WASHINGTON, July 1, 2021 – The Boards of Directors of the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) have approved a new policy for the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism of IFC and MIGA. The Independent Accountability Mechanism (CAO) Policy, which becomes effective today, improves effectiveness of the complaints process in projects supported by IFC and MIGA, with an increased focus on outcomes for communities and IFC/MIGA clients, and responds to recommendations from an independent external review.
To understand how the Climate Change Action Plan will drive climate action in countries, we sat down with Bernice van Bronkhorst, the Bank’s Global Director for Climate Change; Genevieve Connors, Practice Manager, Climate Change Advisory and Operations; Vivek Pathak, Director and Global Head of Climate Business at IFC; and Merli Baroudi, Director of Economics and Sustainability at MIGA.
Global growth remains subdued, with the pace of investment and trade softening, and downside risks persisting due to policy uncertainty, trade tensions, financial volatility, and rising debt. The World Bank Group, in cooperation with the International Monetary Fund, can help emerging and low-income countries bolster potential growth, increase their resilience to shocks, boost domestic revenues, and continue building policy buffers. The two organizations have an important role to play in addressing the increase in debt vulnerabilities, and they can help countries meet a range of challenges to the international financial system, including tackling corruption.
Despite expectations that growth will be robust in the near term, developing countries face challenges to keep up the pace of progress and ensure inclusive, sustainable growth amid structural changes to the global economy. The World Bank Group is uniquely placed to address global challenges and help countries achieve their goals in today’s increasingly complex development landscape.
Global growth has strengthened over the past year, with a recovery in investment, trade, and commodity prices amid supportive global financial conditions. Still, downside risks remain, and prospects for growth vary widely across countries. The World Bank Group is uniquely positioned to help developing countries address the complex challenges that can threaten their gains in an increasingly interconnected global economy.
This was a key message from the Development Committee, a ministerial-level forum of the World Bank Group and the International Monetary Fund, in a communiqué issued at the close of the institutions’ Annual Meetings in Washington.
MIGA a member of the World Bank Group came to the Netherlands the 21st of June to give a presentation about their activities. MIGA contributes to the World Bank Group’s goals of ending extreme poverty and promoting shared prosperity by facilitating private investment into developing member countries and supporting projects that bring broad developmental impact. MIGA-supported investments help bring jobs, innovation, technology, and skills transfer.
A couple of weeks ago we posted a ‘did you know’ article to recap information we have shared on this blog. We think it’s time to do another one, so here is ‘did you know – part 2’.
- … the MIGA is one of the five pillars of the World Bank Group? The MIGA provides investment insurance against non-commercial risks.
- … this blog regularly posts tender opportunities which could be interesting to Dutch companies? In the past few months several World Bank projects in the health, agriculture, water and energy sector have been brought to the attention of our readers!
- … that in Fiscal Year 2014, measured by budget, the IFC was the largest pillar of the World Bank Group, financing projects for over $22 billion?
- … that every year the World Bank Group and the IMF organize their Spring Meetings together? From April 17th to 19th, 2015 this event took place here in Washington, DC.
- …..this year the Annual Meetings will be held in Lima Peru from October 9 – 11, 2015.
Again, just some facts for you to keep in mind when you read about the World Bank and especially when you want to do business with the World Bank Group!
Please contact us if you have any questions or concerns.
The Multilateral Investment Guarantee Agency (MIGA) is one of the five pillars of the World Bank Group, but its activities are slightly different compared to the World Bank and IFC. It provides political risk insurance to investors and lenders against losses caused by noncommercial risks. The noncommercial risks that can be insured under MIGA insurance are (1) currency inconvertibility and transfer restriction, (2) expropriation, (3) war and civil disturbance, including terrorism, (4) breach of contract and (5) the non-honoring of financial obligations. In this sense, the services provided by the MIGA can be compared to a part of the services provided on Dutch national level by Atradius Dutch State Business (however, MIGA does not provide export credit insurance).
The MIGA – Something for you?
Every Dutch company is able to request coverage by the MIGA as the Netherlands is a member state of the World Bank Group. The projects that can be covered have to take place in the 155 developing member states of the World Bank Group and typical political risk insurances from the MIGA comprise a minimum of 3 years and a maximum of 15 years or, occasionally, 20 years. The premiums for insurance are set based upon various elements such as country, sector, type of risk, etc. Note that as part of the World Bank Group, MIGA does have certain development criteria to which the investment project should adhere.