Explain the role of the World Bank's Multilateral Investment Guaranty Agency in insuring losses from political risks
What will be an ideal response?
Since its inception in 1988, MIGA has provided political risk insurance guarantees to private sector investors and lenders. Its shareholders include most of the world's nation-states. Part of MIGA's mission is to share its research and knowledge about risk in a variety of sectors and geographic locations, with particular emphasis on investments in "difficult operating environments" and in places where it can make the greatest difference. MIGA emphasizes insurance in states eligible for assistance from the International Development Association, conflict-affected environments, complex transactions in infrastructure and extractive industries, and "south to south" investments (from one developing country to another).
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