At its 1985 Annual Meeting the World Bank’s Board of Governors approved the Convention Establishing the Multilateral Investment Guarantee Agency. The Convention will enter into force upon ratification by 5 capital-exporting countries and 15 capital-importing countries, if subscriptions of these countries total at least one third of MIGA’s authorized capital. MIGA could begin operations as early as 1986.
MIGA’s broad mandate is to stimulate capital flows to its member countries, particularly to its developing member countries. To this end it will issue guarantees for investments against noncommercial risk and, among other activities, conduct research and provide technical assistance and information on investment opportunities.
MIGA is not intended to displace national and private investment insurance programs already in effect in many developed and some developing countries. MIGA will be in a position to supplement these schemes through co-insurance and reinsurance. It will also concentrate on extending guarantees to investments not currently eligible for national or private coverage. Some of the salient features of MIGA are: