Page 270 - DMGT401Business Environment

Unit 12: International Monetary Fund

Multilateral Investment Guarantee Agency (MIGA) Notes

The Multilateral Investment Guarantee Agency, established in 1988, with an objective to create
an attractive investment climate and to encourage equity investment and other direct investment
flows to developing countries. MIGA offers investors guarantees against non-commercial risks
(political risk), advices developing member governments on the design and implementation of
policies, programmes, and procedures related to foreign investment and sponsors a dialogue
between the international business community and host governments on investment issues. To
promote FDI, MIGA provide three key services:
1. Political Risk Insurance: To promote foreign investment in developing countries.
2. Technical Assistance: To promote and create conducive climate for foreign investment
and to establish new investment opportunities in developing countries.
3. Dispute Mediation: It provides dispute mediation services to remove obstacles and to
unlock bottlenecks in the way of foreign investment.

International Centre for Settlement of Investment Disputes (ICSID)

The International Centre of Settlement of Investment Disputes came into existence in 1966 with
an objective to work as a facilitator in settlement of investment disputes between governments
and foreign investors. ICSID has an Administrative Council and Secretariat. The President of
World Bank is also the Chairperson of Administrative Council. All the members of ICSID are
also the members of World Bank. ICSID provides facilities for the conciliation and arbitration of
disputes between member countries and investors who qualify as nationals of other member
countries.

Asian Development Bank (ADB)

The ADBs equivalent of the World Bank's concessionary-finance arm IDA is called the Asian
Development Fund (ADF) and the Bank is known as Asian Development Bank. ADB is a
multilateral development finance institution dedicated to reducing poverty in Asia and the
Pacific region. ADB was established in 1966, and now has 4 members, mostly from the region.
The headquarters is in Manila and it has 26 other offices around the world.

ADB's development work is aimed at improving the welfare of the people of Asia and the
Pacific, especially of the 690 million poor living on less than a dollar a day.
ADB has the following objectives:

1. Economic Growth
2. Human Development
3. Gender and Development
4. Good Governance

5. Environmental Protection
6. Private Sector Development

Task Collect recent news about the IMF and the World Bank.

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