come from a dozen
senior practitioners from the investor, financial,
insurance, broker, and analytical communities. The volume
leads off by examining the lessons that can be learned from
recent investment losses, insurance claims, and
arbitrations. It then turns to consider what the future may
hold for coverage of project finance projects in emerging
markets as well as recent public-private collaboration
trends in the issuance of political risk insurance. It
concludes by reconsidering both old and new political risk
insurance products and innovations that seek to expand the
tools that international investors can utilize to mitigate
political risk abroad.
