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Understanding the World Bank Group: What is the MIGA?

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Understanding the World Bank Group: What is the MIGA?

July 2, 2021

Estimated reading time: 6 minutes

what is miga world bank

The World Bank Group (WBG) is the world’s largest multilateral development agency. While the World Bank is technically an agency of the UN system, it is truly independent and has different sources of funding. But how much do you know about the WBG?

In this article, we will show what is the MIGA and what is its role in the WBG – crucial information if you ever want to start a career at such an impactful IGO!

In pursuit of its mission, the OpenIGO network has prepared a comprehensive eBook and support and guidance services with the aim of highly increasing your chances of success in this competitive process.

Our comprehensive eBook will introduce you to the complex world of the World Bank Group and its approach towards international development, as well as will teach you how to prepare each of the documents required in detail, and will also get you ready for the interview and assessment center. This eBook was written and revised by a team of professors, human resources specialists, and former young professionals with a great deal of diligence.

In addition, we have developed support and guidance services. These services include revising your WBG YPP application documents (essay, curriculum vitae, and thesis/dissertation short summaries) and a mock interview as per the World Bank YPP model.

Having a mock interview with a professional who has extensive experience and knowledge of the World Bank YPP interview model will help you be better prepared for this phase, greatly increasing your chances of being selected for the desired vacancy.

WOULD YOU LIKE TO KNOW MORE ABOUT OUR World Bank YPP PRODUCTS & SERVICES?

WBG YPP – Products and Services

 

Want to discover how to write the perfect essay for the WBG YPP? Then check out our article on the topic!

 

Multilateral Investment Guarantee Agency (MIGA)

With the view of attracting foreign investments for developing nations by reducing political risks, the Multilateral Investment Guarantee Agency (MIGA) was created in 1988, becoming the fifth institution established by the World Bank Group.

Among the main objectives established by the convention creating this institution were to

a) issue guarantees, including coinsurance and reinsurance, against non-commercial risks in respect of investments in a member country that flow from other member countries;
b) carry out appropriate complementary activities to promote the flow of investments to and among developing member countries; and,
c) exercise such other incidental powers as shall be necessary or desirable in the furtherance of its objective.

MIGA’s place in the WBG

MIGA is the World Bank Group’s most recent agency, created with the aim of attracting private capital to unfavorable environments, usually countries with a lower level of income and in contexts that are unappealing for investments.

This agency works as a complement to the IFC, providing guarantees to foreign investors against so-called “political risks”, which are risks related to the country where the investment will be applied, such as:

• Losses related to currency convertibility (difficulties in converting local currency into dollars or euros) and transfer restrictions of the same nature;
• Countries in violent contexts (wars, etc.);
• Contractual violations by local governments which place the investment at risk;
• Seizure of private investors’ assets or properties and failure to meet financial obligations
on the part of the Host State.

The agency has four basic priorities with regards to supporting investments:

Investment in countries affected by violent conflicts (such as civil wars, rebellions and
terrorism, etc.);
• Investment in IDA eligible countries (low and lower-middle income countries, including
small island countries);
• Investment in highly complex projects with production potential (such as infrastructure and
mineral extraction); and,
• Support for South-South investments, to encourage the flow of capital between emerging countries.

In 2016, the organization issued USD 4.3 billion in guarantees to private investors, supporting projects in a wide range of sectors in order to produce results for development. Guarantees are a type of insurance lasting between 15 and 20 years, which cover the investor’s losses, protecting them against various kinds of risks.

The projects guaranteed by MIGA also help investors to obtain financing from banks and other business partners.

Among the high impact guarantees granted recently, are support for a mining project in Oyu Tolgoi (Mongolia); assistance for the Turk Eximbank; the creation of a power plant in Azura Edo (Nigeria) and renovations to the Hotel Marhabana in Mauritania

what is miga world bank

WBG’s composition

The WGB is comprised of five institutions. They are:

  • The International Bank for Reconstruction and Development (IBRD): The IBRD offers loans to governments of middle-income and creditworthy developing countries.
  • The International Development Association (IDA): The IDA provides concessional loans and grants to governments of the poorest developing countries. It should be noted IBRD and IDA together are referred at the World Bank.
  • The International Finance Corporation (IFC): The IFC is the world’s largest development institution focused entirely on the private sector.
  • The Multilateral Investment Guarantee Agency (MIGA): MIGA’s aim is to promote foreign direct investment into developing countries in order to foster economic growth and improve the quality of life.
  • The International Centre for Settlement of Investment Disputes (ICSID): The ICSID supplies international facilities for conciliation and arbitration of disputes between international investors and States.

Would like to know more about World Bank internship opportunities? Then check our WB Internships overview:

World Bank Internships Overview

In pursuit of its mission, the OpenIGO network has prepared a comprehensive eBook and support and guidance services with the aim of highly increasing your chances of success in this competitive process.

Our comprehensive eBook will introduce you to the complex world of the World Bank Group and its approach towards international development, as well as will teach you how to prepare each of the documents required in detail, and will also get you ready for the interview and assessment center. This eBook was written and revised by a team of professors, human resources specialists, and former young professionals with a great deal of diligence.

In addition, we have developed support and guidance services. These services include revising your WBG YPP application documents (essay, curriculum vitae, and thesis/dissertation short summaries) and a mock interview as per the World Bank YPP model.

Having a mock interview with a professional who has extensive experience and knowledge of the World Bank YPP interview model will help you be better prepared for this phase, greatly increasing your chances of being selected for the desired vacancy.

WOULD YOU LIKE TO KNOW MORE ABOUT OUR World Bank YPP PRODUCTS & SERVICES?

WBG YPP – Products and Services


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